EK Strategy
Dec 2, 2013 | 11:43 am
#16
Join Date: Jun 2012
Location: 30,000ft
Programs: EK, BA, EY, SQ, IHG, HH, SPG
Posts: 670
EK Strategy
Ghost you hit the nail on the head. As for armchair your long dissertation makes little sense to me and I also have plenty of experience In this field and indeed with EK and its holdco. Robbing Peter to pay Paul makes no sense in Dubai for exactly the reasons articulated above.
Dec 3, 2013 | 10:45 pm
#17
Join Date: Jun 2013
Location: Dubai
Programs: Emirates Platinum
Posts: 372
It's interesting how even an article on here made reference to Dubai's "oil-stained cheque books". Very poor fact-checking.
I also find the euro-centric 'western-airlines-compete-fairly-while-ME-ones-cheat' refrain very confusing v
I also find the euro-centric 'western-airlines-compete-fairly-while-ME-ones-cheat' refrain very confusing v
Dec 4, 2013 | 3:27 am
#18
Join Date: Sep 2011
Location: NAP
Programs: LH, BA, TK
Posts: 2,410
Dec 4, 2013 | 6:53 am
#19
Join Date: Jun 2013
Location: Dubai
Programs: Emirates Platinum
Posts: 372
I never suggested it was. But these are benefits all companies operating in the UAE take advantage of. It is not unique to EK. Why haven't we seen Emirati banks, for example, dominating the globe as a result? EK must be doing more than just taking advantage of in-kind subsidies.
These in-kind subsidies aren't even unique to Dubai. Most of the Middle East has them in some form. Why do QR, GF and until recently EY continue to lose money? And what is stopping BA from setting up a secondary hub in the UAE? Open Skies here as far as I'm aware.
The narrative should be about how European economies, while espousing ethos of decency and transparency, are becoming less competitive than many parts of the world. What irritates me is when EK gets singled out, while they have executed an excellent strategy with discipline and consistency for a long time. If pension funds are slowly killing the majors, why should people cry foul at EK for quite wisely choosing the sustainable approach?
Give credit where it is due is all I am saying.
These in-kind subsidies aren't even unique to Dubai. Most of the Middle East has them in some form. Why do QR, GF and until recently EY continue to lose money? And what is stopping BA from setting up a secondary hub in the UAE? Open Skies here as far as I'm aware.
The narrative should be about how European economies, while espousing ethos of decency and transparency, are becoming less competitive than many parts of the world. What irritates me is when EK gets singled out, while they have executed an excellent strategy with discipline and consistency for a long time. If pension funds are slowly killing the majors, why should people cry foul at EK for quite wisely choosing the sustainable approach?
Give credit where it is due is all I am saying.
Last edited by ghostwrita; Dec 4, 2013 at 7:03 am
Dec 4, 2013 | 8:43 am
#20
FlyerTalk Evangelist
Join Date: May 2007
Programs: BA Bronze
Posts: 12,083
I would imagine that EK's objectives are similar to QR's and EY's:
i) support the growth of DXB and the UAE by providing capacity for people to visit and transit
ii) represent DXB and the UAE around the world
iii) buy political support from DXB and UAE nationals by giving them an airline to be proud of (and the insurance option to carry them to safety when the region goes to war).
If it makes a profit at the company level whilst doing so then so much the better.
i) support the growth of DXB and the UAE by providing capacity for people to visit and transit
ii) represent DXB and the UAE around the world
iii) buy political support from DXB and UAE nationals by giving them an airline to be proud of (and the insurance option to carry them to safety when the region goes to war).
If it makes a profit at the company level whilst doing so then so much the better.