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-   -   Is Emirates a financial scam? (https://www.flyertalk.com/forum/emirates-skywards/1627541-emirates-financial-scam.html)

NOIR May 5, 2015 3:10 pm

Why isn't EK to worried about the US3 subsidy allegations very much?

http://khaleejtimes.ae/biz/inside.as...ness_May61.xml

Subsidy row won’t derail Emirates’ US expansion

irishguy28 May 5, 2015 5:09 pm


Originally Posted by iahphx (Post 24767986)
All I can say is that if there was real money to be made flying Indians to the USA, we'd have the US3 launching all sorts of nonstop service from their hubs and cleaning the clocks of the ME3.

So, basically, you are saying that the US3 are already operating non-stop service to every point in the globe that can be operated profitably. [Again, you continue to maintain that there is no such thing as a profitable connecting passenger. Which means it is rather odd that all airlines - including the US3 - offer a far greater range of tickets for sale for connecting itineraries, than they offer tickets having direct, non-stop service]. That means, therefore, that there are only something like 4 destinations in each of Africa and the Middle East, and 13 in Asia, that can be operated profitably. (No wonder the US airlines aren't ordering new planes - there are no viable international destinations unserved, so they don't need any more planes!)

You clearly know this to be incorrect.

But even if it were true, it shows that you know nothing about aviation economics. The US3 are high-cost and inefficient. Even if there were no routes remaining where they could not make a profit, this does not mean that leaner, nimbler, lower-cost airlines cannot run routes unserved by the US3 at a profit.

The US3 were never interested in the Indian market, instead preferring to dump these passengers onto their European partners.

You forget, again, that the US3 partners closely (to the extent that they need to apply to various governments for permission to collude in this way) with airlines having complementary networks that fill in those parts of the globe the US3 never had any interest in, whereas Emirates has no such partners (it doesn't need them, its geographical location at the crossroads of the continents means it can reach all points directly from its own hub. It has gradually, and organically, built up its network, spoke by spoke, with each new destination consolidating the attraction of the entire network, as the total number of possible one-stop city pairs accelerates past anything offered by any other alliance, let alone airline). Do you think Lufthansa would be happy if United started serving all of LH's Indian destinations themselves, rather than transferring these pax to LH at FRA or MUC???

If these Indian passengers can't be carried profitably directly, in your flat-earth US3 model, then they must be even LESS profitable when they are sent via a connection to a European partner. Can I ask - who is bearing this loss - is it United? Or Lufthansa? If US-India is so hopelessly unprofitable, why does UA even offer such tickets for sale?

edy4eva May 5, 2015 6:41 pm


Originally Posted by irishguy28 (Post 24771436)
If these Indian passengers can't be carried profitably directly, in your flat-earth US3 model, then they must be even LESS profitable when they are sent via a connection to a European partner. Can I ask - who is bearing this loss - is it United? Or Lufthansa? If US-India is so hopefully unprofitable, why does UA even offer such tickets for sale?

Because the US3 are legitimate carriers that use real US minted money and rely on top notch business acumen of three intelligent CEOs whose sole purpose in life is the profitability of their shareholders. Anyone (that includes LH/KL/AF/BA/etc.) not part of the club of 3 is a ninth class earthling that deserves to hunt and fight for the crumbles that fall from the club table.

The OP is only and will ever be dreaming of restrictions slapped on any entity.

If there were laws that punish ignorance and arrogance, I'd be first to prosecute, but then he's not worth the effort.

edy4eva May 5, 2015 6:42 pm

It's only fair to ask, apart from the OP, who else voted Yes? And how many of them are old timers on FT?

lokijuh May 5, 2015 8:34 pm

I just realised there are no nonstop services between OMA and PDX. Nor between MCI and SMF. Yet the major US carriers sell fares between the two cities, defying the basic laws of airline economics. how do they do that profitably?

UA1K_no_more May 5, 2015 9:02 pm


Originally Posted by lokijuh (Post 24772275)
I just realised there are no nonstop services between OMA and PDX. Nor between MCI and SMF. Yet the major US carriers sell fares between the two cities, defying the basic laws of airline economics. how do they do that profitably?

It's a scam, I tell you!

m3red May 5, 2015 9:33 pm


Originally Posted by NOIR (Post 24770770)
Why isn't EK to worried about the US3 subsidy allegations very much?

http://khaleejtimes.ae/biz/inside.as...ness_May61.xml

Subsidy row won’t derail Emirates’ US expansion

Because they are unfounded perhaps?!

NOIR May 6, 2015 1:22 am

Emirates eyes global expansion, further US routes.

Carrier plans to take on 27 new aircraft this year alone.

http://www.emirates247.com/business/...05-06-1.589767

moondog May 6, 2015 4:54 am


Originally Posted by NOIR (Post 24773362)
Emirates eyes global expansion, further US routes.

Carrier plans to take on 27 new aircraft this year alone.

http://www.emirates247.com/business/...05-06-1.589767

Atlanta could be interesting. :D

DYKWIA May 6, 2015 5:31 am


Originally Posted by moondog (Post 24773773)
Atlanta could be interesting. :D

QR have just announced ATL. It would be great if EK and EY did the same :)

washeelers747 May 6, 2015 5:45 am


Originally Posted by moondog (Post 24773773)
Atlanta could be interesting. :D

Heck yes because Richard Andersen likely to say something stupid again :D. We know EK like to show who's the boss.. Will be not shocked to see DXB-ATL sometime soon

NOIR May 6, 2015 6:00 am

If EK were to launch ATL I wouldn't be surprised if they start the route off with a bang, and have instant A380 service. Hell since they're subsidized why not multiple A380 service since they can afford to burn money.:D

Dieuwer May 6, 2015 7:47 am


Originally Posted by edy4eva (Post 24771787)
If there were laws that punish ignorance and arrogance,...

Libel and slander?


Originally Posted by UA1K_no_more (Post 24772388)
It's a scam, I tell you!

It's the subsidies! http://en.wikipedia.org/wiki/Essential_Air_Service

RadioGirl May 6, 2015 8:16 am

I'm not an aviation expert (thankfully), but I am an engineer and understand mathematics.

Originally Posted by Xlr (Post 24769435)
Eternaltransit covered the 'making money' aspect.

As to why would anyone fly EK:
EK has 10 US points (BOS/JFK/IAD/MCO/ORD/IAH/DFW/SEA/SFO/LAX) and 10 Indian points (DEL/AMD/CCU/BOM/HYD/BLR/MAA/COK/TRV/CCJ). Basic combinatorics means that EK can serve 100 city-pairs between the US and India. Take out UA's two nonstop flights and AI's four, and that is 96 city-pairs with no nonstop options that EK can serve with a single stop.

That (and similar sentiments upthread regarding hub-and-spoke) should have been an adequate explanation but given the OP's grasp of EK's route map, let me drag it out in excruciating detail.

EK can connect those 10 US cities with those 10 Indian cities with 20 routes:

10 from the US to Dubai: BOS-DXB, JFK-DXB, etc
+ 10 from Dubai to India: DXB-DEL, DXB-AMD, etc.

Non-stops run by the US 3 would require 100 routes:
10 from BOS (1 to each Indian city);
10 from JFK (1 to each Indian city);
10 from IAD (1 to each Indian city);
10 from MCO (1 to each Indian city);
10 from ORD (1 to each Indian city);
10 from IAH (1 to each Indian city);
10 from DFW (1 to each Indian city);
10 from SEA( 1 to each Indian city);
10 from SFO (1 to each Indian city);
10 from LAX (1 to each Indian city).

So, five times as many routes to offer non-stop rather than single stop. I don't have (she said again) a degree in aviation management, but there's no way that offering 100 routes is more efficient than 20.

Further, a non-stop solution requires the airline to fill up (as the OP keeps telling us) a whole plane of people in BOS who want to go to CCJ, and a whole plane of people in DFW who want to go to HYD. Taking just the India/US market, the EK one-stop model lets EK fill up (in MCO) a plane load of people who want to go to any of 10 Indian cities, and a plane of people (in EK) arriving from 10 US cities who want to go to TRV.

The 100 route non-stop solution above further assumes that the people in BOS, JFK, etc only want to go to India, and not to Africa, the ME, Asia or Europe, and that the people in India only want to go to the US and not to Europe, the ME, Asia, or Africa. But of course, EK flies to more than the US and India, so some of those people on BOS-DXB will continue DXB-BOM, and others will continue to Africa, or elsewhere in the ME, or Asia or even (:eek:) stay in DXB.

Originally Posted by Fredrik74 (Post 24769557)
This is borderline racist. In your little world Americans always knows best and Americans provide the best services. You still don't understand that Aliens buy the vast majority of tickets in the world. It's not the relatively insignificant markets of NAFTA that matters but the rest of the world.

Well, to be fair it's not just Indians; he's also racist about the ME:

Originally Posted by iahphx (Post 23822993)
There are no other airlines that operate like this is the world -- even in countries with large populations and sophisticated economies. Why would you think it's not fishy? Are these Middle Eastern countries known for their financial prowess? No -- they're known for ridiculous oil wealth and ridiculously wealthy non-democratic rulers.

... and ignorant about Africa:

Originally Posted by iahphx (Post 24762215)
BTW, I don't really know about Africa yields because the USA airlines have little lift there but, with the ebola scare, I'm sure they're not positive.

Note to the OP: Countries-that-are-not-the-US now have airplanes (and cars, electricity, color television, indoor plumbing, and the internet). You really need to get out and see the rest of the world.

NOIR May 6, 2015 9:00 am

A little off topic, but I'm still going to post that UAE citizens now have a Schengen visa waiver. This just shows that the ties between the UAE, and EU have just gotten stronger. We heard talk that the EU might jump on the band wagon, and start clamping down on EK expansion. This is just a sign if you ask me that the opposite might happen.

http://gulfnews.com/news/uae/governm...atis-1.1506017


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