View Poll Results: Is Emirates A Financial Scam?
Yes
27
15.52%
No
106
60.92%
Dont care
35
20.11%
Undecided
6
3.45%
Voters: 174. You may not vote on this poll
Is Emirates a financial scam?
#2116
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#2117
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#2118
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With regard to reference to the so-called German masters of the universe purchase habits to try to critique EK, note that Team Contra-EK don't have proof of EK being a financial scam; so their reliance is upon "evidence" that is just "evidence" but not legitimate, conclusive proof of EK being a financial scam. That kind of mud-slinging approach (to throw mud and hope at least some of it sticks) might work on the uneducated and otherwise ignorant/gullible, but it doesn't move me.
It is just to good to be true...
Isn't it amazing that EK made money all those years and that the actual loads were always a bit higher than they had to be (in order to keep the fairy tale alive)
Last edited by FD1971; May 20, 2015 at 12:22 pm
#2119
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Again, you fail to understand my motivation. I know what is going on, it would be sad if it wasn't the case..., I just want to make sure that some of the posters without access to my sources and without a background in (Airline) Management understand what is going on, in case they care.
I don't doubt that EK's long-term viability is questionable, given some of the choices it has made and continues to make. However, I would make that statement about some of the US3 as well. Sure, they are making great profits today, but the history of bankruptcies in US airlines doesn't lead me to trust that their current rosy picture is any more sustainable than that of EK.
#2120
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But this is where you are failing, because you don't make a case, you just keep saying 'it's too good to be true.' In fact, your posts are counterproductive, because by failing to make a case, it makes people wonder whether there is a case to be made.
I don't doubt that EK's long-term viability is questionable, given some of the choices it has made and continues to make. However, I would make that statement about some of the US3 as well. Sure, they are making great profits today, but the history of bankruptcies in US airlines doesn't lead me to trust that their current rosy picture is any more sustainable than that of EK.
I don't doubt that EK's long-term viability is questionable, given some of the choices it has made and continues to make. However, I would make that statement about some of the US3 as well. Sure, they are making great profits today, but the history of bankruptcies in US airlines doesn't lead me to trust that their current rosy picture is any more sustainable than that of EK.
We saw the same at FIFA, but I believe that there are still people out there who believe that Russia and Qatar were awarded the World Cup, because they had the best concept.
Obviously, at least for some people, running a Soccer World Cup in the desert in summer is as smart as flying A380 halfway around the World with low yield pax.
I really do not intend to make fun of these people, but it really hurts me when people are not able to grasp what is really going on...
I saw many airlines going down, because they simply did not understand what is happening around them and what is necessary to survive.
And, of course, on forums like FT, you will always find their fans who argue that DL will never fail, that the financial turnaround of AB is just around the corner of the Saatwinkler Damm in Berlin and that the GDR will prosper, because Kohl promised it during the election campaign.
P.S.
I do not have to make a case, at this point in time the ME3 should answer the case brought up by the US3 first...
#2121
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Giving benefit of doubt to your self professed expertise. I still think what eternal has raised with facts and figures obtained from non-partisan sources, gives him far more credibility in pointing out that EK's model of low margins is feasible.
However I do agree that for the industry, this can pose a real challenge as no public company will ever agree to such low margins and heavy leverage. I'm not sure if EK is sustainable in the long run if a major downturn occurs.
#2122
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But isn't there a bit of the pot, kettle, black in that. Why should the ME3 have to prove they are purer than the driven snow when their accusers look like chimney sweeps (other than for political rather than real level playing field reasons)? That is the reason why I ended up voting 'I don't care'. There have been so many shenanigans in the airline industry - so many companies that have received either direct subsidies from governments or indirect ones in the form of bankruptcy protection and lack of anti-trust controls that it is impossible to level the playing field, short of bulldozing the whole thing and starting from scratch. It looks like a WWI battle field out there.
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http://www.flyertalk.com/forum/emira...avy-ek202.html
I see that you keep bringing up FIFA and their tournaments again and again as an attempt to deflect from the fact that you haven't provided ANY information to back up your snooty "trust me, I'm an expert, so I don't have to provide any proof for my allegations" line of reasoning. It didn't work the first time, and it won't work in the future, no matter how many times you try.
Your propeller-era airline management degree may be useful if you are trying to analyze Buffalo Airways' strategy, but this thread is about an airline operating jet aircraft, and you have not presented anything even closely resembling proof to back up your self-professed "expertise."
Based on the "expertise" you have presented in this thread, you are to aviation management what Milli Vanilli was to singing...
Last edited by UA1K_no_more; May 20, 2015 at 2:15 pm
#2124
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Milli Vanilli usually sounded good enough to satisfy diverse audiences; and, they were usually coherent and consistent performers, until the show collapsed.
#2125
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The came off as skilled singers until they were required to prove their singing expertise. Until then, it was all "Trust us, we can sing. No need to prove it by singing live. If we say we can sing, we can sing." Sounds like a certain self-professed aviation management "expert"...
#2126
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Not a point to be made if you're trying to strengthen your case, friend.
Last edited by knit-in; May 20, 2015 at 5:20 pm
#2127
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Irish, I really do not care so much about irrelevant facts. As pointed out before, we have ample evidence that a high market share might have positive consequences for the companies involved and we also have a lot of evidence that high market share might not be enough. According to LH, most of their domestic network was not profitable, despite owning the market.
As pointed out so often, traffic to and from India has been great for LH and KL as part of their mix on highly profitable TATL routes. The Standard for Excellence is still KL/NW and not even Lufty achieved that kind of partnership across the pond.
It was highly profitable for both KL and NW and both were taken over by airlines with a far less impressive track record financially, two of the all time loss leaders, Delta and Air France.
Remember, DL lost more than $5 Billion in a single year once, 3 of them came from ops.
Even Qatar and Etihad look awfully good against that amount of money...
But again, being able to fill a plane is one thing, making money on this flight is a completely different story...
As pointed out so often, traffic to and from India has been great for LH and KL as part of their mix on highly profitable TATL routes. The Standard for Excellence is still KL/NW and not even Lufty achieved that kind of partnership across the pond.
It was highly profitable for both KL and NW and both were taken over by airlines with a far less impressive track record financially, two of the all time loss leaders, Delta and Air France.
Remember, DL lost more than $5 Billion in a single year once, 3 of them came from ops.
Even Qatar and Etihad look awfully good against that amount of money...
But again, being able to fill a plane is one thing, making money on this flight is a completely different story...
That could also be said to an extent to much of the EU (I have no problem of going to Switzerland/France/Holland/Austria by rail easily from Germany that only requires slightly longer travel time, and is much cheaper.)
#2128
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Just a small hint, you should take a look at the proposed dates during the election process, not the amended dates after everybody told them that there idea is, how can I put it objectively, the most stupid idea in the history of sports ever...
BTW, what is biggest myth in this circumstance, subsidies for Emirates or Doping in Cycling?
There are a bit faster than Amtrak though, so we get your point...
#2129
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They are, when the train drivers are not striking!
#2130
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But isn't there a bit of the pot, kettle, black in that. Why should the ME3 have to prove they are purer than the driven snow when their accusers look like chimney sweeps (other than for political rather than real level playing field reasons)? That is the reason why I ended up voting 'I don't care'. There have been so many shenanigans in the airline industry - so many companies that have received either direct subsidies from governments or indirect ones in the form of bankruptcy protection and lack of anti-trust controls that it is impossible to level the playing field, short of bulldozing the whole thing and starting from scratch. It looks like a WWI battle field out there.
To make myself clear, I do not compare the losses for EK from ops. with the losses for TAP, when they operated nonstop between Lisbon and Macau (which was probably the most stupid idea in Aviation ever and rivals the most stupid idea in Soccer ever, which brings us back to the Middle East...)
We simply moved on, when everybody was highly subsidized, it was perfectly okay, we had strict BASAs detailing almost everything, fares were set up, IATA seperated the more complicated itenaries, all airlines lost amazing amounts of money flying 20,30% loads and that was it.
After painful deregulation and consolidation in markets like Canada, the US and Germany, the authorities are simply stricter, on the other hand, the US waited until the EU market was deregulated before they started deregulating the TATL market connecting both regions. For those not familiar with the industry, most of the apologist, the history of frequencies between the Netherlands and the US is a good read to get yourself informed.
And we all know that Emirates stated multiple times that they want to be like Pan Am, KLM and SQ, so it is perfect literature.
And now we are coming back to the argument presented by the US and EU more recently, both want new agreements with the Middle East (which will very likely curtail the capacity offered by the ME3) so in order to prevent the cuts the ME3 have to become way more transparent, otherwise they will lose out (like in Canada already)
Probably another chance for Dubai to get back at Canada like they did earlier this decade, when Canada did not increase the frequences, which does not bring us back to Soccer, more to playgrounds of a Kindergarten...