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?
#16
Join Date: Sep 2014
Posts: 37
And as for your comment about staff costs being immaterial - I would hardly call the 2nd biggest cost that all airlines, not just EK have being staff costs immaterial. This includes retiree benefits: the fact that retiree obligations at US legacy carriers were a major factor in their bankruptcy (before aCEnd after) I think. is testament to that. The basic fact of airline economics in the past 50 years has shown that labor conditions and therefore costs has been one of the major impediments to profit margin: the success of LCC shows this.
#17
Join Date: Nov 2013
Posts: 5,454
This isn't a joke btw (at least that was my understanding two years ago).
For comparison, the standard at EK is 3 year rolling contracts (as work permits expire every 3 years in the UAE). However, EK has a high enough turnover of cabin crew for them not to impolitely terminate someone at mid 30s for being too old - or at least, it doesn't seem to be the norm - most younger staff at ME airlines I think leave in their 30s for another career/actual career.
#18
Join Date: Sep 2014
Posts: 37
My GF is over 40 but they still weigh her to make sure she fits her uniform when required. Keeps her on her toes and slim for me! She is not EK or QR.
#19
Join Date: Jun 2011
Location: United Kingdom
Programs: Skywards Blue :-(, HHonors Gold, SPG Gold, GHA Platinum
Posts: 2,531
Thanks for the comments. But I remain 100% convinced that Emirates could not make money flying these flights from the USA. Dubai is simply an illogical connecting points for most destinations from the USA. As I said, the only major connecting market is India. Otherwise, the geography is simply wrong.
The population of Dubai is only 2 million -- about the same as Budapest which, to my knowledge, has zero nonstop flights to the USA from ANY city. On "real economics" -- the economics that would apply to a USA airline -- MAYBE this flight would work from NYC. That's about it.
Emirates does not partner with any of the 3 world alliances. That would cause most American businessmen to fly other airlines. There would also be a natural booking away from Middle East airlines: indeed, while I would appreciate the service on Emirates, I honestly wouldn't be looking for a reason to fly them to connect to someplace else. I think at least 95% of Americans would feel the same (and probably the majority of high elite status USA frequent flyers).
The vast majority of the cost of this route would be aircraft and fuel. I don't care what they pay their staff -- it would be largely immaterial.
There is obviously squirrelly mathematics going on with these Middle East airlines. If the rest of the world operated like this, there would be several dozen of A380 flights from the USA to Europe every day. This level of service doesn't exist because no one is picking up the tab for it.
The population of Dubai is only 2 million -- about the same as Budapest which, to my knowledge, has zero nonstop flights to the USA from ANY city. On "real economics" -- the economics that would apply to a USA airline -- MAYBE this flight would work from NYC. That's about it.
Emirates does not partner with any of the 3 world alliances. That would cause most American businessmen to fly other airlines. There would also be a natural booking away from Middle East airlines: indeed, while I would appreciate the service on Emirates, I honestly wouldn't be looking for a reason to fly them to connect to someplace else. I think at least 95% of Americans would feel the same (and probably the majority of high elite status USA frequent flyers).
The vast majority of the cost of this route would be aircraft and fuel. I don't care what they pay their staff -- it would be largely immaterial.
There is obviously squirrelly mathematics going on with these Middle East airlines. If the rest of the world operated like this, there would be several dozen of A380 flights from the USA to Europe every day. This level of service doesn't exist because no one is picking up the tab for it.
Moreover quite a few residents of the other GCC countries in the region prefer to connect via DXB since they prefer emirates over their flag carriers.
#20
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Posts: 1,496
Adding to an already excellent analysis by CaptainEKAirbus and eternaltransit:
Just so you know that EK is considered the official airlines of...India. The vast amount of westward traffic from the subcontinent, alone is enough for them to keep filling these A380s. It was a huge opportunity lost for several Asian carriers , including SQ/MH/TG.
Just so you know that EK is considered the official airlines of...India. The vast amount of westward traffic from the subcontinent, alone is enough for them to keep filling these A380s. It was a huge opportunity lost for several Asian carriers , including SQ/MH/TG.
Last edited by ashkale; Nov 10, 2014 at 5:21 pm
#21
Join Date: Sep 2014
Posts: 37
Some but not all. Some will do several years' before a ticket home, particlarly Bangladeshis and others from umremarkable parts of the world.... Many will earn life changing money... some won't, for some will be a road to nowhere...
#22
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2000
Posts: 17,427
All this blather about "connections" in Dubai is nonsense. Who's making these connections? The number of USA businessmen making connections in Dubai on any given day has got to be tiny. Where are they going to? Nobody in the airline industry has EVER had success running a hub without strong O/D traffic. It's impossible, since you always make most of your money on high value nonstop business travel. This is Airline Economics 101. There is no way that hordes of USA businessmen are going to get off these flights and connect to other destinations. That's beyond fantastical.
I'm sure Emirates attracts plenty of friends and family tourists visiting their home countries, but these tourists traveling on low fares don't pay the bills. And there are only so many sheiks.
I feel bad for an airline like Qantas which obviously suffers geographically from what would otherwise be a good business of shuttling people between Europe and Australia. There is obviously not a real geographical problem for USA airlines as the only real casualty is fewer nonstop flights to India.
Which of course leads to the next obvious question: why are there tons more nonstop flights to the Middle East from the USA than India? It's obviously not because Middle Eastern airlines are better at running their businesses than US airlines, and people prefer to stop. It's because there's something VERY messed-up with the economics of these Middle Eastern airlines. They are wholly different than the economics of any other airlines in the world.
#23
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Join Date: Aug 2012
Location: New York
Programs: EK Plat, UA GS, Hyatt Diamond, SPG Platinum, Marriott Platinum, Amex Centurion
Posts: 514
If there is no nonstop flights to places like BKK from NY, how do you expect us to get there? Thats where EK plays a huge role. Connecting places where there aren't nonstop flights to.
#24
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Join Date: Sep 2010
Location: Auckland NZ
Programs: SQ TPPS, EK Gold, IHG RA, Marriott Gold Hyatt Diamond, HHonors Gold, UA Premier Gold, TG Silver
Posts: 1,092
Yes, it's my opinion, but I've worked as an analyst in this industry for decades, and there's nothing like this in the world.
All this blather about "connections" in Dubai is nonsense. Who's making these connections? The number of USA businessmen making connections in Dubai on any given day has got to be tiny. Where are they going to? Nobody in the airline industry has EVER had success running a hub without strong O/D traffic. It's impossible, since you always make most of your money on high value nonstop business travel. This is Airline Economics 101. There is no way that hordes of USA businessmen are going to get off these flights and connect to other destinations. That's beyond fantastical.
I'm sure Emirates attracts plenty of friends and family tourists visiting their home countries, but these tourists traveling on low fares don't pay the bills. And there are only so many sheiks.
I feel bad for an airline like Qantas which obviously suffers geographically from what would otherwise be a good business of shuttling people between Europe and Australia. There is obviously not a real geographical problem for USA airlines as the only real casualty is fewer nonstop flights to India.
Which of course leads to the next obvious question: why are there tons more nonstop flights to the Middle East from the USA than India? It's obviously not because Middle Eastern airlines are better at running their businesses than US airlines, and people prefer to stop. It's because there's something VERY messed-up with the economics of these Middle Eastern airlines. They are wholly different than the economics of any other airlines in the world.
All this blather about "connections" in Dubai is nonsense. Who's making these connections? The number of USA businessmen making connections in Dubai on any given day has got to be tiny. Where are they going to? Nobody in the airline industry has EVER had success running a hub without strong O/D traffic. It's impossible, since you always make most of your money on high value nonstop business travel. This is Airline Economics 101. There is no way that hordes of USA businessmen are going to get off these flights and connect to other destinations. That's beyond fantastical.
I'm sure Emirates attracts plenty of friends and family tourists visiting their home countries, but these tourists traveling on low fares don't pay the bills. And there are only so many sheiks.
I feel bad for an airline like Qantas which obviously suffers geographically from what would otherwise be a good business of shuttling people between Europe and Australia. There is obviously not a real geographical problem for USA airlines as the only real casualty is fewer nonstop flights to India.
Which of course leads to the next obvious question: why are there tons more nonstop flights to the Middle East from the USA than India? It's obviously not because Middle Eastern airlines are better at running their businesses than US airlines, and people prefer to stop. It's because there's something VERY messed-up with the economics of these Middle Eastern airlines. They are wholly different than the economics of any other airlines in the world.
#25
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,624
It isn't doing what US carriers do
Obviously everything that the US does must be the best and only right way
therefore EK must be running a scam
Simples
#26
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2000
Posts: 17,427
http://online.wsj.com/articles/SB100...41732219208604
#27
Join Date: Sep 2011
Location: Land of Oz
Posts: 948
I have to agree with others, as a so called analyst of airlines your opinion of Emirates and ME3 comes across as incredibly narrow minded and because it does not make sense to you that they are successful where others fail that something must be "fishy".
My question is do you have any hard evidence or factual information to back up your opinion?
My question is do you have any hard evidence or factual information to back up your opinion?
#28
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Join Date: Jul 2012
Location: Here
Programs: HHonors Diamond, AA EXP
Posts: 1,496
I am certainly not the only one who thinks this is fishy. I mean, guys, it's OBVIOUSLY fishy. There are only a total of 7.5 million people in these 3 countries and they're running some of the biggest global airlines in the world. 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. Which is obviously what this is about. Just be glad that whatever business you're in you don't have to compete with "companies" such as these.
http://online.wsj.com/articles/SB100...41732219208604
http://online.wsj.com/articles/SB100...41732219208604
#29
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2000
Posts: 17,427
The same evidence as Delta airlines CEO Richard Anderson: the numbers simply don't add up in the real world. It's not possible for these airlines to make money flying these routes. I challenge you to find me one major USA airline analyst who says it is possible. Mind you, almost all of the "high service" airlines in the world struggle to make money. "Real" airlines like Singapore are barely break even. And they have plausible business plans. There is NOTHING plausible about flying A380s to America from the Middle East. Nothing.
#30
Suspended
Join Date: Sep 2010
Location: Auckland NZ
Programs: SQ TPPS, EK Gold, IHG RA, Marriott Gold Hyatt Diamond, HHonors Gold, UA Premier Gold, TG Silver
Posts: 1,092
I am certainly not the only one who thinks this is fishy. I mean, guys, it's OBVIOUSLY fishy. There are only a total of 7.5 million people in these 3 countries and they're running some of the biggest global airlines in the world. 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. Which is obviously what this is about. Just be glad that whatever business you're in you don't have to compete with "companies" such as these.
http://online.wsj.com/articles/SB100...41732219208604
http://online.wsj.com/articles/SB100...41732219208604