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Originally Posted by iahphx
(Post 24303289)
As a consumer, it's OK to be an Emirates cheerleader. After all, you're getting more than you pay for, because somebody is subsidizing your travel. I personally like when I get more than I've paid for.
But to be 100% certain that this isn't actually happening? Well . . . . The US is late to this party! The ME3 have shaken up the incumbents in Europe, Asia, and Oceania. We've heard all this before. The old flag carriers that were set in their ways don't like to see therir markets being cannibalised. The first, and most obvious, reaction is to spit the dummy, and wail about HOW UNFAIR this competition is. All the European airlines tried this, at one time or another. But they eventually grow up and do something about it. Many of the European carriers that once complained are now cooperating and working with some one of the big 3, in some shape or form. (Lufthansa is the last remaining sulking holdout). The US carriers will come around...there is a lot of fat still to be cut there. The old, unproductive, inefficient, low-service, highly unionised, overstaffed, high-cost carriers will have to change their product and slim down to become leaner, more efficient and more productive. No-one will listen to their whining when the product they offer is increasingly sub-standard. That the airlines (or, at least the cosseted staff) are lobbying to close and regulate the industry and restrict access should be decried by all for what it is - a retrograde step for the US consumer. |
Originally Posted by iahphx
(Post 24304544)
The US carriers are obviously looking out for themselves, but do you honestly see NOTHING odd about the Gulf airlines buying 3x the number of widebody airplanes as all the USA airlines? Nothing?
And it's not like the USA airlines are hurting for cash now, either. Folks, this isn't normal. This isn't free market capitalism. There's something very squirrely going on here. AA, UA and DL are mature, well established airlines. EK is a young, growing airline. There is nothing unusual or sinister or suspicious about a growing airline adding airframes. It's a shame the US airlines don't renew their fleets with something approaching the same vigour as other airlines that maintain younger fleets. |
Originally Posted by iahphx
(Post 24303289)
As a consumer, it's OK to be an Emirates cheerleader. After all, you're getting more than you pay for, because somebody is subsidizing your travel. I personally like when I get more than I've paid for.
But to be 100% certain that this isn't actually happening? Well . . . . |
Originally Posted by iahphx
(Post 24303190)
Again, the cheerleaders will come up with more excuses, but look at which 3 destinations from the USA (both int'l and domestic) have had the biggest price drops in the past year:
http://www.cnbc.com/id/102401973?__s...doc=102401973#. It is plain as day that Emirates is dumping capacity into the USA in a way that makes it impossible to actually make money on this flying. They don't care. The USA airlines do. That's why they're going to Washington to stop it. I'm beginning to wonder if perhaps the OP has some skin in this game through participation in the USA airline lobbying efforts? |
These efforts by the US3 to get politicians involved is really about blocking fifth freedom expansion. Emirates service from Milan - JFK has really sent alarm bells ringing at the US3. Delta tried to block this in an Italian court because it could see the writing on the wall. It is one thing to cede the ME/South Asia market to ME3 but competing with them on TATL would be effectively cutting into the bone for the US guys. Reportedly, ME3 are considering additional TATL (UK-East Coast) and possibly Japan - West Coast. From the US3 perspective this expansion has to be stopped no matter what the cost.
I would be surprised if the US3 succeed in convincing the Obama administration to make any significant policy changes. They are not just taking on the ME3 but they are also picking a fight with Boeing where the ME3 are responsible for significant part of the order book. The ME3 probably don't have much lobbying muscle in DC but Boeing certainly does. Just see the fight over the Boeing Bank (ex-im) that Delta picked last year and lost. But that being said US3 have been pretty effective at blocking Norwegian so far. |
Originally Posted by iahphx
(Post 23821748)
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.
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We have to look at these recent articles in the context that they are comparing the ME3 and we are looking at it from the Emirates perspective. Doha has had a recent new airport built, AUH will have a new terminal, DXB has continual improvements. Does these rank as subsidies by the respective governments?
If Dubai has invested $6B on infrastructure, but Doha and Abu Dhabi $20B, then the figure is a little lopsided (With EY and QR playing catch up to DXB and EK). This is not to say that infrastructure like airports are subsidies. |
In the US, the airports are not privately owned - so if trying to call airport investment a subsidy then it is just as much a subsidy there with the airports being basically nationalised
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I travel regularly (at least once per month) all economy for work. Wherever I am going needs at least two flights - from my home airport (MAN) I can (and do fly) to Hong Kong, Singapore, Saigon, Johannesburg, Lusaka, Port Louis (Mauritius), Muscat (Oman), Colombo with one change (Cathay have just resumed direct flights to HK) in Dubai, with multiple options on departure times (three flights a day - 2 of them A380s - on MAN-DXB). A lot of the EK traffic is people going from non-capital cities in Europe to cities across Asia, Africa and beyond (because as multiple posts have said Dubai is within 7 or 8 hours of 2/3 world population).
But it's not all Europeans and wealthy Indians travelling - Emirates have three flights a day to Colombo and 2/3 times I get upgraded because the flights are full of Sri Lankan migrant workers going to /from their jobs in the Middle East. As someone has already said the world is bigger than the US (and I say this as an Americanophile who has done 17 holidays to the US and visited more states than a lot of Americans I have met (28 plus DC)) and while American businesses continue to be inward looking (and cry foul when anyone dares to beat them) they will not compete in the global marketplace (remember when the boys in Detroit were convinced that all these small Japanese cars would never catch on...) |
Is Emirates a financial scam?
Well said HKM! The car analogy is a good one. The OP may as well say because so many Japanese and German cars are sold in the US that it is a scam rather than people choosing a better product!
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Emirates has again repeated their claim that they don't receive subsidies, and are using the (tired and entirely tangential) argument preferred by their defenders here that the Big 3 US airlines have previously benefited from bankruptcy laws.
http://www.bloomberg.com/news/articl...rates-backlash Honestly, the only way to settle this is for Emirates to allow the US gov't to hire an auditor to independently examine their books. I don't think this will happen, though, because I think Emirates would prefer to lose the Open Skies rights than have a truly independent examination of their books. And that is their right, of course. |
Why on earth should Emirates do anything; just because a few US airlines are making accusations ? the US companies throwing accusations around are the ones that should be providing the proof to substantiate their claims if they have any
If this investigation has discovered 40 milliard dollars in subsidy, then provide that evidence - simples |
Originally Posted by iahphx
(Post 24318977)
Emirates has again repeated their claim that they don't receive subsidies, and are using the (tired and entirely tangential) argument preferred by their defenders here that the Big 3 US airlines have previously benefited from bankruptcy laws.
http://www.bloomberg.com/news/articl...rates-backlash Honestly, the only way to settle this is for Emirates to allow the US gov't to hire an auditor to independently examine their books. I don't think this will happen, though, because I think Emirates would prefer to lose the Open Skies rights than have a truly independent examination of their books. And that is their right, of course. |
Originally Posted by iahphx
(Post 24318977)
Emirates has again repeated their claim that they don't receive subsidies, and are using the (tired and entirely tangential) argument preferred by their defenders here that the Big 3 US airlines have previously benefited from bankruptcy laws.
http://www.bloomberg.com/news/articl...rates-backlash Honestly, the only way to settle this is for Emirates to allow the US gov't to hire an auditor to independently examine their books. I don't think this will happen, though, because I think Emirates would prefer to lose the Open Skies rights than have a truly independent examination of their books. And that is their right, of course. It is telling that in the article you linked that one of the main arguments put forward by DL is that: Emirates, Etihad and Qatar are using their Persian Gulf-region hubs to facilitate far more passenger traffic than their home populations need, Trebor Banstetter, a Delta spokesman, said today. Their expansions already have hurt European carriers, he said. “They are planning to take market share from international carriers outside of their home countries, and this is all being done in a subsidized manner,” Banstetter said in a statement. American and United didn’t immediately comment. As someone said above, it sounds like the JFK-MXP fifth freedom operations might be spooking them, or their legacy alliance partners are cheering them on/opening another front in the PR war after aviation authorities elsewhere slapped the arguments down... |
Originally Posted by iahphx
(Post 24318977)
Honestly, the only way to settle this is for Emirates to allow the US gov't to hire an auditor to independently examine their books. I don't think this will happen, though, because I think Emirates would prefer to lose the Open Skies rights than have a truly independent examination of their books. And that is their right, of course.
Since when does the US government have the powers to police over the world? Aren't enterprise America the ones promoting "the best government is that which governs least". And suppose this narrow street thinking eventuates and EK have their 'books' audited and nothing is found, what would be the standpoint of those mouthing accusations left and right without any regard to basic logic? I'd wager nothing less than more accusations of something fishy and not right. All the statements and arguments forwarded by the those US carriers and so-called experts have little ground to stand on. If this was PanAm, they'd be like 'f!@k yeah!'. |
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