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

irishguy28 Mar 28, 2015 5:00 am


Originally Posted by iahphx (Post 24573201)
OK, if you want to provide facts, let's get right to them.

How do you....?

Where do you...? Does it not trouble you... How many...? How many?..?

What about...? Again, how many...? How many...?

Are you not concerned that....?

We know from the DOT they have had the highest declines of any US flights.
(We don't actually. Link to your source, please)

Does that not...?

Everywhere else in the world, when yields sharply decline, service is curtailed, and expansion is certainly halted. Yet you accelerate expansion despite declining yields.

(Provide a source to support this allegation. But good luck finding Emirates' yields. You would have a hard time finding this info for most airlines)

Why?

Doesn't it bother you...? Wouldn't that be...? Wouldn't that suggest...?

Those are questions, not facts. And an unsupported allegation.

Facts, please!

RadioGirl Mar 28, 2015 6:04 am


Originally Posted by iahphx (Post 24576398)
I am sorry about the "massive" part: polar flying is pretty new and, until recently, the idea of polar flying to the Middle East would have been beyond anyone's imagination. Right up there with moon launches from the Middle East.

Dude. Stop digging and put down the shovel; you're sounding ridiculous.

washeelers747 Mar 28, 2015 6:05 am


Originally Posted by irishguy28 (Post 24577909)
Now we have it - the real beef. The US3 just don't want the competition.

You've just admitted that the US3 are forcing fares as high as possible - to the extent that some passengers choose not to travel - on the routes where they are still able to gouge the market. With their Pacific and Atlantic immunised joint ventures, they are sanctioned to collude with others, setting prices and frequencies with other airlines in ways that are, fundamentally, illegal and bad for competition and bad for the consumer.

This is the protectionist, customer-unfriendly, high-price aviation industry that, for you, is the only model that makes sense.

Well said, everyone knows that TATL flights shouldn't cost 4 figure (usually) for cheapest Y fare. Protectionist policy at their finest moment, and I def know that it hurt tourism to some degrees because my friends say just let's go with ME3 to SE Asia, and have time of their life, due to cheaper (be fair, it's not that CHEAP like it used to be) fare than those price-gouging US3-EU JV fares.

Bottom line, US3 & their lobbying wing is throwing desperate hail mary passes, and hope something will come out of thin air.

moondog Mar 28, 2015 7:05 am

iahphx

I want to divert from this whole "fact" thing for a moment in order to ask this:

1) The situation is going to get much worse (i.e. AA, DL, UA will suffer)
2) AA, DL, UA have a slam dunk case against EK, which be resolved quickly

If you seriously believe in #2, then why do you give a rat's behind about #1?

GUWonder Mar 28, 2015 1:22 pm

It's interesting that this year that EU-US-EU and US-EU-US fares seem to have dropped at least a bit. I have to ask myself if I should thank the ME3 for having expanded GCC service to/from US and thereby helping my bank accounts by freeing up space on US and EU carriers' flights providing TATL US-EU/EU-US service. :D

I thank Norwegian too, even as I don't fly them TATL.

cestmoi123 Mar 30, 2015 6:18 am


Originally Posted by irishguy28 (Post 24575917)
Well, our sphere isn't misshapen to the extent that SEA-DXB would involve "massively overflying" India, as the OP claimed above!!!

I was kidding, I fully agree with Kiwi Flyer.

edy4eva Mar 30, 2015 7:23 am


Originally Posted by irishguy28 (Post 24577944)
Or, to turn the question around, how can Delta maintain service to the tiny market of AMS from SEA? There are plenty of one-stop options to link the small number of O&D pax between these two cities, so they must be operating at a loss on this route, then - right?

The DL route to bring up is PDX-AMS. Isn't this route subsidised by PDX gov? But the OP will beg to differ and call that mandatory government assistance which is both legitimate and unquestionable...:rolleyes:

irishguy28 Mar 30, 2015 7:40 am


Originally Posted by edy4eva (Post 24588084)
The DL route to bring up is PDX-AMS. Isn't this route subsidised by PDX gov? But the OP will beg to differ and call that mandatory government assistance which is both legitimate and unquestionable...:rolleyes:

No, that route is subsidised by Nike (Head office: Beaverton, EMEA HQ: Hilversum) who were the ones that got the route set up in the first place.

Some of the other companies mentioned may also have minimum-purchase contracts for seats on the route, too.



Originally Posted by The Oregonian
Delta depends on big repeat customers for the Amsterdam flight such as Nike, Intel, Adidas, Columbia Sportswear and Wieden+Kennedy. Delta, with about 200 workers in Portland, employs 80,000 worldwide.


moondog Mar 30, 2015 7:52 am


Originally Posted by irishguy28 (Post 24588170)
No, that route is subsidised by Nike (Head office: Beaverton, EMEA HQ: Hilversum) who were the ones that got the route set up in the first place.

Some of the other companies mentioned may also have minimum-purchase contracts for seats on the route, too.

PDX-NRT was (and maybe still is) subsidized directly by the city and the port.

irishguy28 Mar 30, 2015 8:24 am


Originally Posted by moondog (Post 24588238)
PDX-NRT was (and maybe still is) subsidized directly by the city and the port.

There are numerous examples of US airports/cities/whatever directly subsidising new and/or existing services.

Sometimes not entirely legally, either.

BWI is one that is well-known and controversial:


Originally Posted by Baltimore Business Journal
BWI looks to spend up to $16.5M to extend British Airways contract

The Maryland Aviation Administration ran into controversy in 2006 when it was revealed that the agency had not disclosed to state legislators the annual subsidy of $5.5 million it had paid British Airways. Some industry experts criticized the practice, saying it was a sign that BWI was having difficulty increasing its overseas service.


Originally Posted by Baltimore Sun
Secrecy of BWI deal seen as illegal
Audit reveals pay to British Airways

The agency overseeing BWI violated state law by not telling legislators it had agreed to pay an annual subsidy of up to $5.5 million to keep British Airways flying out of the airport, according to a legislative audit released yesterday.

As a result, the Maryland Aviation Administration owes the carrier $3.4 million in state funds to make up for not meeting financial targets while it operated direct daily flights between Baltimore and London's Heathrow Airport for two quarters in recent years.

Industry professionals say such deals are common at airports, but some economists oppose the subsidies as an intrusion on the free market.

Aer Lingus also briefly served BWI some years back - I assumed as a result of similar subsidies.

It could very well be that PDX subsidises the AMS route to some extent, but I know for a fact that at least Nike, out of the previously-mentioned "large customers", guarantees the survival of the route by, at the very least, guaranteeing a minimum spend on tickets on the route.

tangey Mar 30, 2015 9:29 am


Is Emirates a financial scam?
Yes.

The evidence of this thread strongly suggests that any other answer is not acceptable to the OP, and thus this reply, accurate or otherwise, would have made the thread 77 pages shorter.

FD1971 Mar 31, 2015 2:11 am

Wow, still ongoing?

Once again, Kudos to the guys trying to defend the ME3 despite pretty obvious facts. ^

Again, there is no doubt that all legacy carriers received massive Government support throughout their history and even with massive financial support, it turned out to be a bucket case for most of them, except for industry leaders like Lufthansa. As pointed out so often, the ME3 are merely a copy of other successful airline strategies ranging from Singapore to Kelsterbach and Deutz. The DXB conglomerate mirrows approaches run by the Netherlands and Schiphol to perfection, earlier copycats of this appraoch can be found in Singapore.

There is hardly any airport not supporting new long-haul service, which is perfectly fine with many local laws on competition, at least as long as the same support is available to every other airline as well. It normally lasts 2-4 IATA seasons and is as normal as a half-empty EK A380 crossing the Atlantic.

Utilizing local laws to benefit in global competition is also not really new to the aviation landscape, carriers like Ryan and Easy experimented with such laws long before Norwegian took it to the next level.

But comparing Norwegian with the ME3 is pointless, Norwegian cares about earning profits from operating aircraft, the ME3 could not care less about profits from operating aircraft and this is exactly the point the US3 are trying to make. Just recently France and Germany joined the party, a bit late and not dressed appropriately, but still two major major players calling the shots in Aviation (and their respective alliances) will make it more difficult for the ME3 to expand further.

DYKWIA Mar 31, 2015 2:32 am


Originally Posted by FD1971 (Post 24593038)
Wow, still ongoing?

Once again, Kudos to the guys trying to defend the ME3 despite pretty obvious facts. ^

Again, there is no doubt that all legacy carriers received massive Government support throughout their history and even with massive financial support, it turned out to be a bucket case for most of them, except for industry leaders like Lufthansa. As pointed out so often, the ME3 are merely a copy of other successful airline strategies ranging from Singapore to Kelsterbach and Deutz. The DXB conglomerate mirrows approaches run by the Netherlands and Schiphol to perfection, earlier copycats of this appraoch can be found in Singapore.

There is hardly any airport not supporting new long-haul service, which is perfectly fine with many local laws on competition, at least as long as the same support is available to every other airline as well. It normally lasts 2-4 IATA seasons and is as normal as a half-empty EK A380 crossing the Atlantic.

Utilizing local laws to benefit in global competition is also not really new to the aviation landscape, carriers like Ryan and Easy experimented with such laws long before Norwegian took it to the next level.

But comparing Norwegian with the ME3 is pointless, Norwegian cares about earning profits from operating aircraft, the ME3 could not care less about profits from operating aircraft and this is exactly the point the US3 are trying to make. Just recently France and Germany joined the party, a bit late and not dressed appropriately, but still two major major players calling the shots in Aviation (and their respective alliances) will make it more difficult for the ME3 to expand further.

You use the word facts, but offer none...

FD1971 Mar 31, 2015 2:49 am


Originally Posted by DYKWIA (Post 24593088)
You use the word facts, but offer none...

I really do not know how you reached this conclusion...

Aside from the facts I presented in this thread and the facts the US3 presented as well, I really fear that you did not pay enough attention.

Without the time to repeat them again and again, I recommend browsing through the last 78 pages once more.

I really understand that this thread destroys the dream of some posters, destroys their belief that this 1000 and 1 night fairy tale comes to an end, so the reactions are quite strong.

As posted before, you do not really have to convince me, I know what is going on. And I am really not trying to offend you, I understand the roles of certain posters on this board, but I do not really know anyone in this industry believing that EK is clean. Of course, the fans or ambassadors might have a different point of view...

I like to compare EK to Lance Armstrong these days. It worked for both of them for quite some time.

And despite the fact that both are on drugs, it is still commendable what they did for cancer awareness and in-flight quality.

Under the bottom line, both cheated, but do you really care whether he made it up to Alpe d'Huez in 12 or 13 minutes and or whether EK received 12 or 13 billion in subsidies as long as you enjoy watching him going up the mountains while nibbling on a piece of Walker's Short-Bread inflight on EK.

m3red Mar 31, 2015 2:54 am

As far as anyone knows for sure the only advantage EK has is:

1. access to a large cheap labour market attractive due to the tax laws;

2. access to cheap fuel; and

3. a very good location for global travel.

The US carriers can't do a lot about any of those. They can't compete - life isn't fair all the time. It's like saying Jimmy has a better job because his dad could afford to send him to Uni where as Tim could not.

Show me some real facts and evidence....


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