The EK strategy thread
 

There have been a few posts in NOIR's excellent DXB/DWC thread about the future EK strategy.

Maybe we should have a separate thread? Hopefully it won't get to the Emirates Scam thread levels...

In the words of a famous FT'er...

Let the speculation begin...

Oh, and just to say, I have bugger all insight, so I'll leave it to the experts.

Is this in response to someone stealing the wishlist thread off you again :D

I was about to say the exact same thing. He has to have some kind of sticky thread :P

Don't you know who he is?

So, What is EK's strategy?

I noticed anecdotally that more and more people in the US - even from here in California - are traveling overseas. The data confirms this: http://travel.trade.gov/research/monthly/departures/ - it's been over 5% annual growth since the recovery. I have friends who took their families overseas to visit Japan for Thanksgiving break (!!), preferring to meet relatives for Christmas instead.

On the other hand, it's becoming cheaper than ever to fly abroad, and as discussed elsewhere, low-cost macro environments are not a purely good thing for Emirates. Here at SFO, Emirates now has to compete against not only against the usual suspects like Etihad, but also nonstops from China and even Air India (made possible in part by the low oil prices).

It seems like every market in the world has these issues, but the intensities differ, and that's where the opportunities may exist for Emirates to move quickly to make money in this environment. They've done well to launch MCO and FLL.

EK's long-haul A380 product is still a very good asset and better than most of the competition, despite uncertainties in the future of that aircraft.

I think with the rising dollar (and with a more rosy economic growth forecast in the US vis a vis other established economies, an ever higher dollar in the near-term future) you will see more companies trying to capture share in the US TPAC/TATL market. Both because you can charge higher prices with increased US travel demand (and you can get away with it), but as well as not having to dilute your overseas earnings into your dollar-pegged dirham/riyal/etc.

Flydubai and Emirates merger?
 

This CAPA article has an interesting proposal about the possibility of merging EK and FZ. I'm not all too convinced a merged EK and FZ would have any benefits. I think a closer operational agreement between the two airlines, specifically to reduce the overlapping between the two, would prove to be a greater strength than combining the two. Albeit, most strengths could only be achieved operating out of a single terminal.

I imagine that if the tables were turned, and EK operated an extensive narrow-body fleet simultaneously with wide-bodies, that there would be a proposal to spin off the narrow-body fleet into a separate fleet.


https://centreforaviation.com/insigh...lydubai-341033

Amazing imagine a downgrade from EK metal to FZ metal :(

I think the lack of DP would be enough of a reason to avoid for you m3red :D

Well given the crazy prices I've been ending up with J flex plus seats for the same price that I paid for F last year 😥

I'd agree with that. Flying long-haul on a narrow body is not much fun, and I'm not sure that sticking Emirates logos on FlyDubai metal is going to do much for their brand, especially in Western Europe and the Far East.

But operating closer together, with codeshares etc, to prevent duplication might well work. I can't see how flying a B773 or even an A380 from Dubai to Muscat is going much for them.

Two words can sum up EK strategy: Tim Clark.

I hardly see any possibility of EK and FZ merging from different bases when TC himself said that moving FZ to DWC will free more slots for EK.

If by strategy we're talking 10 years and beyond, then, anything is possible. By then EK may or may not have TC on board, the aviation industry may or may not change significantly, and EK/FZ/EY/G9 may or may not find some synergy.