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Old May 13, 2006 | 9:49 pm
  #31  
 
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Originally Posted by jakesterUK
If you do a search on the web, you will find plenty of articles which point to cheap labour in Dubai (these are general and not specifically related to Emirates), however, I would be very surprised if one of the main factors in their success was the relatively low costs of using Dubai airport.

Additionally, as Dubai is their base, and doubtless they have staff based in other cities around the world, they are going to benefit from more cost effective routes transiting their own country, just as SQ, CX and other Asian and Middle Eastern carriers will.

BA and LH probably have the edge if you are flying from the Middle East to anywhere in America (perhaps with the exception of New York, but even then BA or LH may be more competitively priced). But flying to Asia Pacific from Europe, EK is bound to be able to be so competitive, because its frequencies, and as I mentioned the relatively low costs at Dubai (I stand to be corrected as far as Dubai is concerned, but I can't believe that EK is paying a lot to use this airport).
Bingo!! Cheap labor is where EK maintains a huge advantage over most other carriers. In most businesses (and I would imagine in airlines as well) labor costs are the biggest expense out there. I would be that their flight and cabin crews wages are competitive with the rest of the world, but where EK has the advantage is their ground staff, who are being paid peanuts in comparison to their counterparts in Europe, the US, etc. They can pass these savings on to the customer in the way of lower airfares, keeping their flights full. If you do a search on itasoftware.com from KWI for example, pick any 10 markets which EK serves and they will be in the top three for lowest price on all 10 destinations. Check routes to Europe and the Euro carriers are sometimes almost double the price.

I'm sure there are other advantages that EK has at their Dubai hub, although I think the fuel price disparity is not as great as some would like to believe.
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Old May 13, 2006 | 10:08 pm
  #32  
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Stopping an airline flying trans-tasman if it wants to is very difficult if not impossible. NZ & Australia have an open air trans-tasman agreement which means that any airline flying to one country can fly to the other, include freedoms between the two countries.

NZ & QF have often used EK as an example for why they should be allowed to merge/engage in anti-competitive practices.

Originally Posted by sadiqhassan
If EK is getting a free ride, countries won't want to allow EK to fly there because it will harm the airlines flying there because they won't be able to compete with EK. An example is in Austrailia. Qantas constantly accuses EK of getting help, and they also accuse EK of flooding the trans-tasman market making it impossible to compete with them.

Cheers
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Old May 13, 2006 | 10:09 pm
  #33  
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Originally Posted by dusordua
The "narrowest" seats are 1 inch less (17) than on other aircrafts (18).
I understand, that for some people one inch matters.

On the other hand they have 3 inch more legroom (34 against 31 on most other airlines), this is much more important for lot of other people!
Well the airlines I fly most often have 34 or similar pitch and at least 18 inches (if not more) width. EK's seat is noticeably smaller in economy (and in business for that matter).
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Old May 13, 2006 | 10:22 pm
  #34  
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Originally Posted by Dudster
The assistance EK receives is rather indirect. Much of it revolves around the airport. For instance, there is only one ground handling agent at DXB -- Dnata, which is owned by EK. All other airlines at DXB must use Dnata for all services (ramp, ticketing, pax handling, etc.). Dnata's fees are quite high compared to airports where services are competitive (e.g. most of Europe). The govt perserves this monopoly for EK which forces other airlines to subsidize EK. Want catering? Your only choice is Emirates flight catering. Who was contracted for all of the IT infrastructure for the new terminal at DXB? Mercator, EK's systems integration subsidiary. If the government were to allow competition for all of these services, EK would be much less "profitable"
This i agree. All airlines that are majority owned by governments would have some sort of "help." For SQ, the increased insurance costs after the tragic crash in Taipei was picked by up the singapore government. Im sure Emirates would have some sort of financial assistance as well.

For airlines such as Qantas or US based airlines that do not have any government state, do not have this financial support to depend on.

But if you talk to these airline officials, im sure they will tell you to the tone of " its strictly business." a bit similar to the concept of the american TV show, "the Apprentice" by Donald Trump.
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Old May 13, 2006 | 10:25 pm
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Originally Posted by Kiwi Flyer
Well the airlines I fly most often have 34 or similar pitch and at least 18 inches (if not more) width. EK's seat is noticeably smaller in economy (and in business for that matter).
I'm jealous The airlines I usually fly normally have seat pitches around 31"-32", so EK's 777s are a welcome treat. I've heard great things about NZ's Y class seating, though.

Cheers
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Old May 13, 2006 | 10:38 pm
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Originally Posted by trekkie
This i agree. All airlines that are majority owned by governments would have some sort of "help." For SQ, the increased insurance costs after the tragic crash in Taipei was picked by up the singapore government. Im sure Emirates would have some sort of financial assistance as well.

For airlines such as Qantas or US based airlines that do not have any government state, do not have this financial support to depend on.

But if you talk to these airline officials, im sure they will tell you to the tone of " its strictly business." a bit similar to the concept of the american TV show, "the Apprentice" by Donald Trump.
QF doesnt have "help"??? Have you checked out SYD-LAX prices recently? And the government has prevented SQ from flying that route....QF derives 15% of its profit on that single route....thats protection....
US based airlines....check out the assistance they got after 9/11
Airlines are the most protected business in the world IMHO...partly because of the dependance of air travel now, and more importantly because for a lot of countries they represent a certain level of national pride....and also lets not forget the $$$$
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Old May 14, 2006 | 1:40 am
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Originally Posted by sadiqhassan
I'm jealous The airlines I usually fly normally have seat pitches around 31"-32", so EK's 777s are a welcome treat. I've heard great things about NZ's Y class seating, though.

Cheers
Last time I flew NZ's Y class long-haul, there was no personal IFE.
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Old May 14, 2006 | 11:49 am
  #38  
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Originally Posted by bensyd
QF doesnt have "help"??? Have you checked out SYD-LAX prices recently? And the government has prevented SQ from flying that route....QF derives 15% of its profit on that single route....thats protection....
US based airlines....check out the assistance they got after 9/11
Airlines are the most protected business in the world IMHO...partly because of the dependance of air travel now, and more importantly because for a lot of countries they represent a certain level of national pride....and also lets not forget the $$$$
Didn't QF also get help from the Aussie govt indirectly? I heard that the govt has shown partiality to them over other Aussie competitors itself most notable Ansett?
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Old May 14, 2006 | 12:16 pm
  #39  
 
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Originally Posted by GUWonder
It must be remembered that more direct national government ownership of airlines and airport authorities/facilities exists elsewhere -- or existed elsewhere -- and that's been no guarantee of success. If anything, that's normally been a formula for lousy travel (with notable exceptions).
I think you miss the point, which is that the airline is likely subsidized by other group companies (e.g. Dnata and Mercator) who are the beneficiaries of government spending (in what are likely not competitive bids) or forced subsidization by other airlines.
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Old May 14, 2006 | 12:35 pm
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Originally Posted by Dudster
I think you miss the point, which is that the airline is likely subsidized by other group companies (e.g. Dnata and Mercator) who are the beneficiaries of government spending (in what are likely not competitive bids) or forced subsidization by other airlines.
Complicated -- or not so complicated -- such types of arrangements are not something I'm unaware of. Furthermore, those kind of arrangements are not unique to EK.

I don't see what the complaint about EK is, one way or the other. Even if there was unprecedented subsidization, why should I care? If a foreign government want to subsidize global travel and such doesn't generate long-term anti-competitive outcomes, why should I not welcome the financial assistance? It's not like such an arrangement is perpetually sustainable. The Soviets tried it, and it failed.

Last edited by GUWonder; May 14, 2006 at 12:43 pm
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Old May 14, 2006 | 2:15 pm
  #41  
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Originally Posted by GUWonder
Last time I flew NZ's Y class long-haul, there was no personal IFE.
There is on the new 777s and refitted 747s (nearly all are done now). That will just leave the 767s without PTV in economy and AVOD.
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Old May 14, 2006 | 2:24 pm
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Originally Posted by UA Fan
Didn't QF also get help from the Aussie govt indirectly? I heard that the govt has shown partiality to them over other Aussie competitors itself most notable Ansett?
Hint - check out what routes DJ has (and doesn't have) to CBR.
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Old May 14, 2006 | 2:25 pm
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Originally Posted by Kiwi Flyer
Stopping an airline flying trans-tasman if it wants to is very difficult if not impossible. NZ & Australia have an open air trans-tasman agreement which means that any airline flying to one country can fly to the other, include freedoms between the two countries.

NZ & QF have often used EK as an example for why they should be allowed to merge/engage in anti-competitive practices.
I don't want to go too OT, but this is an interesting issue that I never quite understood.

I am aware that EK does not fly with full loads, and the QF/NZ have much more attractive FF programs not to mention that they are in alliances. Is EK really hurting them so badly in the trans-tasman market?

Cheers
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Old May 14, 2006 | 2:36 pm
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Yes - loads on trans-tasman are lower than any other segment for NZ (not sure if its true for QF) and I imagine yields are also poor. EK massively undercuts the other airlines in all classes.
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Old May 14, 2006 | 7:44 pm
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Originally Posted by Kiwi Flyer
Hint - check out what routes DJ has (and doesn't have) to CBR.
Of course any favours QF recieve is always "Because we have to maintain routes to certain unprofitable regional routes"....I'd love to find out which ones are actually unprofitable
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