Thursday, October 14, 2010

One Sided and Encroachment

Mr Clark sir, you did not have to put your job on the line over subsidies, I personally would like to thank you for your role in creating an airline that is scaring the daylight of so called major airlines and alliance leaders.

Air Canada contends that if the Canadian Government grants the UAE's request for additional landing rights for Emirates and Etihad, it will create a one sided agreement and of course no one seeks Dubai as a destination and there are no Canadians living here. Wake up Air Canada!!! This coming from a leading member of the Star Alliance comprising 28 airlines and a combined fleet and network many times larger than Emirates or Etihad.

I fail to see what Air France's CEO is talking about Emirates encroachment, both airlines have double dailies between Dubai and Paris, hardly very significant compared to Air France and its Sky Team alliance, 13 airlines.

Somehow European carriers have short memories, for years they used to fly passengers out of the GCC and MENA to the Americas, way before Emirates or Etihad where even formed.  So how come it was OK for them to do that and when some competition pops out they scream ENCROACHMNENT.

Emirates, had the foresight and took the risk of ordering aircraft, when every major airline in North America and Europe was reducing its fleet. Aircraft orders were made after 9/11 and SARS. Obviously, Emirates got good pricing which was translated into lower cost..

Emirates fares are not the lowest in the industry. However, Emirates provide a superior service and on board entertainment  and their flights are full most of the time. Obviously there is demand, that is not met by these majors in their respective markets, otherwise why would Emirates require increased frequencies and double dailies. The alliances need to look at a different way to compete with Emirates and by extension Etihad and Qatar Airways other than whining and running to their governments screaming One Sided and Encroachment

1 comment:

  1. Morning Oussama

    An interesting summary, as I have said before I think that the airline alliance have now run their course and do not act in the interests of the customer! In any sphere of consumer affairs, if a number of dominat players got together there would be an outcry; imagine Coke and Pepsi operating togther and preventing a local/organic supplier from expanding, there would be a WTO investigation.

    I thionk that the Gulf region airlines are to be commended for their growth and service delivery. The arguments put forward by the legacy carriers match the arguments put forward when they saw their dominance on the short-haul routes attacked by the LCCs, they accepted that, they will have to accept this, painful as it may be in the short-term.



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