DWC On The GO

Al Maktoum International Airport at Dubai World Center (DWC) is set for major expansion to eventually accommodate up to 240 million passengers. DWC currently handles a few low cost airlines but is the home of Emirates SkyCargo in addition to a few more cargo airlines, creating one of the largest cargo hubs in the region.

An investment of 32 Billion USDs has been set for this task, almost double the projected 18 Billion USDs projected earlier at the start of the decade.. The investment is to support the building of another 4 runways and 2 satellite buildings that will accommodate 120 million passengers annually and 100 A380s parked at any one time (click here for a look at the Master Plan). This phase will be completed in 6 to 8 years in time for Emirates to move out from Dubai International in the mid 2020s leaving Dubai International for the use of Flydubai and other operators. The airport design will allow Dubai Airports to add capacity in 20 million passengers increments to support the expansion plans of Emirates.

Dubai International is expected to handle 120 million passengers by 2020 in time for the 2020 Expo Trade Exhibition. The smooth expansion of Emirates depends on capacity at Dubai International. It is projected that Emirates will carry 93 million passengers by 2020.

Dubai sees the aviation sector as a major contributor to its economy and it is expected to generate 323,000 jobs and contribute 28% of GDP in 2020 compared to 250,000 jobs and 22% of GDP in 2011.

Beyond Emirates' A350 Order Cancellation

This blog first appeared in Bangalore Aviation under the title of Analysis: Emirates Banks on 777X with A350 XWB Order Cancellation jointly authored by Devesh Agarwal and Oussama Salah

On June 11, 2014 Emirates and Airbus announced the cancellation of the A350 order 50 A350-900 and 20 A350-1000 as a result of a fleet requirements review. The order cancellation was downplayed by Airbus as "not good news commercially" but not "bad news financially". It must have been a disappointment to lose 9% of the A350XWB order book by one of the most prominent Airbus customers. Emirates deliveries would have started in 2019 giving Airbus ample time to recover. However, it sends the message that B777X can easily perform the missions of the A350XWB.

I am certain the fleet requirements review went beyond the A350 cancellation, Emirates has emphasized that the passenger growth forecast has not been changed which makes one wonder what the fleet composition will eventually be?

The cancellation has many advantages for Emirates:

• Rationalizing the fleet back to two (2) types; A380s and B777s currently the fleet consists of  (A380/A340/A330 and B777);
• Removing the financial and human resources burden of entry into service of a new fleet (maintenance facilities, simulators, parts, training and hiring etc..);
• An improved cash flow due to reduced pre delivery payments; and
• Less financing requirements in the tune of Sixteen (16) Billion USD.

The only disadvantage at this time, there is no aircraft to cover the 230 to 300 passengers requirement which is now covered by the A330/A340 and some of the B777-200, in other words their thinner routes. One can argue that with the newer standards of first and business seats, cubicles and apartments the passenger loads of the aircraft will automatically be reduced. 

Emirates wants an A380neo which Airbus is starting to look at, however the A330neo is still their priority. Emirates is an influential customer and very persistent, remember the B777X so eventually Airbus will develop the A380neo. In the meantime Emirates and Boeing are discussing the B747-8i which has slightly lower passenger load than the current A380 configuration but the same range capability and as the latest reports intimate a slightly better fuel consumption on a seat/mile basis. Whether Emirates will accept the B747-8i fuel efficiency argument and actually buy the B747-8i or it is only meant to pressure Airbus towards the A380neo, remains to be seen.

In any case, the Farnborough Air Show is just round the corner.

Emirates, A Force of Stability or Disruption

Emirates, the largest international carrier and the oldest of the three Gulf Global Airlines, evokes confidence, distrust, and a sense of foreboding  with every decision it makes from buying aircraft to announcing new routes

If you are Airbus or Boeing, you value Emirates as a force of stability in aviation. Six (6) weeks after 9/11, when legacy airlines all over the world were reeling from the events of that day: grounding aircraft and laying off employees specially in the USA and Europe. Emirates, during the Dubai Airshow 2001, did the unthinkable and ordered USD 15.6 Billions worth of aircraft.

• Twenty five (25) B777s
• Twenty Two (22) A380s
• Eight (8) A340-600s
• Three (3) A330s

In Dubai Airshow 2013 Emirates did it again it helped launch the B777X with an order of one hundred and fifty (150) plus another fifty (50) options and ordered another fifty (50) A380s helping Airbus to stabilize the A380 production line for the near future.

Undoubtedly, Emirates is (was) rewarded for its good deeds with very attractive pricing, well below what the competition gets. Something that reflects favorably on its yields and financial results.

On the other hand, legacy carriers specially Delta, American, Qantas, Air Canada, Air France and Lufthansa considered Emirates (Etihad and Qatar Airways) as mere toys of oil rich desert princes and heavily subsidized government airlines. They are considered by Delta and the A4A as the most disruptive force in the industry. 

Fast forward to the present and the critics of yesterday are the partners of today

• Qantas has a great agreement with Emirates, resulting int the transfer of its Singapore hub to Dubai. The deal has been profitable for both airlines;
• Air Canada whose position on additional frequencies for Etihad and Emirates escalated into a diplomatic rift between the UAE and Canada, now has a code share with Etihad;
• Qatar Airways is a member of One World;
• American Airlines and Etihad has a code share agreement; and
• Air France KLM has signed a very deep and extensive code share agreement with Etihad.

It is understandable when EU airlines complain about the Gulf airlines, they actually compete with them; directly between their respective hubs and on connecting traffic to Europe, USA and Latin America. These new entrants have shifted the center of aviation, from Europe as a hub between the Americas and the other side of the globe, to their Gulf hubs. US airlines never really competed directly with Emirates or the other two global airlines, so the complaining and whining is somewhat surprising.

Emirates competes on service, passenger amenities and convenience. Their First and Business classes are rarely discounted and if you think their fares are low, think again, they are not. However, the service is exemplary, their seats and cabin are leading edge and ICE (their IFE system) is out of this world. Emirates knows how to fill its flights. They actually make money, not because they are subsidized but because they keep airplanes full at the right yields, and they buy their aircraft at the right time and the right price.

They also sponsor sports clubs and events, spending millions of dollars to make sure that the name of Emirates is seen by millions of people across the globe while watching soccer, tennis or Formula 1 among others. Emirates and the others invest in lounges, media promotions and sports to keep the brand global.

Emirates works hard at increasing the productivity and efficiency of its operations, but it pays attention to its expansion.

 Emirates Vision and Values clearly explains their methodology for success

A strong and stable leadership team, ambitious yet calculated decision-making and ground-breaking ideas all contribute to the creation of great companies. Of course, these have played a major part in our development, but we believe our business ethics are the foundation on which our success has been built. Caring for our employees and stakeholders, as well as the environment and the communities we serve, have played a huge part in our past and will continue to shape our future.

Emirates Evolution

Emirates Airlines has always been about Dubai and will always be about Dubai.
Nevertheless, Emirates is exploring new venues to increase its reach and support its expansion. As of
October 1, 2013 Emirates will fly one daily return flight between Milan and New York using a three class B777-300ER. This flight will increase the DXB/JFK flights to three daily return flights. Emirates will be competing with Delta, American and Alitalia on this route; it offers the best aircraft a B777 (A330 (AZ) and B767 (DL and AA)) and by far the best product and passenger experience.

Following the Qantas deal Emirates has indicated that it may look at flying to America from hubs in Asia as a continuation of a Dubai flight from places like Singapore or Hong Kong.

Last week Emirates, UK VP intimated that Emirates is not ruling out entering the North Atlantic market with flights to the USA through its hubs in north of England (Glasgow, Newcastle, Birmingham and Manchester). Emirates carried eight hundred thousand (800,000) passengers last year on these routes and has been upping the capacity in terms of aircraft size and frequencies. Emirates looks at it from the point of view of reducing congestion in LHR and providing a service to its customers in the region. One opportunity may shortly present itself with the EU requiring AA and US Airways to give up their LHR/PHL route after the merger.

Other than the Milan to New York flight in October everything else is speculation. However, the subject is out in the open and based on how the Milan flights do, Emirates may develop more hub cities.

Flydubai: From a Low Cost to a Hybrid Airline

Flydubai is introducing a Business Class (click here for full story) as of October 2013 with a soft start on selected flights in August 2013 after the delivery of its first two (2) class aircraft. A twelve (12) seats at 42 inches pitch dedicated cabin with 900 hours of IFE on a 12.1 inches HD touch screen. A full Business Class service with a lounge, dedicated check in, priority baggage collection and other amenities. Flydubai just changed its business model from a low cost carrier to a hybrid if not legacy airline following in the footsteps of Bahrain Air. Who will bear the cost of this offering remains to be seen. Are we looking at a low cost business model? not really looking at what Flydubai is offering.


The reason for the change, passenger feedback!!! Ah well, why would a passenger looking for low fares want to pay for a Business Class service. I guess some passengers wanting to interline with Emirates flying in Business would want that.

To put things in context, Flydubai and Emirates passengers can book flights that start with one airline and continue on the other (interline) on either website. Passengers and luggage are transferred from one terminal to the other free of charge.

The main beneficiary of this change is Emirates, they will get additional Business Class feed from the growing network (now at 60 destinations) of Flydubai especially destinations not served by Emirates into theirs. I am sure there will be some schedule tweaking  from these destinations to optimize connecting times.

Dubai has always evolved and Flydubai should not be any different. Only time will tell how this move will impact costs at Flydubai and to a certain extent Emirates.

Thoughts on Emirates Response to Jetihad

This post was first published in Bangalore Aviation as a part of a guest post titled Three-way Analysis: How does Emirates respond to Jetihad? written in collaboration with Devesh Agarwal and Vinay Bhaskara of Bangalore Aviation. This blog has been enhanced with their insight of the Indian aviation industry and government dynamics.

The Indian government has the knack of making interesting decisions like encouraging Air India to dump prices to gain market share causing mayhem in the market place and increasing Air India’s losses or Allowing Air Asia to invest in Indian aviation by approving a JV with the Tata and Bhatia group, creating an LCC that will put pressure on Indigo and SpiceJet. The latest was quadrupling the number of seats between India and Abu Dhabi which will benefit mostly Jet Airways and Etihad or Jetihad. 

In a Bangalore Aviation recent blog (http://www.bangaloreaviation.com/2013/04/infographic-airline-wise-share-of.html ) on International Traffic Share in and out of India showed Jet Airways share at 16.01%, Emirates at 13.04% and Etihad at 1.95%. The India market is important to the GCC carriers it provides feed to MENA, Europe and North America, a market that is being developed by these carriers with a station starting almost every month, the latest is Qatar Airways to Philadelphia. The latest India/UAE bilateral will almost double the allocated per week seats of Jetihad over Emirates.

Dubai has unofficially asked for a doubling of the per week seat allocation but requested an increase from 54200 to 72400 seats per week. 

Emirates can opt for an FDI in one of the LCCs and collect the prize of added capacity, an unlikely option after their earlier experience with SriLankan.

One option is for Emirates to code share with one of the large domestic players like Indigo or SpiceJet in order to increase its India feed and encourage them to operate into Dubai. Emirates currently code share with Jet Airways on the Mumbai and Delhi daily flights to Dubai. Flydubai flies only to three destinations Hyderabad, Ahmedabad and Lucknow and would like to increase its India destinations (which is less than 2% of its capacity). Flydubai is capable to fly to smaller secondary airports providing feed to Emirates through the link on their respective websites.

Code sharing is a short term solution. Ultimately, the real solution has to be through the India-UAE bilateral. Emirates needs the increased capacity for itself and Flydubai. Emirates can leverage Dubai’s position as a global hub and destination for Indians. Indians are the top expatriate investors in Dubai property (9 Billion AED) and the UAE is the second trading partner of India and has billions of dollars in investments. Add to the mix, almost two (2) million NRIs living in the UAE, a good proportion affluent. Dubai can also leverage its stature in the UAE to push the boundaries of the bilateral. Jetihad has shown that Air India and indeed the airline industry interests can be put aside by the government if the stakes and overall benefits are framed correctly. 

How Emirates and by extension Flydubai and indeed Air Arabia will frame their argument remains to be seen. Regardless, with the lack of a clear India Aviation Policy, the government will react to a properly framed request.

Left Out.....

The last few months and certainly weeks have seen mega activities by the Global Airlines of the Gulf.
It seems the critics and adversaries of yesterday are the partners of today. A fact all airlines should heed.

It is official and in spite of Mr. Al Baker's earlier denials, Qatar Airways is joining Oneworld. Qatar Airways is a massive addition to the Oneworld network, considering that the airline has massive aircraft orders which usually translate into additional destinations.

Etihad has just signed with Air France - KLM a code share agreement. Airberlin also signed a similar  code share arrangement. There is also discussions about joint procurement and closer cooperation. 

Etihad seems to be working equally comfortably with both Oneworld and SKYTEAM alliances.

Emirates and Qantas, a Oneworld member, signed a code share agreement that has Qantas shifting its Singapore base to Dubai and terminating a long term agreement with BA its Oneworld partner.

Currently Qatar Airways has several code share agreements with Star Alliance airlines (Lufthansa, United and ANA among others), but nothing on the scale seen above (equity stakes, alliance joining and long term agreements).

Is Star Alliance (the largest of the three in terms of member airlines) being left out by design or just a coincidence? Only time will tell...

All Happening in the UAE

The United Arab Emirates Aviation sector is by far the most dynamic and vibrant in the region both the GCC and the wider MENA. No day passes without an amazing activity.

Emirates Airlines is the most valuable airline brand in the world for 2012, ahead of Singapore Airlines and Lufthansa at USD 3.7 Billions. The airlines continues as the role model and bench mark for its regional competitors. The airline signed a 10 years code share agreement with Qantas, an agreement that has far reaching implications in Asia and to oneworld.

In Seattle, Tim Clark said that Emirates will buy another 40 A380s to bring the total to 130 aircraft. One problem is space at Dubai Airport. The airline will become the largest airbus customer. On the same note Emirates started its A380 service to Melbourne this Thursday, 27 September 2012. He also told Boeing that the first B777-300ER will be retired by 2017 and the airline would like to replace the fleet with a new updated B777. It was a good time to start "bellyaching" to get a new jet started.

On the domestic front, Rotana Jet started its double daily flight to Al Ain from Abu Dhabi Thursday,
27 September 2012, bringing its domestic network to four (4) destinations. Ten (10) days after the inauguration of its daily flight to Fujairah. Rotana Jet is planning flights to Sharjah, Ras Al Khaimah and Al Ruwais.

Air Arabia will fly to Erbil on 14 October, its second Iraq destination. Not to be outdone Flydubai is launching new destinations to Bucharest on 1 October 2012 and Skopje from 18 October 2012.

Etihad Airways announced an increase to daily flights to Istanbul starting 1 January 2013. Two (2) weeks ago Etihad CEO led a team of Etihad Airways and airberlin executives to Boeing to look over the B787.
Both carriers are integrating their B787 programs and streamlining their infrastructure and purchasing activities. Etihad has forty one (41) and airberlin fifteen (15) B787s on order. Etihad has nine (9) B777s
to be delivered in the coming fifteen months.

To top it all the GCAA announced that August 2012 had almost sixty (60) thousands air traffic movements
a 6.9% increase over 2011.

Emirates and Qantas .... The World Has Changed

The suspense and speculation are over, Emirates and Qantas announced their anticipated code share agreement. An agreement that made Dubai the European hub for Qantas as of April 2013, replacing Singapore and Hong 

As a result Qantas terminated a seventeen years agreement with Oneworld partner BA on the London route and code share agreement with Air France and Cathay

So what does Qantas get in return, a Dubai hub that connects to thirty three (33) European and eighteen (18) African cities in addition to the Levant and GCC. Emirates gets access to the Australian market, providing passenger feed to its expanding network and a daily A380 flight to Christchurch from Sydney. It also offsets the advantage that Etihad has with its Virgin Australia tie up.

However, the real winner in this deal is Dubai. A Qantas hub reinforces Dubai's position as a global aviation hub and destination.

Emirates and Qantas

Speculations are over, the Chairman of Emirates Airlines HH Sheikh Ahmad Bin Saeed Al-Maktoom announced today that Emirates is in talks with Qantas for a code share agreement within six (6) months. There will be no revenue sharing and the aim is to get Qantas to fly through Dubai. (read full story here)

Qantas has been one of the more outspoken critics of Emirates and the way Emirates expand. Qantas had several problems starting with A380 problems and a two (2) days shutdown due to labour problems with its maintenance staff in addition to soaring fuel prices.

Etihad acquiring a stake (up to 10%) in Virgin Australia was not good news for either carrier. It provided Etihad with access to the Australian market. It was logical for Emirates and Qantas to code share; Emirates gets access as comparable to Etihad's and Qantas gets a boost to its international operations by tapping traffic feed from Dubai

Qantas, Hard Times Ahead

It all started when Etihad acquired a 4.99% stake in Virgin Australia. Etihad has petitioned and obtained approval, earlier in the week from the Foreign Investment Review Board to raise its holding to 10% in Virgin Australia. Etihad acted in a very transparent manner similar to its actions in regards to the investments in Airberlin, Aer Lingus and Air Seychelles.

Qantas hit back with accusations that Etihad is the plaything of oil rich Sheiks.

This is not the first time Qantas resorts to similar tactics, it has accused Emirates of being an unsafe airline after the March 2009 incident with an A340-500 aircraft that failed to climb properly due to erroneous performance data entered.

Qantas had its fair share of unsafe incidents with the A380; incidents not attributed to its own actions. The airline was shutdown last October 2011 over a dispute with the labor unions over jobs. The airline like the rest of the industry suffered from high fuel prices. It is expected that Qantas profits are down by 90%.

Qantas is not unlike the legacy airlines of developed countries, that consider the preservation of their home market share as a national priority and are willing to limit the tourist potential of the country to their capability. They fail to consider that competition that increases the market brings in revenues and creates jobs. Usually, more jobs in different sectors of the economy that far outweigh potential losses at the airline.

There are economic and political considerations that go beyond an airline. A prime example is the Canadian government that blindly backed Air Canada's position over traffic rights for Emirates and Etihad and now is working hard mending fences. Vancouver is still under served by Air Canada while Seattle reaps the benefits of Emirate's daily flights.

Qantas faces tough choices on how to deal with what it perceives as a major threat. There were earlier rumors that Emirates wants to cooperate with Qantas to further develop its Australia network. Of course, Qantas can always work closer with Oneworld partners to improve its position, but then that means expansion which seems to go against the grain with legacy carriers that believe in capacity control.

2012 is a tough year, it presents multiple challenges and risks but also great opportunities for the visionaries and the brave.

Emirates, so good for India

Last week Emirates was in the news as usual,

Emirates indicated that they have no problem in investing in an Indian carrier, even if it is failing, provided it can be turned around. However, Emirates wants management control of the carrier, a similar arrangement it had with Sri Lankan. This worked fine for both carriers. India is a different ball game, it is a larger market which already feeds into the Emirates network, serving the millions of NRIs all over the globe. A well managed airline will provide the travelling public with options and opportunities especially when tied up with Emirates. The only catch, the government has not defined the terms for the proposed Direct Foreign Investment. The arrangement that Emirates want will surely kill Air India, B787 fleet not withstanding, and render Emirates the national carrier of India.

Read more here


The other interesting story is; traveling with kids to India, Emirates tickets seem to be cheaper than budget (low cost) airlines. After counting all the fees (bags, food, seats, IFE and more) levied by LCCs, the ticket price is actually higher than that charged by Emirates.

Read more here

India Joins the Club

India's National Auditor declared that Emirates and other Middle East carriers should be forced to reduce their flights to save Air India (read full story here).

This is wishful thinking, not the reduction of the flights but the saving of Air India. The number of flights are controlled through bilaterals; the Indian Government is not the easiest in awarding flight authorities, a lot of these authorities were awarded to allow Kingfisher, IndiGo, Jet Airways and others to operate international flights to the Gulf region in addition to Air India, Air India Express and Indian Airlines. A forced reduction will be probably met by a reciprocal action from the various governments of the region and they will have the choice of which airline authority to revoke, my guess would be Air India's. Any reduction of flights will affect the millions of  Non Resident Indians working in the region.

The Government of India should face up to Air India's problems and tackle them heads on. Competition from GCC airlines and other airlines is only a small part of the problem. Government interference, over staffing and failed policies need to be resolved. These are issues that to this date the Government does not have the political will to face.

Emirates Airlines Brighter Prospects

Emirates Airlines must be very happy with the news of the last couple of weeks. Having posted its best ever profit results of USD 1.5 Billions (click here for details) in 2010, the airline had more good news;


1. Emirates closed a USD 1 Billion Bond Issue which was indicative of the investor community confidence in
    the airline financial health and strength.


2. The Oxford Economics Report concluded that the success of Emirates is not the result of unfair
    competition or government support but because of effective aviation policy. The report concluded that
    the aviation  sector in Dubai  generates 125000 jobs  and their spending supports an additional 134000
    jobs which contribute an additional USD 7.9 Billions in Dubai's GDP. In total  the aviation sector's 
    contribution to Dubai's economy is 250000 jobs and USD 22 billion representing around 19% of total 
    employment and 22% of GDP.

3. MasterCard Index of Global Destination Cities ranked Dubai as the #9 most popular destination City 

    in the world in 2011 with 7.9 million visitors and a USD 7.8 Billion spend.


All the above and the rebound of passengers growth in April compared to March is validating Emirates policies and plans 

Politics and The Airlines

In the news today "Emirates, Etihad get France Clearance" Gulf News today 29 January 2011 (click here for full story) reported that a tentative agreement was reached to grant additional 22 weekly flights to Emirates and Etihad (4 to Paris and 7 to other French  cities). These were granted despite Air France-KLM lobbying the government to refuse granting the authorities on the basis that lower taxes and airport fees in their home bases give the carriers an unfair advantage.

Air France-KLM position has been made public for weeks, right at the time Canada refused to grant additional flights to the UAE carriers. However, a few weeks after both the government and Air Canada opposed Air Services to Qatar, Canada granted authority to Qatar Airways (a CS order with Bombardier was probably at stake). It appears that the French Government are smarter than the Canadian, they did not listen to the parochial demands of their airline, at stake are mega orders with Airbus and a Rafale deal that was faltering. The Government decided that what is at stake transcends the potential losses of an airline on a couple of routes.

Legacy Airlines have conveniently forgotten that aviation and airlines are very much affected by politics and economic conditions and realities that far transcends the immediate needs of individual airlines.

Canada's Air Transport Competitiveness

On 20 January 2011 in an address in Montreal Mr.Giovanni Bisignani the Director General of IATA called on the Government of Canada "to improve its global competitiveness in air transport, travel and tourism" Government policies has eroded Canada's competitive edge to the extent that Canada became the 15th most visited country in 2009 from the 8th in 2002 and the World Economic Forum Travel and Tourism Competitiveness in 2009 has ranked Canada (106) behind Japan (86), UAE (50), India (46) and China (20).
As a result the government protects Air Canada at the expense of the tourism industry by preventing airlines from   freely operating into Canada or allowing Canadian operators the freedom to compete with Air Canada.
Claims of loss of jobs if Emirates and Etihad operated additional flights into Canada are not supported by the realities on the ground. On the contrary, these additional services would have increased the number of visitors to Canada and probably generated additional jobs.
The short sightedness of these policies has resulted into more barriers and a rift with the UAE which is affecting Canadian Businesses and Citizens.  

For the full Press Release click here

The Saga Continues, Air Services Agreement between Qatar and Canada

Canada has signed an Air Services Agreement with Qatar (here to read more) weeks after both the Canadian Government and Air Canada opposed it. It seems Mr. Al Baker's alluding to the possibilities and impossibilities of investments and trade had helped people in Ottawa make up their mind.

"This agreement responds to the needs of the Canada-Qatar travel market and is a first but important step in developing Canada-Qatar air relations," says John Babcock, a spokesman for Canadian Transport Minister Chuck Strahl.

Sounds great and should equally apply to the UAE which is almost 4 times a larger market with a much larger Canadian Community however Air Canada is still self delusional and dragging the government with it

Recently Air Canada chief executive Calin Rovinescu said the carrier "is not supportive of turning over our hard-earned network and flow traffic to state subsidised carriers of countries where there is no such reciprocal demand".

So in his eyes all of a sudden Qatar Airways is not a subsidised carrier and there is more reciprocal demand with Qatar than the UAE.

I respect the need to protect a "hard-earned network" including its feed to and from Star Alliance partners. It appears that Air Canada has an objection to a Dubai Global Hub and it fears that if Emirates, not Etihad per se, dumps capacity into Vancouver for example it will deter all other airlines from competing out of Vancouver and generating 275,000 new seats per year will decimate Vancouver as a hub and make it into a stub in Emirate's Dubai hub.

Air Canada has indicated that they oppose any increases in frequency or addition of flights to the UAE and Qatar, in order to protect their traffic to Frankfurt. Lufthansa (Star Alliance) will operate from there onwards to MENA and the GCC. Basically it boils down to a capacity issue coupled with a level of service. Air Canada does not have the lift to operate additional flights or to operate directly to the UAE and Lufthansa probably has different plans.

Canada is a popular immigration destination for professionals from MENA, GCC and the Indian Sub Continent. It is also a popular destination for higher education from the region. Hence, this is a growing market for "Visiting Friends and Relatives"

Air Canada needs to leverage its Star Alliance connections to tap more into this market or start operating its own flights to the region.

The unfortunate escalation between the UAE and Canada over this issue so far has been low key, even though to Canadian residents in the UAE it has an impact on the mobility of their non resident family members.

Hopefully, the issue will be resolved to the mutual benefit of all concerned.

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

Impressions of a Frequent Flier

This year I have traveled extensively and had the opportunity to experience on board service of several airlines on different flights (Ultra long, long, medium and short range) and different classes.

Here are some of my impressions

Ultra long range (12 to 16 hours) on Emirates, and any other airline for that matter, economy is not a joy if it was not for the inflight entertainment system (ICE). ICE makes all the difference, I am not a movie goer but with ICE I have seen 5 movies during one flight, a personal record, and still had 7 hours to sleep.

For some reason Emirates always serves the last meal on the flight too close to the arrival time, and results in the cabin crew really hustling to secure the cabin sometimes up to a few minutes from landing. And if you are sitting in the back you will never get your first choice when it comes to meals.

However, long and medium range flights on Emirates Business is a gourmet experience that stands true to their radio advertisements. I had my best steak ever on an Emirates flight.

Business class service on long and medium range flights of American Airlines, is an enjoyable although sometimes a very slow service depending on the flight attendant serving your side of the cabin. I understand there are laws and rules to prevent discrimination based on age and/or BMI, but please let us be reasonable here, having one's meal when the other side of the cabin is halfway through their siesta is not nice. The inflight entertainment system is adequate.

On the other hand a BA flight to Dubai during a UNITE strike day is a bloody awful experience. Minimum crew on the B777 (8 out of which 6 are of minimal experience). The service in Business left a lot to be desired, lucky it was a night flight and most of the passengers were asleep.

Willy Walsh should be grateful passengers are still flying with BA. Of course, I had better experiences on BA flights but this one was memorable.

Royal Jordanian's Business class on short flights (2 to 3 hours) is a relatively good experience. The flight attendants sometimes lack the sophistication and finesse of their counterparts in other One World carriers. The food is good and the crew are friendly and actually smile at you most of the time and I like it, but then I am biased (ex RJ).

As for Regional travel in the USA whether with American or Continental, the best you can do is nap. The seamless service and experience that we were promised in the 70s and 80s did not happen and it will never happen you can not compare a B777 to an EMB145. Service is not the issue. It is the feel and look of the aircraft that throws you off, the Majors need to look again at their regional feeders.

However, the one thing that EMIRATES surpasses all the others is the ability to deliver your bags in a reasonable time no matter where the aircraft is parked at Dubai airport. On Business class I found my bag on the belt and I use e-gate. Kudos Emirates

Emirates at 90 A380s

On Friday 19 June there were several tweets regarding Emirates purchase of an additional 32 A380s to bring up the total of ordered aircraft to 90. The other issue was how will deal with Emirates recent order and the prospects of mergers between Emirates and Etihad or Etihad and Qatar Airways.

Emirates success so far did not come from luck but was and is the result of well thought strategies and most of all, the efficient implementation of these strategies.

I am not going to try to second guess Emirate's reasoning for their latest order however;

1. Emirates operates into many congested airports and the A380 is the best way to increase its traffic without adding more aircraft. This will reduce the operating cost in the long run.

2. Many countries even those that profess open skies and liberal regimes are protective of their airlines. Last week France rejected additional slots requested by UAE carriers.

3. The aircraft will be delivered by 2017 and hopefully the global recession will be over and traffic would have picked up and financing will be easier to obtain especially if Emirates keeps producing healthy profits.

The Merger buzz was started by Qatar Airways CEO in his remarks at the IATA AGM as reported on ATW (click here for full story.). He asserted that there will only be two carriers in the Gulf and Qatar Airways is one of them, and all others will disappear. The response was, the region's airlines will undergo some consolidation.

Looking at the three big carriers in the region Emirates, Etihad and Qatar Airways they all share a common trait; most of their traffic is transiting traffic through their hubs. However, the UAE carriers have an advantage, a larger population, almost 7 million, as opposed to 1.5 million in Qatar. This provides additional traffic from expatriates and their extended familiestravelling to and from the UAE to their home countries. Further, Dubai and Abu Dhabi are more popular as tourist destinations than Doha. Qatar Airways is in a more vulnerable situation than its two competitors.

Is there going to be mergers between any pair of the three, I don't think so, simply because all three are considered by their governments as an integral part of their development plans.

Will any of them disappear I doubt it, why should they when their catchment area goes way beyond the region to encompass the world. They have become global airlines with networks that span the world.