Worst First Quarter In EK History.

[tinfish]

While I'm at it, I heard from a reliable source ,in the hallowed halls of The EGHQ Costa, that EK has just had the worst 1st Q in its history by a long way. Reasons cited were many e.g fierce price competition from our ME cousins. The number 1 reason given, however, was over capacity brought on by the A380s. Let's see how this all plays out!

[natops]

If this is all true:

Lets re-assess if EK still need the big ladies who are in the pipeline, cancel a few if needed to start with.
Look where we stand with pilot hiring, cancel a few more aircraft maybe, if we cant crew them.

Create rest among the guys on the line. Get your sh!t together, show goodwill.
Stop putting water into a bucket which is leak at the bottom. Stop the freakin' leak first.

We are trained to make decisions, and then re-assess. If a company is focussed on the wrong things too long, it looses the whole picture, and dives down in a spiral dive. Thats where we are now.

If they don't then why not have Korean, Vietnam, China Southern etc doing roadshows in EGHQ. Thats a way to fill up the atrium with pilots!

N:ok:

[axialflow]

The 2020 carrot still dangles...driving all sorts of projects/govt. initiatives from VAT to aeroplane orders. I don't think EK will change its business strategy anytime soon...OR maybe the Chief Transformation Officer will influence a course correction...

[MosEisley]

My bet is that mueller will help Airbus shut down the 380 line by converting the remaining 380 orders to 350s which make more sense going forward.

[BigGeordie]

You don't change the entire business strategy of a company this size based on one bad quarter. If it is followed by another couple of bad quarters (so a bad three quarters...) then things could get interesting.

[notapilot15]

Over capacity, no way. PR brigade is reeling from #brexitvote aftermath, otherwise this thread would be history by now.

[Nedul]

Would that "over capacity" possibly be due to parked aircraft?

[777-200LR]

http://www.pprune.org/middle-east/581608-emirates-operation-changes-august-2016-a.html

I think we'll be seeing more of this in the coming months.

[notapilot15]

Nedul,

EK's aircraft are never parked. Ultimate Dubai shows how quickly they hammer(literally) out issues to put these birds back in service.

They manage slack in the system thru maintenance, painting and photo shoot activities. It takes 6000 man hours to paint a A380.

[BigGeordie]

So if they only have one person painting a 380 (with a 2 inch paintbrush presumably) they can have it out of service (but not parked, never parked) for 250 days! Sounds like a plan.

Thought some of the aircraft were looking very shiny at the moment,

[Panther 88]

And Delta just announced a 2nd qtr profit of $1.55 billion after a loss of over $600 mil from fuel hedging and their refinery. Yield management here needs some twerking it seems to me. Different environments, but.......

[DCS99]

"Emirates Operation Changes from August 2016

I think we'll be seeing more of this in the coming months."


I have never seen so many cuts announced in one go.

(Except during runway closure.)

And at such short notice.

[Kamelchaser]

I've been saying for a few weeks now that big changes are coming. My crystal ball says by the end of the year Airbus will have announced the shutting down of the A380 line, paying off EK to swap the orders over to the A350. It will be cheaper than losing (apparently) 50 million dollars on every 380 coming out of the hanger. It'll be a face saving measure for STC, who's hung his legacy on the 380. I've always said the 380 is not a recession proof aircraft, and I think EK have taken a step too far in ordering 142 of them. No-one else in the industry has ever been able to see a future for that many Very Large Aircraft, and I think STC's famous quote "we just buy the aircraft, open the doors and passengers just walk on in" is coming back to bite him.

EK is in the middle of a perfect storm of global economic malaise causing a serious downturn in premium travel, at the same time as it's struggling with huge over-capacity.

My crystal ball also sees a complete stop to flight crew recruitment sooner than most expect, along with a stop to upgrades. I've been here long enough to see a few cycles of absolute ludicrous feast (as we have now) to complete famine.

I might be wrong of course. I was wrong once, but that was back in '83 at an Anita Bryant concert..went into the lady's loo instead of the bloke's.:ouch:

[propaganda]

Unfortunately, with so much uncertainly globally at present - it's not the time to be increasing capacity -Maybe a few beached Whales at Victorville.

[ROKAPE]

Nedul,

EK's aircraft are never parked. Ultimate Dubai shows how quickly they hammer(literally) out issues to put these birds back in service.

They manage slack in the system thru maintenance, painting and photo shoot activities. It takes 6000 man hours to paint a A380.

I hope that this in written in jest.

[fatbus]

Kamel , when you gotta go you gotta go!

[Panther 88]

More concerning is why was Kamel at an Anita Bryant concert?

[ExDubai]

More concerning is why was Kamel at an Anita Bryant concert?
https://m.youtube.com/watch?v=8GTzBowBrFA

[crewmeal]

What did EK order at Farnborough this year?

[tinfish]

We've been getting collectively flogged for years while the company has been making billions.....what have they got in store for us now they're losing billions 😏!!

[lospilotos]

Jet fuel price upp 48% since January.

[JAYTO]

Geez..... 1 rumour on a rumour network about 1 bad quarter and suddenly EK is losing Billions....

Lets get some perspective here.

J

[glofish]

A lot of people are simply in denial.

"Brexit?" C'm on :ugh: happened three weeks ago, nothing to do with a first quarter result.

"380 is a money machine for EK". Right, no need to shut down the production line, EK will take another 200 and post more first quarter record profits. No need for CM, with every new 380 our bonus will increase.

:ouch::mad::ugh:

Guys, the overcapacity is staring us into our faces. Just as the reduction of the yield.
To all those who still want to come: You might just join to be the first ones fired. The writing is on the wall: Capacity reduction.

To all old farts, like me: We might face another increase of hours to give us the rest. The company wants to get rid of the expensive old guys and keep the desperate newbees. Seniority? My @$$. And the pampers fraction instructors will be busy training those who will work their health off to push them out of the company.

Congratulations!

[kingpost]

To all old farts, like me: We might face another increase of hours to give us the rest. The company wants to get rid of the expensive old guys and keep the desperate newbees. Seniority? My @$$.

EKonomics 101 - the new guys probably cost more than the old timers. How, well consider a new pilot joining that has 3 kids, his total cost to the company is way more than a 20 year Capt with grown up kids!!! So why would you want the experience guys to leave and expose your risk!!

[pumpkin]

EKonomics 101 - the new guys probably cost more than the old timers. How, well consider a new pilot joining that has 3 kids, his total cost to the company is way more than a 20 year Capt with grown up kids!!! So why would you want the experience guys to leave and expose your risk!!
Exactly!! A first year Captain's salary vs a 10 year Captain's salary is not that much different (sadly), and the bonus to the company (besides having crew who actually have some experience...) is no more School fees, bus fees, and medical coverage for the pilot with graduated-and -gone kids .

[glofish]

You might be right, financially, i agree.
Regarding risk, i would't be sure they cared. Maybe the insurance company though.

I stand corrected.

[Kamelchaser]

10 years ago an EK recruitment manager told me it cost a minimum of 2 million AED from recruitment to LHS...all the recruitment costs, costs of bringing in supporting the family, and training from RHS to LHS. Nowadays it would be 50% more than that at least.

Factor in say 3.5 million AED into the monthly pay difference between a new Captain and a 15 year Captain, and it's clearly better to retain an experienced Captain until retirement than it is to wave him goodbye to save at most 15,000AED a month. On that simple equation, it would take 19 years to recover the replacement costs of the experienced Captain with a new guy in the LHS (ex DE FO) and maybe 40% of that time for a DEC

[Monarch Man]

Kamel, a number of years ago I had a chat to MK who essentially said the same thing as we went into another round of DEC recruitment.
Of course bean counting logic 101 states "we know the cost of everything, and the value of nothing"
In this case however it would appear that the cumulative investment is either ignored, or more likely dismissed as anything less than that would be an admission of fault or error.

[notapilot15]

Maybe a few beached Whales at Victorville.

No need

3 - Heavy mx,
3 - Painting
2 - Fresh Phenom-100 graduates
1 - Jennifer Aniston
1 - Jetman
1 - Airshow somewhere
1 - Sport event somewhere
Any more slack start additional frequency to LHR and AKL.

[Kapitanleutnant]

I'm sure the bean counters at HQ are having that same puzzled look when you ask for something from a waiter, or staff at Carrefour etc... that is just a little different than they normally hear.. something they really have no idea how to process in their brain because it's "just slightly out of the norm" and therefore, it simply doesn't compute to them.

Same with the bean counters upstairs... They have no idea how to handle nor what to do as since EK is now not making money. Total bewilderment and the proverbial deer in the headlights look from them.

Kap

[donpizmeov]

A line captain leaves. The company is up for the expensive of selecting and upgrading an FO to Capt, and also the expense of recruiting and training a new FO. The more qualifications you have, the more expensive to replace. A TRE leaves. The company is up for the expense of selecting and training a TRI to TRE. Selecting and training a line Capt to TRI. Selecting and upgrading an FO to Capt. Recruiting and training a new FO.
The "if you don't like it leave" attitude is expensive.

[ruserious]

And yet they love it so much