Open Skies Report - EK/QR/EY - Interesting Read
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Open Skies Report - EK/QR/EY - Interesting Read
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The three carriers’ routes to the U.S. have not meaningfully increased passenger traffic; they only serve to displace U.S. airline market share and shift good U.S. aviation jobs overseas. In fact, every lost international roundtrip route by U.S. carriers because of this subsidized competition equals a net loss of more than 800 U.S. jobs.
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The U.S. carriers don't compete on routes because the simple fact is they can't compete. The labour costs alone will stop any legacy carrier from going head to head with the middle east airlines.
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Lower labor costs, lower to no taxes, zero interest financing, state-of-the-art facilities built and paid for by the government. The US3 have absolutely no chance. Anyone considering leaving EK for a career at the US3 should think twice.
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I didn't see it mentioned but don't EK/EY/QR take advantage of US EXIM bank financing, something that US (and EU) airlines are forbidden to do?
So the US government and US taxpayer are also subsidising these airlines. While the motivation may be to help Boeing (As in B vs. A), it's another subsidy.
So the US government and US taxpayer are also subsidising these airlines. While the motivation may be to help Boeing (As in B vs. A), it's another subsidy.
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This is a hilarious argument from the US carriers and their Euro partners. They are clearly running scared.
Two questions to consider showing examples of connecting-traffic hypocracy:
1. What proportion of KLM passengers are actual O&D passengers to/from AMS? Not a lot as quite a few are connecting to places outside of the Netherlands.
2. Do the big 3 US carriers turn down connecting traffic in Atlanta/Chicago/Dallas for passengers flying between Asia and Latin America? No.
Two questions to consider showing examples of connecting-traffic hypocracy:
1. What proportion of KLM passengers are actual O&D passengers to/from AMS? Not a lot as quite a few are connecting to places outside of the Netherlands.
2. Do the big 3 US carriers turn down connecting traffic in Atlanta/Chicago/Dallas for passengers flying between Asia and Latin America? No.
I didn't see it mentioned but don't EK/EY/QR take advantage of US EXIM bank financing, something that US (and EU) airlines are forbidden to do?
US carriers cannot get EX-IM finance, as being a domestic airline, it is not being exported.
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Last desperate act of the Chapter 11 three. Can't compete due crap product, have stolen money from their employees and dumped costs to the PBGC so have a whine to the government. Let's bring back BOAC, Pan Am and props!
Interesting article:
Court approves termination of United Airlines pension plans - World Socialist Web Site
That covers 10 of the 40 Billion, what makes these 3 so special that Open Skies doesn't apply!
Airline bankruptcies in the United States - Wikipedia, the free encyclopedia
Emirates brand:
Interesting article:
Court approves termination of United Airlines pension plans - World Socialist Web Site
In a devastating blow to 122,000 workers and retirees, a federal bankruptcy judge ruled May 11 that United Airlines may default on its pension obligations and turn over control of its pension funds to a federal agency that is already swamped by corporate pension defaults. Judge Eugene Wedoff approved the airline management’s request to terminate four pension plans—for pilots, flight attendants, mechanics and other ground service workers. The $9.8 billion pension plan default is the largest in US history.
The Pension Benefit Guaranty Corporation will take over the plans, but federal regulations limit the amount of pension payments it can make to a maximum of about $45,000 a year. The highest paid UAL workers, such as pilots, will face pension cuts of up to 50 percent, while lower-paid workers could lose as much as 20 percent. The pilots face a Catch 22: under one federal law, they are not allowed to work after age 60; under another, the proportion of their pension guaranteed by the PBGC is sharply reduced if they retire “early,” i.e., before age 65.
The actual amount the PBGC will underwrite is likely to be even less than the $45,000 maximum, since the agency’s resources will be exhausted within a few years by a tidal wave of corporate pension fund defaults. The initial round of defaults, notably in the steel and airline industries, has already put the agency $23 billion in deficit; the United default will add another $6.6 billion in pension liabilities to the PBGC’s balance sheet. United will give the agency $1.5 billion in notes and company stock to partially offset the pension liabilities, but these securities will be worthless in the event the airline is forced into liquidation.
The difference between the $9.8 billion United owes and the $6.6 billion obligation assumed by the PBGC is $3.2 billion. This staggering sum, owed to present and future retirees under the terms of their contracts, is simply wiped out. It is the equivalent of robbing each and every pilot, flight attendant and mechanic of $267,000—although for some younger United workers, especially pilots, the individual loss will be far greater.
The Pension Benefit Guaranty Corporation will take over the plans, but federal regulations limit the amount of pension payments it can make to a maximum of about $45,000 a year. The highest paid UAL workers, such as pilots, will face pension cuts of up to 50 percent, while lower-paid workers could lose as much as 20 percent. The pilots face a Catch 22: under one federal law, they are not allowed to work after age 60; under another, the proportion of their pension guaranteed by the PBGC is sharply reduced if they retire “early,” i.e., before age 65.
The actual amount the PBGC will underwrite is likely to be even less than the $45,000 maximum, since the agency’s resources will be exhausted within a few years by a tidal wave of corporate pension fund defaults. The initial round of defaults, notably in the steel and airline industries, has already put the agency $23 billion in deficit; the United default will add another $6.6 billion in pension liabilities to the PBGC’s balance sheet. United will give the agency $1.5 billion in notes and company stock to partially offset the pension liabilities, but these securities will be worthless in the event the airline is forced into liquidation.
The difference between the $9.8 billion United owes and the $6.6 billion obligation assumed by the PBGC is $3.2 billion. This staggering sum, owed to present and future retirees under the terms of their contracts, is simply wiped out. It is the equivalent of robbing each and every pilot, flight attendant and mechanic of $267,000—although for some younger United workers, especially pilots, the individual loss will be far greater.
Airline bankruptcies in the United States - Wikipedia, the free encyclopedia
Emirates brand:
Versus - Get your own peanuts!!
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That image is more how EK tries to PORTRAY the brand. It does not remotely resemble the reality of the "brand". Any more than the glib "get your own peanuts" line can describe all US carriers. The EK service has slipped a great deal, and fast - it's no secret, and no surprise, given the rapidly deteriorating working conditions. At the same the legacy carriers have been forced to up their game. No, they'll probably never get to the same level of "service", what with all those pesky labour laws and legal rights of their staff.
We get it, you have a hate on for the US carriers. Why? Who cares. But when I see marketing propaganda like you posted, I think more about the reality of crew pushed to the absolute limit and beyond. A link to the story of the poor soul who recently took her own life in al Nadha would be more appropriate than smiley shiny girls.
Fortunately the word is getting out about the truth of EK as a company and employer. All empires eventually crumble.
We get it, you have a hate on for the US carriers. Why? Who cares. But when I see marketing propaganda like you posted, I think more about the reality of crew pushed to the absolute limit and beyond. A link to the story of the poor soul who recently took her own life in al Nadha would be more appropriate than smiley shiny girls.
Fortunately the word is getting out about the truth of EK as a company and employer. All empires eventually crumble.
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We get it, you have a hate on for the US carriers. Why? Who cares.
This thread is about unfair competition and subsidies. The Big 3 US carriers struggled due to the ridiculous attitude of some of the Unions. They had been unable to compete at home and shedding jobs to the feeder carrier network has led directly to the race to the bottom in the US. But the Big 3 US carriers claiming the moral high ground is ridiculous when they have benefitted by transferring debt and pensions to the government and claim they were not subsidised. At the drop of the hat they fire (sorry furlough) employees to save cash.
I agree that the ME3 do get some subsidies but lumping Qatar and Emirates together is ludicrous. Qatar is the richest nation in the world and buys everything including passenger traffic to support Qatar Airways. Emirates financially supports Dubai.
If we want to see the root cause, just maybe it lies here:
Rick Dubinsky, longtime head of the AirLine Pilots Association at United, made this clear when he and Goodwin began a recent wage negotiation. ''We don't want to kill the golden goose,'' Dubinsky told Goodwin. ''We just want to choke it by the neck until it gives us every last egg.''
All of that said, USA Inc must be onto a massive winner based on the 500 Plus Boeings being procured.
Last edited by Schnowzer; 7th Mar 2015 at 12:20.
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Those 6 flight attendants quit already please update your picture
Germany France and Canada said no more routes
USA will do the same
Boeing statement?
You can convert the 777 s to military equipment that you will need to protect yourselves from ISIS
PS don't worry you will have enough attrition that you will have the chance to INTERVIEW for a command upgrade, just try to pass the drilling if not? No problem more direct entry command positions will be created
Germany France and Canada said no more routes
USA will do the same
Boeing statement?
You can convert the 777 s to military equipment that you will need to protect yourselves from ISIS
PS don't worry you will have enough attrition that you will have the chance to INTERVIEW for a command upgrade, just try to pass the drilling if not? No problem more direct entry command positions will be created
Possibly Qatar and the UAE looked at US agriculture to learn about subsidies, cheap labour, protected markets and favourable government regulation.
It's perfectly alright when other countries can't compete against United States farmers but not acceptable when U.S. airlines can't compete against a better and cheaper competitor.
It's perfectly alright when other countries can't compete against United States farmers but not acceptable when U.S. airlines can't compete against a better and cheaper competitor.
Where does your milk come from Cerbus? I think Metro was thinking more global than just the UAE.
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Hidden in plain site it's like Area 51.
Next time you are downwind 30R in the daytime you are flying over about 10,000 cows. They have little sun-shelters in Al Kwahneej. It surprised the crap out of me when I got lost coming back free Nav from Sharjah and ended up at the Al Rawabi farm.
Loads of chickens too, 50,000 tons or so and a hell of a lot of eggs (had to google that one). Most of the farms are indoor, you see them all over the place, even the reservoirs that supply them are covered, that ultra low building on the 30 approach is a reservoir.
Now pigs......ok you got me on that one but I hear the subsidies offered by the Government are amazing!
Next time you are downwind 30R in the daytime you are flying over about 10,000 cows. They have little sun-shelters in Al Kwahneej. It surprised the crap out of me when I got lost coming back free Nav from Sharjah and ended up at the Al Rawabi farm.
Loads of chickens too, 50,000 tons or so and a hell of a lot of eggs (had to google that one). Most of the farms are indoor, you see them all over the place, even the reservoirs that supply them are covered, that ultra low building on the 30 approach is a reservoir.
Now pigs......ok you got me on that one but I hear the subsidies offered by the Government are amazing!
