Why will KLM, BA and Air Canada have to reduce capacity when they can beat Emirates on any time factor with connections. Or is their product not up to scratch?
Because EK will charge $100 dollars (or some ridiculously low price) for a fare like YYZ-HKG-YYZ, while AC would never even be able to come close... due to completely different operating cost bases. People will fly an extra 10 hours if it will save them %50 on the ticket purchase price.
disclaimer: I do not work for AC, and I have no ties to AC. In fact I have more friends at EK than AC.