behamjee
Your argument is persuasive, however a little disingenuous as well.
You have left out one important ingredient as to why many of those airlines you mention have downsized their operations into certain markets: Airline Alliances and code shares.
I don't have to tell you that alliances feed on themselves and become restrictive for their own members to cut duplication.
BA to Oz is a classic example.
It's not just AC pitching in this game, it's also the Star Alliance and over their shoulder all the other alliances, as EK is an outsider (in more ways than one).
Don't know much about the UAE government threat, but if it's true then it just goes to show how they treat everyone as has been brought to light in the not too distant past.
halas