EK orders 32 more A380's(Merged)

[shazar]

Indeed, Emirates has financial and political backing from Dubai government. I am not the only who say this, Qantas made many statements on Emirates. Please see this link http://edition.cnn.com/2005/BUSINESS/11/03/qantas.emirates/

Also, CEO of Gulf Air made an implicit statement about Emirates, Etihad and Qatar Airways 2 to 3 weeks ago. Gulf CEO was President of the Arab Air Carriers Organisation (AACO) and Chairman of the International Air Transport Association (IATA) board of governors until June 2009. So, he does not talk nonsense.


Please review my previous posts on this site where I listed many examples of unfair competition practices adopted by Emirates. You even stated your good-self that Dubai government negotiates traffic rights to meet its economic needs, i.e., basically not abiding to established formal rules. They are making it cherry-pick. I recall very well 4 to 6 years ago Dubai authorities denied granting landing rights to airlines offering fares lower than Emirates (this was published in local press by Editor of a Bahraini newspaper).


I thank you for the example about traffic rights for Etihad with Canada. But Abdu Dhabi or Etihad is not like Dubai or Emirates, are they? Please read this link
http://www.calgaryherald.com/business/Canada+fights+Emirates+push+flights+Calgary/2665068/story.html

In early 2010, UAE asked Canadian authorities to grant Emirates greater access to Canada in exchange for extending permission for the Canadian Forces to stay at Camp Mirage, a Gulf base that serves as a crucial jump-off point to Afghanistan. What politics has to do with commercial issue here? Is this not lobbying to get way with business? Emirates official declined to give comment on this issue because he knows very well his airline depends on monopoly strategies of Dubai government.

The situation reminds me about gulf government affirmation that their sovereign funds operate on commercial grounds, while the true that the people behind them use diplomatic passports in Europe to move easily and avoid paying taxes!

Neither UAE no any GCC has open sky policy. Monopoly does not create excellence for any company, does it? It makes money because you secure all the required yard sticks but when the game conditions change, we all perceive the difference. An athlete who runs using steroids is not like someone running without it, right?

http://www.financialpost.com/story.html?id=2663385

Bahrain has granted private sector to run Bahrain Air rather than giving support to its loss-making Gulf Air. Kuwait privatised its national airline Kuwait Airways and allowed private sector to run Jazeera Airways and Wataniya Airways. What did Dubai do? They reverted with fly-dubai subsidiary after emergence of many economy-based companies. This was predicted by MEED many years ago.


I am not saying Emirates has low demand globally, it does, but this huge amount of profit comes from unfair competition, which in fact say that no competition exist! how Emirates is able to make huge profits when more than 90% of airlines make losses! Is this magic? especially Dubai is being hit hard by the financial crisis and made a statement that it is on default by asking delay to pay its debit.


Please do not tell me that a tribal mentality can fight fairly because a tribal person will only fight when he is stronger and knows his competitors are weaker.