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Old 20th Jul 2010, 18:53
  #107 (permalink)  
Rather Be Skiing
 
Join Date: Mar 2010
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The corporate tax load on AC is considerably higher than that of emirates. emirates doesnt pay corporate taxes in UAE does it?

That is why the Canadian government doesn't want a low cost international carrier flying into Canada. The Canadian government would take a tax hit to have emirates fly here too much.

Also there isn't a realistic way for AC to compete into Dubai because most of the traffic emirates takes into DXB is thru traffic. AC already covers that Indian market thru it's Star Alliance partners (and AC takes a cut of the ongoing ticket out of ticket from Europe to India - and the Canadian Government takes a tax from that ticket)

If emirates launches out of Vancouver to DXB the Canadian govt doesn't get the same level of tax revenue from that flight. It also gets zero tax revenue for the onward connection to India.

There is no incentive for the Canadian government to allow more EK flights into Canada. There is an incentive to reduce the number of flights EK flies into Canada
How much corporate tax has AC paid on its losses? Now if it makes a profit, it can carry those losses forward to avoid taxes in the future.

The Canadian government would get the same from EK that it does from any other international carrier that operates in/out of the country. By your argument we should ban BA, Lufthansa, CX etc too.

All the items you mentioned paying would not even be a drop in the bucket compared to what A/C contributes to the tax base of Canada.

People keep trying to say Emirates would create all kinds of jobs here if allowed in. I beg to differ. How many jobs will there really be for one flight a day? Lets have a look...

...Should I go on? Please show us where all these great high paying jobs that will contribute to Canada's tax base are coming from?

PS Somehow I don't think customers are CRAVING a 24 hr layover in Dubai to get from YYZ to India or Asia...
Oh Please! Of course Ek will not contribute the same to the Canadian tax base as AC. Do any of the single flight a day international carriers?

As far as all the jobs you mentioned, again, is that any different than the jobs created by any of the other foreign carriers that operate in/out of Canada?

Naturally EK is going to try and put as positive a spin on things as it can just like AC will make things out to be catastrophic.

As far as what the customers are craving: if you are indeed correct, then the EK service will be short lived anyway. Shouldn't the consumer be the one to decide what it is they want or are willing to pay for? The one thing EK will not do is flog a dead horse; if it doesn't make them money they'll drop it.

There hasn't been a well thought out reason yet given why EK should be blocked from offering the consumer an alternative choice. It still comes down to whinging and whining by AC.
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