If Emirates are doing so badly, how come they've just launched the A380 on the MAN-DXB route?
Emirates in the UK does well because there are hundreds of thousands of people in the UK who have relatives and friends in Australasia and vice-versa. Who would imagine that a NCL-DXB flight would do so well right through the cabin?
'Service' as a concept disappeared from most airlines long ago. The beancounters saw to that.
With regard to competition, the owners of Emirates and Etihad are cousins. I therefore see little likelihood of serious competition between them.
Most of the EK flights I have been on have been full or almost full. They have cheap fuel at DXB and other points, so how do you define subsidy?