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Old 18th Jan 2011, 03:34
  #49 (permalink)  
Wizofoz
 
Join Date: Jun 2001
Location: Boldly going where no split infinitive has gone before..
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Free trade should produce benefits to everyone, in the sense of competition and new ideas / products, more efficient production processes, therefore cheaper prices and DEVELOPMENT and wealth increase for the local population.

Does anything of these things happen when EK expands at the cost of an established European carrier?

NO!
Pretty definitve statement, with very little substance.

EK provides development to many people from many countries. For countries like Indonesia and the Phillipoines, expat labour who repatriate funds are one of their biggest foreign currency industries. EK is an enourmous employer of such people both directley, and through it's contribution to the overall Dubai ecconomy.

EK is not doing any of this at the expense of European carriers, as it can do things the Europeans simply can't do. Is Lufthansa going to provide a direct service Cochin to Munich? Karrachi to Hamburg? Of course not, there isn't anything like to traffic. But by having a stratigically placed hub, EK provides a one-stop service between these points.

Yes, ME carriers (as well of the carriers in other developing regions) have an advantage in labour costs. But when Lufthansa or BA turn-around in these places, guess which baggage loaders, refuelers and cleaners they contract to and guess how much they pay them? Do they give them a premium out of conscience, or pay the going rate?

Seems "exploitation" is ok if you're exploiting someone in a foreign country, just not in your own, and Coke and McDonalds (not to mention Nike and Walmart) are good examples!!
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