Like it or lump it, the bottom line is that EK have the cost base under control!
A top whack United Captain costs the company $330,000 plus pension et al. Top whack EK Captain gets his salary tax free plus a house and including the provident fund still only costs the company around about $200,000.
A BA cleaner costs $8/hour, a cleaner in DXB cost around $200/month. It isn't down to subsidies it is down to paying folks what the airline can afford.
The best line I have seen recently was from a US airline analyst. He said: 'United have made cuts to drive their costs close to the American cost base model. Sadly the American model is doomed to failure as well!'
In the US, the guys at the top are taking all the cash and letting those at the bottom get furloughed when times get tough. Even Air Inc's bumf tells pilots to expect to be furloughed at least once in their career. Every time a downturn hits the companies restructure and screw the employees. Everytime the industry booms, the unions screw the companies. I wonder why things keep going wrong.
9/11 was a catalyst but more than a year later most of the European airlines are starting to get back on track and the Far Eastern market is turning up nicely. The US airlines are now running out of excuses.
Sorry, the truth hurts as the Yanks say, 'Wake up and smell the coffee!'
Ghost