555,
An aside : Skiing: the GDP of Dubai is not what one would look at here since the emirate of Abu Dhabi greatly supports Dubai financially through government agencies. The overall percent of GDP of oil for the entire UAE is 40%.
Actually it is 31%, but so what? Dubai contributes 28% of UAE GDP with on 6% of it from oil.
At any rate, how does the make up of the economy factor into whether or not there is increased flight frequency?
Incidentally, I am not against more flights. I just believe that when you are doing business with countries that are heavily advantaged financially due to its "light social and democratic footprint" then one has to be intelligent about lending that country free unregulated acces so as not to also damage local markets while solely providing more choice for the consumer. Personally I like what Etihad has been doing through its tie-ups with other airlines, thereby benefitting all. Perhaps EK should take some lessons from its older brother.
So the issue is one of morality? Yet we are expanding our relationship with China where ever we can. They are not noted for their democratic or social rights. I don't believe "free unregulated access" is what is being discussed. Just additional frequencies.
Surely you don't believe Etihad is doing this to "benefit all"? It is about the quickest route to market penetration in an effort to catch up to the other players.
From the BBC;
The firm said that acquiring these stakes will help it to take on rivals such as Emirates and Qatar Airways.
"We're building a strong business model. And part of that business model is partnerships," James Hogan, chief executive of Etihad, was quoted as saying by the Associated Press.
"We do have two large competitors on our doorstep. And we will never match their aircraft order book."
Do you support the idea of the Government of Abu Dhabi buying into foreign airlines? An Aussie colleague mentioned that this could be a problem with the stake taken in Virgin Australia.
In case you forgot, EK has commercial agreements with other airlines such as WJ and JetBlue. The difference is they have not taken a financial stake. They did so some years ago with Sri Lankan though. The 43% stake was sold back to the government in 2010.
Would WJ not be a beneficiary of increased flights? If EK bought, say, 5% of WJ shares would that then be ok?