QF's cost base
Quoting RamboFlyer 1 I honestly believe EK will fly Red tails all over Europe as they exhaust their rights into other countries a new entity ( Qantas) will be able to pick up a very large number of new destinations.
The cost base of EK is probably about 1/3 of qantas if not less.
On what basis do you tink EK's cost is 1/3rd that of QF. Last time I looked, they were paying the same Airways charges, much the same for fuel (Emirates does not have a hedging policy if I recall), and Boeing and Airbus are not 'gifting' airframes to them.
If you are saying that EK has a lower management cost, I would believe that, BUT to claim a cost base which includes ALL the costs associated with operation (fixed and variable), sure they have an advantage. They are smarter (read more effective) in getting every last hour of productivity from their employees - but that only amounts to about 7% of the total operating cost. If they are have an efficiency double that of QF, we are still talking a small overall increase in direct costs, not the 33% you claim.
Plainmaker