To be able to continue the “super” bashing (
)without thread creep, let me open this new one:
The very suspicious second half dip in revenue might have two very real reasons, explaining the very obvious book-cooking.
1. The cousins down the road have given some huge securities as to not have Dubai go down the drain five years ago. I believe HH A could prevent EK from being given away as a security asset, but I believe that any big profit originating from that same EK group might have to be shared a little bit more unequally than the M-family would have appreciated. After the boasting of the first half profit, I guess a brief call on HH mobile told him to rethink the final spreadsheet. The envious N-family would definitely want their share of the profit and definitely never share profits with the slaves up north! Bonuses should come from their oh-so superiour outfit for their own slaves and that’s it.
2. I start to believe, that EK has ripped off a chunk too big to chew with its “supers”. You can get the numbers on passengers, you can even ellbow out the competition on certain routes and airports, but what apparently does not show up in sufficient numbers, is the high yield passenger. At the same time EK fell into the same trap with Airbus as with the 340. The promised economy just does not materialise. The 380 has a very thin and steep profitability bell-curve and EK finds itself outside of it most of the time. A big and heavy 20-wheeler quickly eats into yield when operated
outside of its comfort zone.
No one wants to see or admit to the elephant in the room, the mantra seems to be: “let’s continue the game, with time and more supers it will pay off, we’ll suffocate the competition”.
It’s like the gambler at the roulette table who continues to set on red, doubling his bid after each loss, telling himself that eventually red will pop up and he will get back his investment. This works until eventually red wins, or the gambler runs out of money.
During all that time the profits go to mandatory repay of debt, the surplus down to the southern relatives, but the employees get nothing but unpaid overtime and no compensation for inflation.
Comments?