It's quite easy to undercut the market when the same family owns the aircraft, the airport, the oil wells, the refineries. The same family who control the slots, the navigation rights, the employment conditions, the housing and the immigration visa issue.
The company that treats it's staff like slaves, insists on ludicrously outdated working practices and backs them up with surveillance that would make the Stasi from the cold war proud (obviously hiding the thermal imaging equipment in a gold Rolls Royce rather than a Trabant). I have colleagues and friends who work out there and are desperately trying to get out, it's going to be an interesting summer for the Gulf carriers!
A company that doesn't have to contend with anti aviation Governments, lack of runway space due to feckless, chinless politicians who couldn't make a decision if their lives depended upon it. Taxed to the hilt on a green 'premise' whilst those same said green taxes go to prop up an ever increasing Government spend.
It will be an interesting couple of years for Lufthansa and Air France/KLM as they struggle with the ever diminishing returns that the aviation sector is bring in with the European pounding that the industry is getting from the Green brigade whilst the Middle East and the Asia sectors continue to expand in the light of relaxed regulations.
Crews becoming tired and fatigued as EASA screws scientifically proven rostering in favour of a one glove fits all approach and the Airline execs can screw more working hours out of their crews. Schedules must be kept but those pesky pilots things are too expensive so we'll over utiise what we've got in an atmosphere of fear of job loss if they don't cover the work. Remember Colgan? Where the Co-Pilot earned less than a hotel dish washer and couldn't afford to live where she worked? Good job the tickets were cheap.
Yet despite all this passengers still want tickets across the pond for less than the return train fare to Newcastle from London, oh, and a flat bed, oh, and champagne, oh and a full meal service etc. etc. etc.
Something has to give to keep the prices low and the employees have just about been reamed out as far as they will go.
So, whilst BA has made some hard, and occasionally poor, choices in their service delivery they are still chugging along in the face of unfair, global competition and for the passenger it is, obviously, a free market. Fly with who you will, personally I wouldn't touch the Gulf carriers out of principle but then I'm not much longer for this industry. Thankfully.