Ask yourself, given all the advantages EK currently has over worldwide legacy airlines in terms of
geographic location
one hub, one base crewing
third-world pay and benefits (for most)
no unions
new, mostly efficient aircraft
excellent marketing
Why can't they make this work, today? Of course you can make many arguments about management and their decisions, which we've debated before, however, I propose its simple really...
It's Oil.
Remember if you will when oil was 100+ plus a barrel. Worldwide airlines were losing, some hemorrhaging money. EK.......record profits. STC gave interviews saying "we just do it better". Yes, EK does do somethings better. Agreed.
However. What has been the one constant that makes or breaks an airline's bottom line. Its Oil. Always has been, always will be. (of course, I know its labor too, but not for EK...I think we can agree on that)
How then could EK make the massive proffit during high costs of oil yet now, when oil is staying at historic lows can they not double their margins like other airlines seem to be doing....
It's my belief EK doesn't pay market rates for their fuel in DXB. Seriously, what else could it be? It's not just capacity...not on this scale. The fuel price worldwide is balanced, oil is cheap, all benefit.......but why not EK? I cannot figure out what in the equation has changed so dramatically for EK but this.....
oil