Emirates [EK] evaluates New Zealand Hub ?

[Career Command]

Good afternoon team

From www.atwonline.com today


Emirates looking at setting up hub in Auckland
Dateline: Monday February 23, 2004

Emirates is examining the feasibility of setting up a major hub at Auckland, according to New Zealand and Dubai sources, which would put intense competitive pressure on Qantas and Air New Zealand.

The Dubai-based airline is looking at services from Auckland to Fiji, Los Angeles/San Francisco and Buenos Aires as part of a major South Pacific expansion that would give it round-the-world capability.
Emirates is expected to be granted a second daily flight between Sydney and Dubai this year and will use its new Australia-New Zealand rights to draw Australian passengers onto its South Pacific network. Planning also is well advanced for an Oct. start of a new flight from Perth to Auckland or Christchurch that will be part of increased services to Western Australia.
The carrier currently flies a daily Dubai-Perth flight. It will increase to 11 times a week from Oct. with a four-times-weekly Dubai-Perth-Auckland or Christchurch service.--Geoffrey Thomas

[Traffic]

My Goodness:uhoh:

A Dubai-based carrier serving Fiji, McMurdo Sound, LAX/SFO and Buenos Aires hubbing over Auckland.

Next we will have Korean hubbing in Jo'burg, Aeroflot hubbing in Santiago and South African hubbing in Chitose...:8

This makes less sense than the invasion of Iraq but there you go, I guess that's what happens when you throw a lot of government money at an idea:ooh:

Perhaps Geoff is getting into the fiction market.

[Chocks Away]

This eluded further attention, when it was known and then mentioned on these forums some 3 months back (search function too busy too give actual links currently).

Make no mistake, they plan to be a global player... and need to be when the oil fades away...

[AirNoServicesAustralia]

All I'll say is that so far when Emirates has decided to do something it has usually turned out to be a success, and so if they decide to use New Zealand as a hub to expand into the Sth Pacific and Sth America, Qantas and Air NewZealand better watch out, cos servicewise those two airlines are a long way behind emirates.

From todays Gulf News, in the next two years Emirates plans to add San Francisco, LA, and Chicago to its direct flights from Dubai along with New York which begins in June.

From personal experience all the flights back to Melbourne have been packed to the rafters so they are doing something right, and with profits over 300 million Australian dollars last year, again I think if they choose to do something they have the capital to back it up.

By the way, chocks, the oil in the Dubai emirate has pretty much dried up now, but they have diversified their businesses so well that the oil money is pretty irrelevant these days.

[On Track]

I thought NZAA was already a hub for EK.

Last time I was there I saw three EK aircraft parked there at the same time. :D

[Chocks Away]

Copied that ANSA.
Yes, very service orientated, Dubai. They could all take a leaf out of EKs' service book, over here.

[Kwaj mate]

AKL is a very viable hub for any major airline.
The NZ aviation policy is very simple - open skies where possible.
EK have the obvious opportunities to expand their operations into the US; various South American destinations; and even into south west Pacific destinations where they have reciprical open skies rights.
5th freedon traffic is therefore very possible.
It is rumoured that they will be code sharing with SWP carriers to get the feed into their European & (soon to be started) US destinations.
Both NZ & QF are very concerned about potential loss of traffic over the SYD/LAX route to EK & see their concern over this blue ribbon (& highly profitable) route.
EK are in a great position to take advantage of their internal efficiencies, great equipment pool. They so need to expand in real terms over high density markets.
This will be very a very interesting subject in the near future.

[Arabian Aussie]

I wish that not only would they make it a hub but also a crew base in either Brisbane or Auckland...sadly no chance of being based at home. The introduction of an overseas base could dramatically increase the likelihood of Australian and New Zealand crew making a long term career with the company.

[AirNoServicesAustralia]

Come on AA, life in Dubai isn't too bad, in fact I find the UAE a pretty bloody good place to live (apart from the lack of VB beer).

Each to their own I spose.

[AirNoServicesAustralia]

Also remember AA that if you were based in New Zealand or Oz you would have to start paying that thing called income tax again. You'd have to pay twice as much (at least) for that luxury German car, you pilots like to drive, not to mention paying GST, Super Surcharge, Stamp Duty, Capital Gains tax etc etc. Be interested to know how many guys would jump at the chance to embrace all those nasties again. As I said each to their own.

[EPIRB]

What is the situation if you leave Emirates and come back to Australia? Does the ATO slug you?

[Wiley]

My guess is that they would do an SQ and form a separate offshore company and any EK driver who wanted to move to AKL would have to resign from EK and start again with the separate company with that company's 'package', whatever that may be.

And given the low wages Kiwi pilots seem content(?) to receive, I'd also be guessing that EK would be looking to employ as many pilots from that part of the world and not currently employed by EK as possible, DECs and well as FOs.

But that's just my guess.

[AirNoServicesAustralia]

EPIRB, if you become a resident of the UAE (which you would if you flew for Emirates based in Dubai), Australia and the UAE have no tax agreement, so the money you make while away is tax free, and the ATO has no way of knowing what you earned while away, so that bag of money you take when you go back is all yours to keep.

[itchybum]

More to the point, if you leave Aust to reside permanently in the UAE you are rightfully able to tick the "yes" box on the last tax return you submit, to the question: "Is this your last return" or words to that effect. You will then no longer be a resident for taxation purposes and I suppose the process is complete when you tick the "Resident Leaving Permanently" box on the out-going customs card at the airport.

You are no longer obligated to pay tax so there is no need to hide from the ATO.

Commuting pilots are a different breed of cat with their own taxation woes and the ATO, as we all know, love to impose changes "retrospectively" without necessarily informing you and I of the latest pitfalls so I'll leave it to others to comment on that scenario.

As for the wages, at least being paid in kiwi $ would mean the take-home (back to NZ) pay won't head downward as the exchange rate worsens (or improves, depending on your POV). Who knows they could even end up ahead of the UAE-based Kiwi pilots. (Hypothetically.............)

[Roadrunner]

As usual, the tax Q is confusing. I believe the ATA have changed the ruling on non-residency within the last couple of years.
I am told that as long as you have the slightest interest in returning to good old Oz, you will be liable for tax on return.
I should imagine that most Oz EK drivers intend to come on home when their stint in the sand pit is done.
The trouble is that the experts in Oz tax law seem to have slightly different opinions.
Maybe the answer is to buy up heaps of cheap rugs as a hedge against that possible big tax bill when ditching the sand pit. Or, god forbid, retire to NZ. Great spot apart from the Kiwis
Good luck.

[wessex19]

What about Qantas starting up a Dubai based hub!!!! We couldn't have that now, not those imperialistic Westerners infringing on our Middle-Eastern friends!!!!

[halas]

There is nothing stopping them!

They don't even fly to Dubai, so why would they want to set up a base there?

It's a free for all in DXB. No access restrictions and 5th freedom rights for all.

halas

[AirNoServicesAustralia]

I know you're having a joke wessex, but that is one of the stupidest comments I have ever read. As Halas said they don't even stop here but overfly Dubai. Secondly also as Halas said, all airlines are allowed, and more to the point welcomed with open arms here. Some stop in Dubai, mainly because of the extremely cheap avgas on offer.

I don't think Qantas would want to stop in Dubai and have identical route segments to Emirates and then maybe they would have to match Emirates, and they are along way behind being able to do that.

On the tax question. My advice from the ATO is that there is no tax agreement between the UAE and Australia, and just as you can't extradite someone from a country without an extradition agreement, the ATO cannot find out from the UAE government what you have been getting paid. Also was told that if you make your transfers home less than $10,000 Australian they are not flagged by the ATO for investigation.

[itchybum]

Yeah weird comment but I don't think he intended for you to stew over it... ;)

As for tax, I'm not one of the afore-mentioned "experts in Oz tax law", by any means but for all the disagreement, I'll say this: As far as I know, none of those expert legal opinions is worth a pinch of **** (as my dad used to say) until it's backed in court. ATO Rulings simply keep everyone happy until someone decides to give it a nudge in court.

Maybe I'm out of touch, if things have changed. In that case I won't charge for my advice so far.....

Back to wessex, I think a Dubai hub for Qantarse would rock. ANSA you telling me you wouldn't be keen on all the extra fluff in town????? hoosyadaddy.....

[AirNoServicesAustralia]

Mate maybe I'm getting old but there is more than enough fluff in the UAE to keep me getting myself into trouble. And its not just service, and age of fleet where Emirates thrashes Qantas. From what I remember the Qantas hosties were old battleaxes, not exactly young fluff!

[itchybum]

Well that's true about the boiler-rich environment. And I don't know that the raving mincers would go down so well in the sandpit either. No pun intended.

[AirNoServicesAustralia]

Itchy bum, it might surprise you but the 'horses hoofs' would go down very well over here (pun intended!). A very big gay scene over here, and while unmarried men and women are breaking the law being together over here, two men together is very common and in an unspoken way very accepted (not that there is anything wrong with that).

[wessex19]

ANSO & Itchybum, I am more than aware that Qantas does not fly into Dubai!!! Although stranger things have happened, I really can't see that happening in the near future. However, lighten up boys as there is no need to carry on like a pork chop. :ok:

[AirNoServicesAustralia]

Well being in the UAE, the one thing I am sure I won't be carrying on like is a PORK chop, not in public anyway. As I said I was sure you were kidding, but was just pointing out that all are more than welcome to use Dubai as a hub but they will struggle to compete with the Emirates juggernnaut.

[DeltaT]

well well well, finally some descent competition for Air NZ, not only on routes but also for a major player to suck up pilots!

[itchybum]

Pork? Jug ernauts? Sounds like you're definitely having a good time in the UAE there ANSA.

I thought the closest thing was beef-bacon...

[AirNoServicesAustralia]

Itchy, I think you're confusing the UAE with Saudi or Iran. This place is a very relaxed country, and you just have to use a bit of common sense to not upset the locals feelings ie. You don't go down to a park with a six pack of heineken and pop porky on the spit. Thats the funny thing about the sandpit, most of the people that bag it have never been here, and believe what they see and read in the western media. Anyway rant over.

[itchybum]

You don't go down to a park with a six pack of heineken and pop porky on the spit. ANSA, mate, once again, I beg to differ:

From what I've heard there are plenty of spit-roast pigs enjoyed by the lads in Dubai...

:E-- :mad: --:}

[kumul1]

Damn right itchy, got a suckling pig the other day, snout and all from the corner supermarket, (Choithram), and put it on the spit. Had to wash it down with Hienekens though as there was no decent beer like VB.;)

[itchybum]

probably purchased from the Ally Pally here in Abu Dhabi I don't know what you mean, ANSA.... ;)




...how much......?


:}

[AirNoServicesAustralia]

Yes and I'm guessing boys that as I said you won't be popping down the park to do this. I know there is pork available (as I sit here eating my ham sandwich with sweet mustard pickles), but what I was saying was you don't cook it or eat it in public.

I agree on the beer. If A and E stocked VB it would be sold out in a flash. Can get crownies down here in Ab Dab at least.

And anyway Kumul, I don't think the pig on the spit itchy was referring to was the kind you could buy from Choitrams, I think he's referring more to the 2 legged pig, probably purchased from the Ally Pally here in Abu Dhabi (dunno the Dubai equivalent).