New LCC for EK... How will EK routes change?

[Kapitanleutnant]

Gents

I am wondering how the new LCC in Dubai may change things at EK.... if it all.

Do you think it may cause the routes to the subcontinent and all Middle East destinations to be flown by the LCC, thus freeing up the 777's and Airbus's to fly to the different destinations in store in the future... wherever they may be?

Interested in your thoughts as to how this may change things at EK

K

[my salami]

Yesterday I've read that they gonna serve non EK destination within 4 Hrs flight time from Dubai operating from the new Jebel Ali Airport...:confused:

[MrMachfivepointfive]

I believe both will co-exist on the same routes. LCC will cater for the regional traffic originating/terminating in DXB/JXB - while EK will feed its hubs.

[kingpost]

With Air Arabia reaping profits of over 200%, why not climb onto the band wagon.

The main routes will be in competition with AA. They'll also send EK FO's to the LCC for their initial command!!

[jackbauer]

Before this thread goes into 5th gear and becomes bogged down with wild assumptions. This is from Flight international web site.

"Emirates says it will support the new airline – which will be led by Emirates’ executive vice-president of operations Ghaith Al Ghaith – during its start-up period.

But while earlier statements from the Dubai government had indicated the carrier would be part of Emirates Group, Emirates says it “will not” come under the airline’s corporate umbrella"
.

[Gillegan]

While not under the "corporate umbrella", don't think that they will be completely independent. They will have the same owner and will have to coordinate route structures to avoid direct competition and thus eroding both carriers profits. It's all about maximizing profits in Dubai and they will do what it takes to accomplish that. Years ago, they actually had something called a yield management committee or something like that made up of the airlines serving Dubai. In reality, it was a price fixing cartel - something that would be illegal in most places in the world.

Over time I would expect to see a migration of lower yield, short to medium range flying going to the newer carrier, allowing Emirates to concentrate on higher yield, long range operations. It might even be an attempt to address the service issue. Right now, Emirates has to serve a broad range of "markets" with different service requirements. "Unloading" some of the low yield markets on this new carrier might make management of the service delivery a little easier.

Overall, I think that this is probably a shrewd move on the part of the Dubai government. One carrier will specialize in the low yield, low cost markets thereby probably generating more profit from them while the other is then freed to specialize on higher yield, longer haul markets. If the route structures are coordinated, overall profit is maximized. It's very telling that they have chosen Emirates head of commercial planning to be the head of the new airline (while not relinquishing his old post).

[Desert Diner]

Subcontinate labor traffic?

[onglide]

LCC will have single isle A/C ... initially based in DXB and after in Jebel Ali's new airport.
As far as network some destinations will be new, other will be the same as Emirates but with a lower ticket's cost (when ek is overbooked!).

[Immigrant]

Here it is, we have a name:

FlyDubai

In March of this year we reported that Emirates Airline (Dubai) would be establishing a new low-cost carrier to offer service to the region. The new airline now has a name, FlyDubai..............

JetPhotos.Net Aviation News


One step closer:D

[tbaylx]

They had better freakin not put the F/O's on a narrow body command a a LCC....been there done that and not interested over here. Would rather stay in the right seat and take the good roster until something better comes along than go at it that way.

[vbrules]

This could be good actually.
Start enforcement of a seniority system.
DECs into the LCC and clear the backlog of 3 + years FOs (in seniority) onto the EK jets.
At the same time abolish the rotating bid system and respect the seniority of those being here the longest with the best rosters.
Growth is such that in a few years even new upgrades will be getting good rosters. The rosters themselves have so many artificial constraints even the very senior are limited in getting their ideal rosters anyway.
Right...bring it on :ouch:

[Trader]

Or keep the rotating bid system since that is one aspect that attracts people to EK. Usually the senior pilots who like the idea of changing to strict seniority - once they have availed themselves of the benefits of the 'old' system.

[BUSTRASH]

Is it possible people interviewing now at EK could be sent to the low cost carrier. When and who will do the pilot hiring. Same system or a totally diffrent recruiting team.

[fatbus]

EK is doing all they can to interveiw and hire to meets there own needs.
I ,for one, beleive that Fly Dubai will be done on there own,hiring,hr ,flt ops etc.
No firm start date or airplane type yet, all we know right now is late 2009, with that, hiring line guys summer 09 or later. They will be competing with AA to get guys for LCC, AA pays the same as EK, give or take a AED. Expats from India will be coming here by the 100's and coming for the best pay. EK still has the better package but some wil be single and looking for $ and that it.
My guess, and just mine, EK will not do anymore DEC's, upgrades will be 4 years maybe more and anyone with DEC time offered FO spots or will handed over to the LCC

[capt737NG]

anyone cn inform what type of a/c they will use it..? 737 or 320..?

Thanks

[TangoUniform]

Another question: Wonder what the accomodation deal will be?

[fractional]

FlyDubai will compete city-by-city with Air Arabia with a similar structure and principles, why not?
EK will lower frequencies to FlyDubai destinations and expand elsewhere where widebodies fit better. FlyDubai will increase frequencies to compete or outdo the other Gulf LLCs.

[TangoUniform]

Maybe FlyDubai will fly those fantastic middle of the night turnarounds to India. We can only hope. Doubt it since the big jets are always full anyway.

[cantilever]

Doesnt this all smack of BA/GO in the UK?
:rolleyes:

[BigGeordie]

It is a bit like GO/BA but with one important difference- Emirates is already effectively a low cost airline. If you compare EK overheads to BA I would imagine you would find quite a difference.

[Driver of Buses]

Sounds very much like the Australian Qantas/Jetstar relationship.

[mensaboy]

Wouldn't it be wise to have the LCC flight departing and arriving during the low peak periods? EK has 2-3 peak periods now, with a great deal of Dep/Arrivals but there are still lulls in activity between these times. I would bet that the majority of the LCC flights will not occur in the same time periods EK presently utilizes. Or perhaps those flights might be out of the new airport in Jebel Ali, not sure about that one though.

I am betting on the 738's for the LCC. They also would have no payload restrictions due to the shorter legs, so most daytime departures with the high temps are not an issue.

It seems to me that the LCC is a great idea from a business POV. I am surprised they took this long to move into that market. Air Arabia is making bundles out of Sharjah so naturally EK should profit as well.

The 'FlyDubai' name is brilliant. Emirates Airline is more closely associated with Dubai than the United Arabs Emirates, so naturally FlyDubai will be associated with Emirates Airline.
(even though that is not supposed to be the business reality) But it certainly is a bonus for a startup LCC. Should be interesting to see the paint scheme which could be a clear indication of how the big bosses view the relationship between the 2 separate airlines.

I only hope that the T&C's for those pilots are equal or better than ours. If they are worse, then that only puts pressure on our management to seek a further decline in our T&C's. EK's management might take the opportunity to make inappropriate comparisons, massage statistics, and basically mislead, in order to screw us somehow.

[helen-damnation]

I believe some paperwork was signed a few weeks ago, A320s

Makes sense as there will be an Airbus spares and/or maintenance set up in DXB soon (can't remember the headline) :O

[skyflyer737]

Dubai govt has ordered 56 x B737-800s for FlyDubai.