EK Toronto
Join Date: Jun 2001
Location: In the State of Perpetual Confusion
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"Will EK never learn?"
I don't usually get involved in these discussions but I think the main factors driving Emirates from taking up these "limited slots" are:
-Increased unit costs for less than daily service. When you open a station, there are certain costs associated that you have to pay regardless of whether you operate once a week or 7 times a week. Those costs are certainly higher on a unit basis when they are spread out over fewer flights.
-Either don't have the crews to layover there for up to 4 days or are unwilling to "lose" them for that amount of time. Again a cost vs. revenue thing.
While I think that in some areas, EK has sacrificed good judgement for lower costs, it's attention to details like this one that helps them run a profitable business. One thing that EK does very well is run the numbers commercially and it's my guess that they looked at Toronto/Cape Town with 4 flights weekly, the costs associated and potential revenue and decided they could make more money somewhere else.
I don't usually get involved in these discussions but I think the main factors driving Emirates from taking up these "limited slots" are:
-Increased unit costs for less than daily service. When you open a station, there are certain costs associated that you have to pay regardless of whether you operate once a week or 7 times a week. Those costs are certainly higher on a unit basis when they are spread out over fewer flights.
-Either don't have the crews to layover there for up to 4 days or are unwilling to "lose" them for that amount of time. Again a cost vs. revenue thing.
While I think that in some areas, EK has sacrificed good judgement for lower costs, it's attention to details like this one that helps them run a profitable business. One thing that EK does very well is run the numbers commercially and it's my guess that they looked at Toronto/Cape Town with 4 flights weekly, the costs associated and potential revenue and decided they could make more money somewhere else.
Join Date: Feb 2005
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Since I have been here, the vast majority of new destinations have been commenced with less than daily services, many have been 4 times a week, so that argument just doesn't hold water. I would definitely lean toward the lack of crew theory as being more believable.
Join Date: Jun 2001
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The point I was trying to make is that for less than daily service, unit and startup costs are usually higher. To make an informed decision, you would then have to look at what your projected revenue would be including revenue growth and compare it with other opportunities. You then decide which one makes you more money. While EK has started a lot of services with less than daily service, I also observe that trend reducing over the years. In most of those cases, daily service was not far behind. Perhaps they felt less confidence in the potential for daily service than at other places - I don't know, I'm just speculating.
As I said, I do think there is a lot to be critical of regarding EK's management of the flight operation, but there aren't too many airlines out there that rival their commercial planning. I don't know why specifically Cape Town or Toronto weren't justified by less than daily service, I was just stating that Emirates runs the numbers and in this type of decision, that's probably the best way to do it.
Certainly as tightly as Emirates is running the crewing numbers right now would also factor into it. If that is the reason, then it is an example of possibly saving a penny, losing a pound if it restricts their coveted "commercial flexibility".
As I said, I do think there is a lot to be critical of regarding EK's management of the flight operation, but there aren't too many airlines out there that rival their commercial planning. I don't know why specifically Cape Town or Toronto weren't justified by less than daily service, I was just stating that Emirates runs the numbers and in this type of decision, that's probably the best way to do it.
Certainly as tightly as Emirates is running the crewing numbers right now would also factor into it. If that is the reason, then it is an example of possibly saving a penny, losing a pound if it restricts their coveted "commercial flexibility".
Join Date: Jan 2005
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It is a rumour network after all.....
... and believe me, there is a lot of half truths, total truths and untruths written here. Just got to work out who and what to believe.
One exception though, everything I say is true.
... and believe me, there is a lot of half truths, total truths and untruths written here. Just got to work out who and what to believe.
One exception though, everything I say is true.
