Watch out Germany - I think you're next!!!
 

Lufthansa encouraging Canada to block Emirates expansion, claims Flanagan Article


By Shane McGinley Monday, 6 December 2010 9:02 AM

STRONG REBUTTAL: Emirates Airline executive vice president Maurice Flanagan. (ITP Images)
Germany’s Lufthansa, Europe’s largest airline, is encouraging Canadian authorities to block Emirates Airline’s bid to expand the number of flights it operates to Canada, the vice chairman of the Dubai-based carrier told Arabian Business.

“They are targeting Emirates, being egged on by Lufthansa… It is purely the protection of Air Canada,” Maurice Flanagan, vice chairman of Emirates Airline, told Arabian Business of Canadian authorities refusal to allow the Dubai-based carrier to increase the number of flights it operates to Toronto, Calgary and Vancouver.

“We have perfect open skies to the United States, we can fly anywhere we wish with any capacity and any frequency so we go to New York, San Francisco, Los Angles they are all non-stop. Canada we are restricted to three flights a week [which is] absolutely ridiculous when the market is there for double daily Toronto, double daily Vancouver, and double daily Calgary. The market is there,” Flanagan added.

The breakdown of talks between the two governments in October has resulted in the deterioration of diplomatic relations between the two countries, with the UAE recently increasing visa restrictions for Canadian visitors.


While Canada has said the current number of flights are enough to service the market between the two countries, Flanagan disagreed: “They know it’s simply not true, there are 26,000 Canadians working here, enormous trade between just Dubai, not just the UAE, that’s ten times as much with Switzerland but they’ve given Switzerland open skies, all in protection of Air Canada.”

Canadians travelling to the Middle East currently have to transit through major European airports, such as Frankfurt, which is the main hub for Germany’s Lufthansa. Lufthansa and Air Canada are linked through their membership of the Star Alliance airline association.

“(Air Canada) would rather its passengers be diverted through hubs in Europe to access these destinations; no matter how inconvenient, costly or time-consuming… Why should Canadian consumers be dictated to by the narrow interests of Air Canada’s and its fellow Star Alliance member Lufthansa?” Emirates said in a press brochure issued last month.

Looking to the future, Flanagan believes the issue is no longer just about landing right and is now a bigger diplomatic issue: “It is heavily political now; we are almost out of the picture.”

GCC airlines, such as Etihad, Dubai’s Emirates and Qatar Airways have recently been criticised by European airlines, which say government subsidies and access to cheap financing have allowed Gulf carriers to expand rapidly.

Emirates overtook Lufthansa last year as the biggest carrier on international flights, following a sixfold increase in traffic since 2000, when it ranked 24th.:D

There is no shortage of competition coming into the Canadian market. The Canadian government's Blue Skies policy clearly favors the creation of more point to point services over connections via city-state hubs like Dubai and Singapore. Turkish has started flights to Istanbul, Egyptair is starting flights to Cairo, Hainan is starting flight Beijing, Cathay increasing YYZ-HKG from 12 to 14 flights a week next summer, Qatar now has the right to serve Toronto-Doha, Sri Lankan seems likely based on recent news from Colombo. The government routinely agrees - with Air Canada's concurrence - to allow PK extra, ex-bilateral frequencies.

There is plenty of competition, and the number of carriers in the Toronto continues to grow by several new entrants annually. What the government does disagree with is large scale capacity dumping by city-state carriers like EK which may not only impact AC, but also impacts the ability of these new entrants offering point to point to sustain profitable operations. From a total economic perspective, a large increase in point to point services generates new trade links and more direct cargo routings, and is preferable to Canada's economic development than allowing the Wal-Mart of aviation to dump capacity here.

You wouldnt happen to be canadian and never travelled with EK .....would you??
Ask your average Indian how they would rather travel home and I'll tell you it's not via FRA or CDG.

So they'd rather go through DUB?

Everyone loves Dublin, but I don't think EK fly there. They do fly to DXB though. Not nealy as fun as DUB.

The Canadians are afraid to compete because AC's product simply cannot compare to EK's product. The sad thing is that this severely limits options for easier connections to the ME and beyond for the Canadian citizens (who have a right to have more choice and use of their own discretionary spending). Perhaps AC should buy some A380s or offer far better service than current levels to compete better?

To sum up, I guess you could say that the Canadian HOSERS are getting HOSED in this case by their own protectionist, restrictive, running-scared government... Yeah, pretty pathetic.

No wonder Qatar and others in the ME are using trade (i.e., potential order of Bombardier C-Series aircraft) and resulting Canadian jobs in their negotiations with the Gov't. If Germany gives them more problems, perhaps more Boeing orders will result in the future. Trade is a two-way street.

....
 

Yes Mr. Flannigan, they deserve to be dictated by the wide open interests of Emirates....just ask the average Indian in Germany! :p

EK has no interest in moving Canadians to / from Dubai, all it wants to do is move Indian's to/from India . EK is an Indian carrier!

By cooperating with an airlines that is taking advantage of the middle age socio politics of his base country for dumping the airline industry you are just jeopardizing the future of generations of western, civilized democratic pilots. Hurray for Canada and Germany!! It is time to impose taxes on product coming form country where a comparable level of retribution and social benefit don`t exist. Unemployment is on the rise in the west in many sectors thanks to free trade. Time to stop the fooking habibis!!

Hope you guys would fight with the same passion against T-shirts from China and footballs from Pakistan. Oh ... wait ... no ... Forget about child labour and totalitarian regimes. You are saving a cent or two of YOUR own money. And it's not YOUR industry anyway. That makes it okay, doesn't it? The word hy.....ts comes to mind.

So what if India transport there own people to Canada, then what would be the problem?

Lots of aircraft sitting on the ground empty in Dubai and Abu Dhabi?:eek:

@EngAW139
 

I dellyu, they dont like to fly with Indian Airlines an'oll...:E

A few years back the Indian Gov said the country was unable to provide enough airlift for its people.

As a Canadian I'm glad that the government is standing up to the bullying by the UAE. But on the other hand as a pilot I'm disappointed that the government is protecting a system "Air Canada" that cannot and won't compete with other airlines that can and do provide a better way of travel for the people traveling to the sub-continent.

Time for the government to stop protecting the company they chose to privatize years ago and look out for the best interests of the traveling public.

And for those of you about to slam me for all the "Canadian jobs lost", do you think they are all traveling to the 3 cities EK wants to go?........No they will connect as well, good for the dinosaur that is AC.......or just their FA's whatever...........

See ya,

Joke

nice post
 

Contacted :ok: post

studi
 

Studi, you hit the nail on the head!

BBI will boost Berlin as the capitol of Europe! Everybody is fighting for a piece of land or a parking spot over there.
We cannot really compare Canada with Germany! Two different type of customers with different needs, different budget available.
Don't forget, Lufthansa was the only EU Airlines to get revenue with the 08/09 economic recession. Only the economic down-turn + Icelandic volcano may had effect LH 09 SQ. As far as we know EK have money but isn't really producing sustainable revenue!