Go Back  PPRuNe Forums > Flight Deck Forums > Rumours & News
Reload this Page >

Middle East majors to dominate international travel?

Rumours & News Reporting Points that may affect our jobs or lives as professional pilots. Also, items that may be of interest to professional pilots.

Middle East majors to dominate international travel?

Old 8th May 2020, 09:30
  #41 (permalink)  
Thread Starter
 
Join Date: May 2004
Location: Up North
Posts: 0
Krismiler's points above are all valid and well-presented. They point towards the shrinkage rather than expansion or domination of the big three.

An additional consideration, however, is the relative importance of the ME3 carriers to their states' economies. They all provide a much greater percentage contribution to the GDP of each state. Furthermore, Dubai has become a highly-developed tourist destination. Qatar and Abu Dhabi are endeavouring to follow suit. The airlines provide frequent direct services to their base states.

For those two additional reasons, it may well be that the ME3 will receive a disproportionate level of state support, both direct and in the form of subsidies, which could give them a competitive edge. It is certain that they will be unwilling to concede hard-won market share without a fight.

At this moment, it is hard to predict what may happen, My recently-acquired knowledge is that EK claim to be ready to start full ops within 48 hours. I find that hard to believe, but I may be wrong in my beliefs. QR are still operating widely, with light loads. EY seem to be in the weakest position of the three.
RoyHudd is offline  
Old 8th May 2020, 12:27
  #42 (permalink)  
 
Join Date: Jul 2000
Location: Dubai - sand land.
Age: 51
Posts: 2,649
Originally Posted by krismiler
A merger between EK and EY would make sense with routes rationalised and operations from both airports.
EK IS Dubai, and Dubai IS EK. They are so intertwined I don't see any kind of merger with the outfit in Abu Dhabi...

Originally Posted by krismiler
With reduced demand for long haul international, flight frequencies will be reduced and an agreeable two hour connection in Dubai could turn into an eight hour one which may be enough to persuade pax to pay the extra $150 for a non stop on their national airline.
Reduced frequencies for some time I agree, but with EK created to service Dubai (above point) I would imagine that the eight hour stopover may become a 24/48 city break as the hotels and service industry are crying out for business! You'll see some excellent deals on flights and short stays here I'm sure.


White Knight is offline  
Old 8th May 2020, 16:07
  #43 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 855
EK is certainly as integral to Dubai as CX is to Hong Kong and will almost certainly receive significant state support if needed. EY and QR are copycats which jumped on the bandwagon when they saw that their similar geographic positions meant they could replicate the EK business model. In the post virus era, aviation may not be such a good investment and the willingness of the Abu Dhabi and Qatar rulers to sustain losses comes into question. Something to fly the flag, transport the migrant workers and take the rich locals shopping may be a better option than pouring money down the drain in search of world domination.

EY have already lost billions and an alliance with EK might be an acceptable option as both states are part of the UAE and their airports are within reasonable travelling time of each other. Routes, schedules and fares could be coordinated with benefits to both parties. Code share flights could give the option of EK one way and EY the other which may increase load factors and reduce transit times. An hour and a half coach ride between the two airports beats an eight hour wait for the next flight.

Qatar have very helpful in trying to maintain a network and get people home when other airlines were grounding their fleets, and are setting up to be first out of the gate with plans already in place to gradually resume their network in the near future. They have certainly earned a lot of goodwill from stranded pax. Unfortunately cracks are already showing in their finances and unless their increasing flight numbers are matched by increasing pax numbers, their days as a major world airline may be numbered. Flying around with the economy cabin half empty and no one in the pointy end won't be sustainable for ever.

Everything depends on the speed and form of the recovery which at the moment is giving some cause for optimism.
krismiler is offline  
Old 9th May 2020, 07:23
  #44 (permalink)  
 
Join Date: Sep 2011
Location: earth
Posts: 1,057
Rest assured, Roy, that your fears will not materialise. The ME3 will remain what they are and where they are, with their success in doubt, except maybe EK.
Taking over routes, as many fear on here, would need crew basings in Europe. Now the owners in the ME fear that more than the holy water.
Administrations that can't be told what to do and ...... (gulp!) UNIONS to deal with is their worst nightmare, even worse than mergers with other Arabs.
Not that they will disappear as formidable competition, no, but they will want to keep their business model as it is.
glofish is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.