Somewhere in the white pyramid that houses Airlines for America a new banner has been unveiled. “War is peace. Freedom is slavery. Ignorance is strength.”
If you’re a consumer who cares about a good airline product at a fair price, you should be disappointed this week. Emirates is cutting back 25 flights per week to the USA, a reduction of about 20%.
- Boston – 2 flights to 1 flight per day, effective 02 June 2017
- Fort Lauderdale – from daily service to 5x weekly, effective 23 May 2017
- Los Angeles – suspends second daily flight
- Orlando – from daily service to 5x weekly, effective 23 May 2017
- Seattle – 2 flights to 1 flight per day, effective 01 June 2017
Not surprisingly, U.S. airlines are rejoicing over news of the Emirates cutbacks, no doubt smugly proud that government policy has done with the market has been unable to do: harm their competition. But somewhat surprisingly, the interest group acting at the behest of American, Delta, and United felt the need to rub it in. It even issued a statement on the Emirates news–
The fact is, market demand has never played a role when the Gulf carriers decide where to fly. It is well known that the Gulf carriers, including Emirates, lose money on most of their flights to the United States and are propped up by billions of dollars in government cash…Their business model is based on growing their networks without regard to profitability in order to serve their governments’ goals to dominate global aviation. A perfect example is Emirates’ most recent route between Athens, Greece and Newark, N.J., a money-losing flight that is only possible because of government subsidies. That Emirates would refer to itself as “profit oriented” is simply laughable.
The statement defies logic
Wait. Just so I am clear, is this the argument — Emirates doesn’t care about profits, but it is cutting service by 20% because…
Emirates’ cutbacks directly undermine the shallow and dishonest argument from Airlines for America that Emirates operates without concern for profit. On the contrary, these service reductions demonstrate that Emirates is not willing to bleed for the sake of “global domination”.
CONCLUSION
“In the end the Party would announce that two and two made five, and you would have to believe it.”
Usually when I win at something, I am gracious about it. The U.S. legacies should be rejoicing that during a time of record profitability the competition that keeps them accountable has been shut out through a questionable government policy. But instead, the carriers are acting like children. One day they will face the harsh reality of true competition, so I hope they are enjoying their ice cream now.
I still think EK is using the electronics ban as a red herring. Somehow, I suspect these 25 flights were on the chopping block anyway, but the ban became a convenient excuse to use. Kind of like when UA claimed Houston’s approval of the international terminal at Hobby was the reason for killing the planned IAH-AKL flight.
(For the record, I do believe all of the ME3 are subsidized, even EK, which has largely been given a pass in the blogosphere. I’m just bothered by the rank hypocrisy by the domestic carriers and their lobbying organizations on the subject. Someone ought to call out Delta on the subject the next time they approach the Georgia legislature asking for “economic development” incentives…)
I disagree. US airlines DID get subsidies when each of them declared bankruptcy and wiped billions off their balance sheets. Not one iota of difference in my opinion.
this comes to mind when mentioning emirates
“The glamorous life of Emirates cabin crew: sleeping on the airport floor”
yup economic development” incentives…=cooperate welfare
Or subsidy…….
Have they even thought about what they were saying? Why would the UAE government wish to subsidise the ATH to EWR route, a route that doesn’t even touch the UAE and won’t necessarily bring benefits to the UAE?? How silly.
Insiders and consumers alike decry the dishonesty of this airline. Indeed it seems to rooted in the immature Arab mindset that you can simply deny, prevaricate or intimidate your way out of any unfavourable situation. Other airlines are less like this and such behaviour is usually relegated to the shoddy airlines, you know, the ones you might find a goat on board. From smashing luggage to making false promises to intimidating their own staff, for such a wealthy airline there is no excusing it. The UAE will happily run something cheaper if it makes them look good, sadly this is akin to putting lipstick on a pig. And yes, having lived there, and having family in the airline business, I am informed.