Reply To: Laptop and iPad ban

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Tom Otley
Keymaster

An interesting perspective: US protectionism…
https://www.washingtonpost.com/news/monkey-cage/wp/2017/03/21/trump-wont-allow-you-to-use-ipads-or-laptops-on-certain-airlines-heres-the-underlying-story/

Good article
“It may not be about security. Three of the airlines that have been targeted for these measures — Emirates, Etihad Airways and Qatar Airways — have long been accused by their U.S. competitors of receiving massive effective subsidies from their governments. These airlines have been quietly worried for months that President Trump was going to retaliate. This may be the retaliation.

These three airlines, as well as the other airlines targeted in the order, are likely to lose a major amount of business from their most lucrative customers — people who travel in business class and first class. Business travelers are disproportionately likely to want to work on the plane — the reason they are prepared to pay business-class or first-class fares is because it allows them to work in comfort. These travelers are unlikely to appreciate having to do all their work on smartphones, or not being able to work at all. The likely result is that many of them will stop flying on Gulf airlines, and start traveling on U.S. airlines instead.

As the Financial Times notes, the order doesn’t affect only the airlines’ direct flights to and from the United States — it attacks the “hub” airports that are at the core of their business models. These airlines not only fly passengers directly from the Gulf region to the United States — they also fly passengers from many other destinations, transferring them from one plane to another in the hubs. This “hub and spoke” approach is a standard economic model for long-haul airlines, offering them large savings. However, it also creates big vulnerabilities. If competitors or unfriendly states can undermine or degrade the hub, they can inflict heavy economic damage.”

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BTUK September 2017
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