[Anonymous]

[Potakas]

I want to ask something about the airlines of the Middle East, Emirates has 140 orders of which 50 are A380’s, Etihad has 104 andGulf Airways has 118, that arab countries have a lot of money is known , but those airliners are really money makers? How is possible all the major airlines cutting services and struggling to survive and they are making such a large expansion?

[alibrahm]

as I knew ,when emirates started dubai hotels pays 5% for Emirates to finance eEmirates operations
now a days ,they are sinking in debits !
but government is behind it
so , when we talk about emirates , we are talking about politics airline founded to ADVERTISE DUBAI

[MarcusUK]

Some years back that may have been the case.
Certainly the UAE States, have used their Airlines as showcases for tourism & Business.

I just googled for Etihad & Emirates, & the Middle East region has seen 25% growth this month compared to same time last yr, as stated by IATA. These two carriers have come to dominate the region.

Gulf Air, once owned between states, was kicked out of AUH, & now has shrunk to become a mainly Regional carrier only. So where cuts & change has been made due to lack of business, they haven’t been held artificially.
Business is also being taken from the Asia Airlines for travel from Europe, especially to Oceania, where one of the Gulf Carriers, will whisk you down directly cutting off any route in Far east.
Etihad has a very high load factor on its now 2 daily A340-600 flights AUH-SYD around 93% alone.

Whilst many Airlines are not profitable at the moment, & wouldn’t have the once present value of State Subsidy as in The Arab Airlines, they are certainly some of the best Airlines in The World.

Investment is all around them,at their hubs, from new Airports, premium terminals, low costs for fuel, land, labour (being very low in UAE with many Overseas workers), brand new high tech Aircraft needing little maintenance etc…They are breaking into new hubs all the time.

They have every advantage the European Airlines do not have, & the Far East Airlines have had for a long time.
The concerning factors as many city Analysts appear to conclude now, is that there are too many Airlines, too many seats, chasing too few passengers. The A380’s are having problems being filled, Qantas, SQ, EK, & other scheduled flights have been pulled to maximise these being used.

I do not see either where 50+ new Aircraft will fit in, let alone new A380’s, unless they literally take other Airlines Business. Then, they seem to be announcing new routes into European hubs, of adding A380’s flights in to existing ones every month, so there is a strategy there. If they continue, other Airlines will simply not survive, others shrinking to a few select or regional routes.

On this basis, i think they are the most commercially viable, & taking this turndown into account, will be the most profitable in the future. This will not be with State subsidy, but stand alone, equally having also accomplished ambassadorial standing for their home countries, Encouraging travel for leisure, as well as business.

Etihad is a superb Airline, & in only a few years, has shown every capability for an Airline to be created as one of The World leaders, in a very short period, with a very extensive world reaching network.

[Author]

Posts