ALPA on Emirates and Etihad

[8sugarsugar]

If a guy decides he doesn't like the job on day 2, he can walk away and he owes nothing. He's not richer or poorer.

If a guy decides he doesn't like an airline on day 2 but he's signed a training bond, he forks out x number of dollars to buy his way out of an indentured servitude. Or he continues living a miserable existence until his indentured servitude is paid off. Just like in colonial times.

that doesn't really answer my question. As per the old contract, how does Delta withholding 20 grand from your first year pay NOT paying for your training?

forget about training bonds, which aren't even enforceable in most states anyway.

 

[Dude]

On the other side of the globe from the United States, three airlines are poised to make one giant mess of the much-maligned global airline industry ? as if it needed any help. It may seem like a world away, but Emirates Air, Etihad, and Qatar Airways are quickly positioning themselves for domination in the airline business?and not just in the Middle East, but also in Europe, Asia, and right here in North America. If you think that an entity nine time zones away can?t affect the United States aviation industry, this article may have you rethinking that paradigm. The ?Big Three? Gulf carriers, three of the fastest growing airlines in the world, have ingeniously designed their companies to eliminate the middleman, drown their competition in a flood of capacity, and capitalize on tax breaks that would make a Fortune 500 CEO blush. While our European counterparts are already feeling the impact, the battle is quickly approaching our s*************************?with the tacit assistance of the U.S. government. This is a concern to both the U.S. airline industry and its consumers. It is a war we may not desire to fight, but it nonetheless appears inevitable. Make no mistake; it is a barrier that must be overcome to protect the jobs of the American airline worker and the American consumer?s ability to have affordable options when they fly.

VERTICAL INTEGRATION

VERTICAL INTEGRATION: Avoiding the Middleman

It has been said many times that if an airline could replace its workers with robots that could accomplish the same tasks, it would. We might not be at that stage yet, but the Gulf carriers are doing the next best thing available at the moment: vertical integration, a business-world buzzword that basically means cutting out the middleman. By playing the role of ownership, management, and government all at the same time, the Gulf Carriers start the game with quite an unlevel playing field.

Let?s take a look at Emirates Airways, parent company: The Emirates Group. According to their website, the Dubai-based airline is, ?wholly owned by the Government of Dubai, but is run as a fully commercial and independent entity.? However, their CEO and Chairman, His Highness Ahmed bin Saeed Al Maktoum, is a member of the extensive Al Maktoum bloodline, the family that monarchically reigns over Dubai today. Sound a little Henry the VIII? Perhaps.

On our side of the world, it?s common for an airline to contract with several different companies for services including fueling, catering, cleaning, maintenance, etc. When it comes time to actually fly the plane, the airlines must pay air traffic control fees, airport landing fees, and gate leasing fees, among others. This may not be the case however for the airlines of the Gulf. Some carriers, particularly Air France and Qantas, have accused Emirates Airways of receiving government subsidies, tax breaks, waived airport user fees, and other perks associated with being the ?government?s pet.? Although the airline claims that it receives no such benefit, it does own its own fuel suppliers, caterers, cleaners and more. In America, it is common to outsource these types of operations?usually to a lower-cost operator that employs contract workers. No need in Dubai: the government has outlawed unions and maintains a tight rein on competition.

Delta Airlines is dipping their toe in the water with their recent announcement that they are purchasing an oil refinery in the Northeast to try to help reduce their fuel costs. It may be a good start, but it pales in comparison to the Gulf carriers who have vertical integration from the bottom to the top of the organization as part of their core structure.

CLEARED

Cleared for take off & Taxes

On December 4th 2011, the United States government signed an agreement of intent to implement pre-clearance at Abu Dhabi airport. This may not seem like a big deal on the surface, as passengers have been pre-clearing customs before travel to the U.S. in places like Canada, Mexico, and the Caribbean for years, but by having a U.S. customs facility in United Arab Emirates (and by UAE having an open skies agreement with the U.S.), Emirates now has unfettered access to any U.S. market that it chooses. Emirates, with their current fleet of 21 Airbus 380 superjumbo jets and an additional 69 on order (which makes their fleet of 100 Boeing 777s - with 82 on order - seem ?small?) and Qatar and Etihad with a combined fleet of 174 aircraft pose an undeniable threat to the U.S. airline industry.

One trait the Big Three have in common is lack of membership in an airline alliance. Thus far, these three have resisted the urge to join many other global counterparts in alliances such as Oneworld, SkyTeam, or Star Alliance. Although they have codeshare agreements with various carriers, it seems their desire is to remain isolationists, drowning out their competition in a glut of capacity.


Tax Advantages

The tax advantage that the Big Three have is admittedly not all their fault. In a clear example of starting behind the eight ball, the U.S. Airline industry is among the highest-taxed industries in the country. At an average tax rate of about 20%, the rate at which airlines are taxed is staggering. This is even higher than the alcohol, tobacco, or firearms tax! The Gulf carriers certainly didn?t make these laws, but if the U.S. government wants its airlines to be able to compete in a global economy, this needs to be addressed, and fast.

In the meantime, the Gulf carriers airlines benefit from not having to pay the types of airport and air traffic control usage fees that U.S. carriers are accustomed to paying because, quite frankly, they own the facilities. They also are able to attract many employees including pilots and flight attendants from Western countries and pay them less than their western counterparts because of the tax advantage. For instance, an American working at one of the Gulf carriers owes no tax on their first $96,000 earned thanks to laws regarding ex-patriot pay.

Recently, another advantage came to light when several American carriers filed suit against the Export-Import Bank of America for allegedly giving unfair borrowing rates to Air India so that the carrier could purchase brand new Boeing 787s. Air India wasn?t the first carrier to take advantage of these deals though; the Gulf carriers reaped rewards as well, receiving $4-5 million per Boeing 777 per year. Though it ought to be noted that U.S. airlines have benefited from billions in Ex-Im financing on CRJ/ERJ/and EMB products. Nevertheless, it?s clear the Gulf carriers are receiving nice incentives for their Boeing purchases.


MISSION IMPOSSIBLE

Approximately 4.6 billion of the world?s 7.0 billion inhabitants reside within an eight-hour flight of Dubai, with the most populated international travel routes being between Europe, Asia, and Africa. Of course, Dubai sits conveniently right in the middle. Currently the majority of passengers at Dubai International are connecting passengers (56.7%) as opposed to originating and destination passengers (43.3%). Thus, the carriers that fly within these regions will be the first to feel the pinch of the Gulf carriers? encroachment. But it won?t stop there.

INCREASING

Increasing Range and Reign

As the Gulf carriers acquire new aircraft and increase their range and capacity with each widebody jet, they will begin to have a greater and greater effect on international travel no matter what continent you?re talking about. A cursory look at the American airline industry shows that when the legacy carriers suffer (those who do the worldwide travel), it forces them to become leaner and more efficient. This has a trickle-down effect on the domestic carriers who have already seen their cost advantages erode in the past decade as the legacy carriers have reduced their capacity and costs.

On the following page, you can see what percentage of major European, American and Asian carriers? passengers are exposed to Emirates, revealing just how far reaching the arms of the Gulf Carriers can reach.

The Gulf Carriers aren?t content to only expand their own airlines though. Recently, they have been pursuing ownership interests in foreign carriers as well. Etihad recently purchased 3% of Ireland?s Aer Lingus, while Qatar Airways purchased 35% of Belgium?s Cargolux and almost 30% of AirBerlin. Relaxation of foreign ownership laws - a growing objective of the big business/globalization community - would likely open the gates for such ownership right here in the States.

What?s more, the ?Big Three? aren?t just poised to reign over the air, they are positioning themselves to infiltrate by land and by sea as well. For instance, the most popular sport in the world is soccer, and the most popular soccer league is the English Premier League. One of the EPL?s most popular teams, Arsenal, has ?Fly Emirates? emblazoned across their jerseys and plays their matches at Emirates Stadium. They also sponsor popular Spanish and Italian clubs Real Madrid and AC Milan, respectively. Normally, the advertising and publicity that a sponsorship of this magnitude would cost a company would reach upwards of $400 Million, but you won?t find it on Emirates? balance sheet. It is paid for in full by the government of Dubai in support of tourism. Similarly, Etihad has bought naming rights to Manchester City?s stadium and they too wear jerseys publicizing Etihad?s logo. Emirates is also sponsoring the world?s first urban cable car, which is to cross the River Thames in central London. Emirates will proudly take ownership of this $57 million project with a decked out Emirates-themed cable car and stations. Don?t be fooled, these moves aren?t just party tricks the airlines are pulling to seduce their northern neighbors. These are long-term strategic initiatives that will push the brand internationally to Asia and the Americas, where English football is popularly televised.

 

[Dude]

EXPOSED CARRIERS

The Gulf Carriers aren’t content to only expand their own airlines though. Recently, they have been pursuing ownership interests in foreign carriers as well. Etihad recently purchased 3% of Ireland’s Aer Lingus, while Qatar Airways purchased 35% of Belgium’s Cargolux and almost 30% of AirBerlin.

CONTROL

Control and the Future

So what are the airlines of the Western World to do? Much to their dismay, their only hope is to rely on their respective governments—not for a bailout, but for a leveling of the playing field. America’s carriers aren’t going to be able to outlaw labor unions as the Middle East’s carriers have done. Nor will they have the luxury to throw capacity at any market they so desire in this environment of $100/barrel oil. What they can realistically hope for is to convince the government not to treat the airlines as a convenient tax target. From the outrageous taxes on each ticket sold to the emissions trading schemes to the unfair advantages given to foreign carriers buying American aircraft, the U.S. carriers will have little to no ability to compete going forward when you factor in the built-in advantages that the Gulf carriers possess.

If they want to maintain some semblance of their current state, it is imperative that the U.S. airlines, their employees, and their customers encourage their government representatives to recognize that a robust airline industry is vital to a nation’s economy and interstate commerce. More than 10 million jobs are tied to the U.S. commercial aviation industry. Regulations and/or laws that support a reduction in the current draconian taxes and fees would go a long way towards keeping those jobs here in the States and passengers flying on American carriers.

 

[General Lee]

Copied from PPRUNE, an A320 pilot's schedule in one of the 3 big ME airlines, and you can probably figure it out by the common destination:


1. For those contemplating joining XX, here is an actual roster for A320 Captain.The month and specific destinations have been omitted to protect the innocent. All times are based on DOXX which is where your body clock will be.

Day 1. day off at out station in Europe.
Day 2. wake-up-call 2150 to fly back to DoXX.
Day 3. Land DOX 0535, report again 2245 for Gulf turn-around (3h on gnd).
Day 4. Land DOX 0645, report again 0000 for Gulf turn-around (3h on gnd).
Day 5. Land DOX 0555, report again 1945 for Gulf turn-around ARR DOX 0000.
Day 6. report 1800 regional turn-around
Day 7. Land DOX 0015, report again 1345 for three-sectors (Gulf + layover),
Day 8. land at outstation 0120 (layover), wake-up-call 1500, land DOX 2230
Day 9. off
Day 10. off
Day 11. report 0650, four-sectors around the Gulf, land DOX 1700.
Day 12. report 2245 for Gulf turn-around (3h on gnd)
Day 13. land DOX 0645, report again 2345, two sectors for layover.
Day 14. land at outstation 0830 (layover)
Day 15. wake-up-call 0855, two sectors, land DOX 1910
Day 16. off
Day 17. report 2345, regional turn-around
Day 18. land DOX 0545, report again 1925, one sector for layover
Day 19. land at outstation 0055 (layover), wake-up-call 2300
Day 20. operate back to DOX followed by a Gulf turn-around, land DOX 1050
Day 21. off
Day 22. off
Day 23. ground school (ex. crm, security, dangerous goods)
Day 24. report 1045 Gulf turn-around plus regional turn-around, land DOX 2230.
Day 25. off
Day 26. off
Day 27. report 0700 one sector to Europe for 22h layover.
Day 28. wake-up-call 1030 fly to DOX plus Gulf turn-around, land DOX 2320.
Day 29. report 1230 one sector to Europe for 24h layover.
Day 30. wake-up-call 2200 to fly to DoXX
Day 31. land DOX 0530.

This roster has the minimum eight days off, of which seven are at home and one is in a hotel (Day 1). 92 block hours and 160 duty hours (= salary XXX42,500). Generally it is unusual to get days off at outstation


Are all ME airlines like that? Maybe not, but that is the attitude out there, and if you think it's worth it, GO FOR IT!



Bye Bye----General Lee

 

[Green]

Copied from PPRUNE, an A320 pilot's schedule in one of the 3 big ME airlines, and you can probably figure it out by the common destination:


1. For those contemplating joining XX, here is an actual roster for A320 Captain.The month and specific destinations have been omitted to protect the innocent. All times are based on DOXX which is where your body clock will be.

Day 1. day off at out station in Europe.
Day 2. wake-up-call 2150 to fly back to DoXX.
Day 3. Land DOX 0535, report again 2245 for Gulf turn-around (3h on gnd).
Day 4. Land DOX 0645, report again 0000 for Gulf turn-around (3h on gnd).
Day 5. Land DOX 0555, report again 1945 for Gulf turn-around ARR DOX 0000.
Day 6. report 1800 regional turn-around
Day 7. Land DOX 0015, report again 1345 for three-sectors (Gulf + layover),
Day 8. land at outstation 0120 (layover), wake-up-call 1500, land DOX 2230
Day 9. off
Day 10. off
Day 11. report 0650, four-sectors around the Gulf, land DOX 1700.
Day 12. report 2245 for Gulf turn-around (3h on gnd)
Day 13. land DOX 0645, report again 2345, two sectors for layover.
Day 14. land at outstation 0830 (layover)
Day 15. wake-up-call 0855, two sectors, land DOX 1910
Day 16. off
Day 17. report 2345, regional turn-around
Day 18. land DOX 0545, report again 1925, one sector for layover
Day 19. land at outstation 0055 (layover), wake-up-call 2300
Day 20. operate back to DOX followed by a Gulf turn-around, land DOX 1050
Day 21. off
Day 22. off
Day 23. ground school (ex. crm, security, dangerous goods)
Day 24. report 1045 Gulf turn-around plus regional turn-around, land DOX 2230.
Day 25. off
Day 26. off
Day 27. report 0700 one sector to Europe for 22h layover.
Day 28. wake-up-call 1030 fly to DOX plus Gulf turn-around, land DOX 2320.
Day 29. report 1230 one sector to Europe for 24h layover.
Day 30. wake-up-call 2200 to fly to DoXX
Day 31. land DOX 0530.

This roster has the minimum eight days off, of which seven are at home and one is in a hotel (Day 1). 92 block hours and 160 duty hours (= salary XXX42,500). Generally it is unusual to get days off at outstation


Are all ME airlines like that? Maybe not, but that is the attitude out there, and if you think it's worth it, GO FOR IT!



Bye Bye----General Lee

General,

You tend to adopt a mine is better than yours stance when you feel threatened. You picked the worst fleet (A320) from the absolute worst carrier (Qatar). Not very representative of life for a pilot in the ME. Kind of like holding up a Mesa roster and saying this is the life of an airline pilot in the USA. At EK on the 777 between days off and "rest days" (would be called days off in the US) you can expect 13-18 off per month. Then you have the 42 days of vacation.

But all of that is really beside the point. The real issue here is how these middle east carriers are going to potentially disrupt the US airlines. I don't see how DAL/UAL/AMR are going to be able to compete head to head with EY or EK. Up until now they haven't had to. But once you start seeing US direct to Europe, Oz, and Asia on EK the legacies are going to be in deep sh#t. It's a no brainer for a passenger. Kind of like deciding whether to check into the Holiday Inn Express or the Westin if the price were identical. From the check in to picking up your luggage the ME product is far superior to anything stateside.

Of course it's unfair. Emirates has an advantage when it comes to Unions, taxes, subsidies, etc, etc. But the key question is how do the US Carriers respond? They better do something before it's too late. Currently EK serves 6 US destinations. The word on the line is that Tim Clark wants 30. I can guarantee they won't all be direct Dubai. I'm worried what will happen to DAL/UAL/AMR when EK is flooding the US with Europe and Asia flights that offer inflight bars, showers, hot fa's, caviar, etc for the same price as the typical cranky experience of a UAL flight.

This all reminds me of Alpa's stance on the regional carriers back in the early days of turboprops. Oh it's no big deal, they could never cover mainline flying...We all know what happened next. General's responses demonstrate the typical complete lack of foresight when it comes to future threats to our profession.

I hope the US has a good competitive response that doesn't include employee wage/benefit cuts. I for one don't want to spend the rest of my career in Dubai. But it's hard to find pay in the US that comes anywhere close. Of course at EK you are always just one mistake away from the slippery slope that leads to termination. Tough choices in this career.

 

[GogglesPisano]

that doesn't really answer my question. As per the old contract, how does Delta withholding 20 grand from your first year pay NOT paying for your training?

forget about training bonds, which aren't even enforceable in most states anyway.

Who ever said the low first year pay has anything to do with training costs? Not defending the practice. CAL's first-year pay is (was) a true slap in the face. A lot of factors at play, but mostly it's a "I did it, you do it," union thing.

 

[Jetjockey]

That schedule makes a regional airline schedule look good.

 

[8sugarsugar]

General,

You tend to adopt a mine is better than yours stance when you feel threatened. You picked the worst fleet (A320) from the absolute worst carrier (Qatar). Not very representative of life for a pilot in the ME. Kind of like holding up a Mesa roster and saying this is the life of an airline pilot in the USA. At EK on the 777 between days off and "rest days" (would be called days off in the US) you can expect 13-18 off per month. Then you have the 42 days of vacation.

But all of that is really beside the point. The real issue here is how these middle east carriers are going to potentially disrupt the US airlines. I don't see how DAL/UAL/AMR are going to be able to compete head to head with EY or EK. Up until now they haven't had to. But once you start seeing US direct to Europe, Oz, and Asia on EK the legacies are going to be in deep sh#t. It's a no brainer for a passenger. Kind of like deciding whether to check into the Holiday Inn Express or the Westin if the price were identical. From the check in to picking up your luggage the ME product is far superior to anything stateside.

Of course it's unfair. Emirates has an advantage when it comes to Unions, taxes, subsidies, etc, etc. But the key question is how do the US Carriers respond? They better do something before it's too late. Currently EK serves 6 US destinations. The word on the line is that Tim Clark wants 30. I can guarantee they won't all be direct Dubai. I'm worried what will happen to DAL/UAL/AMR when EK is flooding the US with Europe and Asia flights that offer inflight bars, showers, hot fa's, caviar, etc for the same price as the typical cranky experience of a UAL flight.

This all reminds me of Alpa's stance on the regional carriers back in the early days of turboprops. Oh it's no big deal, they could never cover mainline flying...We all know what happened next. General's responses demonstrate the typical complete lack of foresight when it comes to future threats to our profession.

I hope the US has a good competitive response that doesn't include employee wage/benefit cuts. I for one don't want to spend the rest of my career in Dubai. But it's hard to find pay in the US that comes anywhere close. Of course at EK you are always just one mistake away from the slippery slope that leads to termination. Tough choices in this career.

I don't know why the Delta guy always turns everything into, mine is better than yours when he is proven wrong.

I'm still laughing at the general after the Milan-JFK flight was officially announced 24 hours after he was ranting how that would NEVER EVER HAPPEN.

 

[sniper]

General,

You tend to adopt a mine is better than yours stance when you feel threatened. You picked the worst fleet (A320) from the absolute worst carrier (Qatar). Not very representative of life for a pilot in the ME. Kind of like holding up a Mesa roster and saying this is the life of an airline pilot in the USA. At EK on the 777 between days off and "rest days" (would be called days off in the US) you can expect 13-18 off per month. Then you have the 42 days of vacation.

But all of that is really beside the point. The real issue here is how these middle east carriers are going to potentially disrupt the US airlines. I don't see how DAL/UAL/AMR are going to be able to compete head to head with EY or EK. Up until now they haven't had to. But once you start seeing US direct to Europe, Oz, and Asia on EK the legacies are going to be in deep sh#t. It's a no brainer for a passenger. Kind of like deciding whether to check into the Holiday Inn Express or the Westin if the price were identical. From the check in to picking up your luggage the ME product is far superior to anything stateside.

Of course it's unfair. Emirates has an advantage when it comes to Unions, taxes, subsidies, etc, etc. But the key question is how do the US Carriers respond? They better do something before it's too late. Currently EK serves 6 US destinations. The word on the line is that Tim Clark wants 30. I can guarantee they won't all be direct Dubai. I'm worried what will happen to DAL/UAL/AMR when EK is flooding the US with Europe and Asia flights that offer inflight bars, showers, hot fa's, caviar, etc for the same price as the typical cranky experience of a UAL flight.

This all reminds me of Alpa's stance on the regional carriers back in the early days of turboprops. Oh it's no big deal, they could never cover mainline flying...We all know what happened next. General's responses demonstrate the typical complete lack of foresight when it comes to future threats to our profession.

I hope the US has a good competitive response that doesn't include employee wage/benefit cuts. I for one don't want to spend the rest of my career in Dubai. But it's hard to find pay in the US that comes anywhere close. Of course at EK you are always just one mistake away from the slippery slope that leads to termination. Tough choices in this career.

United States will do just like Germany and Canada has done .

No more Abdullah , you have enough routes .

 

[sniper]

I don't know why the Delta guy always turns everything into, mine is better than yours when he is proven wrong.

I'm still laughing at the general after the Milan-JFK flight was officially announced 24 hours after he was ranting how that would NEVER EVER HAPPEN.

Are you still hiring street captains? I think I can be a captain there before you.
And how much is the captain pay for the 330/340?
Here in the states I make over 200 per hour and my last gross pay was around 250k and I paid 53k taxes and that's around 18 k per month.

I hope I will more than 18 k per month at Emirates