Emirates in talks with AA

[8sugarsugar]

1. During bankruptcy, you can talk and plan all you want, just can't sign anything in ink. I don't believe AA has a gag order that would prevent them from looking at plan B.

2. A marriage between Emirates and a US Legacy is near. Emirates probably doesn't even want a share of AA. But they will ink a deal similar to Qantas. "Global Alliance Busting"

3. This airline business is very dynamic. Change is always coming. The next big thing is Alliance busting, new partnerships formed, 5th freedoms routes etc etc.

Like someone said before, "watch this space" things are about to get real interesting.

 

[8sugarsugar]

I think cjbrown is right, but as I have said before the first US major to take EK to the dance floor will have a 'First Mover' advantage.

Qantas did it - and their improved profitability - just announced has been widely acclaimed by the industry as the direct result of the EK tie-up.

Air Canada finally threw in the towel and went with Etihad, BA just announced a deal with Qatar.

AA & UAL would work well because of IAD, IAH, DFW but DAL in NY & LAX also has pull.

There is no way the US Majors alliance partners can cover Africa, CIS, and Indian sub-continent like EK...just wait, it's going to happen...and I hope it's AA or UAL.

fv

What all he said ^^^ If you can't beat them, join them. You can bet the Legacies are looking at the Qantas deal very closely and the gears are turning.

Innovate or die has been the battle cry.

 

[General Lee]

It's growing.

Really Ike? Where do you come up with your opinions?? I guess they are still growing, a bit...... Maybe you should read this:

OP-ED CONTRIBUTOR
Why India’s Economy Is Stumbling
By ARVIND SUBRAMANIAN
Published: August 30, 2013

WASHINGTON — FOR the past three decades, the Indian economy has grown impressively, at an average annual rate of 6.4 percent. From 2002 to 2011, when the average rate was 7.7 percent, India seemed to be closing in on China — unstoppable, and engaged in a second “tryst with destiny,” to borrow Jawaharlal Nehru’s phrase. The economic potential of its vast population, expected to be the world’s largest by the middle of the next decade, appeared to be unleashed as India jettisoned the stifling central planning and economic controls bequeathed it by Mr. Nehru and the nation’s other socialist founders.


Karen Barbour

Rupee Drops, and Outlook Grows Darker for India (August 31, 2013)
For Op-Ed, follow @nytopinion and to hear from the editorial page editor, Andrew Rosenthal, follow @andyrNYT.
But India’s self-confidence has been shaken. Growth has slowed to 4.4 percent a year; the rupee is in free fall, resulting in higher prices for imported goods; and the specter of a potential crisis, brought on by rising inflation and crippling budget deficits, looms.

To some extent, India has been just another victim of the ebb and flow of global finance, which it embraced too enthusiastically. The threat (or promise) of tighter monetary policies at the Federal Reserve and a resurgent American economy threaten to suck capital, and economic dynamism, out of many emerging-market economies.

But India’s problems have deep and stubborn origins of the country’s own making.

The current government, which took office in 2004, has made two fundamental errors. First, it assumed that growth was on autopilot and failed to address serious structural problems. Second, flush with revenues, it began major redistribution programs, neglecting their consequences: higher fiscal and trade deficits.

Structural problems were inherent in India’s unusual model of economic development, which relied on a limited pool of skilled labor rather than an abundant supply of cheap, unskilled, semiliterate labor. This meant that India specialized in call centers, writing software for European companies and providing back-office services for American health insurers and law firms and the like, rather than in a manufacturing model. Other economies that have developed successfully — Taiwan, Singapore, South Korea and China — relied in their early years on manufacturing, which provided more jobs for the poor.

Two decades of double-digit growth in pay for skilled labor have caused wages to rise and have chipped away at India’s competitive advantage. Countries like the Philippines have emerged as attractive alternatives for outsourcing. India’s higher-education system is not generating enough talent to meet the demand for higher skills. Worst of all, India is failing to make full use of the estimated one million low-skilled workers who enter the job market every month.

Manufacturing requires transparent rules and reliable infrastructure. India is deficient in both. High-profile scandals over the allocation of mobile broadband spectrum, coal and land have undermined confidence in the government. If land cannot be easily acquired and coal supplies easily guaranteed, the private sector will shy away from investing in the power grid. Irregular electricity holds back investments in factories.

India’s panoply of regulations, including inflexible labor laws, discourages companies from expanding. As they grow, large Indian businesses prefer to substitute machines for unskilled labor. During China’s three-decade boom (1978-2010), manufacturing accounted for about 34 percent of China’s economy. In India, this number peaked at 17 percent in 1995 and is now around 14 percent.

In fairness, poverty has sharply declined over the last three decades, to about 20 percent from around 50 percent. But since the greatest beneficiaries were the highly skilled and talented, the Indian public has demanded that growth be more inclusive. Democratic and competitive politics have compelled politicians to address this challenge, and revenues from buoyant growth provided the means to do so.

Thus, India provided guarantees of rural employment and kept up subsidies to the poor for food, power, fuel and fertilizer. The subsidies consume as much as 2.7 percent of gross domestic product, but corruption and inefficient administration have meant that the most needy often don’t reap the benefits.

Meanwhile, rural subsidies have pushed up wages, contributing to double-digit inflation. India’s fiscal deficit amounts to about 9 percent of gross domestic product (compared with structural deficits of around 2.5 percent in the United States and 1.9 percent in the European Union). To hedge against inflation and general uncertainty, consumers have furiously acquired gold, rendering the country reliant on foreign capital to finance its trade deficit.

Economic stability can be restored through major reforms to cut inefficient spending and raise taxes, thereby pruning the deficit and taming inflation. The economist Raghuram G. Rajan, who just left the University of Chicago to run India’s central bank, has his work cut out for him. So do Prime Minister Manmohan Singh, also an economist, and the governing party, the Indian National Congress. These steps need not come at the expense of the poor. For example, India is implementing an ambitious biometric identification scheme that will allow targeted cash transfers to replace inefficient welfare programs.

India can still become a manufacturing powerhouse, if it makes major upgrades to its roads, ports and power systems and reforms its labor laws and business regulations. But the country is in pre-election mode until early next year. Elections increase pressures to spend and delay reform. So India’s weakness and turbulence may persist for some time yet.

Arvind Subramanian, a senior fellow at both the Peterson Institute for International Economics and the Center for Global Development, is the author of “Eclipse: Living in the Shadow of China’s Economic Dominance.”




Bye Bye---General Lee

 

[General Lee]

What all he said ^^^ If you can't beat them, join them. You can bet the Legacies are looking at the Qantas deal very closely and the gears are turning.

Innovate or die has been the battle cry.

Again, Qantas needed help for Europe connects, and your DXB hub helped with that. AA already has BA for connects to India and Africa, and BA isn't happy with your airline at all. They want to fill BA and IB planes, not help you. BA is getting their own A380s and 787s, and they will control their LHR slots. Your 5 daily A380s to Heathrow probably don't make them happy. Very doubtful there will be any large investment, and the US merger, if it goes through, will really not help that happen. So Sugar, looks like the Sandpit will continue to burn away at your brain.


Bye Bye---General Lee

 

[711-24-7]

I am still searching for Hydrabad in Dubai GL?! I know there is one India, but I think India is not in ME.....that city happens to be loved by WESTERN tourist quite a bit!

 

[8sugarsugar]

Again, Qantas needed help for Europe connects, and your DXB hub helped with that. AA already has BA for connects to India and Africa, and BA isn't happy with your airline at all. They want to fill BA and IB planes, not help you. BA is getting their own A380s and 787s, and they will control their LHR slots. Your 5 daily A380s to Heathrow probably don't make them happy. Very doubtful there will be any large investment, and the US merger, if it goes through, will really not help that happen. So Sugar, looks like the Sandpit will continue to burn away at your brain.


Bye Bye---General Lee

only time will tell...you don't have a very good track record in this matter. I'm on the inside. Its amazing how you think you know more about Emirates' business plan than the insiders do.

Remember how embarrassed you were when JFK-Milan was announced? Especially the day before it was officially announced, you ranted about how that will NEVER EVER happen. Only defense you had next morning was something about the hot desert and my layover in Dhaka.

Btw, JFK-MXP starts Oct 1st and the flights loads are already well overbooked into December.


Maybe a second daily JFK-MXP is in the pipeline? Now i'm just purely speculating with no inside info!! :smash:

 

[Flybywire44]

Rumor has it, Emirate's private 319 was in Dallas couple weeks ago..shortly after the merger hit a snag with US Air. 3 years ago Emirates was in talks with AA for some joint venture, but that fell through after the merger with US Air.

You heard it here first. Maybe a 49% purchase? Maybe a bailout like Qantas. Maybe after bankruptcy, you will see American Airlines flights ### operated by Emirates.

That may be better than any merger. Emirates does AA's wide body network feeding into DFW, and AA takes them the rest of the domestic way. Delta/United et al, have a hard time competing with the AA product "operated by Emirates"

^too much speculating for now, my car and driver are waiting for me outside..time to fly

Emirates may have just chartered one of their Executive a319s:

http://www.emirates-executive.com/english/index.asp

http://www.businessinsider.com/emirates-turns-a319-into-private-jet-2013-8?op=1

http://www.cnn.com/2013/08/07/travel/emirates-executive-airbus-private-jet


On a separate note, I remember interviewing at Emirates and the recruiter telling me that "EK does not code share" and "carriers who code share exhibit weakness." So much for that train of thought.

 

[General Lee]

I am still searching for Hydrabad in Dubai GL?! I know there is one India, but I think India is not in ME.....that city happens to be loved by WESTERN tourist quite a bit!

Is that supposed to be funny? (You misspelled it, of course) Your airline has 3 daily flights to Hyderabad, an A345, a 772, and an A332. And, I really don't think it is LOVED by Western Tourists..... Riiiight. Goa, maybe. Hyderabad, doubtful.



Bye Bye---General Lee

 

[Green]

General,

The US is currently growing at a rate of 2.5%, while according to your article India is growing at 4.4%. The US aviation market is highly competitive while the local airlines in India are a mess. Looks like there's much more opportunity for expansion and profit growth at EK than the typical US carrier.

Hyderabad doesn't look that bad to me.
http://www.google.com/search?q=hyde...C9OtsASuiYDABQ&ved=0CIcBELAE&biw=1247&bih=600

But I hate flying there as I find the night turns quite fatiguing. I usually get stuck with one every 3-5 months. I actually have one this month. But with 15 off days plus 2 rest days (would be called an OFF day in the States) I can't really complain.

I think it's quite a stretch calling EK a Low cost carrier. Even from a work rule point of view. Every poster on pprune knows that EK management actively monitor the message boards. It's an easy way to vent your frustrations. Attrition is less than 3%. For a contract job that's extremely low.


Back to the Low Cost thing...At my previous legacy I was used to hampton inns, holiday inns, stinky old sheratons, etc while at EK you stay in 4-5 stars everywhere. We get 42 vacation days per year, driven to work, unlimited travel anywhere in the world, 1 positive space ticket/year anywhere in the world, great onboard food, nice destinations, and when you add up all the financials about 140k to start.

It would be interesting to compare the actual schedule, pay, lifestyle of a new hire EK pilot vs new hire DAL pilot over 5 years.

But one thing you are right about General is that Dubai leaves a lot to be desired, and training is a real pain in the as@! Some people make it work others bail... There are many positives and negatives to working for EK (or any overseas carrier for that matter). The truth is that there is no perfect job

What I can't figure out is why you are always trying to convince everyone that DAL is the pinnacle of aviation?? Did you get picked on as a kid?

 

[Furloughed80]

LMAO, EK pilots trolling on FI.com. Things must be getting really bad there.