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Here comes Emirates - more US expansion & A380 use planned

johnsonrod

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We all know about the upcoming Seattle and Dallas service. This article provides an interesting look at future plans (including use of more A380s to the US and more routes). Clearly the legacy US carriers have got to be a little nervous - Dubai provides great connections to the Middle East, South Asia and Africa. Plus, you can't beat EK's A380 service (from what I hear no US product can compete from a quality standpoint - plus most US legacy flight attendants are old bags on the international flights). Nice for the American pilots at EK who want to see home more often (and satisfy their Taco Bell cravings). See Bloomberg article below:


Emirates Adds U.S. Routes to Revive Challenge Halted by 9/11

Q
By Chris Jasper and Steve Rothwell - Sep 28, 2011 12:37 PM ET

Emirates, the biggest international airline, will add flights to Seattle and Dallas in a revival of plans to establish a major route network to the world’s largest economy that it shelved after the 2001 terror attacks.
Emirates will begin daily services from Dubai to Dallas starting Feb. 2 and to Seattle from March 1 and may add U.S. cities including Atlanta, Boston, Chicago, Detroit, Philadelphia and Washington, President Tim Clark said today in an interview.

Passenger numbers at Emirates have surged fivefold in a decade, making it the world No. 1 by international traffic. Hubs in Paris, Frankfurt and London are already under pressure as the carrier diverts long-haul passengers through Dubai, and Clark said the U.S. market could be targeted using Airbus SAS’s A380 superjumbo, of which it has 90 on order offering 45,000 seats.

“We’ve always had fairly ambitious plans for the U.S. and this is part of that,” Clark said by phone from Dubai. “It’s an immense market. There will be more to come, including increased frequencies and bigger planes. We have ideas for the East Coast, the north-south axis in the center and for the west.”

Emirates will also open its own first- and business-class lounge in San Francisco in November, having previously shared a United Airlines facility, and is looking at code-shares which would allow it to sell tickets beyond U.S. gateways, Clark said.

U.S. ‘Noise’

Emirates currently serves New York, Houston, Los Angeles and San Francisco, so that the two new routes and those under consideration would triple the number of U.S. destinations. The carrier had originally planned to operate 20 Airbus A340s to the U.S. about 10 years ago, but dropped the strategy following the Sept. 11 attacks on New York and Washington, Clark said.

“We’ll hear an increasing amount of noise from the U.S. carriers,” said Chris Tarry, an independent aviation analyst who has followed the industry for almost three decades. “There are always a lot of comments when Emirates goes into new markets and I don’t expect the U.S. to be any different.”
American customers flying from Seattle and Dallas will be able to connect with flights to destinations across the Middle East, Asia, India and Africa via Dubai, Emirates said in a statement. Services will initially be operated using Boeing Co. 777s, of which Emirates has the biggest fleet, though there’s potential to shift those and other U.S. routes to A380 operation as deliveries of the double-decker accelerate, Clark said.
A380-Capable

While the airline has taken delivery of only six planes in the past nine months, it has 52 due in the next 18 months or so and is accelerating network expansion accordingly, the executive said. Including Dallas and Seattle, nine new routes are being added between Nov. 1 and March 1.
The A380 will be an option for all U.S. operations post- 2013, when the plane will have a higher takeoff weight, so that routes such as Dubai-Los Angeles become a distinct possibility,” he said. “And most U.S. airports are A380- capable or will be.”

While travelers from the U.S. West Coast are likely to prefer more direct trans-Pacific flights to East Asia, hubbing from there via Dubai will be competitive to destinations including India, Sri Lanka, Iran, Pakistan and Bangladesh, as well as to the wider Middle East and East Africa, Clark said.
The Emirates model of operating three waves of departures from Dubai also cuts the gap between flights, so the “elapsed time” may be shorter than the distance suggests, he said.

“As the emerging-market economies around Dubai expand, particularly India, they could really pick up business,” said Nick Cunningham at research company Agency Partners in London.
New Orders

The overlap with routes served by U.S. carriers may not be so great, Clark said, though the expansion may hurt their allies in global airline alliances. Emirates is looking at partners for code-sharing beyond its U.S. destinations after Continental Airlines scrapped a pact when joining the Star group in 2009.

Emirates is comfortable adding routes even as economies slow, Clark said, predicting that “demand for air travel will continue to grow over the long term in spite of the many challenges the industry faces,” and adding that it may announce further aircraft orders at the Dubai Air Show in November.
Chairman Sheikh Ahmed bin Saeed al-Maktoum was “reflecting a wish that we’d like to do more” when he said yesterday in Dubai that Emirates could add to its backlog, Clark said.
Filling Gaps

The airline needs more planes to accelerate the retirement of older jets amid high fuel prices, and also to offer services to less busy destinations, making use of gaps between the waves of high activity, the executive said.
Models being examined include Airbus’s new A350 and extended-range versions of the 777, Clark said, adding that Emirates is also seeking an update from the U.S. company on its plans for a “next-generation” update of the same model.

While more A380 superjumbos would likewise be welcome, Clark said, the size of the fleet is effectively restricted by handling limitations at Dubai International Airport. Emirates is in discussion with Airbus over the implications of likely delays to the A350-1000 variant as the plane is given extra thrust, the executive said, adding that he’d have liked the jet to have gone ahead according to original plans.
He added that there’s no reason to expect first examples of the baseline A350-900 to meet weight and specifications, given problems with other recent jetliner models.
Sufficient Slots

Clark said Emirates’s already-strong position in Britain means it has no interest in bidding for BMI, which Deutsche Lufthansa AG (LHA) may sell, or Virgin Atlantic Airways Ltd., for which Richard Branson has said he’s seeking a new investor.

Emirates operates five daily services to London Heathrow, the main hub for BMI and Virgin, and could easily add capacity by switching to an all-A380 service -- from two of the flights at present -- without a need for more operating slots, he said.

One extra Heathrow frequency is being contemplated, Clark said, but any more than that would upset the Emirates model of funneling passengers from the U.K. provinces via Dubai on direct flights from Birmingham, Glasgow, Manchester and Newcastle and away from an airport that’s the main hub for British Airways.

Clark said he expects BA parent International Consolidated Airlines Group SA to step up its interest in any Heathrow slots that are available after Chief Executive Officer Willie Walsh snapped up six pairs for an undisclosed sum from BMI last week. “If I was Mr. Walsh I would grab the lot,” he said.
To contact the reporters on this story: Chris Jasper in London at cjasper@bloomberg.net; Steve Rothwell in London at srothwell@bloomberg.net
 

johnsonrod

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All US flights to be flown with A380 in 5 years

Add on story to the previous. Looks like the EK 777 pilots might want to consider switching over/bidding to the A380 fleet if they want US layovers in 5 years or so... Who knows if it will happen (roll of the dice).



So now we know more about what Emirates is going to do with all those A380s

September 29, 2011 – 2:33 pm, by Ben Sandilands



Emirates, the airline that gets up the nose of just about every carrier on the planet, has announced a surge into the US that could see all of a greatly expanded American network flown exclusively by giant Airbus A380s within five years.

That disclosure, by Emirates president Tim Clark, in an interview in The Wall Street Journal, totally eclipses the big American aviation story of the day in Australian terms, which is the ACCC approval of a proposed joint business venture between Qantas and American Airlines.

If the ACCC had disapproved of the Qantas/American deal that would have been a real story. But the AA/QF JBA is one of those common sense things that competition regulators can’t really block even if they were so persuaded because the 13 years history of international approvals for marketing and route alliances has become so deep seated the process of stopping them would have huge consequences for the bigger picture of world trade reforms.

Emirates, its ambitions, and it successes, are something altogether different, since it does things on its own. No alliances. No JBAs. No ‘virtual’ airlines. Just one great big brand. Which doesn’t pay any taxes.
The actual announcement from Emirates was modest by its standards. It would start daily Dubai-Dallas Fort Worth flights on 2 February and daily services to Seattle from 1 March, both initially with either Boeing 777-300ERs or -200LRs. It already has A380s and 777s to New York City, and other 777s to San Francisco and Los Angeles.

But it is what Clark said in supporting interviews that grabbed the US headlines. From 2013 it can start replacing 777s with A380s to California because of further improvements to the big Airbus in terms of range and payload, and based on demand, growth and the fact that it makes money out of every flight why wouldn’t it use the cost advantage of the giant Airbus against its competitors.

Clark’s comments help us understand what Emirates plans to do with up to 90 A380s, bearing in mind that some of that total order book is for replacing the early A380s, as this is an airline with a fleet that has a unit average age of six years and two months.

It intends to fly them between Dubai and dozens of tier one long haul cities, including its entire US network, while deploying dozens of 777s and A330/A350s on shorter destinations in nearer parts of Europe, Africa and Asia, where frequency of service in ‘smaller’ sized wide body jets are commercially desirable.

As made clear in various international news reports, these ambitions by Emirates are giving rise to ferocious criticism from other airlines, including Lufthansa and Air Canada, who have embarked on what we would call a political crusade against this heathen juggernaut, if we were culturally insensitive.

Clark said he intends to at least double the number of US cities it flies to in the same period that it is looking to optimise all of those flights to A380s.

Emirates currently flies 70 services a week between Australia cities and its Dubai global portal, plus another 28 across to New Zealand during the down time that those jet would otherwise remain parked at Brisbane, Sydney or Melbourne waiting to make return flights to Dubai .
 
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overseas boy

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The 777 pilots can't switch/bid over to the A380, they are at the behest of the company until the company has a need for them to transfer they remain on the fleet they were hired onto.
 

Pull To Guns

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Nice for the American pilots at EK who want to see home more often (and satisfy their Taco Bell cravings).

Draconian IRS tax rules say that a US expat citizen cannot spend more than 30 days per year on home soil or get taxed for all foreign earned income.

More than that time back home could make for a very expensive burrito. There are Taco Bells in the UAE. Same "mystery meat". Camel or what?
 

johnsonrod

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Draconian IRS tax rules say that a US expat citizen cannot spend more than 30 days per year on home soil or get taxed for all foreign earned income.

More than that time back home could make for a very expensive burrito. There are Taco Bells in the UAE. Same "mystery meat". Camel or what?

That blows about the tax rule - but not too surprising. Perhaps I should have said "In & Out Burger" instead of Taco Bell.

Still, if this A380 utilization plan actually comes to fruition, I am sure the 777 pilots will be pi$$ed. I bet the SFO layover is welcome relief during the blazing hot Dubai summers... Oh well, I guess they will always have Glasgow to cool off.
 

d328pilot

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Draconian IRS tax rules say that a US expat citizen cannot spend more than 30 days per year on home soil or get taxed for all foreign earned income.

Unless you are a bona fide resident of a foreign country, which all EK pilots are. Then there is no limit to the number of days you can spend in the US.
 

Green

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Could seattle handle the A380? I'd be surprised if EK flew the Airbus into Boeing's hometown.
 

uba757

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Those new 380's coming after 2013 are going to need some MAJOR performance improvements if they want to fly the West Coast, Texas and the Southern US. If the case is that they want to fly those ULR's with the 380, then why is EK asking Boeing to increase range, payload and performance in the new version of the B777? uba757
 

johnsonrod

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Those new 380's coming after 2013 are going to need some MAJOR performance improvements if they want to fly the West Coast, Texas and the Southern US. If the case is that they want to fly those ULR's with the 380, then why is EK asking Boeing to increase range, payload and performance in the new version of the B777? uba757


News flash: new EK 777 route: Dubai - Easter Island
 

uba757

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Seems like a nice place for a 2 day vacation every other month, I'll trade it for JFK!!!!! uba757
 

Pull To Guns

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Unless you are a bona fide resident of a foreign country, which all EK pilots are. Then there is no limit to the number of days you can spend in the US.

Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

In and Out burgers may be worth it though!

The UK and Australia give their expat citizens 1 day less than 6 months on home soil so they get to go home much more often. That is more reasonable.

There is talk in DC of eliminating the tax exempt status of foreign income earned by expat American citizens altogether. How 'bout them apples!
 

likeitis

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Draconian IRS tax rules say that a US expat citizen cannot spend more than 30 days per year on home soil or get taxed for all foreign earned income.

More than that time back home could make for a very expensive burrito. There are Taco Bells in the UAE. Same "mystery meat". Camel or what?

Actually 35 days.
 
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sdsaab

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Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

Get a new CPA, he is wrong!
 

d328pilot

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Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

Then you seriously need a new CPA cause you are losing a lot of money. I have been an expat for 5 years and a bonafide resident of a foreign country and always been over the limit for days as I spend Thanksgiving and Christmas back home. I have always claimed the exemption and it passed an audit.

Read IRS Publication 54 and it clearly states that you must be outside of the US for 330 days per year OR a bona-fide resident. There is even a easy to follow flow chart for the reading impaired.
 

Green

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Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

In and Out burgers may be worth it though!

The UK and Australia give their expat citizens 1 day less than 6 months on home soil so they get to go home much more often. That is more reasonable.

There is talk in DC of eliminating the tax exempt status of foreign income earned by expat American citizens altogether. How 'bout them apples!

Well I guess just like there are good pilots and crap pilots there appear to be clueless CPA's as well. I'm surprised this guy you use knows so little about his own profession. Obviously he doesn't do much work with overseas residents. To gain the foreign tax exemption you must either pass the physical presence test OR, again that's an OR, the Bona Fide Resident test....

here's a link if you are still skeptical. Why limit yourself to 30 days back home per year? Part of your employment with EK includes a resident visa.

http://taxes.about.com/od/taxhelp/a/ForeignIncome_2.htm
 

Pull To Guns

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I stand corrected and so will my CPA! He never mentioned the Bona-Fide Resident test.
I understand it now. Thanks for all the info.
 

d328pilot

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I stand corrected and so will my CPA! He never mentioned the Bona-Fide Resident test.
I understand it now. Thanks for all the info.

Make sure you go back and refile your taxes and claim the exemption for all the years you qualified. You are probably looking at some serious cash owed to you by uncle sam.
 
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