Mideast Airlines Taking Over

[8sugarsugar]

Tim Clark, CEO of Emirates has been quoted that if Air India ever got their sh!t together, they would put Emirates out of business overnight.

 

[8sugarsugar]

I am not privy to the exact numbers, but I find this assertion hard to believe. You are saying if EK flew EWR - Mumbai for UA, UA would make more money than flying the route themselves? I think this is wishful thinking on the part of an EK pilot.

No EK pilot would wish for layovers in EWR or BOM.

And Emirates flying EWR-BOM? Doubtful, but EWR-DXB, then DXB to 10 other Indian destinations plus everywhere else in Africa, Asia.

 

[Furloughed80]

Tim Clark, CEO of Emirates has been quoted that if Air India ever got their sh!t together, they would put Emirates out of business overnight.

I doubt Air India will ever get their act together. One airline that actually has a chance against EK is Turkish. They are building the largest airport in the world in IST, employing the exact same strategy as EK, they benefit from a location right in the middle of three continents (much like Dubai), there inflight service is amazing, and they have been rapidly expanding.

 

[Flyby1206]

I doubt Air India will ever get their act together. One airline that actually has a chance against EK is Turkish. They are building the largest airport in the world in IST, employing the exact same strategy as EK, they benefit from a location right in the middle of three continents (much like Dubai), there inflight service is amazing, and they have been rapidly expanding.

TK is definitely expanding a lot, but I think the worry with Air India is there is so much travel demand to/from India, as opposed to people going to DXB as a destination.

If Air India could get things cranking and operate an efficient hub they could capitalize on traffic flows between Europe and China/Asia while also offering O&D at their main hub. European travelers could skip DXB and fly direct to India. Emirates loses efficiency by people not wanting to go to Dubai, but only use it as a connect point.

 

[8sugarsugar]

TK is definitely expanding a lot, but I think the worry with Air India is there is so much travel demand to/from India, as opposed to people going to DXB as a destination.

If Air India could get things cranking and operate an efficient hub they could capitalize on traffic flows between Europe and China/Asia while also offering O&D at their main hub. European travelers could skip DXB and fly direct to India. Emirates loses efficiency by people not wanting to go to Dubai, but only use it as a connect point.

Air India has even cheaper labor than Dubai. Baggage handler Dubai makes about $1500/year. And Emirates gives those guys free food and house. India, maybe $800 without room and board.

Last I heard, Air India is 2-3 months behind on payroll. Kingfisher is belly up. It's amazing how India airlines suck so bad and will never get there ducks in a row.

A lot of big bets were made in Indian aviation because of location and labor costs, and lost mostly on incompetence and old English style bureaucracy and red tape.

 

[Flyby1206]

Air India has even cheaper labor than Dubai. Baggage handler Dubai makes about $1500/year. And Emirates gives those guys free food and house. India, maybe $800 without room and board.

Last I heard, Air India is 2-3 months behind on payroll. Kingfisher is belly up. It's amazing how India airlines suck so bad and will never get there ducks in a row.

A lot of big bets were made in Indian aviation because of location and labor costs, and lost mostly on incompetence and old English style bureaucracy and red tape.

Not just Indian aviation, but business in general is facing a lot of problems in dealing with the government. It is a shame, but hopefully the political culture can change.

The UAE is really a model in terms of government encouraging growth in the aviation sector. We in the USA and around the world could learn a thing or ten from them.