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Motley Fool analyst looks at possibility of ME Carriers "Crushing" US Carriers

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The CEO's of the EU carriers have all said - publicly - that they cannot compete with EK and cannot survive in their current form. The mid east and asia are a very large part of their markets. Eventually the EU carriers will be forced into something more than a marketing partnership with EK if they want to survive. The price of that will be direct access to the US-EU market for EK.

The same can be said for the Asian carriers. JAL already has failed. Cathay and SIA are facing some stiff challenges in the Asia - EU market. Eventually EK will force them to match their costs or surrender that market.
 
The CEO's of the EU carriers have all said - publicly - that they cannot compete with EK and cannot survive in their current form. The mid east and asia are a very large part of their markets. Eventually the EU carriers will be forced into something more than a marketing partnership with EK if they want to survive. The price of that will be direct access to the US-EU market for EK.

The same can be said for the Asian carriers. JAL already has failed. Cathay and SIA are facing some stiff challenges in the Asia - EU market. Eventually EK will force them to match their costs or surrender that market.


....but if I want to buy a ticket from DXB to CAN, it is consistently way cheaper on CX than on EK. It just requires a little back tracking and extra travel time.

CX and SQ are having trouble primarily because of their geographical position. It has become more efficient to connect through the Middle East hubs than HKG and SIN. CX still holds the keys to a lot of the China market via their subsidiary Dragonair. Both cities are also large O and D markets.


TP
 
The short answer is with 18% year over year passenger growth in Asia, all of these carriers in the story will be able to peacefully coexist. There is ample pie at the table for everybody. The news is already out the the A380 production line days are numbered....it is was a good idea in theory, but not in practice.
 
Because they are convinced (as are some on this forum) that "Americans will never connect through DXB, they just won't", all the evidence to the contrary be damned.

Hi Ike, I know you want to get on with EK and hate how your career has gone so far. Passengers who want to go to Europe or Asia from the US won't go to Dubai first, it is too far. Even the analyst stated that, which is stating the obvious. Now, pax wanting to go to India or Pakistan, then yes, maybe US originating pax may go through Dubai or Abu Dhabi. Sorry, it just makes sense.


Bye Bye---General Lee
 
Hi Ike, I know you want to get on with EK and hate how your career has gone so far. Passengers who want to go to Europe or Asia from the US won't go to Dubai first, it is too far. Even the analyst stated that, which is stating the obvious. Now, pax wanting to go to India or Pakistan, then yes, maybe US originating pax may go through Dubai or Abu Dhabi. Sorry, it just makes sense.


Bye Bye---General Lee

As soon as my career actually starts, I promise you'll be the first to know whether I hate it or not.
 

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