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MiddleEast Carriers...Arms Race, Build Or Bust?  
User currently offlineManfredj From United States of America, joined Mar 2007, 1132 posts, RR: 0
Posted (6 years 2 months 1 week 1 day 4 hours ago) and read 1310 times:

It's been all over A-Net, and most agree that the Middle East carriers are building their fleets up to unprecidented levels...and for what reason? An analyst a few months ago speculated that areas like Baharain are investing heavily in their cities, turning them into tourists attractions so when the oil runs out, money can still be made. Makes sense that with an increase in tourists, airplanes will be needed to carry them.

But with the recent news of QR and it's aim to purchase more 380's, I think we can all agree that overkill seems to be the case here. So what's everyone's view? I personally think it's a disaster in the waiting. Yes, Emirates has more money than most countries, and the cost of fuel is under 1$ a gallon. However, at some point, the fleet will outgrow the demand for passengers and cheap fuel will only get you so far.

Is the Middle East immune to the current market?


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6 replies: All unread, jump to last
 
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17288 posts, RR: 46
Reply 1, posted (6 years 2 months 1 week 1 day 4 hours ago) and read 1306 times:



Quoting Manfredj (Thread starter):
However, at some point, the fleet will outgrow the demand for passengers and cheap fuel will only get you so far.

It's not cheap fuel. As you mentioned, when you pour billions of dollars into your city and infrastructure and make it very easy to do business, you can make any city appealing enough to become a huge draw, thus filling planes. If a 150 degree sandbox can do it, any city can do it, opposition aside Wink. The question is what happens when, if ever, the government spending slows or stops.



E pur si muove -Galileo
User currently offlineJfk777 From United States of America, joined Aug 2006, 8255 posts, RR: 7
Reply 2, posted (6 years 2 months 1 week 1 day 3 hours ago) and read 1287 times:
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Emirates has built a commercial enterprise much to teh chagrin of BA, Cathay, SIA, Qantas and Lufthansa. Etihad based in Abu Dhabi just 70 miles from Dubai begs of imitaion, Malaysia can tell you how that works. Qatar is playing catch up, it will be smaller then Emirates but a force to be dealt with.

User currently offlineManfredj From United States of America, joined Mar 2007, 1132 posts, RR: 0
Reply 3, posted (6 years 2 months 1 week 1 day 3 hours ago) and read 1266 times:



Quoting Jfk777 (Reply 2):
Qatar is playing catch up, it will be smaller then Emirates but a force to be dealt with.

What about the bodies that govern airports in the Middle East. Will they play fair in the future, or only allow themselves to have the best time slots/gates.



757: The last of the best
User currently offlineThestooges From , joined Dec 1969, posts, RR:
Reply 4, posted (6 years 2 months 1 week 1 day 3 hours ago) and read 1242 times:

Well the three home airports of Emirates, Etihad and Qatar are all excellently placed to become extremely effective hubs between Europe, North Africa, the Middle East and Asia/ Australia.

The fact that Emirates flies from Newcastle and Qatar from Berlin shows that these airlines have not underestimated the geographical potential of their hubs and are using them to develop extensive links between small to medium size markets to both the east and west. They are quickly becoming the Atlanta, Chicago and Dallas' of the Middle East and it's this connectivity factor that will most likely be filling all those new aircraft, not people flying to the Emirates or Qatar for a holiday !!!


User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 5, posted (6 years 2 months 1 week 1 day 2 hours ago) and read 1219 times:



Quoting Manfredj (Thread starter):
Yes, Emirates has more money than most countries, and the cost of fuel is under 1$ a gallon.

Some proof would be nice... Smile



"Up the Irons!"
User currently offlineManfredj From United States of America, joined Mar 2007, 1132 posts, RR: 0
Reply 6, posted (6 years 2 months 1 week 1 day 2 hours ago) and read 1202 times:



Quoting Jacobin777 (Reply 5):
Some proof would be nice...

http://www.zawya.com/cm/profile.cfm/cid759385



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