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KTPAFlyer
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Posts: 761
Joined: Sat Oct 10, 2015 8:08 pm

ME3 vs US Restrictions: The future

Tue Mar 21, 2017 4:12 am

Hello A.net,

With the uncertainty that has been unleashed in the form of subsidy allegations, travel bans, and electronic restrictions, I think it is safe to say that the next few years will determine whether the ME3 will become a victim of a decline initiated not by the market or financial failure, but by a increasingly brutal legal battle or whether they will emerge as a new class of bulletproof airlines. My question is how long can this last, will the ME3 survive (survive meaning the ability to grow or sustain from the current position in an adverse/unfavorable climate), and where will they draw the line and fight back. As we have seen with countless other airlines, there always comes a point where you have to fight back if you want any chance of surviving, whether that is adapting to LCC, aggressive restructuring, etc. When will that be for the ME3? We have already seen them introduce some cost-cutting measures; will increased restrictions hemorrhage losses? The 35% drop overnight for EK will make a dent, and the US is one of EK's largest markets; if new restrictions are introduced, this figure will only go up. If it hits 50% and doesn't recover, how will they respond? Obviously, the ME3 are not going to do anything dramatic like restructuring, but in legal terms, will they opt to play hardball or keep eating losses?
 
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BobPatterson
Posts: 2680
Joined: Thu Nov 26, 2015 7:18 am

Re: ME3 vs US Restrictions: The future

Tue Mar 21, 2017 4:22 am

Already covered here: viewtopic.php?f=3&t=1357619

The 35% figure is a fiction, of sorts, without explanation.
Facts are fragile things. Treat them with care. Sources are important. Alternative facts do not exist.

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