CitationX
Topic Author
Posts: 122
Joined: Wed Sep 17, 2003 10:18 am

Rapid Expansion Of Persian Gulf Airlines

Fri Dec 12, 2003 6:53 am

http://biz.yahoo.com/rc/031211/airlines_gulf_1.html

This is an interesting article.

I wonder if EADS is more worried about getting paid, or if AF is more upset over the subsidized competition. Given the political and social instability in the Persian Gulf region, I don't think these Arab airlines' grandiose expansion plans will be sustainable. With over 1/3 of the A380s on order going to these airlines, EADS better hope that tensions simmer down over in the Gulf.
 
RiverVisualNYC
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Joined: Fri Nov 07, 2003 4:11 am

RE: Rapid Expansion Of Persian Gulf Airlines

Fri Dec 12, 2003 7:53 am

The UAE, Qatar, and Bahrain are very stable Gulf countries. In the case of the UAE, there is alot of oil money and tourist development, and in the case of Bahrain and Qatar there is a heavy US military presence. Carriers in these countries are probably in better financial condition than any of the US majors, not to worry!
 
teva
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Joined: Thu Feb 01, 2001 12:31 am

RE: Rapid Expansion Of Persian Gulf Airlines

Fri Dec 12, 2003 8:02 am

Part of the answer is in the article.
An airline such as EK, even if it does not receive subsidies, is in fact more than an airline. It is a part of a global strategy. The royal family owns them, owns the hotels, and creates events to attract people. (sport events, Dubai Shopping Festival, ...)They also create other activities (high tech, communication, bank; they have "free-zones"....)
There is just one thing that this article doesn't understand. The author gives the feeling, that for him, most of the potential visitors will come from the States, and may be afraid to come.
That just a lack of knowledge of the history. The Gulf area, even at the time Dubai was a village) have always been very important trade areas between Europe and Asia, for the last milleniums. Remember the Greeks, Marco Polo, ...
Business is in the blood of the people in this region. And since they control all the tools,(resorts, events, transportation) and have the money to finance it (oil) I don't see why this strategy should fail.
Teva
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
 
RiverVisualNYC
Posts: 926
Joined: Fri Nov 07, 2003 4:11 am

RE: Rapid Expansion Of Persian Gulf Airlines

Fri Dec 12, 2003 8:11 am

Teva- Good points, Dubai tourism is booming and can continue to grow without US visitors. It is pretty much both the largest international business center and the major tourist resort between Europe and Asia. Almost every multinational company has at least a representative office in Dubai, and Europeans increasingly view it as an alternative to going to the Caribbean or Florida for their vacation. Since the UAE Dirham is at a fixed exchange rate to the US Dollar, which is weak and gettting weaker, the UAE is also increasingly a good value for those with Euros, Pounds etc. to spend. In sum, Dubai is alot like Singapore or Hong Kong - a small place with alot of business and tourism, and an airline that has grown into a global player.