I don't agree with you at all.
Good start! after all that's what this forum is all about.
EK has a sound business plan and it is working
Not that I ever disputed it. It is infact quite easy to make a business plan around such unfathomable resources where you know that a even if you goof up you cannot sink (at least in the foreseeable future). Again like I mentioned earlier, EK
is just a cog in the wheel that is DXB
(a point which you agree to as well). For any country which has a single major city, to be really taken seriously, it's an unwritten rule that you must have an airline that is world class (even if you have to run it at ruinous losses). Hence for the DXB
rulers, for DXB
to be taken as the next international hub a la SIN
, they must have a world class airline at ANY COST (which with their trench sized pockets is close to infinity). They choose city pairs, flying there with so much hype that they expect to automatically create a market on those routes. The only flaw of this philosophy is that DXB
is geo-politcally handicapped. Irrespective of the vast square miles that they may reclaim and the trillions that they may invest in coverting wasteland to paradise, it is based in a potentially trouble prone region. Pretending as if there are planeloads of people dying to fly between DXB
(14 flights) besides a host of other such vague routes is bull crap. If they fill in these planes.. its obviously at very low fares. An example is the recent open skies policy of India whereby EK
has applied for almost 350 extra sections and upgrades for the period upto 29FEB04. They replaced some of the DEL services with a B777 and ended up flying them half empty... filling the other half at the piteous fare of INR 4500 one way to DXB
!!! Look at their costs on the other hand. Suites in F/cl, state of the art IFE and the works, advertisement budgets practically unlimited, very highly paid staff.. hey come on... these things do not come at INR 4500 OW
- fare levels which are practically replicated on a host of other routes from the Indian Subcontinent and other parts of the world. Agreed they are higher priced than other Gulf carriers but for the kind of services that they offer they ought to be charging fares at least at par with the European carriers if not higher.
International aviation and airline business is not dependent on the business outlook of one country. It is based on a number of other socio-economic and political factors. EK
has virtually established itself as the de facto national carrier of Pakistan and one of the largest international operators out of India, Sri Lanka and Bangladesh. This is primarily due to the inability of the national carriers of these countries (except Sri Lanka) to blossom to their fullest potential due to a multitude of factors. Every day that goes by, I see Indian aviation coming of age. The day this sector is deregulated and private Indian carriers allowed to fly internationally, I promise you an aviation revolution. This part of the world has much much more to offer in terms of natural wealth than DXB
will ever have (despite the cosmetic surgery) and when the world discovers that... trust me, those 43 A380s of EK
will fly at 20% SLF.
As for QR
, I am reminded of a saying that "a squirrel should not try to shit like an elephant".
I really wish you'd study the airline business in little bit more detail. It'd be nice to know which are those airline business plans that you read. Trust me, this business is much much more than simply reading business plans.
Will the bitchy sarcasm ever end? your smart alec act is becoming too much to bear B747-437B.
"Eih bennek, eih blavek". If you pick thistles, expect prickles. (Tintin comic, 'King Ottokar's Sceptre')
Sarfaroshi kii tamannaa ab hamaare dil mein hai, Dekhnaa hai zor kitnaa baazu-e-qaatil mein hai