PlaneInsomniac
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Emirates Mass Layoffs

Thu Jan 26, 2017 7:15 am

More than 1000 will reportedly be laid off, mostly in administration:
http://app.wiwo.de/unternehmen/dienstle ... 05094.html
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scotron11
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 7:46 am

They are not making a big deal about this....there were the 12 deferrals on the A380...wonder if it will impact other orders too?
 
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KruegerFlaps
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 8:27 am

It was reported in Gulf Business that about 1,000 people had left Emirates in the past three months through what a spokesperson said was “for various reasons and largely through natural attrition.” Despite this, the airline has continued to employ new staff where a need is identified.

The spokesperson went on to say that “this is no different from previous years. Role and structure reviews in some areas impacted less than 40 staff during this same period, and a number of these were on a voluntary basis.”

http://gulfbusiness.com/dubais-emirates ... ructuring/

Interestingly, the article in Gulf News mentions that has said that it could cut routes, although it has recently announced new ones, including Zagreb and Newark.
Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves. - William Pitt Speech, 1783
 
smi0006
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 8:37 am

From my observation form a airports perspective they have always been way way overstaffed. Ground handeling agents, doing their roles with 3-4 EK staff members watching adding little to no value if this is representative of the rest of the company, sounds like a good business decision to me.
 
Planesmart
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 10:44 am

KruegerFlaps wrote:
It was reported in Gulf Business that about 1,000 people had left Emirates in the past three months through what a spokesperson said was “for various reasons and largely through natural attrition.” Despite this, the airline has continued to employ new staff where a need is identified.

The spokesperson went on to say that “this is no different from previous years. Role and structure reviews in some areas impacted less than 40 staff during this same period, and a number of these were on a voluntary basis.”

More than 3,000 contracts expire each month. Really have to look at the net month on month position, as pointed out elsewhere in the thread, they are still recruiting.

Statistically significant if it is a net reduction which continues at the same or higher pace.
 
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enilria
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 12:27 pm

PlaneInsomniac wrote:
More than 1000 will reportedly be laid off, mostly in administration:
http://app.wiwo.de/unternehmen/dienstle ... 05094.html

As defined by the American WARN Act, 1000 layoffs over 3 months at a company the size of EK does not qualify as "Mass Layoffs". Seems like an overly negative spin.
 
scotron11
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 12:43 pm

there were also a rumor they had parked up to 19 A380s but were keeping it very quiet.....then after that they announced the A380 deferrals....so yes 1000 out of over 100k staff is not a huge deal...but all taken together could add up to EK experiencing some big issues
 
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KruegerFlaps
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 12:58 pm

scotron11 wrote:
but all taken together could add up to EK experiencing some big issues


There has been a slowdown in the passenger growth. Dubai Airports reported that they had not reached the anticipated 85 million, though they did reach about 83.something. The recently reported reduction in profit at EK has seen efforts to increase or introduce new revenue streams. For example, charging for seat selection in the lowest fare classes and now paid access to the Business and First Class lounges, available to Skywards blue tier members travelling in Economy. Silver Tier members who are eligible for Business Class lounge access can pay to access the Class lounge and those who are already entitled to lounge access can pay to bring in additional guest.

So yes, EK is looking at its expenses and its revenues and trying to realign them. This is something every business must do if it wishes to remain in business and airlines are no different. I wonder whether any definite moves have been made towards introducing Premium Economy, as was suggested by Sir Timothy a few months ago. (I know; I've heard the jokes that they already have one but they call it Business Class. :wink2: )
Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves. - William Pitt Speech, 1783
 
PlaneInsomniac
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 1:01 pm

If we want to play useless semantics games, the US Department of Labor defines more than 50 layoffs as mass layoff.

The original source, a reputable publication, talks about EK letting go significanly more than 1000 out of approx. 65k employees.

Sounds like news to me.
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greg85
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 1:44 pm

Combined with the recently introduced "B-scale" pilot contract, it looks like some serious cost cutting.
 
dtw2hyd
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 1:50 pm

enilria wrote:
As defined by the American WARN Act, 1000 layoffs over 3 months at a company the size of EK does not qualify as "Mass Layoffs".

And how is American law relevant here.
enilria wrote:
Seems like an overly negative spin.

For an airline makes living on negative spin about competitors.
 
ikramerica
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 2:28 pm

Well people in the know say that could lose 10k administration and it would only make them healthier so reductions by attrition (only hire replacements for non-redundant people) is probably a good financial strategy.
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anshabhi
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 2:35 pm

Have you ever visited PPrune Middle East forums? I have never seen so many employees saying they would love if their company fires them. They feel like slaves while working for EK. So, I am just sure that EK is not overstaffed at all.
And, this move signifies something big.
 
dtw2hyd
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 2:58 pm

I think smi0006 summarized it very well, though it will be dismissed quickly.

Crew/core/frontal are understaffed(30,000), Management/Ground/Support/Care side is overstaffed (75,000)

They have to cut 25,000 to rightsize and much more to make it a lean operation. But it is an employment scheme for some country, nothing is going to change.
 
Bricktop
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 3:01 pm

dtw2hyd wrote:
enilria wrote:
As defined by the American WARN Act, 1000 layoffs over 3 months at a company the size of EK does not qualify as "Mass Layoffs".

And how is American law relevant here.


It isn't, but it does provide interesting context.
 
PlaneInsomniac
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 4:04 pm

Bricktop wrote:
dtw2hyd wrote:
enilria wrote:
As defined by the American WARN Act, 1000 layoffs over 3 months at a company the size of EK does not qualify as "Mass Layoffs".

And how is American law relevant here.


It isn't, but it does provide interesting context.


It might, if it weren't also factually incorrect. Even under the very specific US WARN act, more than 500 layoffs are considered a mass layoff, regardless of the size of the company. So the whole discussion remains pointless.
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PlaneInsomniac
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 4:08 pm

dtw2hyd wrote:
I think smi0006 summarized it very well, though it will be dismissed quickly.

Crew/core/frontal are understaffed(30,000), Management/Ground/Support/Care side is overstaffed (75,000)

They have to cut 25,000 to rightsize and much more to make it a lean operation. But it is an employment scheme for some country, nothing is going to change.


Interestingly, the original source states that employees hired as part of an "emiratization program" benefitting their own citizens will be hit hardest by the layoffs.
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dtw2hyd
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 4:47 pm

PlaneInsomniac wrote:
Interestingly, the original source states that employees hired as part of an "emiratization program" benefitting their own citizens will be hit hardest by the layoffs.


30 year old airline, still depends on expats to manage??? They should have developed airline management skills within the country by now. Have only Emiratis in management positions, and bring in expats as consultants when needed. Of course Brits will claim locals cannot run and they are the only ones who can run an airline, QR proved it otherwise.

There was a suggestion on different forum, move all support staff to dnata, leave airline with just Pilots and FAs with a small revenue,network planners.

Emirates operates Emirates lounges, dnata operates Marhaba lounges, can't dnata operate Emirates branded lounge?
EK Airport Services provide ticketing and gate services, dnata and several other companies does the same to 100 other airlines at DXB.

Like all other failed models and strategies, Emirates should give up banked hub and move to a rolling hub to be more efficient.
 
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zeke
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 4:53 pm

dtw2hyd wrote:
30 year old airline, still depends on expats to manage??? They should have developed airline management skills within the country by now. Have only Emiratis in management positions, and bring in expats as consultants when needed. Of course Brits will claim locals cannot run and they are the only ones who can run an airline, QR proved it otherwise.


The advantage "outsiders"provide is experience outside the organisation that adds to the companies "memory" if people are allowed to draw on different ways of thinking into their roles. If you only want robots and favor locals because they are locals (not because of their competency) you will see more EK521 style events inside and outside the aircraft.
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dtw2hyd
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 5:46 pm

zeke wrote:
The advantage "outsiders"provide is experience outside the organisation that adds to the companies "memory" if people are allowed to draw on different ways of thinking into their roles. If you only want robots and favor locals because they are locals (not because of their competency) you will see more EK521 style events inside and outside the aircraft.


These are no longer outsiders and their experience from '80s no longer useful. BTW every airline hires consultants to review their processes and implement latest industry best practices. You don't need 1000s of expat managers to do that.

Three major strategic failures
1) Only VLAs - fail
2) Banked hub - fail
3) Huge marketing expenditure - fail. Rating agencies and forums can sanitize only so much, cannot keep alternate facts alive forever.

Now bloated workforce - opposite to what it supposed to be
 
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PW100
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 5:49 pm

dtw2hyd wrote:
enilria wrote:
As defined by the American WARN Act, 1000 layoffs over 3 months at a company the size of EK does not qualify as "Mass Layoffs".

And how is American law relevant here.


It does provide some context (if accurate in the first place).


dtw2hyd wrote:
enilria wrote:
Seems like an overly negative spin.

For an airline makes living on negative spin about competitors.

Of course (negative-) spin doctors do not like context.
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jsnww81
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 7:14 pm

dtw2hyd wrote:
30 year old airline, still depends on expats to manage??? They should have developed airline management skills within the country by now. Have only Emiratis in management positions, and bring in expats as consultants when needed. Of course Brits will claim locals cannot run and they are the only ones who can run an airline, QR proved it otherwise.


Good luck. While it's not fair to make a blanket statement about an entire nationality, the vast majority of Emiratis have grown accustomed to expats doing everything for them. I had a friend who worked for one of the ME3 in a corporate role, and the Emiratis who reported to him frequently came in late, left early, or didn't bother showing up at all. There was nothing he could do about it, and so he and the expats on his team ultimately learned to give the Emiratis work that wasn't time-sensitive or labor-intensive. It got done on their schedule, when it got done at all.

This is a population of people who're now on the third generation of oil-driven luxury and complacency. Are there some hard workers and visionaries in there? Of course. But much of the population has never had to work more than a token amount, and EK would grind to a halt if they went to an all-native workforce.
 
winginit
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 8:12 pm

I've worked pretty closely with ME3 recruiting over the past five years or so, and it's staggering how far off of a cliff all of their onboarding volumes have gone. What used to be an average of 10-15 postings a day seeking expats and locals alike has dwindled to one or two.
 
9w748capt
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 8:58 pm

Feel bad for all the expats, so many of whom must be from the subcontinent and other developing countries. As far as EK and the ME3 as their rich owners who've built themselves up off of slave labor, no sympathy. Welcome to the real world.

Then again the US3 have no one but themselves to blame.
 
Planesmart
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 9:19 pm

winginit wrote:
What used to be an average of 10-15 postings a day seeking expats and locals alike has dwindled to one or two.

Couldn't that also reflect better recruiting, meaning EK want to retain a higher % of staff, and also satisfied EK staff, opting to renew contracts.
Can't have worked with EK very closely, otherwise you would know they mine their current and past staff database brilliantly. For example, if Dad or mum started work for EK 10 years ago, with children aged 12 and 14 at the time, and the adult is a good worker, they will inquire / invite offspring to apply. So no ads.
 
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enilria
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 9:22 pm

PlaneInsomniac wrote:
Bricktop wrote:
dtw2hyd wrote:
And how is American law relevant here.


It isn't, but it does provide interesting context.


It might, if it weren't also factually incorrect. Even under the very specific US WARN act, more than 500 layoffs are considered a mass layoff, regardless of the size of the company. So the whole discussion remains pointless.

As I said "over 3 months" as this was. It's has to be over 500 in a single month. There's nothing worse than being corrected by somebody who is wrong.

For the purposes of the WARN Act a mass layoff is defined as a reduction in force that is (1) not the result of a plant closing, but (2) leads to an employment loss at the employment site[TE1] of 500 or more employees during a 30 day period, or a loss of 50-499 employees if they make up at least 33% of the employer's ...
 
winginit
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 10:42 pm

Planesmart wrote:
For example, if Dad or mum started work for EK 10 years ago, with children aged 12 and 14 at the time, and the adult is a good worker, they will inquire / invite offspring to apply. So no ads.


Maybe it's policies like that one that have lead to mass layoffs... hence the existence of this thread...
 
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BobPatterson
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 10:57 pm

winginit wrote:
Planesmart wrote:
For example, if Dad or mum started work for EK 10 years ago, with children aged 12 and 14 at the time, and the adult is a good worker, they will inquire / invite offspring to apply. So no ads.


Maybe it's policies like that one that have lead to mass layoffs... hence the existence of this thread...


Is the thread title accurate? Has anyone posted documentation to demonstrate that there are "mass layoffs"?

Does overall employee reduction through attrition qualify as layoffs?

How many people received "pink slips" or were fired?
Facts are fragile things. Treat them with care. Sources are important. Alternative facts do not exist.
 
ExDubai
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 10:58 pm

greg85 wrote:
Combined with the recently introduced "B-scale" pilot contract, it looks like some serious cost cutting.

The serious cost cutting will happen after STC is out. There is a reason why they hired Christoph Mueller.

Edit: The overhead in the bouncy castle will shrink for sure.
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B777LRF
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 11:02 pm

Consider this, when talking about 'Emiratisation': If you're an unemployed married male, you'll get a house and an annual 'salary' from the state of around 100K USD. If you take a job as a passport officer, you'll be working 3-hour days and have 3 months off annually - on top of public holidays, of which there's almost 30 every year. The reward for this arduous task, which require no skills, is around 120K USD a year.

That's one of the reasons a UAE male is seldom found working in private enterprise but, on the other hand, a fast growing proportion of UAE females are entering the work market. It's their chance to make their own way in life, and it's being strongly supported by both the Abu Dhabi and Dubai rulers. In fact, the Abu Dhabi ruler gave his young male population a good verbal trashing over their lack of willingness to take a job, and also advised it's perfectly conceivable 80% of all UAE national managers will be female in a few years time. Which is fantastic news on one hand, but a sad reflection on the idle laziness of many UAE males.
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Varsity1
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 11:04 pm

Planesmart wrote:
winginit wrote:
What used to be an average of 10-15 postings a day seeking expats and locals alike has dwindled to one or two.

Couldn't that also reflect better recruiting, meaning EK want to retain a higher % of staff, and also satisfied EK staff, opting to renew contracts.
Can't have worked with EK very closely, otherwise you would know they mine their current and past staff database brilliantly. For example, if Dad or mum started work for EK 10 years ago, with children aged 12 and 14 at the time, and the adult is a good worker, they will inquire / invite offspring to apply. So no ads.



Lol, sounds like some midevil feudal bs.

Emirates is parking planes. The airline isn't doing hot.

It's almost like blackening the skies with super jumbos doesn't work. :lol:
"PPRuNe will no longer allow discussions regarding Etihad Airlines, its employees, executives, agents, or other representatives. Such threads will be deleted." - ME3 thug airlines suing anyone who brings negative information public..
 
ExDubai
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Re: Emirates Mass Layoffs

Thu Jan 26, 2017 11:10 pm

Planesmart wrote:
winginit wrote:
What used to be an average of 10-15 postings a day seeking expats and locals alike has dwindled to one or two.

Couldn't that also reflect better recruiting, meaning EK want to retain a higher % of staff, and also satisfied EK staff, opting to renew contracts.
Can't have worked with EK very closely, otherwise you would know they mine their current and past staff database brilliantly. For example, if Dad or mum started work for EK 10 years ago, with children aged 12 and 14 at the time, and the adult is a good worker, they will inquire / invite offspring to apply. So no ads.

Doesn't look like. Why did they lower the requirements for the flight deck? Today yo're able to join EK without Jet time. There are reasons for that....
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evanb
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:32 am

scotron11 wrote:
there were also a rumor they had parked up to 19 A380s but were keeping it very quiet.....then after that they announced the A380 deferrals....so yes 1000 out of over 100k staff is not a huge deal...but all taken together could add up to EK experiencing some big issues


It's pretty easy to verify if they are parking planes (e.g. flightradar). While there have been rumors, I have not seen anyone actually present any evidence.
 
dtw2hyd
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:36 am

ExDubai wrote:
The serious cost cutting will happen after STC is out. There is a reason why they hired Christoph Mueller.


That will be too late.

Alleged rumor is they complained to Emir that Mueller is aggressively cutting workforce and got rid of Mueller before he can cleanup. Not clear if he is taking a timeout or left the company. Poor guy this is the second state owned carrier he has to leave before finishing the job.

Only option left is playing "Nearer My God To Thee"
 
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Channex757
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:40 am

Sounds to me like Christoph Mueller is hard at work. He took on the post of Chief Technology Officer, so if he's slimlining the back office operation then that alone could account for the reduction in excess headcount. More technology and less people walking round with pieces of paper trying to look busy.

The first 1% of staff count like this should be easy to accomplish. Many jobs will simply be out of date if they were hired when EK was much smaller. He has got form for doing this kind of work after all at Aer Lingus and Malaysian.
 
ExDubai
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:52 am

dtw2hyd wrote:
ExDubai wrote:
The serious cost cutting will happen after STC is out. There is a reason why they hired Christoph Mueller.


That will be too late.

Alleged rumor is they complained to Emir that Mueller is aggressively cutting workforce and got rid of Mueller before he can cleanup. Not clear if he is taking a timeout or left the company. Poor guy this is the second state owned carrier he has to leave before finishing the job.

Only option left is playing "Nearer My God To Thee"

As far as I know he's back in the office. Funny enough there are rumours that the outfit down the road is also considering him as the "Hulk" replacement. I heard about the complaints, as far as I know the Emirs office didn't interfere. But for sure interesting times ahead.
Better to reign in hell than serve in heaven
 
dtw2hyd
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 1:04 am

ExDubai wrote:
As far as I know he's back in the office. Funny enough there are rumours that the outfit down the road is also considering him as the "Hulk" replacement. I heard about the complaints, as far as I know the Emirs office didn't interfere. But for sure interesting times ahead.


Good news for the company, but I guess no hopes of A380 on Athens-Newark. The other outfit may be marginally high BMI type but not morbidly obese.
 
ExDubai
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 1:12 am

dtw2hyd wrote:
ExDubai wrote:
As far as I know he's back in the office. Funny enough there are rumours that the outfit down the road is also considering him as the "Hulk" replacement. I heard about the complaints, as far as I know the Emirs office didn't interfere. But for sure interesting times ahead.


Good news for the company, but I guess no hopes of A380 on Athens-Newark. The other outfit may be marginally high BMI type but not morbidly obese.

I'll have a coffee brake at the Costa in the bouncy castle in a couple of days. Maybe I'm able to get some updates ;)
Better to reign in hell than serve in heaven
 
anshabhi
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 1:50 am

evanb wrote:
scotron11 wrote:
there were also a rumor they had parked up to 19 A380s but were keeping it very quiet.....then after that they announced the A380 deferrals....so yes 1000 out of over 100k staff is not a huge deal...but all taken together could add up to EK experiencing some big issues


It's pretty easy to verify if they are parking planes (e.g. flightradar). While there have been rumors, I have not seen anyone actually present any evidence.


Yeah go to FR24 again. They have not exactly parked A380s but they are using many of them for once in 3 days.
 
anshabhi
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 3:00 am

I just looked randomly at their fleet.

These A380s would be of interest: A6-EDD, EDG, EEQ, EEK. They are only being used alternately i.e. a whole day's rest for them.

Their entire B777-300 fleet is used for less than 6 hours everyday. A6-EMU is grounded.

Similarly, A6-EBE, EBL B77W are used for less than 6 hours.

If someone does a more detailed analysis of their fleet, he would surely find many more such aircraft.
 
Planesmart
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 11:31 am

anshabhi wrote:
I just looked randomly at their fleet.

These A380s would be of interest: A6-EDD, EDG, EEQ, EEK. They are only being used alternately i.e. a whole day's rest for them.

Their entire B777-300 fleet is used for less than 6 hours everyday. A6-EMU is grounded.

Similarly, A6-EBE, EBL B77W are used for less than 6 hours.

If someone does a more detailed analysis of their fleet, he would surely find many more such aircraft.

Good research.

With the size of fleet, would you see similar if looking at US3/EU3? Specific service issues?

Could 777's be approaching end of lease? Airlines get creative close to lease expiry, sometimes grounding to keeping cycle / hours under a specific threshold, to minimise final balloon payment.

Same for the early A380's - cheaper to user newer aircraft than push older leased aircraft into a higher hours threshold. If these are early frames subject to an Airbus buyback, there will almost certainly be cycle and hours caps in place.
 
dtw2hyd
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 11:38 am

I would caution the use of "parked aircraft", you will be called out by fact checkers on semantics. Don't know the exact industry standard term but "variable usage" seems to be the right way to describe. When you have surplus capacity, you keep all frames active but use sparsely, rather than storing some frames and utilize rest fully.

So technically there are no parked aircraft.

Planesmart wrote:
Could 777's be approaching end of lease? Airlines get creative close to lease expiry, sometimes grounding to keeping cycle / hours under a specific threshold, to minimise final balloon payment..

They were supposed to be gone alleged to Rossiya.

PR even produced a fancy video. But they are back flying.

Planesmart wrote:
Same for the early A380's - cheaper to user newer aircraft than push older leased aircraft into a higher hours threshold. If these are early frames subject to an Airbus buyback, there will almost certainly be cycle and hours caps in place.


Not exactly true either, new RR A380s need more engine maintenance than old EA frames. So new frames will be on ground more than old ones.
 
Planesmart
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:01 pm

dtw2hyd wrote:
Planesmart wrote:
Same for the early A380's - cheaper to user newer aircraft than push older leased aircraft into a higher hours threshold. If these are early frames subject to an Airbus buyback, there will almost certainly be cycle and hours caps in place.


Not exactly true either, new RR A380s need more engine maintenance than old EA frames. So new frames will be on ground more than old ones.

Are there any RR-powered A380's in the EK fleet yet? And why does EK care? Engines are under maintenance contract, and RR will compensate EK for additional on-ground time.

If it's older aircraft that seem to have the lower use, it's good fleet management, to keep air frame and engines under a significant cycles/hours threshold, that would otherwise bump up the final balloon payment when the aircraft lease ends.
 
dtw2hyd
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Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:16 pm

Planesmart wrote:
dtw2hyd wrote:
Planesmart wrote:
Same for the early A380's - cheaper to user newer aircraft than push older leased aircraft into a higher hours threshold. If these are early frames subject to an Airbus buyback, there will almost certainly be cycle and hours caps in place.


Not exactly true either, new RR A380s need more engine maintenance than old EA frames. So new frames will be on ground more than old ones.

Are there any RR-powered A380's in the EK fleet yet? And why does EK care? Engines are under maintenance contract, and RR will compensate EK for additional on-ground time.

If it's older aircraft that seem to have the lower use, it's good fleet management, to keep air frame and engines under a significant cycles/hours threshold, that would otherwise bump up the final balloon payment when the aircraft lease ends.


3 were rushed during Christmas, when CM was on vacation???

When you have surplus capacity, you have no revenue loss, hence no compensation.

Emirates and good <anything> management is an a.net fact, slightly different from actual fact. Thank You Kellyanne.
 
mjoelnir
Posts: 9213
Joined: Sun Feb 03, 2013 11:06 pm

Re: Emirates Mass Layoffs

Fri Jan 27, 2017 12:41 pm

Their have been around rumors that Emirates is parking airplanes, that have up to now been rumors only. I do not know myself if 777 are stored and not flying, but each time I checked on A380, they were in use or only down for short times consistent with being serviced. So I assume it being a rumor only regarding the 777 to. The only time some frames were stored in numbers was during the runway repairs at DXB and than only the smaller frames were stored and the bigger used to keep up capacity.
The thing that detractors forget about Emirates is, that they have made a profit every year for quite some time now. Perhaps they are overstaffed. Perhaps they act as the unemployment agency in Dubai by keeping unemployable males of the lam. But if the owners are good with that why should we complain. Think about how competitive Emirates would be if they were not overstaffed, hardly a point the US3 should relish.

When we take 65.000 employees, than it would be easy for any company in the world to reduce that by 1,000 through attrition in a few month. Perhaps the point about reducing the number of Dubai citizen in the middle management is what sparked the interest of the Arabic newspapers quoted in this article of the WirtschaftsWoche.
 
Planesmart
Posts: 2891
Joined: Sun Dec 05, 2004 3:18 am

Re: Emirates Mass Layoffs

Fri Jan 27, 2017 11:03 pm

dtw2hyd wrote:
Planesmart wrote:
Engines are under maintenance contract, and RR will compensate EK for additional on-ground time.

If it's older aircraft that seem to have the lower use, it's good fleet management, to keep air frame and engines under a significant cycles/hours threshold, that would otherwise bump up the final balloon payment when the aircraft lease ends.


3 were rushed during Christmas, when CM was on vacation???

When you have surplus capacity, you have no revenue loss, hence no compensation.

Emirates and good <anything> management is an a.net fact, slightly different from actual fact. Thank You Kellyanne.

When leasing aircraft and engines, if you have to use some aircraft more than you would otherwise, there is a cost. Leases contain clauses which reward lower (slightly) and penalise more (more than slightly), utilisation outside agreed parameters. With a large fleet, if you have surplus capacity, the fleet that is in the low and mid-use thresholds, you schedule to keep in those respectively, and if feasible, get some of the mid into low-use. Usage affects annual and end of lease balloon payments.

Compensation has already been factored into the RR maintenance contract in terms of a lower monthly charge. RR will have agreed to meet EA threshold penalties where these were unavoidably incurred due to additional, longer and more frequent RR maintenance currently required. In turn, EK will have agreed to ensure such penalties are not incurred, other than in exceptional cases.
 
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PerfectGriffin
Posts: 538
Joined: Thu Jun 16, 2016 7:35 am

Re: Emirates Mass Layoffs

Fri Jan 27, 2017 11:54 pm

That's not much. The group seems very overstaffed so was expecting 5k-10k laid off.
 
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PerfectGriffin
Posts: 538
Joined: Thu Jun 16, 2016 7:35 am

Re: Emirates Mass Layoffs

Fri Jan 27, 2017 11:57 pm

anshabhi wrote:
Have you ever visited PPrune Middle East forums? I have never seen so many employees saying they would love if their company fires them. They feel like slaves while working for EK. So, I am just sure that EK is not overstaffed at all.
And, this move signifies something big.


There is a big pilot shortage at EK because the airline keeps expanding but pilots aren't joining the airline. To make matters worse, pilots are leaving, so the workload for the existing pilots is increasing.
 
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scbriml
Posts: 18145
Joined: Wed Jul 02, 2003 10:37 pm

Re: Emirates Mass Layoffs

Sat Jan 28, 2017 12:37 am

dtw2hyd wrote:
Three major strategic failures
1) Only VLAs - fail
2) Banked hub - fail
3) Huge marketing expenditure - fail.


Yeah, over 30 years of profits and traffic growth, what were they thinking? I think know they have a better idea how to run an airline than you.

Your hatred of EK is quite astonishing. What did they do to you?
Time flies like an arrow. Fruit flies like a banana!
There are 10 types of people in the World - those that understand binary and those that don't.
 
infinit
Posts: 1058
Joined: Thu Jul 31, 2008 1:12 am

Re: Emirates Mass Layoffs

Sat Jan 28, 2017 12:55 am

They wouldn't bat an eyelid if they want to layoff 10,000 people.. There virtually are no human rights for the millions of foreign labour in the UAE.

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