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enilria
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IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 11:11 am

This was so ironic given where we were a couple of years ago I had to post it. The world airline lobbying organization now thinks Middle East airlines are unfairly unsubsidized! It’s like an April Fools story. By the way, I don’t disagree they need support too, just ironic how everything has shifted.

>>> DUBAI — Middle East governments are failing to take the action required to protect their airlines from the economic crisis caused by the new coronavirus pandemic, the International Air Transport Association (IATA) said on Thursday.
Several states have stepped in to help their airlines that have seen travel demand decimated by the global outbreak, such as the United States, Singapore and Australia, though few in the Middle East have made their intentions clear.

https://www.nytimes.com/reuters/2020/04 ... lines.html
 
dtw2hyd
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 11:52 am

Why would they continue to subsidize? Citizens of those countries don't need the capacity or network. Family, friends and neighbors don't have oil money like they used to. Financially they are not in a position to sell subsidized travel to rest of the world with a hope of taking down competition.

For other countries, aviation is part of national security interest. For gulf countries these are vanity projects.

On a separate note, Which is better in a COVID-19 world, Super Hubs (or) P2P,
All posts are just opinions.
 
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enilria
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 11:57 am

dtw2hyd wrote:
Why would they continue to subsidize? Citizens of those countries don't need the capacity or network. Family, friends and neighbors don't have oil money like they used to. Financially they are not in a position to sell subsidized travel to rest of the world with a hope of taking down competition.

For other countries, aviation is part of national security interest. For gulf countries these are vanity projects.

On a separate note, Which is better in a COVID-19 world, Super Hubs (or) P2P,

You don’t know much about Dubai. Dubai has no oil at this point. Tourism is almost their whole economy. They have to do anything to keep that going.
 
xwb777
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 12:01 pm

The Dubai government has announced that it will be backing Emirates when they return to normal operations.

We havent heard anything about AUH government backing Etihad, or Dubai government backing Flydubai or Sharjah goverment backing Air Arabia. Maybe because they are much smaller carriers than EK?

Royal Jordanian has stated that they just want the government to lower the taxes and defer future tax payments.

As for Qatar Airways, I see the airline being subsidized from long time ago.


Sent from my iPhone using Tapatalk
 
dtw2hyd
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 12:03 pm

enilria wrote:
dtw2hyd wrote:
Why would they continue to subsidize? Citizens of those countries don't need the capacity or network. Family, friends and neighbors don't have oil money like they used to. Financially they are not in a position to sell subsidized travel to rest of the world with a hope of taking down competition.

For other countries, aviation is part of national security interest. For gulf countries these are vanity projects.

On a separate note, Which is better in a COVID-19 world, Super Hubs (or) P2P,

You don’t know much about Dubai. Dubai has no oil at this point. Tourism is almost their whole economy. They have to do anything to keep that going.


Yes I know the drill, that's why I didn't say their oil money

Family, friends and neighbors don't have oil money like they used to.


Translation: Abu Dhabi, Kuwait and KSA are in no position to give 0%, no repay schedule loans to Dubai.
All posts are just opinions.
 
Avgeek21
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 12:17 pm

At least from where I am my Middle Eastern government is doing a fantastic job keeping us in our jobs as time goes on. I've never felt so safe due to all they are doing to keep us expats safe and stable. Their communication towards us has been really good and open. They might not have disclosed package details but I don't give a toss as long as me and my collegues keep our jobs and we come out stronger than before.
 
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lightsaber
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 12:50 pm

This is new when oil cannot be sold profitably.

I wouldn't write off the ME3, but this is a brave new world.

Lightsaber
Flu+Covid19 is bad. Consider a flu vaccine, if not for yourself, to protect someone you care about.
 
Western727
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 12:59 pm

xwb777 wrote:
The Dubai government has announced that it will be backing Emirates when they return to normal operations.

We havent heard anything about AUH government backing Etihad, or Dubai government backing Flydubai or Sharjah goverment backing Air Arabia. Maybe because they are much smaller carriers than EK?


This is something I'd like to understand better. You're talking about 3 different governments within the nation of UAE. Why aren't we discussing a singular, federal-level government entity bailing out EK, Etihad, Flydubai and Air Arabia...since the UAE is (in my mind) a single country? I am probably pigeonholing myself into this train of thought based on the US government supporting "all" airlines within the US. TIA for the insight.
Jack @ AUS
 
Toinou
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 1:10 pm

Western727 wrote:
xwb777 wrote:
The Dubai government has announced that it will be backing Emirates when they return to normal operations.

We havent heard anything about AUH government backing Etihad, or Dubai government backing Flydubai or Sharjah goverment backing Air Arabia. Maybe because they are much smaller carriers than EK?


This is something I'd like to understand better. You're talking about 3 different governments within the nation of UAE. Why aren't we discussing a singular, federal-level government entity bailing out EK, Etihad, Flydubai and Air Arabia...since the UAE is (in my mind) a single country? I am probably pigeonholing myself into this train of thought based on the US government supporting "all" airlines within the US. TIA for the insight.

Your reaction is perfectly understandable. In practice, UAE tends to function more as a confederation than as a federation. Each emirate is handling its business independently on most aspects (except defence and most foreign affairs). While the emirates are frequently working together on a bilateral basis (especially when it comes to finance), the federal government has few powers.
If you want to compare UAE to something else, USA is not where to go, maybe EU would be a better example.
 
Western727
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 3:09 pm

Toinou wrote:
Western727 wrote:
xwb777 wrote:
The Dubai government has announced that it will be backing Emirates when they return to normal operations.

We havent heard anything about AUH government backing Etihad, or Dubai government backing Flydubai or Sharjah goverment backing Air Arabia. Maybe because they are much smaller carriers than EK?


This is something I'd like to understand better. You're talking about 3 different governments within the nation of UAE. Why aren't we discussing a singular, federal-level government entity bailing out EK, Etihad, Flydubai and Air Arabia...since the UAE is (in my mind) a single country? I am probably pigeonholing myself into this train of thought based on the US government supporting "all" airlines within the US. TIA for the insight.

Your reaction is perfectly understandable. In practice, UAE tends to function more as a confederation than as a federation. Each emirate is handling its business independently on most aspects (except defence and most foreign affairs). While the emirates are frequently working together on a bilateral basis (especially when it comes to finance), the federal government has few powers.
If you want to compare UAE to something else, USA is not where to go, maybe EU would be a better example.


That makes a lot of sense, and the insight is appreciated. :scratchchin:
Jack @ AUS
 
jetawayusa
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Re: IATA: Middle East Countries Not Doing Enough to Support Airlines

Thu Apr 23, 2020 6:28 pm

I thought Qatar's situation is very different than that of the UAE...don't they have oil and gas reserves to last them for about 500+ years? Thus state supported QR can really be the bully on the block when this Covid situation subside and the aviation world returns to "sort of normal" in about 3 years?!

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