Saturday, November 06, 2004

So as the news reports

So as the news reports...

Just went to CNA online and read this news report on Gulf carriers... According to the news article, major airlines such as British Airways and other european/american carriers are facing new competition besides that of low-cost, no frills carriers. Emerging airlines, Emirates, Qatar Airways and even Etihad ( i've never even heard of it ) are ordering new aircrafts by the billions of dollars. Do they have so many passengers to carry that they need to place orders for so many aircrafts... not small aircrafts like the A320 but long haulers.

First thing that comes to your mind is how do they get the amount of capital to finance such an order? Emirates for one just emerge to be one the world's best and already it has an order for 41 A380 plus some B777 and A350 at a price of 19 billion+... Their fares are not very expensive and still do they hvae such a huge market? Emirates is expanding like there's no tomorrow. Unlike Gulf Air who has seen worst days, only recently did they restructure to improve and results are showing. Currently there are no low-cost, no frills carriers in the gulf region. And the gulf carriers are the replica of Singapore Airlines, Cathay Pacific in the 1970s...

Emirates service is not a stable one... on some flights you get very attentive cabin crews while on others, its still acceptable. Major carriers like SIA are in stiff competition and with the craze of budget carriers, singapore, cathay and even asiana are going to have a rough ride while gulf carriers are blooming and reaping revenue at the same level of SQ.

One point on the article i find very true is that Emirates are just trying to get customers and now creating markets. They are flying into Auckland via Australian airports such as Melbourne, Sydney, Brisbane. Twice daily into Auckland from Sydney, same for Melbourne and once daily from Brisbane... thats five daily into Auckland. The problem is, there's little passenger loads for the tasman flights as the air fares are much higher as compared to Qantas or Air NZ...

Emirates fly seven times or six times daily into Singapore alternating days and three flights head back to Dubai, with two via Colombo. The rest all heads towards Australia, with direct flights to Sydney, Perth and Melbourne non-stop from Dubai... that's a lot of flights...