Problems at Emirates

mrivc211

Well-Known Member
EK just reported their 2018-19 results and profits are down 70%. Wheres all the EK haters at? Wheres the letters to congress about unfair competition. What I find interesting is when EK is making billions, the big 3 and ALPA pilots are stomping the ground screaming unfair competition. Emirates cheats etc.

But when EK reports profits down 70% these guys are nowhere to be heard. When EK shows they can take big hits just like other airlines, it doesn't buy into the big 3's argument that they're cheating. If they were cheating, they'd be reporting the same record numbers year after year after year.

The big 3 are doing great, pilot contracts have made big gains over the last 10 years and EK profits are down. The pendulum has swung back in their favor and it makes them look like a bunch of crying babies when things aren't going their way.

The fact is or was, EK was a better run airline with more flexible resources(they own DNATA), no unions on property, better geographic location, lower operating costs.
They faced a HUGE pilot shortage for years. They went and bought their own Embraer 100 jets and started training their own pilots.

I'm very happy pilot contracts in the US and world for that matter have improved vastly. It's nice to see the good times finally back.
 

mrivc211

Well-Known Member
Or that the government bought its fuel hedge that costs it billions, or financed for below market rate loans. And made billions in investment into it when the worlds financial markets would not...you can stop now...
I have the same response for you that I did at the low level regional pettiness that existed in the 2000's. Skywest was being awarded contract after contract and carriers like Mesa airlines were losing these contracts to them. The typical knee jerk reaction from pilots at the time was that Skywest was bidding on those contracts below cost to get awarded them raising rates later.

I can't tell you the level of stupidity this reason reeks of. You mean to tell me a publicly traded company that legally must report to shareholders is going to openly under bid on a contract that it knows its losing money on? After explaining how stupid of an idea that was, I asked a Mesa pilot jumpseating on my plane that day how he knew this to be true after he made that comment? Was he in involved in the high level meetings with United and Skywest? Was he a senior level VP? Because those are the only people that would know the exact structure of those contracts. Not some checkairman that thinks he's special because his buddy was friends with the CP and got him that position. Definitely not a line pilot that clicks check in on the computer on day 1 then goes home on day 4.

So can you tell me exactly how you would know EK made billions in investments into world financial markets? They're a privately held company. They don't announce such things. Is there an article that you can cite? Maybe you were part of an ALPA meeting that it was discussed at because we all know ALPA gets super top secret information on all these multi billion dollar companies at these meetings from its vast world wide resources and network.

If a company like EK were to leverage their position by investing billions to lower their cost structure its called "BUSINESS STRATEGY". Thats what you do to beat the competition. It's not illegal. Thats what I do every day in my business on a piss aunt level. It's no different than me going out and buying a fuel truck for $10,000, driving to another airport that sells cheaper fuel, stocking up, and refueling my fleet at a lower rate to offer lower prices than my competitors. It's called business strategy. Unfortunately I can't do that at my airport because the multi billion dollar FBO's here have exclusivity contracts with the airport to sell fuel. I'm shut out. Thats business. Thats strategy. Happens every day at all levels.
 

BobDDuck

Island Bus Driver
Reasons EK is flailing:
-actually having to pay for gas now.
-100 A380s
-the 787 can now do direct routes that were only possible with a Dubai connection before.
-100 A380s
-Failure of several contested EU fifth freedom routes.
-100 A380s

And ALPA does still care. You just don't hear about it as much because all the political people that needed to hear it did, and signed on to the legislation ALPA was pushing.
 

FlyingAccountant

Well-Known Member
Reasons EK is flailing:
-actually having to pay for gas now.
-100 A380s
-the 787 can now do direct routes that were only possible with a Dubai connection before.
-100 A380s
-Failure of several contested EU fifth freedom routes.
-100 A380s

And ALPA does still care. You just don't hear about it as much because all the political people that needed to hear it did, and signed on to the legislation ALPA was pushing.
It's pretty amazing EK abandoned the A380 as quick as they did. They canceled their last 35 deliveries and they'll be steadily retiring them as each frame reaches 12 years old. It seems clear the 777X and the various versions of the 787 are the future for them.
 

mrivc211

Well-Known Member
Reasons EK is flailing:
-actually having to pay for gas now.
-100 A380s
-the 787 can now do direct routes that were only possible with a Dubai connection before.
-100 A380s
-Failure of several contested EU fifth freedom routes.
-100 A380s

And ALPA does still care. You just don't hear about it as much because all the political people that needed to hear it did, and signed on to the legislation ALPA was pushing.
@BobDDuck lol dude cmon. You’re a smart guy. You’re really saying they didn’t pay for gas? Do French people not pay for French wine when they drink it?
I agree that having 100 380's is now hurting them and they're probably going to shift to an all twin engine fleet when the 380's are gone or keep a small fleet of 10-15 frames for just the trunk routes. LHR-DXB
 
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mrivc211

Well-Known Member
It's pretty amazing EK abandoned the A380 as quick as they did. They canceled their last 35 deliveries and they'll be steadily retiring them as each frame reaches 12 years old. It seems clear the 777X and the various versions of the 787 are the future for them.
Agreed. If fuel was "free" they wouldn't have done this. They're reacting the way a normally operating company would by reducing their overhead.
 

mrivc211

Well-Known Member
I'm not taking the side of the US3 here, but is it coincidental that the exact year that the ME3 signed an agreement to improve transparency on financials is the exact year that their profitability picture has drastically changed?
Lots have changed as @BobDDuck mentioned. A380's are getting older and more of them in their fleet sucking up more gas. A350 and B787 are starting to bypass the need for a stop over in DXB, look at Qantas Perth to London, and newly announced Sydney LHR route, I also think their labor costs are rising AND they're having to train pilots in house using expensive equipment AND putting 15-20 A380's on trunk routes isn't that big of a deal but putting 100+ A380's is eating at their margins. I think they bit off more than they could chew.

My guess is they're gonna consist of 20% A380's, 20% B787/A350, 60% B777-8/9. FlyDubai operates their narrowbody fleet of B737-8's.
 
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