TECH STOP Clearly differentiating themselves from the pack as the chosen ones for luxurious air travel are Qatar Airways, Etihad and Emirates; known collectively as the ME3 since they are the three major players in Middle Eastern aviation. On the surface, it is possible that the ME3 may seem to be running “cookie-cutter” operations, but nothing could be further from the truth; they have a varied range of strategies, difficulties, and results.
The US3 on the ME3
Before diving into the ME3 one by one let’s take a quick peek out the window to appreciate the viewpoint on the ME3 from that of the US3; Delta, AA and United Airlines. These three US-based behemoths have consistently denounced the ME3 of engaging in unfair competition practices that violate the Open Skies agreement by claiming that the ME3 have accepted circa USD 50 billion as government subsidies and subsequently used this advantage to squeeze prices down and place an unsustainable strain on the industry. The ME3 have adamantly denied these claims.
Labor Advantages and Luxury
The ME3 operate in countries (UAE and Qatar) that have significantly lower taxes, thus allowing the airlines to pay their employees less while those same employees still maintain a higher take-home pay when compared to those of companies which operate in countries that have a higher tax rate. This keeps overall overhead costs down for the ME3. A lack of unionized groups in these countries also helps to deter strikes or other group-based demands that could potentially arise in other countries.
Outside of labor advantages, the ME3 are well known for their luxury, style, and class; specifically their up-and-coming business class sections. It has been said that entering the second floor of an A380 never gets old and that it parallels or is perhaps even better than some first class offerings of competitive airlines. Having these high class and well designed first and business class sections attract top-level clients who are looking for the absolute best amenities possible. The ME3 deliver on this without a shadow of a doubt!
Let’s dive in and take a closer look at these majestic desert eagles!
The EMIRATES Breakdown
Kicking things off with the venerable “Mack Daddy” of the ME3 is Emirates. With 55.8 million passengers moved to 154 destinations in 2017 with a fleet of 256 aircraft — 95% of which are jumbo jets like the B-777 and the A-281 — this airline is unquestionably the main player in the region.
Etihad, another UAE-based airline will be highlighted below, yet we would like to mention that there have been unconfirmed initial talks hinting at a possible merger between Emirates and Etihad which would easily give the ensuing company a larger than 50% domination over air traffic movement within the region and to Europe, Asia, Africa, and Australia.
Check out this article by Bloomberg to see their breakdown of the pros and cons on what may arise if this deal ever gets closed LINK
The Skinny on ETIHAD
Etihad, based out of Abu Dhabi, has been a high flyer in its short 15-year lifespan, positioning itself as a luxury and family-friendly airline with some of the best and cheapest business class tickets, coupled with in-flight nanny services.
The major problem? Bad investments! Part of their growth strategy was to invest heavily into a few struggling airlines with the idea of driving traffic to their main hub in Abu Dhabi. Air Berlin, which they have now cut ties with, and Alitalia from Italy were two of these carriers. Being weighed down by these poor investments is what led to the rumors of a possible bailout by Emirates. Only time will tell.
The Deets on QATAR Airways
Qatar Airways ran into a major roadblock in 2017 when a regional blockade was placed on them due to claims that Qatar was supporting terrorism, which was denied. In order to counteract this blockade, they began expanding their offerings to more international destinations, and just earlier this year they both announced 16 new locations and Airbus delivered its first A350-1000 which will allow for longer flights. This new craft also comes equipped with Qatar’s Q-Suite, their top-of-the-line business class cabin.
With their current 200+ fleet of aircraft, Qatar is gearing up for the FIFA World Cup in 2022 which will be in Qatar and for which Qatar Airlines is an official sponsor. They were also sponsors for this year’s World Cup in Russia.
Take a peek at this press release to read more about their past and future initiatives LINK
The Eagle Has Landed
Here at Consorcio Aviation, we are super excited to be having a presence this year at the MEBAA Conference in Dubai. From an aviation standpoint, the region is growing, investing heavily into upgrading its hardware and therefore, bringing the industry as a whole to new heights. It is an exciting time to be in aviation and even more exciting to be taking part in a conference that will highlight the current best of and future vision of aviation.
