Sheikh to U.S. Airlines: Improve So People Choose You

Discussion in 'General Discussion | Travel' started by jonspencer, Feb 11, 2015.  |  Print Topic

  1. jonspencer

    jonspencer Silver Member

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    sure there are some MPers that will love this article :eek:

    http://www.bloomberg.com/news/artic...lines-people-will-choose-you-when-you-improve

    (Bloomberg) -- Emirates Chairman Sheikh Ahmed Bin Saeed Al Maktoum has a simple message for airlines accusing his Dubai-based carrier of taking away their passengers: improve your offering and they’ll come back.

    U.S. airlines calling on their government to limit the expansion of Persian Gulf rivals into their home market underestimated the competition when an air-services agreement was signed with the United Arab Emirates in 1999, Sheikh Ahmed said. Instead of turning back time, the likes of American Airlines Group Inc, United Continental Holdings Inc. and Delta Air Inc. should focus on providing a better service, he said.
     
    Last edited: Feb 11, 2015
  2. NYCUA1K

    NYCUA1K Gold Member

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    I love the piece and it is scary when a middle eastern Sheikh is articulating a bedrock principle of the capitalistic economy better than those who claim to have founded the system!

    The One Mile at a Time blog, in fact, had a post on this very topic the other day entitled "Should the Three Big Middle Eastern Airlines be stopped" based on a NY Time piece, where I had made the following comment, consistent with my larger view as expressed on this board:

    "What the Big Three US carriers (AA, DL, UA) are trying to do with this complaint is to further decrease or altogether eliminate competition, which the last three mega-mergers have dangerously curtailed in the US.
    Why do you think DL and UA can concoct a consumer unfriendly monstrosity like the revenue-based system (R-B.S.) or DL can hide award charts from the consumers and get away with it? Well, simply because the 3 mega-mergers have so greatly decreased competition in the US that the three resulting large US airlines have the license to institute unfriendly practices, impose ridiculous fees, or provide subpar to mediocre service without suffering any consequences. While the 3 mega-mergers have decreased the consumer’s options by a factor of two, the US public’s appetite for flying has only increased. This has resulted in a playing field that’s been dangerously tilted in favor of the Big 3 US airlines. Customer retention, the key to forcing the airlines to try to provide the best service that they can, is no longer a priority of the US airlines because the customers have nowhere else to turn. That is why I am rooting for the three ME airlines to prevail in this transparent attempt by the the Big Three US carriers to further consolidate their monopolistic hold on the increasingly unfriendly skies for the US traveler.

    The US government needs to intervene, but not to support the US Big Three’s hypocritical complaint about the ME Big Three. Rather, the DOJ and FAA should step in to take a good hard look at the three monsters that they created by approving the DL+NW, UA+CO and AA+US mergers. Without these mergers DL, NW, UA, CO, AA, US, WN, VN, etc, would be competing for the US flyers’ attention and business, resulting in a more level playing field and greater benefits for the consumer with better service,and more competitive ticket and ancillary costs."
     
  3. jonspencer

    jonspencer Silver Member

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    I just read the One Mile At a Time blog and these were some of the more amusing comments :eek:

    Unfair competition – otherwise known as lower prices and better service for flyers.​

    U.S. airlines were all in favor of Open Skies when it suited them. After decades of this, they cry foul when the advantage has turned the other way. The hypocrisy is pretty galling.

    I have absolutely no sympathy for US airlines. None. They are making huge profits as noted. They’ve cut seats and routes to the point where I don’t see what they’re really complaining about. There’s clearly a market for the flights EK,EY and QR are flying. The US carriers don’t seem to have any interest competing on those routes. Their product is substandard compared to most foreign carriers. They’ve been so focused on gouging their customers for the last several years that the only way they can compete is by limiting competition so people have no choice but to fly them

    I can guarantee you that “evil Delta” is the mastermind behind this lobby against the ME airlines. Why would they let US customers fly a better airline for less if they can continue to offer crappy planes and charge an arm and a leg for a flight with terrible service?

    US airlines know how crappy they are compared to ME carriers so they’re shaking in their boots. US carriers make mind-blowing profits while offering far less comfort and quality to their customers than international carriers like Cathay, the big 3 and Singapore because they can get away with it…and now they’re feeling threatened. Maybe if US airlines didn’t suck so bad, they wouldn’t be so scared. Instead of thinking about improving their crappy airlines, they run scared to the government. Whiny, rich spoiled brats.​

    ................................
     
  4. jonspencer

    jonspencer Silver Member

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    a few more current comments that are amusing from Boarding Area website on the same topic :eek:

    tortellini says

    February 9, 2015 at 3:34 pm

    if you forget the money for a second….. the big 3 arab airlines have the highest level of quality in terms of airplanes and airports (just 2 or perhaps 3 asian airlines reach that level of quality). they are better than europeans… and who has the worst aircrafts and airports of the western planet?

    the US.

    who is complaining the most?

    the US.




    Ryan says

    February 9, 2015 at 4:03 pm

    Airlines are only one (small) part of the commercial aviation industry. The big 3 ME carriers buy a lot of airplanes and those airplanes are loaded with U.S. content. Their existence is unquestionably a benefit to U.S. industry. That is what is important.
     
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  5. mattsteg
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    mattsteg Gold Member

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    The big 3 ME carriers will always have massive advantages in labor and operating cost - much of which can't really be matched in the US. A US company could never get away with treating employees like the big 3 do.
     
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  6. jonspencer

    jonspencer Silver Member

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    no doubt the USA carriers are saddled with high costs for labor but certainly not all the employees at ME airlines would consider their packages that include housing, transport and travel benefits bad treatment :eek:
     
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  7. jbcarioca
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    jbcarioca Gold Member

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    I do agree with nearly everything said in this thread so far but...the idea that Emirates, Etihad and Qatar are having their success due in any way to low pricing are seriously missing the point. I am a regular EK flyer. Every time I have flown EK there were much cheaper alternatives available. Just as with Cars, clothing, computers and nearly everything else the cheapest price does not necessarily gain the most customers and almost never the highest satisfaction or repeat sales. Are airlines different somehow? i do not think so.

    EK pioneered the long forgotten model of superior service and facilities delivered at multiple price points. Much of the world has serious problem managing that model. if a carrier cannot deliver on quality then price must be a larger factor for them. The entire industry slept for decades. Now we shall see what happens next.
     
  8. NYCUA1K

    NYCUA1K Gold Member

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    Well put. People would spend the most they can afford to get the highest quality product and not always the cheapest. In the narrow focus to make profits, quality of service often takes a hit, but, as EK has shown, superior service and being profitable need not be mutually exclusive. In fact, it could be argued that in an increasingly competitive world, quality of service and profitability must go hand in hand for one do to well...
     
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  9. mattsteg
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    mattsteg Gold Member

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    I would say that certain aspects of their economic and legal situations, along with other carriers long neglecting this aspect, but them in a situation where they are in a much better position to execute this than e.g. us domestic carriers, and execute it more inexpensively. Basically they can more easily and at lower cost offer a premium product (and get paid a premium for and profit from it).
     
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  10. jonspencer

    jonspencer Silver Member

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    I was labelled as a troll by several MPers when I criticized the products being offered by most major USA airlines :eek:

    for the past 10 years I have usually flown EK at least four times every month and I can tell you they are not perfect

    however I absolutely dread flying on USA airlines because they do not even come close in comparison to the Emirates product and I really do not care why, all the excuses are just meaningless to me
     
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  11. newbluesea
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    newbluesea Gold Member

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    Oh boy another of our famous ( albeit somewhat slightly toned down) "aerogangsters" threads:D.

    Sure US carriers are making money now but it hasn't always been so.
    For Maktoum who is really better at managing his gigantic worldwide stables of racehorses to suggest that he understands how US corporations should run their business is pretty laughable.

    Perhaps the GWB should have just let Saddam Hussain keep Kuwait rather than spending our money ( and lives)...the UAE would be forced to spend more money on military equipment for their protection and the US in turn would have more money to spend on upgraded airports instead protecting the ME and we certainly would hear less from their depots telling us how to run airlines.:)

    Not to mention those who post here who believe their exalted opinion is all that matters.
     
    Last edited: Feb 15, 2015
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  12. mattsteg
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    mattsteg Gold Member

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    So refuse to fly them if they are really that bad.
     
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  13. jonspencer

    jonspencer Silver Member

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    and now the AA, UA + DL fanboys chime in :D
     
    Last edited: Feb 15, 2015
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  14. Dublin_rfk

    Dublin_rfk Gold Member

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    And now a voice from the cheap (cheep, cheep) seats.
    I find this conversation is approximately equal to the limo vs taxi discussion.
    The above mentioned middle east big three (the limo) can afford to tout their higher standards for many reasons. Lets start with a higher (per capita) income of their customers, respect for the customer's desires, limited routes, fewer aircraft types to maintain and manage and little concern for or about shareholders. Now compare that to the US market (the taxi), every Tom, Dick, and Harriett with a dollar (soon to be food stamps) can gain access, little thought (or care) for the customer, hundreds of routes (many limited), dozens of aircraft types (to market requirements) and definitely not least the erratic meddling and oversight of the US government!
    I am by nature a walker, I will take a taxi if necessary and have on occasion taken limos. It all depends of the needs and the urgency (or phase of the moon) of the day.
    That all being said, would I fly the middle east big three? Yes, given if it fit in time wise and financially and if I was already in a market they serve and I am normally not! If they decide to enter a market that I do frequent (at their current level of service) I would most definitely consider them. I believe that if they consider expansion into the US market that they will dilute their product down to match the current level of service or perhaps slightly higher.
     
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  15. r0m8470

    r0m8470 Silver Member

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    I think UAE is doing that already. They are flying the most advanced F-16 version available (Block 60 Desert Falcon), and they funded the development of the version.
     
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