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Emirates increases competition with Etihad and Qatar as it adds Chicago to its US network

Analysis

Plans by Emirates to introduce service from Dubai to Chicago O'Hare in Aug-2014 continue extensive expansion by the three large Gulf carriers into the United States in 2014. Chicago becomes the ninth US market for Emirates, and the fourth market in the country where Emirates, Qatar and Etihad will compete on services from the Middle East.

Chicago also is the second American Airlines hub where its partners Qatar and Etihad will operate alongside Emirates, who has been courting American, but has yet to persuade the carrier to launch a partnership. Qatar and Etihad are both adding service to American's Dallas/Fort Worth hub in Jul-2014 and Dec-2014, respectively.

The partnership dynamics in both Dallas and Chicago among American, Etihad and Qatar create ample connecting opportunities and traffic flows for all those carriers. But on a pure scale basis Emirates is still larger than its Gulf competitors, transporting more than double the passengers of Etihad and Qatar during 2013.

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