Milan-New York: the fifth freedom route at centre of US carriers' Gulf ire shows improbable growth
The big three US airlines watched from a distance as Gulf carriers grew in the US, linking America with distant parts of the world US carriers did not serve and had little or no offline coverage from their traditional airline partners. But Emirates' entry on the Milan-New York route with full fifth freedom pick up rights was too close to home. Despite the market accounting for only 1.6% of total US-Europe travel in 2014, Milan-New York became a rallying cry for the US big three, who forewarned of the slippery slope where further Gulf-operated fifth freedom flights would be detrimental to the market and undermine the US airlines.
That has not eventuated. In fact, quite the opposite has occurred: capacity on Milan-New York has grown by nearly two thirds and Italian visitors to the US are increasing despite the weakening Euro and Italy's economic malaise. United Airlines however argues the local market has not grown, that there are just more non-stop seats that take passengers who used to connect over another European hub (to no benefit to Italy). Further, United argues, Milan-New York yields are weak. This is not the first time a US carrier has cited weak yields - despite there being no specific evidence. Emirates has meanwhile cited US airlines' trans-Atlantic yields growing despite decreasing in the trans-Pacific and Latin American markets.
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