14-Apr-2011 11:39 AM

Emirates believes European carriers too concerned with 'trying to tackle' them

Emirates Group executive VP Adel Al Redha stated European airlines are too concerned with “trying to tackle Emirates” and should instead be concentrating on improving their business models (Arabian Business/Kurier/Arabian Supply Chain, 13-Apr-2011). Separately Austrian Airlines co-Chairman Peter Malanik stated it was becoming increasingly impossible for European carriers to compete with Emirates on an equal footing. Meanwhile, Austrian Airlines regional manager for the Gulf Region, Lebanon and Pakistan Karim El Sanadily stated the market between Dubai and Vienna would be able to absorb the increased competition related to Emirates plans to increase capacity to Vienna. The carrier previously stated the decision to enable Emirates to increase frequency to Vienna was "not a good decision, either for the Vienna hub or for the city as a business location".

Emirates Group: “Some of the European carriers, one of their weaknesses is instead of concentrating on doing business in their own airline they are trying to tackle Emirates. We don’t get any subsidies from any government, in fact we pay the government [of Dubai] a dividend each year. We have been a successful and profitable airline all these years and our books are open to all the international auditors to state or see if we are getting any subsidies. In some of the countries we operate to - they don’t allow us as much frequency as we allow them to Dubai,” Adel Al Redha, executive vice president. Source: Arabian Business, 13-Apr-2011.

Austrian Airlines: “The situation is similar to the production of T-shirts using child labour. AUA would need to hire 1000 staff from Bangladesh immediately to be able to compete. Do we want that? Certainly not,” Peter Malanik, co-Chairman. Source: Arabian Business, 13-Apr-2011.

Austrian Airlines: “I always believe in competition, if it is in the favour of the customers. I think we can add our market share or even add some increased value for us ... We cannot comment on the Emirates issue …  The increase in competition is always a threat but Austrian Airlines have their own way of dealing with the business. We don’t feel a threat here … in the Dubai market [as] more than 70% of the passengers we carry out of the Dubai market are beyond Vienna … The market is steady and growing and can still accommodate an increase. We have a clear focus on the corporate traffic and is showing very positive results. The next couple of months the pre-booking looks good … So far we don’t feel anything as Dubai is far away from what is going on,” Karim El Sanadily, regional manager for Austrian Airlines (AUA) for the Gulf Region, Lebanon and Pakistan. Source: Arabian Supply Chain, 13-Apr-2011.

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