Originally Posted by
Sputnik
TP,
In general I'm not sure what to think of all this with the ME3 and govt subsidies and how real it all is. The one thing that really makes me wonder though, as far as I can tell they are pretty cheap to fly on. Similar to US carriers in price, but nice new planes, good food, serivce, etc. So if they aren't being subsidized, how do they afford all the new planes? From my very low knowledge pov, the math doesn't seem to add up.
. You are right, it doesn't add up. The way they do it is, they finance their new Boeing 777's and 787's at a discount in part paid for with your tax dollars, thought the Export Import Bank. This was supposed to generate US Jobs, and Boeing will tell you it does, by making their airplanes cheaper for Foreign carriers to buy, so they buy more of them, i.e. more jobs.
US Carriers cannot use the Ex-Im bank to finance their new airplanes, which is why Delta just ordered 50 new Airbus aircraft to replace it's old 767's, instead of 787's.
BUT... look a little deeper. In addition to getting cheaper financing for new Boeings, the Middle East Carriers pay their Pilots and cabin crews well below what the US Carriers pay their employees. And they have zero work rules, so their employees work longer hours.
Ask yourself why there is no longer a US Cruise Ship industry.
It was outsourced to cheaper foreign labor/work rules.
That's what the Middle East Carriers want to do with the US Airline Industry.
Here. read this, click on the 'Leveling the playing field' link too:
http://www.alpa.org/Portals/Alpa/Pre...9-14_14.41.htm