Old 03-25-2008, 08:21 PM
  #2  
Gillegan
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Joined APC: Mar 2006
Position: B777 Captain
Posts: 93
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Have the pilots been told anything? Nah, we're like a bunch of mushrooms, kept in the dark and fed.......

As far as why - there has been a proliferation of low cost carriers in the area and they are doing quite well. Emirates has been competing with these carriers using a full service product and while our cost base is pretty low, it's just not as low as a carrier that specializes in low cost.

The carrier will not be a part of The Emirates Group but it will have the same owners, same chairman and the CEO is the EVP of Emirates Commercial Department. They originally will fly separate routes from Emirates but you can expect close cooperation between the two in planning their routes. I would also expect that over time, the short-medium haul flying will migrate to the new carrier and Emirates will concentrate on the longer-haul, high yield routes.

It is (IMHO) a shrewd move by the government to maximize the profits of both carriers. If a business starts to try to serve too many different constituencies, they end up losing their focus and doing nothing very well. I think that has been happening at Emirates. We have been serving some low-yield markets with a full service product and in an effort to compete effectively, the quality of that service has suffered. This will allow each carrier to concentrate on what they do well. They will retain their focus and make more money while they are at it.
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