Given that the competition has identified the Emirate's Achilles heel, being the reliance on the A380 to fulfil its strategy, could they purposely limit/end their need for A380 and instead operate 77W, 787 & A350s to ensure Airbus stops making the A380's?
To what extent does the A380 help airlines achieve profit and sustainable yields?
I've observed that CX, a carrier that does not operate the A380, has consistently priced themselves higher than the competition. Surely they would not do that if it wasn't profitable.
Does the need for discounts brought on by increased capacity, when operating the A380, mean that airlines have lost the plot and are not focusing on yield?
Is the competition being beaten playing on Emirate's terms?
Is it a truism that hub-spoke traffic can only be achieved efficiently when extra-large aircrafts, like the A380 is deployed or is CX simply an exception?
I put it to you that if Emirates were to be denied its A380s it would merely spam some other aeroplane with full Economy cabins. I think their discounts stem from chasing a high load factor in Economy by filling it up with price-sensitive customers; in contrast, the Cathay methodology is to gain high-yielding Economy passengers.
I don't think they're playing on Emirates' terms, exactly. They're playing their own parallel games that overlap only partially; thus, EK and CX are using the equipment best suited to themselves. EK needs to move its vast waves so they use the A380; CX is more focused on balancing the forward cabin, Economy and cargo for best yield, so the 777 and A350 will do them well.
I think CX is an exception, but I think SQ is playing the game well too. It's all very interesting, really.
The 777 is the backbone of the Emirates fleet. This has been confirmed by the CEO multiple times.
Another important point to remember is that Emirates is built upon the hub strategy, something which is used by low cost carriers for short haul overseas. Emirates is special in that it is able to acheive high enough passanger numbers and uses these planes to meet this on larger routes (flights have to come and go at the same time from a large numebr of desinations). This is why they are constantly pushing Airbus for an updated A380, however many of those on order are to replaces their current A380s.
I agree regarding the 777 but I'm unsure of their ability to charge a premium with the 777. They've set the bar with the A380; can a replacement continue to give them thoes yields?
On that note, is cutting out the first class cabin on the a380 from next year going some way towards downgrading the experience so as to manage future expectations (when more flights will be operated by single-deck twin engines)?
The change of class on the A380 has nothing to do with their current locations. The 77W already has a high premium cabin which will most likely be refreshed some time to keep ahead of the direct transit options. The low premium A380s has to do with specialised markets in the region, especially with low cargo demand due to a limitation of the A380.
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Conspiracy Theory: Emirates.
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
Conspiracy Theory: Emirates.
Given that the competition has identified the Emirate's Achilles heel, being the reliance on the A380 to fulfil its strategy, could they purposely limit/end their need for A380 and instead operate 77W, 787 & A350s to ensure Airbus stops making the A380's?
To what extent does the A380 help airlines achieve profit and sustainable yields?
I've observed that CX, a carrier that does not operate the A380, has consistently priced themselves higher than the competition. Surely they would not do that if it wasn't profitable.
Does the need for discounts brought on by increased capacity, when operating the A380, mean that airlines have lost the plot and are not focusing on yield?
Is the competition being beaten playing on Emirate's terms?
Is it a truism that hub-spoke traffic can only be achieved efficiently when extra-large aircrafts, like the A380 is deployed or is CX simply an exception?
watson374
watson374
Qantas - Qantas Frequent Flyer
Member since 17 Aug 2012
Total posts 1,285
I put it to you that if Emirates were to be denied its A380s it would merely spam some other aeroplane with full Economy cabins. I think their discounts stem from chasing a high load factor in Economy by filling it up with price-sensitive customers; in contrast, the Cathay methodology is to gain high-yielding Economy passengers.
I don't think they're playing on Emirates' terms, exactly. They're playing their own parallel games that overlap only partially; thus, EK and CX are using the equipment best suited to themselves. EK needs to move its vast waves so they use the A380; CX is more focused on balancing the forward cabin, Economy and cargo for best yield, so the 777 and A350 will do them well.
I think CX is an exception, but I think SQ is playing the game well too. It's all very interesting, really.
Phalanger
Phalanger
Member since 31 Aug 2013
Total posts 14
The 777 is the backbone of the Emirates fleet. This has been confirmed by the CEO multiple times.
Another important point to remember is that Emirates is built upon the hub strategy, something which is used by low cost carriers for short haul overseas. Emirates is special in that it is able to acheive high enough passanger numbers and uses these planes to meet this on larger routes (flights have to come and go at the same time from a large numebr of desinations). This is why they are constantly pushing Airbus for an updated A380, however many of those on order are to replaces their current A380s.
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
I agree regarding the 777 but I'm unsure of their ability to charge a premium with the 777. They've set the bar with the A380; can a replacement continue to give them thoes yields?
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
On that note, is cutting out the first class cabin on the a380 from next year going some way towards downgrading the experience so as to manage future expectations (when more flights will be operated by single-deck twin engines)?
Phalanger
Phalanger
Member since 31 Aug 2013
Total posts 14
The change of class on the A380 has nothing to do with their current locations. The 77W already has a high premium cabin which will most likely be refreshed some time to keep ahead of the direct transit options. The low premium A380s has to do with specialised markets in the region, especially with low cargo demand due to a limitation of the A380.