Does The Emirates Airlines Operate On A Level Playing Field?

Competing airlines allege that Emirates gets its fuel at a subsidised rate and the

entire government machinery in Dubai bends backward to help the airline which has never posted a loss. Emirates, its critics assert, does not have to worry about high labour costs as it benefits from a migrant workforce in Dubai which comprises of workers from South Asia who are forced to work as slaves since labour laws are openly flouted in this city-state. With no corporate tax, income tax and trade unions to bother about, the airline clearly has an unmerited edge over its competitors. This is something which is contradictory to the open skies policy advocated by the government of Dubai.

They say Dubais famed PR machinery indirectly helps the airline by creating the desired visibility in the mindscape of consumers who are looking for cheap holidays deals to Dubai. Another charge levelled by its competitors is that the tourism machinery in Dubai works overtime to generate the much needed publicity for the airline. Other airlines do not have the financial muscle to generate such a media blitz and therefore lag behind. With unstinted financial backing from the government of Dubai, Emirates has the financial muscle to acquire double-decker A-380 super- jumbo jets from Airbus. A move that is sure to appeal to discerning business and leisure travellers all over the world who dont search for cheap holiday deals but desire a memorable experience each time they travel.

To be fair to Emirates, the airline has pursued meritocracy as the touchstone of progress. Quite a few of its senior management staff comprises of expats including the current President of the company. It has endeared itself to the swish set by setting new benchmarks in passenger comfort offering exclusive mini-suites inside its business class cabins that promise the ultimate in opulence and comfort. Emirates has cultivated itself as a brand in the developed markets of the west by sponsoring major sporting tournaments and events; thereby creating top of the mind recall amongst customers in the developed world.

However, industry insiders feel that such unstinted patronage would prove to be counter-productive in the long run. It would make the airline and its management complacent, bureaucratic and unable to face the challenges of the future. Only time will whether Dubais rulers, blinded by ambition and greed, would pay heed to such advice or not? If they do, they will take the first step in making Emirate a highly competitive airline that can survive on its own steam and emerge as a monster brand that will last a century.

by: neharajput

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