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Protectionism Won’t Work Against New Competition
If there was any need to show how serious a threat the Gulf carriers have become to the club of legacy airlines, then the Big Six airline groups in the U.S. and Europe could not have come up with more impressive action: In December, Air France-KLM and Lufthansa Group wrote a letter to the European Commission (EC) asking it to ensure fair competition. While they did not exactly specify what they wanted, it was clear they want traffic rights withdrawn from Emirates, Etihad Airways and Qatar… (aviationweek.com) Más...Sort type: [Top] [Newest]
I do have 2 questions to all of you. Have you seen the diffrence in the level of service between the Gulf Carriers and the US ones? Even in cattle class we are treated like almost humans. The second point how many miles a day are the big US carriers having vs the Gulf ones? Are the big boys mad because there is someone else in the sandbox now? They can't compete because of many things, geography, vision of customer service, priorities of investments and pressures from shareholders who want the quick buck vs the long term investments.
Based on my traveling experience in the past year, when it comes to passenger service, the Gulf airlines lead, followed by the Far-east and Pacific, then Europe, and the US airlines in last place. Those who delight their customers deserve to win.
I agree. However, this isn't about customer service. That's NOT the beef of US Carriers. The issue at hand, is that their own government is willing to provide financial assistance to their direct competitors, but NOT US Airlines. When I read complaints about ocean crossings by air, a lot of them are about the condition of the airplane and the lack of amenities provided. Well, airplanes cost money to buy, operate, and maintain. Customers like new, clean, airplanes. Unfortunately, they cost billions of dollars when used to construct an international fleet. So much that US Carriers buy new jets infrequently. Actually, that's the case world wide. Yet somehow.....the Gulf Carriers are buying them all the time. How? The USA Export Import bank. They provide BILLIONS of dollars in interest savings through low interest loans. That's how. Those BILLIONS in savings can be used for fuel, shiny interiors, lavish amenities both on and off the plane, etc. Provide those same loans to US Carriers, and let's see what happens.
The head of Boeing’s commercial aircraft division said on Sunday that he was optimistic that the United States Congress would ultimately agree to reauthorize funding to the Export-Import Bank, which guarantees billions of dollars in loans to foreign buyers of its airplanes.
The Boeing executive, Raymond L. Conner, argued that failure to keep the bank running would risk American jobs and place Boeing at an unbeatable disadvantage to Airbus, which receives similar support from European governments.
The Boeing executive, Raymond L. Conner, argued that failure to keep the bank running would risk American jobs and place Boeing at an unbeatable disadvantage to Airbus, which receives similar support from European governments.
Wow, Boeing customers really do receive a huge amount of loans and guarantees from the Export-Import bank. See: http://www.exim.gov/about/library/reports/annualreports/2013/FY2013-long-term-guarantees-auth.pdf
But it's damned if you do, damned if you don't, because Airbus receives EU subsidies. And it's not just the middle east - pretty much any country buying Boeing aircraft is on there.
If the goal of this financing is to support Boeing, and we cut it off, then more of these routes will just be serviced by Airbus Aircraft.
But it's damned if you do, damned if you don't, because Airbus receives EU subsidies. And it's not just the middle east - pretty much any country buying Boeing aircraft is on there.
If the goal of this financing is to support Boeing, and we cut it off, then more of these routes will just be serviced by Airbus Aircraft.
So, would part of the solution be to open the Ex/Im bank loans to American firms?
You drinking today??
Not yet. Just made the suggestion as several people lamented the lack of a level playing field.
Just kidding ya. I have no idea the finance terms ex-im imposes but we saw how easy financing worked wonders in the housing market. Lol
Well, I think the way the game is played, it that you rent a few legislators to write the rules you want. You get your pile, no matter what destruction.