Emirates barred from flying MXP-JFK

[WorldTraveler]

An Italian court has ruled that Emirates cannot fly JFK-MXP, a key route for Skyteam members AZ and DL. This raises the question of how easily the ME3 will start penetrating the TATL market.

http://finance.yahoo.com/news/italian-court-bars-emirates-flying-182424794.html

 

[FWAAA]

I certainly didn't see that coming.   
 
I've been wondering when EK was going to announce JFK/LAX-LHR and LAX-NRT and other open-skies routes that would not make the USA-based carriers very happy.   Don't know whether those would be permitted.
 
Let's face it - Dubai will never attract any significant number of American tourists, and there's limits on how many people will fly between the USA and India/Africa via DXB.   
 
We see Americans in the west who are more willing to fly to Hawai'i than are those on the East coast.   DXB is a much longer trip and it ain't anything special.     If you want to vacation in a desert, then LAS offers what more Americans are seeking, and it's no more than 5 hours nonstop.

 

[WorldTraveler]

It is a little hard to believe that the Italian civil aviation authority didn't know the treaties that govern air traffic thru their country but perhaps there really is a willingness for the Euro carriers to finally grow a backbone and put an end to the decimation of European longhaul traffic which the ME3 have been doing.

Not sure if this is all just political posturing to help get AZ sold to another one of the ME3 and they know the ruling will not stand or if it really will stick....

either way, it makes for some interesting times ahead in the US-Europe market.

And yes you are right that the market for traffic via DXB is nearing capacity and EK and other ME3 carriers have to come up with a new strategy.

 

[FrugalFlyerv2.0]

I've been wondering when EK was going to announce JFK/LAX-LHR and LAX-NRT and other open-skies routes that would not make the USA-based carriers very happy.   Don't know whether those would be permitted.

 
I'm not surpirsed and I don't know if it would ever be legally possible for EK and any of the other mid-east mega carriers to do routes like JFK/LAX-LHR.
 
Although there are open skies agreements between the USA-EU as well as USA-UAE, this does not allow for a UAE-based airline to use the EU as a stopover to fly to the USA.  I think EK (or any other ME3) would have to negotiate 5th freedom rights to operate JFK/LAX-LHR and there is probably a 0 chance of that happening.
 
There is a way that I see where it would be possible for EK (or any ME3) to operate a route like JFK/LAX-LHR is if they set up a E.U. based subsidiary that would have to meet the legal requirements and be classified as being a E.U. based carrier.  In this scenario EK (or any ME3) would have to have a minority ownership stake and minimal control/influence.  I don't know if they want to do that.  Even if they do find a E.U. sucker .... .... 'investor' to come up with the money for this venture, I would bet there would be legal challenges in probably every E.U. country the ME3 would attempt this.

 

[WorldTraveler]

Fifth Freedom rights (between two countries of which the origin or destination are not the home country of the carrier) are negotiated and are not automatically granted even if Open Skies exist between countries.

EK has been itching to get into the transpacific market via Singapore or Australia and both countries have been unwilling to give those rights to EK.

There was a day when SQ had no choice but to obtain 5th freedom rights in order to operate since SIN is not "in the way" of most air routes except from Europe and parts of Asia to Australia. But SQ was fairly judicious with capacity... something the ME3 carriers are not willing to do.

Thus, it isn't a surprise that the opportunities to grow beyond their home hubs are closing.

 

[eolesen]

The ME4 are an interesting strategy comparison.

QR is taking the alliance route, which is the safest.

TK has been following a route similar to QR, and playing up their participation in Star to their benefit.

EY is taking the "let's buy our access" approach, with minority stakes in Virgin Australia and Air Berlin (who is also playing in oneworld for the time being), and a potential stake in Alitalia. They're also under probe by the EU (as is DL over their investment in VS). They'd hoped for fifth freedom rights as a secondary strategy.

And then there's EK... They had been taking the "we don't need anyone else" approach and had been banking on fifth freedom rights. That hasn't been working out too well, which is why they gave in and launched the partnership with QF. If they can line something up in North America, they'd cover most of the bases that need covering.

I really don't consider RJ all that significant at this stage. They've been relegated to a second tier status in oneworld now that QR is a member (much like A3 in Star).