An interesting... rise of Middle Eastern airlines

I think it is quite clear at this point in time that Emirates, if it were to come down to a proportional popular vote, would probably be the world’s favourite airline. It is already the planet’s biggest airline by miles flown, and one of few to churn out a profit – in aviation this is virtually impossible. Aside from costs for the airline being lower due to differences in menial wages in the Middle East compared to Europe, there are a few notables pushing carriers from this region up above everyone else.

Asian airlines have already stolen the golden age of travel away from older and more established airlines in Europe and the USA. The only 5-star airlines (according to Skytrax ratings) in the world are all Asian: Cathay Pacific (Hong Kong), Asiana (South Korea), Hainan Airlines (China), Kingfisher Airlines (India), Qatar Airways, Singapore and Malaysian. So luxurywise, the States and Europe lost it a while ago.

Where the Middle East continues to take over has got a lot to do with its geography – it is halfway to everywhere. The New York times describes Dubai as within an 8-hour flight of 4 billion people – which the three giant Middle Eastern airlines (Emirates, Etihad, Qatar Airways) have taken advantage of. But I think the real recipe for success of Emirates and Qatar Airways in particular has been the destinations they choose to fly to, and pricing strategies.

Getting the pricing correct entails asking one’s self at what point people feel they have saved enough money that they are prepared to stop rather than fly direct. I once saved about R6000 flying Qatar Airways instead of SAA between Johannesburg and London. These airlines knows where that line is, and are now actually one of the most popular links between South Africa and the world, as well as Europe.

Emirates and Qatar Airways have also chosen their destinations superbly. For example, Sweden’s airline, SAS, doesn’t really connect the world and instead relies on an alliance with (totally overpriced, in my opinion) British Airways to get its people around. Well, Qatar Airways can get them to Doha and then connect them to just about any big business or tourist city in the world for less than they would pay to go via London, Paris, Frankfurt or Amsterdam. Emirates has an even bigger advantage as Dubai (it’s hub) is one of the world’s most sought after destinations - most flights ticketed through Emirates have the option for a free stopover in Dubai too.

South Africa is lucky in that Emirates also operates direct flights from Dubai to Johanesburg, Cape Town AND Durban – the only direct passenger flight from our east coast to a major international destination (even SAA doesn’t provide this – Durbanites need to fly the national carrier via Johannsburg). But Durban isn’t the only lucky one in Africa – Khartoum, Entebbe, Mahe, Accra, Abidjan etc are also all cities that one would not expect a major international airline to give much fervor to, but Emirates does – as well as the major cities – Johannesburg, Lagos, Luanda, Cario, Addis Ababa etc. Christchurch, Guangzhou, Ahmedabad, Kozhikode are probably as grateful. Emirates has seen the potential and performance of these destinations and made them work – at a lower cost to consumers.

From a customer point of view, there are also no hidden or added-on fees. Once you have paid for your ticket on Emirates, the only time you may have to pull out your credit card is to pay for overweight baggage (it’s a luxury we share with SAA by the way). Contrast this with a friend who flew United Airlines to Hong Kong three weeks ago and had to cough up for booze and to watch in-flight movies. British Airways charges £50 for a second bag (not overweight, just another one). Airlines are all ramping up these sorts of ludicrous charges nowadays. The golden age of travel is pretty dead for most Western airlines.

But not the Middle Eastern ones.

And Emirates reigns as king - in popularity and profit margins. Qatar Airways, a newer airline, as prince - a definite second best. And Etihad, Abu Dhabi's carrier, lies in wait with the potential to dethrone both of them.

An interesting... SAA drops its Cape Town to Durban route

Image from flysaa.com

SAA has anounced that it will no longer be operating its Durban-Cape Town route anymore and will use Mango, its low-cost carrier, to service it instead.

Twitter has already gone mad about it today, as has the comment section beneath the article I linked to above. People find it odd (some find it offensive) that the national carrier won't be flying between the 2nd richest city in the country (Durban) and the third richest (Cape Town) anymore, but there is a case to be made for SAA making this decision.

Firstly, as stated in the article, most of the traffic between the two cities is holiday traffic. Something one will notice, on occassion, is that many holiday destination to holiday destination flight routes fail. If there is not enough business traffic to maintain the commercial viability of a flight route then it has to be pulled. Does anyone remember the failed venture of having flights between Cape Town and Miami? No business travel = fail. Business travel is undeniably important, particularly for a full-service airline (as opposed to low-cost - SAA and BA are full-service airlines, Kulula, 1Time and Mango are low-cost airlines) and it's why JNB-CPT and JNB-DUR are two of the busiest flight routes in the world.

Secondly, we often complain about the excessive wastage of money spent by parastatals. This was a difficult decision made by SAA to concentrate on its more-money-making routes throughout Africa. For the first time I can think of off the top of my head, taxpayers are complaining about a parastatal wasting LESS of their money. We can't just have a flight route because we sommer want one. If, according to the capitalist principles espoused by the readers of the site I linked to above, there is a viable business route between Cape Town and Durban, someone will step in and fill it.

Thirdly, there are four other airlines from which to choose, and if you are a businessman who MUST sit in the snooty part of an aeroplane, then fly British Airways. It's really not that much harder to type in ba.com rather than flysaa.com and it's a tiny bit more expensive, but you're expensing it anyway.

An interesting... explanation for the lack of parking here

(Image courtesy of the BBC)

While Queen Helen sat in her castle in Cape Town and stared over the Land Of The Western Cape, she knew that she had problems. She summoned her concubines and said to them “go unto the rest of the lands and bring me the cleverest people you can find so that we can maketh the roadworks finished and build more parking because there is bugger all in Cape Town”. And so the concubines triumphantly left the Land Of The Western Cape and caught a bus to the wealthy kingdom of Johannesburg in the Land Of Gold. To celebrate, Queen Helen danced and sang in Xhosa which was weird because the concubines only spoke English and Afrikaans.

As they stepped out of the bus, they expected to see pavements made of gold, but they realised that the ground was indeed made of tar and bricks, similar to Cape Town, but, somehow next to the tar and bricks were funny lines painted in the road. Concubine Athol said “Gentlemen, what the devil is this?”. Concubine Joe replied “I do not know. Why do people paint lines on the side of the road?”

Then, because their arrival had been unannounced, Police Commissioner Cele got there, shot five concubines and then said “who are you chaps and why are you looking at those parking bays?”

“Ah” said Concubine Athol, “that’s what these things are” and he walked toward one of them. Before he had even taken a second step he was shot and then Police Commissioner Cele shouted “no sudden moves”. Concubine Joe said “We come in peace from the Land Of The Western Cape to find people help us complete the roadworks and make parking, because there are only like five parking bays in the whole of Cape Town and no one can actually afford to park in them”.

“Come with me” said Cele, “let us go to find these roadworks experts” and they drove on the N1 whose speed limit had dropped from 120 to 60 while it was in one lane because of road works. And then they arrived at the traffic department and met Jeff Radebe who said they should go back to CPT with one of his experts.

When they returned, Helen shrieked “NO! This is a woman. Women know nothing about parking. Go back and get me a man!”

So the concubines returned unannounced to the Land Of Gold but they never found someone to make parking because Police Commissioner Cele shot them all.

And that is why there is no parking in Cape Town.