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Why Emirates wants to boost fifth-freedom Airbus A380 service from NYC, but can’t
Zach Honig
Contributor
Nov. 29, 2019
•
3 min read
Why Emirates wants to boost fifth-freedom Airbus A380 service from NYC, but can’t
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While U.S. carriers have scaled back on aggressive tactics following a famously challenging White House meeting earlier this year, the ongoing Open Skies dispute likely remains top of mind for a number of executives, including Emirates president Sir Tim Clark. Still, in a recent meeting with the top airline exec, Clark didn't shy away from discussing an especially prickly topic for U.S.-based airlines: adding more fifth-freedom flights.
Fifth-freedom flights — between two countries, operated by a carrier based in a third — can be especially lucrative for international carriers, and they're entirely legal, with FAA approval. One of Emirates' most successful flies daily between New York-JFK and Milan (MXP), offering a suite of amenities passengers would never dream of encountering on a U.S. carrier.
While often a go-to for travelers, fifth-freedom flights are decidedly less popular among the top U.S. airline execs — after all, why would United Airlines want Emirates to fly a super-posh shower-equipped A380 between New York-JFK and Milan (MXP) when the best it currently offers from Newark (EWR) is an aging 767-400ER with 2-1-2 business seats?
During our meeting at the Dubai Air Show, Clark said that the fifth-freedom flights are an important tool for Emirates to expand its North American profile, though he acknowledged the incredibly limited impact on the carrier's bottom line.
"It doesn't drive our business model at all," Clark said. "The number of fifth-freedom flights we have is less than 1%."
Still, the carrier continues to eye a North American expansion, most recently getting approval to fly a Boeing 777-200LR between Barcelona (BCN) and Mexico City (MEX). Emirates has been looking to add capacity between the U.S. and Europe, too — when it launched service between Newark and Athens (ATH), the carrier hoped to fly an Airbus A380 between the two cities, Clark said. Unfortunately, Newark can't accommodate an aircraft of that size, and Emirates couldn't land another slot at JFK — an issue that's impacting its even more popular Milan nonstop.
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Clark said that JFK-Milan A380 is incredibly popular with fashion industry leaders, some of whom fly between Milan and New York "once a week." And it isn't just Milan-bound flyers onboard — Clark said one high-profile customer told him that he's even driven the rest of the way from Milan to Frankfurt, just so he could travel on the Emirates A380.
"That flight is completely full all the time," Clark said. "Every single flight is full. We should have two on there, but I can't get the slots into JFK."
Featured image by Getty Images
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Best for dining at restaurants
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.