Why Emirates wants to boost fifth-freedom Airbus A380 service from NYC, but can’t
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.
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."
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 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. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
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 $8,000 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.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.