Emirates: There's 'Temptation' to Add More U.S. Fifth-Freedom Routes
Emirates could be tempted to add more nonstop routes between the US and Europe, possibly expanding its roster of so-called “fifth-freedom” flights that have riled its US rivals.
Emirates’ president Tim Clark made those comments while speaking this week at the 2019 Arabian Travel Market in Dubai, according to a Bloomberg News report.
In aviation industry vernacular, fifth-freedom routes are those an airline can fly between two foreign nations as long as the flight continues to its home country or began there.
Emirates currently flies two such routes between the US and Europe: daily Airbus A380 service between New York JFK and Milan and daily Boeing 777 service between Newark and Athens. Both flights include a leg to Dubai, but – like other operators of fifth-freedom routes – Emirates can sell tickets specifically on the nonstop US-Europe legs.
In his remarks at the Arabian Travel Market, Clark said both routes were performing well for the airline and that “the temptation is to do more," Bloomberg reported.
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Still, he acknowledged that such routes to the US are “under the microscope” following a contentious spat between the three biggest US carriers (American, Delta and United) and the three top Gulf carriers (Emirates, Etihad and Qatar Airways). The U.S. carriers have claimed that their Gulf rivals benefit from unfair subsidies, something those carriers have vigorously disputed.
The battle raged for years and only cooled in May 2018 with an apparent truce, following promises by the Gulf carriers to improve financial transparency and a vague suggestion that they would hold off on more fifth-freedom routes.
After a period of relative calm, there have been some new rumblings on the subject after Air Italy – 49 percent owned by Qatar Airways – added a raft of new routes between North America and Europe. Citing Qatar Airways’ backing, the big three US airlines have called Air Italy’s growth an effort to get around the vague pledge by the Gulf airlines to limit fifth-freedom flights.
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As for Clark, his discussion went beyond the fifth-freedom possibilities.
High on the list was the topic of the Airbus A380. The superjumbo jet has helped define Emirates' growth during the past two decades, but the airline now faces a future without the jet after Airbus decided that it will end production of the slow-selling plane.
The A380 likely will continue to fly for Emirates for years to come, but the carrier can no longer count on new models when it becomes time to phase out existing ones as they age.
Clark said a downturn in travel in the region had already forced the airline to begin “knocking down the network” during the past nine months, adjusting capacity in an effort to deal with the shrinking demand.
“We haven’t been growing at the pace we used to because of geopolitical issues in the region and elsewhere,” Clark said, according to Bloomberg. “But that’s given us time to take stock of what the network is going to look like in 5 to 10 years, and what the fleet fit in that network and the type of aircraft is going to be.”
While an A380-less future may prove to be a surmountable obstacle for the Gulf giant, it does represent a major shift.
It was just in 2017 that Clark said: “We need the A380s big time. It gives me huge flows across the hub to feed multiple city pairs. As soon as you start compressing that, your hub starts to implode, and that’s a big problem for us (…) That’s where the essence of our profitability remains.”
Stay tuned …
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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. (Partner offer)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.