Emirates lands in Rio and Buenos Aires as Qatar halts seat sale
Posted on 07 January 2012 with 1 comment from readers
Emirates Airline flies into 2012 with an ambitious year of expansion ahead, particularly in North and South America. Last Tuesday Emirates started flights to Rio de Janeiro and Buenos Aires from Dubai.
There are big implications for trade and tourism. The impact of a new route to South America from the Middle East that bypasses Europe is probably immense, particularly for passengers and cargo from Asia.
Oz precedent
The airline only started flying to Australia in 1996 and since then has become a commanding presence with several flights a day to all the major cities. Trade with the Middle East has ballooned in that time with Emirates naturally profiting from it.
Brazil is one of the world’s fastest growing emerging economies. It looks set to power ahead of the developed world over the coming few years. Argentina also has considerable potential although its economy is not as dynamic.
The UAE carrier will also start services to Seattle and Dallas this year, opening up new corridors from the western and southern USA. Using Dubai as a transit hub is often quicker than Europe for passengers flying to Asia.
Rivals in the Gulf like Qatar Airways are also planning to expand their networks in 2012 against what looks to be a major slowdown in the global economy.
That rivalry took a new turn last week with the Qatar Aviation Authority ordering Emirates to cease its New Year seat sale in Qater because it lacked the necessary approval. It looked a spitful action by a worried competitor. Qatar is a tiny fraction of the global market.
The seat sale itself took the price of traveling to a decade-low for many routes and closes on January 9th. However, with the competition now hotting up among the Gulf airlines few commentators think this will be the last of the bargain offers this year.
More sales?
Indeed, Qatar Airways is probably going to have to respond with a seat sale of its own. That will make 2012 a great year to be a traveler.
Emirates is keeping its expansion program on track by widening the catchment area of its long-haul network and flying more and more giant A380 planes with the famous bars at the back.
It’s a bold vision in a tough year. Emirates opens its Dublin service on Monday.
1 Comment posted by readers:
Emirates is also planning to fly to the Colombian Capital Bogota very soon. However, Bogota should have been the first destination of choice for Emirates.
Argentina does not have the business savoir-faire of Colombia, nor will it ever grow at the pace of Colombia. In fact, it is expected that the Colombian economy will outrank Argentina’s by 2013, to make the Colombian economy the largest after Brazil. The third Quarter of 2011 saw Colombia’s GDP grow by 7.7%. But more importantly, The World Bank has consistently ranked Colombia as the friendliest lace for foreigners in which to invest. In fact, Colombia is the ONLY Latin American nation to have NEVER nationalized a foreign company. Moreover, Colombia has been the only nation in the region to have never had run-away inflation or any significant currency devaluation.
More importantly, given Bogota’s strategic geographical positioning, the city is currently building the largest airport in Latin American. Emirates would be well advised to focus on Colombia ASAP.