Emirates has never belonged to, nor has any plans to join an alliance. We see them as having significant anti-competitive elements and believe that our membership in one, would be an artificial brake on our own business plans. Unless you are the lead participant in an alliance, such as Lufthansa in Star Alliance or Air France in SkyTeam, individual airline members are compromised by their implicit or implied collective decision making.
The following tables highlight the anti-competitive power of airline alliances. Their advocates claim that inter-alliance network competition holds the key to the future and that alliances enhance overall service. However, for many airports and individual markets alliances have a disproportionate hold and it is questionable whether this is always in the overall consumer interest.
Top 10 world airports by international passengers in 2007 (ACI) - Alliance / non alliance airline share by international flight departures for January 2009
| Airport | Intl Pax (m) | Non Alliance | oneworld | SkyTeam | Star | Alliance Total |
|---|
| London Heathrow | 62.1 | 19% | 48% | 7% | 26% | 81% |
| Paris Charles de Gaulle | 54.9 | 20% | 5% | 65% | 10% | 80% |
| Amsterdam | 47.7 | 20% | 6% | 66% | 9% | 80% |
| Frankfurt | 47.1 | 16% | 5% | 5% | 74% | 84% |
| Hong Kong | 46.3 | 50% | 31% | 5% | 13% | 50% |
| Singapore | 35.2 | 37% | 9% | 1% | 53% | 63% |
| Tokyo Narita | 34.2 | 18% | 27% | 22% | 33% | 82% |
| Dubai * | 33.5 | 87% | 3% | 3% | 7% | 13% |
| Bangkok | 31.6 | 53% | 6% | 4% | 37% | 47% |
| London Gatwick | 31.1 | 61% | 34% | 1% | 4% | 39% |
Top 5 Europe-Asia city pairs by passenger numbers in 2008 (IATA) - Alliance / non alliance airline share by passenger bookings in 2008
| City Pair | Non Alliance | oneworld | SkyTeam | Star | Alliance Total |
|---|
| London - Hong Kong | 18% | 68% | 2% | 12% | 82% |
| Paris - Tokyo | 1% | 29% | 28% | 41% | 99% |
| London - Tokyo | 28% | 41% | 5% | 26% | 72% |
| Frankfurt - Bangkok | 33% | 1% | 0% | 66% | 67% |
| London - Bangkok | 59% | 10% | 1% | 31% | 41% |
Top 5 Europe-US city pairs by passenger numbers in 2008 (IATA) - Alliance / non alliance airline share by passenger bookings in 2008
| City Pair | Non Alliance | oneworld | SkyTeam | Star | Alliance Total |
|---|
| London - New York | 32% | 48% | 19% | 1% | 68% |
| Chicago - London | 14% | 52% | 1% | 32% | 86% |
| Los Angeles - London | 26% | 36% | 12% | 26% | 74% |
| New York - Paris | 13% | 21% | 61% | 4% | 87% |
| London - Washington | 21% | 27% | 2% | 50% | 79% |
In the recent past, there has been consolidation of airlines on an unprecedented scale; the airline map of Europe and the world is being re-made, often with airline alliances being the vehicle or stimulus for this change. But the speed and nature of this consolidation forces us to ask whether the consequences have been fully thought through.
The entry-level for new airlines, for example, is many rungs higher on the ladder now given so many countries and regions face the prospect of consolidated carriers dominating their markets, irrespective of the so-called ‘remedies’ agreed to as part of regulatory approvals.
Consolidation also presents a threat to the future of regional or secondary airports. The great hubs of the world - Frankfurt, Heathrow, JFK - will always prosper, but the thinner economics of markets like say Brisbane, Nice, Newcastle or Stuttgart can be exposed and impacted by consolidation.
We also find it disingenuous that some leading alliance airlines remain determined to thwart other non-alliance carriers like Emirates from providing fair and reasonable competition through such carriers lobbying for state protection via air traffic rights.
Some quarters in Brussels have told Emirates that there is only room for two or three airline groupings in Europe for example. Emirates disagrees with this statement, but even if it becomes fact, competition from other quarters will be more important than ever.
Fair market access and open competition is good for Emirates, customers and the global economy. In the midst of an unparalleled consolidation of our industry and extraordinary economic times, Emirates argues that the merits of competition are now more important than ever.