The US legacy carriers pleas to President Obama for protection against the new era open skies competition from Gulf airlines is no surprise. It is the default position of once dominant businesses faced with a new order which requires a complete rethink of where they are, where they want to be and how to get there.
The new Gulf carriers have broken through the old order and redefined the geography of much long haul travel. That's what the Asian carriers, originally led by Malaysia-Singapore Airlines did in the 1970s and 80s. They have also invested heavily in large fleets of state of the art Boeing aircraft and in new concepts and levels of customer service. Above all they have a sense of purpose, energy and urgency,- and their people smile. Within around 8 hours flying of two thirds of the world's population their home bases the Gulf airlines have opened up one stop travel from almost any primary, secondary even tertiary city in the world to almost any other .They have transformed the patterns of and access to travel worldwide. It is true that there are some losers among the previously dominant airlines but the laws of evolution dictate that if these do not adapt to the new world they will become history.
Asking for state protection against the newcomers is an entirely negative move. For years the US pushed for Open Skies agreements from a position of strength . It can not now reasonably go back into a defensive bunker because some of the dynamics have changed. Arguments about subsidies and other financial and political benefits will go on for ever.
Hopefully President Obama will politely thank the petitioners for coming and tell them to pull themselves together and go back out and take on the world as it now is. Boeing, GE Engines, the US tourism industry and business should then give a big sight of relief and get on with making money.
Footnote: In talking about the Gulf airlines we include Turkish who now fly 219 international routes.
The new Gulf carriers have broken through the old order and redefined the geography of much long haul travel. That's what the Asian carriers, originally led by Malaysia-Singapore Airlines did in the 1970s and 80s. They have also invested heavily in large fleets of state of the art Boeing aircraft and in new concepts and levels of customer service. Above all they have a sense of purpose, energy and urgency,- and their people smile. Within around 8 hours flying of two thirds of the world's population their home bases the Gulf airlines have opened up one stop travel from almost any primary, secondary even tertiary city in the world to almost any other .They have transformed the patterns of and access to travel worldwide. It is true that there are some losers among the previously dominant airlines but the laws of evolution dictate that if these do not adapt to the new world they will become history.
Asking for state protection against the newcomers is an entirely negative move. For years the US pushed for Open Skies agreements from a position of strength . It can not now reasonably go back into a defensive bunker because some of the dynamics have changed. Arguments about subsidies and other financial and political benefits will go on for ever.
Hopefully President Obama will politely thank the petitioners for coming and tell them to pull themselves together and go back out and take on the world as it now is. Boeing, GE Engines, the US tourism industry and business should then give a big sight of relief and get on with making money.
Footnote: In talking about the Gulf airlines we include Turkish who now fly 219 international routes.
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