United Pulling out of Dubai

[Seggy]

Statement from United...

Due to Gulf carriers' expansion and a recent U.S. government decision, we are discontinuing our IAD-DXB (Dubai) service. Our last departure from IAD to DXB will be on Jan. 23, 2016, and the last departure from DXB will be on Jan. 25, 2016. Our joint venture partners Lufthansa Group and Air Canada (AC) will continue to serve DXB.

Even though we successfully operated the IAD-DXB route for the past seven years, the entry of subsidized carriers such as Emirates Airline (EK) and Etihad Airways (EY) into the Washington, D.C., market has created an imbalance between supply and demand to the United Arab Emirates (UAE). As they’ve added subsidized capacity, our IAD-DXB route has become less profitable.

In August, the General Services Administration (GSA) announced that it awarded the U.S. government contract for 2016 on the Washington-DXB route to JetBlue (B6), a codeshare partner of EK. We formally protested this decision but were ultimately unsuccessful.

B6 has no service to the Middle East and no presence in the region. Its codeshare partner, EK, will be solely operating this route and will be carrying an estimated 15,000 U.S. government employees, including active duty military personnel, whose official travel is funded by U.S. taxpayers.

"It is unfortunate that the GSA awarded this route to an airline that has no service to the Middle East and will rely entirely on a subsidized foreign carrier to transport U.S. government employees, military personnel and contractors," said Regulatory and Policy VP Steve Morrissey. "We believe this decision violates the intent of the Fly America Act, which expressly limits the U.S. government from procuring commercial airline services directly from a non-U.S. carrier. For the Washington to Dubai route, JetBlue merely serves as a booking agent for Emirates."

For months, we've been speaking out about the ways unprecedented government subsidies to EY, EK and Qatar Airways (QR) distort competition and threaten U.S. airline jobs. We continue to call on the Obama administration to request consultations with the United Arab Emirates and Qatar to ensure Open Skies agreements are being enforced.

 

[B200 Hawk]

 

[Beep]

Camel...nose...tent!

 

[Kingairer]

Pretty sick they give a government contract to Emirates.

 

[derg]

Pretty sick they give a government contract to Emirates.

They'll probably demand the evil legacy carriers give up gate space and probably build them a palace at KDAL to park their 380 at.

 

[Cherokee_Cruiser]

Can't make money on IAD-DXB with oil below 38/barrel? You really can't blame the subsidy thing when the #1 complaint was that their oil is the biggest thing they got to save on.

 

[derg]

And then "Joe Bargain Traveler" is going to see pictures of first class, which he'd never be able to afford anwyay, and presume that's what he'll have flying from Baton Rouge to Reno on a cheap fare and demand a relaxation of cabotage laws.

 

[Kingairer]

We can expect no sympathy from the US consumer. They add some domestic cabin crew and claim they're adding jobs and next thing you know the camel is pushing over the tent.

 

[Seggy]

Can't make money on IAD-DXB with oil below 38/barrel? You really can't blame the subsidy thing when the #1 complaint was that their oil is the biggest thing they got to save on.

The number one complaint is that they are government subsidized which then doesn't comply with our Open Skies agreements. Goes way beyond oil.

 

[wheelsup]

No words, really, I'm speechless.

 

[BajtheJino]

So what's the story here? United, profiting more than a billion dollars a year (does that grant them access to the Evil Rich Corporation party of the 1%?) can't play in the sand box with the big boys and now wants the public to think that jobs are at stake? Psshh, if pilots lost any jobs they could go to Emirates and have a higher qol to go along with their bigger pay checks.

 

[Seggy]

Psshh, if pilots lost any jobs they could go to Emirates and have a higher qol to go along with their bigger pay checks.

Sure about that?

 

[derg]

So what's the story here? United, profiting more than a billion dollars a year (does that grant them access to the Evil Rich Corporation party of the 1%?) can't play in the sand box with the big boys and now wants the public to think that jobs are at stake? Psshh, if pilots lost any jobs they could go to Emirates and have a higher qol to go along with their bigger pay checks.

You forgot the tag.

 

[Kingairer]

Oh my word

 

[ChasenSFO]

I have to wonder how Air Canada is doing on the route. The ME3 have a decent presence across Canada, and they are just as limited as United was connection wise, if not more so.

 

[AAPalmTree]

WTF? Thanks Obama.

 

[Screaming_Emu]

Real men don't pull out.

 

[BobDDuck]

You forgot the tag.

I really think he didn't.

It never fails to amazing me about how ignorant (and proud about their ignorance) some people are.

 

[derg]

Well, someone's in store for a rude awakening when he screams "Goodbye cruel US airline industry! I'm headed to Dubai!"

Dear Dough...

 

[learhawkerbe400]

So what's the story here? United, profiting more than a billion dollars a year (does that grant them access to the Evil Rich Corporation party of the 1%?) can't play in the sand box with the big boys and now wants the public to think that jobs are at stake? Psshh, if pilots lost any jobs they could go to Emirates and have a higher qol to go along with their bigger pay checks.

If you're serious I'd guarantee that for 2015 my 2nd and 3rd year pay at American will be higher than all Emirates FOs, including their housing allowance. Probably on par with their captains. And I fly a damn RJ. In the words of the bad ass Billy Gunn, I got 2 words for ya...

Oh, I've flown 3 legs in the last month and a half.