Friday, 19 November 2010

Emirates with Jet Blue, why not with Iran Air, Aseman and Mahan Air?

The below clip was released on Nov 15 at ( http://www.jaunted.com/story/2010/11/15/04344/630/travel/Middle+East+A+Go-Go%3A+JetBlue+and+Emirates+Buddy+Up+for+Seamless+Travel ) :

"This morning, JetBlue announces that they are now totally tight with Dubai-based airline Emirates, via an interline agreement. What this means is, starting today, flyers will be able to purchase seamless flight itineraries that begin on JetBlue or Emirates and end on the other, making trips like the above ("Raleigh to Riyadh") possible, complete with one-stop check-in and baggage transfer between the airlines. Currently the bookings can be made by calling Emirates reservations, with a roll-out to Emirates.com soon." 

From a traditional standpoint, I would think this is great news. Expanded international reach for the carrier with the biggest A380 flight (on order) joining hands with a good (primarily) domestic US carrier. With that said, part of me finds this idea of bigger/better/global/international a bit old. Perhaps some of the more interesting and less cultivated opportunities lie in local complementary penetration of progressive emerging markets where generally about half the populations tend to be under the age of 30 and income levels + internet penetration + air traffic are growing at faster rates than developed countries.

If we take a snapshot of Kuwait, Bahrain, Oman, Qatar, United Arab Emirates, Saudi Arabia, Pakistan, Iran, Turkey and Russia - Iran Air has more departure/arrival points than Emirates. Emirates relative advantage is on long haul international destinations, however Iran Aseman Airliens, Mahan Air (and to a lesser degree Iran Air), have established credible local/regional networks.  

    Carrier      Departure/Arrival Points
    Iran Air     19
    Emirates     16
    British Airways     13
    EgyptAir     13
    Iran Aseman Airlines     13
    Mahan Air     13

To further strengthen the complementary aspect of such a deal, the flow of passengers through Dubai International Airport (Listed on Wikipedia) indicates a similar opportunity. Perhaps Emirates and other carriers would do well to focus on bolstering the local region: there are complementary synergies to be made, the shareholders and the local end consumers would benefit.

Busiest International Routes from Dubai (2010)
Rank↓ Destination↓ Weekly Flights out of Dubai↓
1 Kuwait 186
2 Bahrain 181
3 Tehran-Imam Khomeini 172
4 Mumbai 134
5 Muscat 135
6 London-Heathrow 99

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