ANALYSIS: The Rise and Fall and the Eventual resurgence of the Middle East carriers
MIAMI — The biggest aviation story of the last four decades (basically since deregulation of airlines in the United States) has been the rise of the Middle Eastern airlines giants Emirates, Qatar Airways, and Etihad, as well as their rival to the north Turkish Airlines. In Part II of our analysis of these carriers, we take a look at some of the headwinds that these carriers have faced in the last couple of years, and consider what the future may hold for them. THE MEB3 + 1 HAVE RUN MANY SHARED HEADWINDS It’s no accident that the recent downturn in the fortunes of the MEB3+1 has coincided with a period of sharply lower oil prices and thus jet fuel prices. Many of the factors above, whether related to political will or location, helped give the MEB3 an overarching cost advantage, and in the 2005-2014 run of seemingly never ending growth, one of the biggest reasons that passengers chose the MEB3+1 over European and Asian rivals was indeed price, al...