AA in the Wall Stree Journal
Mideast Airlines Target U.S.-Europe Routes
By DOUG CAMERON And RORY JONES
A new front is opening up in the rapid expansion of Persian Gulf-based airlines as they target services between the U.S. and Europe for the first time with a mix of direct flights and partnerships.
Dubai’s Emirates Airline will start flying between New York and Milan from October, while Abu Dhabi-based Etihad Airways will also feed passengers to the U.S. through Dublin via a deal with Irish flag carrier Aer Lingus.
The two carriers and Qatar Airways have been adding flights to the Americas, having grown rapidly by linking European cities with Asia and Africa through their hometown hubs and winning market share from carriers such as British Airways, Air France-KLM SA and Deutsche Lufthansa AG.
Trans-Atlantic routes are among the most profitable for the European flag carriers. Andrew Charlton, a consultant at Aviation Advocacy in Switzerland, said the new services would put European flag carriers under further pressure.
Some European airlines have urged regional regulators not to grant the Gulf carriers any more market access, alleging they receive unfair government support. All three deny such charges.
“[The Emirates announcement] means that the requirement for jobs and growth in Italy has now outweighed the arguments of the legacy carriers about protectionism,” said Mr. Charlton.
Emirates will launch a daily flight in October between New York and Milan, expanding on its existing three daily flights to Milan from its Dubai hub and tapping into what the airline views as underserved premium and cargo markets between Italy and North America.
The Milan flight is being launched with a special authorization from Italian regulators under the open-skies aviation treaty between the U.S. and the European Union. The United Arab Emirates also has an open skies deal with the U.S.
Emirates said it estimated that half the passengers between Milan and North America travel via another European hub, and the carrier aims to capture extra traffic by connecting with airline partners at both ends of the service.
The airline already has an alliance with JetBlue Airways Group Inc., the largest carrier at New York’s John F. Kennedy International Airport. The new Milan service—operated with a Boeing Co. 777-300ER—will link with domestic Italian flights operated byEasyjet PLC, the U.K.-based low-cost specialist.
Emirates said it currently had no plans to launch further trans-Atlantic flights from other European cities.
Etihad won approval from the U.S. Department of Transportation to put its ‘EY’ flight code on Aer Lingus trans-Atlantic services out of Dublin to New York, Boston and Chicago. Etihad has a 3% stake in the Irish airline.
Dublin is viewed as a particularly attractive gateway to the U.S. as passengers can preclear U.S. Customs and Border Protection in Ireland. Long-standing efforts to open a similar U.S. immigration facility in Abu Dhabi have been opposed by the U.S. pilots’ union, among others.
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