There has been a lot of educated commentary about Emirates’ latest A380 order taking the fleet size for that specific aircraft to a total of 90. Though that’s impressive, it’s worth thinking about how dramatically it would change Emirates’ competitors’ business plans.

While we can expect the likes of Air Canada and Lufthansa to seek more protection from their respective governments, the order is likely to dramatically change the airline environment in the Middle East itself. Specifically, Etihad Airways and Qatar Airways – both of which have been closely following the Emirates model – that of connecting any two cities in the world in one stop – will be forced to think about how to compete with a bigger, much bigger, Emirates. Here’s what I foresee happening within a couple of years.

Etihad Airways – if you can’t beat them, join them
I’ve dismissed an immediate merger of Emirates and Etihad previously on this blog, though it cannot be ruled out in the medium term.

James Hogan, Etihad Airways’ CEO has promised the Abu Dhabi government that the airline will be profitable by 2011. Given that Etihad …

Image via Wikipedia

Every single time I’ve been to Dubai, I’ve heard that Emirates is bankrupt and the state of Abu Dhabi has bought the airline. But I always dismissed them as baseless rumors. Then, the Dubai World crises happened around Thanksgiving/Eid. And that made me think again. That the Abu Dhabi government could ask for Emirates, the airline, as collateral in bailing out Dubai, the state.

So, let’s imagine that if this does happen, that Abu Dhabi takes over Emirates and by default it merges with Etihad. What will that mean for the airline brands?

Emirates and Etihad merge to form a mega-airline with over 250 planes connecting almost any major city in the world with any other – one-stop.
Emirates and Etihad move operations to the Jebel Ali Airport – DWC from their respctive hubs to centralize operations
Ultimately, effectively managing the scale of the new airline’s operations can determine its chances of success

However, I feel that this is unlikely to happen, because:

Emirates …

Another ranking, another familiar (and not so familiar) story. This time, Travel+Leisure ranking of World’s Best international airlines ranks Singapore Airlines at the top, followed by Emirates – which climbed a notch, and Thai Airways as the third, which climbed two notches. The surprise entries in the top few airlines here are SilkAir – Singapore Airline’s regional wing – and Air Tahiti Nui. It’s surely a proud moment for those at Singapore Airlines and SilkAir to have both the airlines among the world’s best. Air Tahiti Nui is in the Top 10 for the first time, so quite an achievement for them as well.

All rankings like these tend to bring out certain unique nuances about the airline industry. Here are some interesting observations.

These rankings are attained by surveying readers of the Travel+Leisure magazine, who’re serious holiday-makers. Hence, the inclusion of “holiday-destination-heavy” airlines like SilkAir and Air Tahiti Nui should be taken with a pinch of salt. Moreover, the fact that other established holiday airlines like Thomas Cook and Condor are not included in this ranking should send some signals back to their headquarters.

The fact that there is hardly any overlap between these rankings and airlines that won the Freddies – ranking of the best frequent flier programs – reflects that most of the fliers who’ve participated in this survey are not frequent fliers. So does that mean that this ranking should carry less importance than others? Probably not. It just reflects the preferences of a different segment of travelers.

The InsideFlyer magazine published an article entitled “The FFPs of the Middle East” last September. Though on the face of it, the article compares the various FFPs among the leading airlines there, upon closer look, you also discover the nuances that enhance brand value for the customers of these airlines. As proven by the large number of airlines from the Middle East winning the Freddies earlier this year, there are surely lessons for grabs here.

Catering services specifically to customers’ needs ensures loyalty
The region is flush with oil revenues, and more rich Arabs are taking to the skies – flying business class and first class. Airlines in the region pamper this key segment of their customers. Etihad Airways just opened a plush business class lounge at Abu Dhabi airport and offers limousine pick-ups, like Emirates. Emirates is also the first airline to introduce showers on-board its new A380 first class cabin. Qatar Airways has gourmet meals catered to suit their frequent flyers. It is no wonder that programs like Emirates Skywards reports that the program’s current rate of growth is just over …