Emirates vs. the world

Emirates faces a growing chorus of criticism from European carriers who worry that the Dubai-based independent airline is eating into their lucrative long-haul business. KLM, British Airways and Lufthansa all have expressed reservations about Emirates’ growth, according to Air Transport World, and France reportedly has denied additional slots at Paris CDG.

In a recent white paper, Lufthansa warned policymakers that further expansion by Emirates would export jobs to Dubai. But Emirates struck back with some “green paper,” placing an order for 32 additional Airbus A380s worth some $11.5 billion at list prices — essentially offering manufacturing jobs as a trade-off against service jobs.

With Airbus on its side, Emirates is likely to continue its growth in Europe. But the airline has also met with resistance in Canada, India and Australia, three countries where new aircraft orders don’t make a very effective bribe. East Asia could be the  next region to see a backlash, if Emirates siphons off business travelers from premium carriers like Singapore and Cathay Pacific.

In short, Emirates soon could find its ambitious growth plans stymied by “no vacancy” signs at airports around the world. When deep pockets alone can’t buy new friends, Emirates may calculate that joining a global alliance is the only way to break the political impasse and open additional markets.