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Emirates Chasing After US Passengers With A 2 For 1 Special

Emirates Airbus A380-800

Emirates

Emirates is enticing US based passengers to try its on board service by introducing a 2 for 1 special on economy and business class flights from its 9 gateways to 3 Asian destinations (Singapore, Bangkok and Kuala Lumpur) .

Details

The Middles East airline released the special online (refer to link for information) which will last until April 16, 2015.

The following is an infographic on Asian on special / US cities with non-stop flights to Dubai International Airport (DXB) and the aircrafts used to serve these routes.

Emirates US to Asia Special - April 2015
Emirates US to Asia Special – April 2015 – Information taken from airline’s website, Infographic created by Experience The Skies – April 15, 2015

Terms and Conditions

Economy Class:

  • Economy Class fare of $1,599 is applicable for two (2) passengers, traveling round trip together on the same itinerary in the same booking record (PNR) from New York (JFK) to Bangkok (BKK), Kuala Lumpur (KUL and Singapore (SIN) only.
  • Economy Class fare of $1,799 is applicable for two (2) passengers, traveling round trip together on the same itinerary in the same booking record (PNR) from Boston (BOS), Chicago (ORD), Washington DC (IAD), Houston (IAH), Seattle (SEA), Los Angeles (LAX), San Francisco (SFO) and Dallas Ft. Worth (DFW).
  • Fare shall only be applicable to tickets purchased from 00:01 EDT on April 13 through 23:59 EDT on April 16, 2015.
  • Commencement of outbound travel from New York (JFK), Boston (BOS), Chicago (ORD), Washington DC (IAD), Houston (IAH), Seattle (SEA), Los Angeles (LAX), San Francisco (SFO) and Dallas Ft. Worth (DFW) shall be between April 20 and November 30, 2015 only.
  • Travel must be completed on or before December 10, 2015.
  • Promotion is applicable when utilizing Emirates operated flights only (no codeshares apply).
  • Minimum stay: three (3) days or first Sunday.
  • Maximum stay: three (3) months.
  • Ticketing time limit is 24 hours from the time of booking.
  • No redemption necessary.
  • No blackouts.
  • For outbound/inbound travel on weekends, a surcharge of $100 per direction per passenger applies (outbound is Friday through Saturday and inbound is Friday through Sunday).
  • Advance Purchase required: seven (7) days.
  • Reservation changes permitted before or after departure at a charge of $200 per passenger. Changes must take place for all passengers in the itinerary at the same time.
  • Cancelations before or after departure are not refundable.
  • No-show is subject to a fee of $400 per passenger.
  • No refund on partly-utilized tickets.
  • Stopovers permitted in either direction at Dubai, one complimentary in Dubai, thereafter $100 per stopover for each passenger.
  • Eticket revalidations are subject to a fee of $200 per passenger.
  • Ticket reissues are subject to a charge of $200 per passenger.
  • Child/Infant fare:
    • Infants (0-2 years) without a seat pay 10% of applicable adult fare.
    • Infants (0-2 years) with a seat pay 75% of the applicable adult fare.
    • Accompanied children (2-11 years) pay 75% of applicable adult fare.
    • Unaccompanied children pay the applicable adult fare.
  • All changes must be done for both passengers and the journey must be together.
  • The offer is combinable only with fares of the same Fare Basis Code (XCMPRUS4).
  • Fares include all applicable government taxes and fees.
  • Fares are subject to availability at time of booking on emirates.com/us.

Business Class

Same as above except for the following:

  • Reservation changes permitted before or after departure at a charge of $600 per passenger. Changes must take place for all passengers in the itinerary at the same time.
  • Cancelations before or after departure are not refundable.
  • No-shows are subject to a fee of $1,000 per passenger.
  • Eticket revalidations are subject to a fee of $600 per passenger.
  • Ticket reissues are subject to a charge of $600 per passenger.
  • The offer is combinable only with fares of the same Fare Basis Code (OCMPRUS4).

Analysis

Given this special goes from late Spring to Mid Fall. This can bring a greater than 50% off for routes from the US to BKK, KUL and SIN.

Miles Accrual Opportunities

It is not unusual for airlines to only allow one person to accrue elite qualifying miles. Based on review of the terms and conditions, this is not the case for this special. The following is a table of Emirates, its airline partners and their earn rate:

Emirates Special Mileage Accrual
Emirates Special Mileage Accrual – Information taken from airlines’ website on April 15, 2015

Note that in most case, the economy class fare (X) will only earn 50% or less of actual miles flown before any elite member bonuses. Business class fare (O) will earn at least 50% or more actual miles flown.

Competition

Without adding more capacity onto its system, this 2 for 1 special instantly increased competition for all worldwide airlines as economy fare from US to BKK, SIN and KUL start at US$1,100 (economy) and US$4,800 (business) per person.  This special can bring the lowest prices down by 30%. The impact is less significant on US airlines as they have limited exposure to these three markets.

Asian airlines Thai Airways (TK), Singapore Airlines (SQ) and Malaysian Airlines (MH) are more impacted.

Thai Airways

Thai aviation industry is under a lot of pressure after failing the ICAO safety audit (refer to our coverage here). Emirates already operates up to 6 daily flights from DXB. This special will add additional stress onto Thai Airways (TG)’s operations as their prices are higher than EK while their on board products are not considered as good as EK. Additionally TG only has one US flight daily (to Los Angeles International Airport (LAX) via Seoul Incheon International Airport (ICN)) which makes it more vulnerable to losing passengers.

Singapore Airlines

Although their fares are higher than EK in general, SQ’s onboard experience is considered one of the best in the industry. This will provide SQ with some cushion space to absorb any short term passenger losses due to this special. Also, SQ has a strong US network from the US west coast with passengers who will not likely to fly to DXB to connect to SIN.

Malaysia Airlines

MH does not operate any flights to the US currently. It depends on SkyTeam partners to feed passengers onto its flights from Europe and Asia. They are also vulnerable from passengers choosing to fly EK on one ticket. There is also continued concerns over MH’s flight safety after recent incidents.

Future

Look to Emirates to run and expand (to other Asian destinations) more specials like this to introduce travellers to this airline as a connection option. Economy class passengers has the added benefit of free Wi-fi (refer to our coverage here). Business class passengers have access to items like free chauffeur that is not offered by US airlines currently. Over time, this may change travellers’ behaviours in choosing the UAE airline over their home airlines (this is especially problematic to smaller airlines like TG and MH).

Final Call

In addition to adding significant capacity over the past 2 years, Emirates is offering 2 for 1 promotions to entice passengers looking for comfort and cheap fare to join this airline and visit Dubai. This may be just the start of an ongoing war.

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