Daily Flight Discounts to Dubai

Posted by Daniel Workman Jun 6, 2007

As described in our article Burj Dubai Next World Trade Center, Dubai is aggressively pursuing a change from a powerful oil-producing country to a high-end tourist destination for well-heeled baby boomer travellers.

Toronto Star business reporter Chris Sorenson notes in his June 6, 2007 article about Dubai's Emirates airline that the Middle Eastern air carrier already runs flights from New York to Dubai. Emirates will also offer flights between Houston and Dubai by the end of 2007, hoping to cash in on wealthy oil-industry traffic.

The difficulty with Toronto-Dubai flights is that the Canadian government will only allow up to 3 trips per week, in strict compliance with an international trade service agreement between Canada & the United Arab Emirates.

Daily flights would improve Emirates' profits by spreading out costs over higher revenues, and give the Middle Eastern airliner more control over price discounts on airline tickets to Dubai.

Canada would do well to negotiate stronger trade deals with Dubai, using daily Emirate flights as a bargaining chip.

Unfortunately, this is highly unlikely given that West Jet and Air Canada have a duopoly within Canada. These airliners will fight hard to avoid any price reductions that would cut into company profits.

Savy Canuck travellers will take advantage of the higher Canadian loonie and find an inexpensive way to travel to New York or Houston. There, Canadians will be able to buy cheaper tickets to Dubai on American-based Emirate flights. Meanwhile, Canada's political machine misses out on yet another opportunity to negotiate a stronger deal with an international trade partner.