To help the Emirates service get off the ground here, the airline will receive an incentive package valued at $1.5 million through Massport’s “International Air Service Incentive Program.” The Massport spokesman tells me Massport will waive all landing fees in the first year, and half of the landing fees in the second year, for a total benefit of $1.2 million. (Massport calculates the fees based on the size of the plane.) There will also be $350,000 in marketing and promotional support extended to Emirates in the first year.
Somehow the Globe reporter missed the part about Emirates getting a $1.5 million kick-back sweetener from MassPort in order to convince them to start service.
From Boston Business Journal:
www.bizjournals.com/boston/blog/bottom_line/2013/09/massport-offers-15m-to-emirates.html
Which makes me wonder about this timely article in today's Globe about how Chinese tourists would come to Boston and spend money if only there was an airline that flew here directly.
http://www.bostonglobe.com/ideas/20...se-tourists/GKN8ePFX1z6CXQSL0ufdsK/story.html
Thanks! Great stuff!
Barcelona surprises me as the largest O&D market with a flight. What is stimulating such demand?
Any chance that Air Canada or any other carriers could tap into a flight to Vancouver? (Especially Air Canada, with their hub connections to Western Canada and the Asia-Oceania region of the world.)
Is Mexico City really strong and profitable enough at this point?
Slightly off-topic, but any chance we could see JetBlue open a lounge similar to the one they recently opened at JFK, especially with plans for long-haul "first class" seats?
http://blog.jetblue.com/index.php/2013/02/26/lounge-to-open-at-jfk-t5-in-may/
Just to expand on this, with Emirates coming in, will the feed into and from JetBlue's Boston hub, since the airlines have an interlining and codesharing arrangement, and the ability for flyers to collect miles/points on each others frequent flyer programs?
With Turkish and Emirates coming, I think El Al has very little chance, if any at all, of starting service.
Qatar has stated in various interviews/reports that Boston is very high on their radar and a city perfect for the 787. However with the recent announcements, they will probably stay away for a while. I am going to assume had Emirates not announced they're starting non-stop flights to Boston that Qatar would have been the first Gulf carrier to give Boston a go.
A non-stop to China is probably Massport's top concern right now.
I have a friend who's a pretty senior exec at Jet Blue and he claims they're largely responsible for Emirates, Turkish and JAL coming in. Because Jet Blue code shares with each, and because Jet Blue has so many flights out of Logan, he said they're expecting a third of the passengers on each of those routes will be using Boston for connections.
The local Boston-Dubai market is very small. It's sure to see some stimulation with the non-stop flight being introduced. So connections will be needed to fill the planes. Emirates will also count heavily on people making onward connections through their growing Dubai hub.
The move is certainly to plug into it's move to move traffic through their Dubai hub.
Will see Dubai and Boston/New England increase their marketing presence in each others' markets?
Interesting. I could see that, but I think all these airlines would have no problems in serving Boston without JetBlue's network here. It will only help though, but wouldn't their JFK hub be a better connection point?
From BOS, the partner airline gets a monopoly on the local market and the connecting markets over their other-end hub, (small though BOS is, it doesn't have to compete for local traffic against another airport the way that JFK has to compete against EWR).
And on JetBlue, BOS has better coverage in some ways than JFK to the big population centers of the Northeast, with BOS having JetBlue service to PHL, DCA, BWI, PIT, RIC (all of which BOS has and JetBlue's JFK doesn't)--partly because BOS is less congested and a more reliable connecting point, partly because the trips are less padded (on a % basis).
Just to expand on this, with Emirates coming in, will the feed into and from JetBlue's Boston hub, since the airlines have an interlining and codesharing arrangement, and the ability for flyers to collect miles/points on each others frequent flyer programs?
^ that connection is being worked on so it will be pretty easy to transfer from JetBlue to the international terminal. You'll just walk by the southwest slots. Connections from international arrivals will be more tricky but that's not necessarily a Logan problem, more customs processes