Emirates cuts US flights, blaming Trump administration curbs

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An Emirates plane taxis to a gate at Dubai International Airport at Dubai International Airport in Dubai on March 22, 2017. (AP Photo/Adam Schreck, File)
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In this Feb. 10, 2013, file photo, the first class section of an Emirates Airlines Airbus A380 is ready for boarding at the new Concourse A of Dubai airport in Dubai. (AP Photo/Kamran Jebreili, File)
Updated 19 April 2017
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Emirates cuts US flights, blaming Trump administration curbs

DUBAI: Emirates, the Middle East’s largest airline, slashed its flights to the United States by 20 percent Wednesday, blaming a drop in demand on tougher US security measures and Trump administration attempts to ban travelers from some Muslim-majority nations.
The Dubai government-owned carrier’s decision is the strongest sign yet that new measures imposed on US-bound travelers from the Mideast could be taking a financial toll on fast-growing Gulf carriers that have expanded rapidly in the US.
Dubai was one of 10 cities in Muslim-majority countries affected by a ban on laptops and other personal electronics in carry-on luggage aboard US-bound flights.
Emirates’ hub at Dubai International Airport, the world’s third-busiest, is also a major transit point for travelers who were affected by President Donald Trump’s executive orders temporarily halting entry to citizens of six countries.
The latest travel ban suspended new visas for people from Iran, Libya, Somalia, Sudan, Syria and Yemen, and froze the nation’s refugee program. Like an earlier ban that also included Iraqi citizens, it has been blocked from taking effect by the courts.
Emirates said the flight reductions will affect five of its 12 US destinations, with the first cutbacks starting next month.
“The recent actions taken by the US government relating to the issuance of entry visas, heightened security vetting, and restrictions on electronic devices in aircraft cabins, have had a direct impact on consumer interest and demand for air travel into the US,” the carrier said in a statement.
Emirates does not provide financial data for its US operations or individual routes, but said it had seen “healthy growth and performance” there until the start of the year.
Since Trump has been in office, however, there has been what it called “a significant deterioration in the booking profiles on all our US routes, across all travel segments.”
It said it is responding as “any profit-oriented enterprise would” and will use the capacity freed up by the culled routes elsewhere on its network.
The Americas region, which also includes routes to Canada and Latin America, accounted for 14 percent of the $22.75 billion in revenue Emirates pulled in during the fiscal year through the end of March 2016.
Emirates’ half-year profit fell 75 percent to $214 million in the last period the company has disclosed, through last September — before the US election. Executives cited increased investments including aircraft purchases and the repayment of bonds, and said a “bleak” economic outlook in many parts of the world was reducing travel demand.
Robert Mann, an aviation consultant in Port Washington, New York, said business travel between the US and the Middle East has clearly been hurt by the ban on gadgets, while the attempted visa bans have put a damper on leisure travel from the countries targeted.
“Neither factor is a good thing for the Middle Eastern carriers who are primarily affected,” he said.
The cuts will reduce the number of US-bound flights from Dubai to 101, down from 126 currently.
Twice daily Emirates flights to Boston, Los Angeles and Seattle will fall to once a day. Daily flights to Fort Lauderdale and Orlando will be pared to five per week.
Andrew Lannon, a Canadian attorney based in Dubai, arrived in Fort Lauderdale for vacation on an Emirates flight Wednesday and said passengers had to check their electronics, which made the 18-hour flight difficult because he couldn’t work.
Passengers were then told upon landing they would have to wait on the plane for an hour while their bags were checked, but were then let off after 20 minutes, Lannon said, adding that it took another hour for most passengers to clear customs.
Kevin Mitchell, head of the Business Travel Coalition in the US, said all the Gulf carriers are probably losing business because of the security measures and attempted travel bans, and that will hurt consumers.
“For consumers it means higher prices, fewer choices, less connectivity,” Mitchell said.
Like its smaller Gulf rivals Qatar Airways and Abu Dhabi-based Etihad Airways, Emirates has ramped up its US presence and recently launched a new service to Newark via Athens.
Several big US carriers and their pilot unions have bristled at the Gulf airlines’ US push, accusing them of flooding the market with capacity while receiving billions of dollars of unfair government subsidies.
Emirates and its Gulf rivals deny the allegations.
Despite a vigorous lobbying and public relations campaign, the US carriers were unable to persuade the Obama administration to block further expansion by Gulf airlines. But US airline executives made a personal pitch to restrict their access during a White House meeting with Trump earlier this year.
Jill Zuckman, a spokeswoman for the “Partnership for Open & Fair Skies” campaign opposing more US routes for the Gulf carriers, was quick to seize on Emirates’ decision.
“The fact is, market demand has never played a role when the Gulf carriers decide where to fly. It is well known that the Gulf carriers, including Emirates, lose money on most of their flights to the United States and are propped up by billions of dollars in government cash,” she said.
The US travel industry, already fretting that the ban on travelers from a number of Muslim-majority nations is affecting foreign travel generally to the United States, expressed fresh concern after Emirates’ announcement, however.
“The aftermath of 9/11 taught us that we can’t take either global understanding or US market share for granted,” said Jonathan Grella, executive vice president the US Travel Association. “Every limiting security message needs to be offset by a sincere welcome to legitimate, lawful travelers.”
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Associated Press writer Joan Lowy in Washington, David Koenig in Dallas and Terry Spencer in Fort Lauderdale contributed reporting.


Samsung announces folding phone with 5G — at nearly $2,000

Updated 21 February 2019
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Samsung announces folding phone with 5G — at nearly $2,000

  • The device looks similar to a conventional smartphone, but then opens like a book to reveal a display the size of a small tablet
  • Samsung is also making improvements to its flagship Galaxy S devices and plans to offer a 4G version of its folding phone
SAN FRANCISCO/LONDON: Samsung Electronics Co. Ltd. on Wednesday unveiled a nearly $2,000 folding smartphone in a bid to top the technology of Apple Inc. and Chinese rivals and reignite consumer interest amid slumping sales.
The Galaxy Fold will go on sale on April 26 and take advantage of new and faster 5G mobile networks. The device looks similar to a conventional smartphone, but then opens like a book to reveal a display the size of a small tablet at 7.3 inches (18.5 cm).
The device “answers skeptics who said that everything that could be done has been done,” DJ Koh, chief executive of Samsung Electronics, said at an event in San Francisco. “We are here to prove them wrong.”
Samsung remains the world’s largest smartphone maker with nearly a fifth of global unit sales but underperformed a slumping market last year. Chinese rival Huawei Technologies Co. Ltd. — whose Mate series of phones also command premium prices — gained market share. Other Chinese makers like Xiaomi Corp. have also been increasing prices, leaving Samsung to defend its turf against upstart rivals in addition to its longtime foe Apple.
With the foldable phone, Samsung is going on the offense on two fronts in the smartphone race: It is offering an eye-catching new feature with the big, bending screen and the first 5G connection in a premium phone, a feature analysts do not expect Apple to match until 2020.
Samsung is also making improvements to its flagship Galaxy S devices and plans to offer a 4G version of its folding phone.
It also challenges the notion of what a phone can cost, debuting at nearly twice the price of current top-of-the-line models from Apple and Samsung itself.
Patrick Moorhead, founder of Moor Insights & Strategy, said the new folding device could help Samsung stay at the top and lure consumers to upgrade devices that have looked largely the same over the past five years.
“Samsung and Apple go back and forth” to lead the premium smartphone market, Moorhead said. “I think this is Samsung’s chance to take back the innovation crown.”
And even though the $1,980 starting price is steep, some dedicated Samsung fans said they would pay it. Navneet Kumar Singh, a Samsung enthusiast from India who traveled to San Francisco to watch the launch, is ready to place his order.
“The prices of the flagship models have been a little aggressive in India,” he said, “But in the end, if you invest the money you’re getting a different experience.”
Samsung also introduced several accessories to compete against Apple, including a pair of wireless headphones called Galaxy Buds. The headphones include wireless charging, a feature that Apple has promised to put into is competing AirPods but has not yet released.
Samsung also said that its new Galaxy phones will be able to wirelessly charge its headphones and new smartwatches by setting the accessories on the back of the phone.

10 times faster
Along with the folding phone, Samsung also added new cameras and a 5G version to its Galaxy series of phones.
Verizon Communications Inc. will be the first carrier to offer service for Samsung’s 5G phones. The networks are expected to be 10 times faster than current ones, improving viewing of live news and sports events.
With the 5G versions of its flagships, the Korean electronics maker looks to have beaten Chinese rivals in the 5G race, although the device will operate only on the small number of networks launching later this year. Apple is not expected to release a 5G smartphone until late 2020.
The new networks are not available in many places yet but will roll out this year and next. Consumers who want to hold on to their phones for several years before upgrading may be tempted to buy a 5G phone now so that it will be able to take advantage of those networks later, said Bob O’Donnell of TECHnalysis Research. That could sway some Apple buyers over to Samsung and other Android makers with 5G devices.
“People are going to be thinking about, am going to be able to use this a year from now? Two years from now? Three years?” he said.
Rival smartphone makers are expected to announce 5G models at next week’s Mobile World Congress, the industry’s top annual event, in Spain. Samsung said its 5G handset would be available in the early summer.
The Galaxy 10 series needs to appeal to consumers who are reluctant to upgrade for only incremental technological improvements in performance.
All of the Galaxy series of rigid phones except the 5G will be available from March 8, with the S10+ priced from $1,000, the S10 priced from $900 and the smaller S10e from $750.
The mainline S10 compares with $999 for Apple’s iPhone XS and $858 for Huawei’s premium Mate 20 Pro.