Pilot was bluffing. If they call an emergency, they can do whatever they want. But they can't just call a fuel emergency if they have enough fuel to divert to a viable alternate - that's not how the system is supposed to work. They're supposed to divert if they get close to minimum fuel and can't land at their primary airport.
Of course, if it's a real emergency they can call any emergency (weather at alternate preventing them from landing there for example), but not threaten a controller to call an emergency just to get priority handling at their primary.
The controller knew that and just called it. A diversion is a major annoyance but not a safety issue.
Of course, if it's a real emergency they can call any emergency (weather at alternate preventing them from landing there for example), but not threaten a controller to call an emergency just to get priority handling at their primary.
The controller knew that and just called it. A diversion is a major annoyance but not a safety issue.