EK's Spanish opportunity
28 October 2007
Expect Ek to launch flights to
and through Spain in 2008:
The UAE has entered into an Air Services
Agreement (ASA) and memorandum of understanding (MoU) with Spain.
The agreement includes multi
designations. The designated airlines of each party will be permitted to
operate unlimited weekly passenger frequencies and capacity in each
direction with any type of aircraft, and to operate all cargo services
with full traffic rights including Fifth Freedom traffic right without any
restrictions.
That would allow EK To fly to
Central and South America (eg Mexico or Argentina or even Miami) via Madrid
or Barcelona.
EK nears
decision time - Airbus and Boeing
19 October 2007
As the Dubai Air Show approaches
next month, Emirates Airlines is in final talks with Airbus and Boeing on
long-haul fleet purchase plans. Emirates is in the market for long-range
twin widebodies, with the Boeing 787 and Airbus A350 in the running, and
also is considering buying the 747-8. It has already committed to eight more
A380s.
Emirates is seeking guarantees in
case the promised airplanes, none of which have flown, do not deliver the
desired performance. In the twin segment, the first tranche will see the
airline buy the A350 or the 787, not both, Clark says, but he doesn't rule
out buying the other model later.
Emirate President Tim Clark says
that after numerous design changes, the A350 "is now an airplane we are
prepared to take seriously and study seriously." The A350-900 "fits now
clearly in the seating requirement we want."
Emirates is also interested in
the 787-10, which Boeing hasn't officially launched. Clark expressed some
concern that the standard 787 engines will not have enough power and will
need to be upgraded to deliver about 85,000 pounds of thrust. He's also
concerned over what he sees as weight growth from the 787-8 that spilled
over to the -9 and likely will affect the -10.
If commercial terms can't be
hammered out, Emirates can wait, Clark says, noting that the carrier has
plenty of 777-300ERs and -200s to meet its needs.
On the 747-8 passenger model,
Clark says configuration isn't quite where Emirates wants it, at least not
yet. The carrier wants to transport about 400 people from Dubai to Los
Angeles. Here, too, Clark is concerned about weight growth, which would
greatly affect that very long-range route.
Meanwhile, the biggest buyer of
the A380 expressed confidence Emirates would receive the first A380 on time,
no later than next August, with four or five deliveries next year, depending
on how the production ramp-up goes.
The first aircraft will be in the
long-haul, three-class configuration with 489 passengers. Route plans will
depend on when the aircraft actually arrives. Emirates plans three
configurations for the A380 -- the long-haul, three-class aircraft, a
three-class version without crew rest seating 531 people, and a two-class
600-seater. The 600-seater once had more seats but Emirates increased the
size of the business class because of strong demand in that segment and no
doubt because of the premium fares commanded in Business Class.
Clark noted that Airbus also
needs to squeeze weight out of the program, but he sees a good plan to do
that. As for the notional stretch version, the -900, he reaffirmed Emirates
would immediate buy the aircraft if it became available.
Emirates
to go double daily to Shanghai
23 August 2007
Emirates will launch its second daily
service to Shanghai on 1st February 2008.
Emirates launched passenger services to
Shanghai in April 2004. The demand on the route has load factors
consistently above 90 per cent.
Emirates expects
the
second service to Shanghai to be similarly successful given the continued
dominance of the Chinese economy; and Shanghai’s increasing appeal to
business and leisure travellers from around Emirates’ worldwide network.
Emirates has seen a sharp increase in
demand since the UAE and Chinese governments have signed a Memorandum of
Understanding to facilitate travel for Chinese tourist groups to the UAE.
Since Emirates’ launch to Shanghai, the
number of Chinese hotel visitors in Dubai has more than doubled from 32,265
in 2004 to 68,504 in 2006. Trade ties are worth billions of dollars, and in
2006 China grabbed the top spot among Dubai’s importing countries, nudging
India to second place.
Dubai imported US$7.6 billion worth of
Chinese goods and exported in excess of US$134 million to China.
Emirates’ second daily will be served by
the airline’s Airbus A340-300 with 267 seats in a three-class configuration
– 12 seats in First Class, 42 in Business and 213 in Economy – offering 13
tonnes of cargo capacity.
On Tuesdays, the service will be operated
by an Airbus A330-200, with 12 seats in First Class, 42 in Business and 183
in Economy. The new service EK304 will provide passengers a convenient
choice of timings, departing Dubai in the morning at 10:35 hours to reach
Shanghai at 22:25 hours. The return flight EK305 departs Shanghai at 06:15
hours to reach Dubai at 12:50 hours. The timing is very similar to the
second daily Beijing flight and for the crew gives them a pleasing 30 hour
stopover.
Emirates has been
working hard on brand recognition in China as part of the build up of
services before the 2012 Olympics.
Emirates supports the interests of
the city’s sporting community as Official Airline of the high-profile BMW
Asian Open in Shanghai. The Emirates branding will also be prominent at the
FIFA Women's World Cup 2007, being held in September this year.
Emirates
aims to redraw world aviation map
6 July 2007 -
International Herald Tribune
PARIS: The chairman of
Emirates Airlines - Sheikh Ahmed Bin Saeed Al-Maktoum of the ruling family
of Dubai - has grand ambitions, and a bankroll to match.
He has a huge pot of money to spend, $82
billion from his government, the airline and other financiers. He loves
large planes and has ordered 55 super-jumbo A380s to create the biggest
fleet of these double-decker planes in the world. And he wants to make
Dubai, a sheikhdom by the sea, the busiest airline hub in the world,
overtaking London, New York and Singapore.
Some may consider Maktoum's goals
overreaching, but he has delivered so far on all his promises. He built
Emirates Airlines from a two-plane operation, started with $10 million in
1985, into one of the world's largest international carriers, with 105
planes. Emirates is the world's fastest-growing airline - it will take
delivery of one new Boeing or Airbus plane a month for the next five years -
and Maktoum said he would like to see it become, some day, the world's
biggest.
"We've never seen anything like it
before," said Robert Cullemore, a consultant at Aviation Economics, a
London-based aerospace advisory firm. "We've never seen growth at this
rate."
Of course, success for Maktoum is not
just a simple matter of buying airplanes. He must still compete with
well-established carriers plying many of the same routes as Emirates,
attract enough passengers to fill his vast fleet profitably and hope that
the economies of the Middle East, including Dubai, and emerging markets in
Asia and the Indian subcontinent continue to grow at their current pace to
justify the Emirates' massive investment.
But at the recent Paris Air Show, Maktoum
seemed unfazed by those concerns. He met with the Louis Gallois, the Airbus
chief executive, to sign a deal that added eight more A380s, with a list
price of $2.6 billion, to his fleet.
He held a news conference to tout Dubai's
plan to spend $82 billion over the next decade on aviation, including
building a new $33 billion Dubai World Central International Airport, which
is to have six runways and to become the world's largest airport.
"What we are witnessing today," Maktoum
said at the time, "is the rewriting of the world's aviation history and the
beginning of a new era of global aviation."
Being oil-rich helps. Emirates Airlines,
said Howard Rubel, an aerospace analyst with Jefferies and Company, "has got
cash, clout and cache."
"What's surprising is the rapid emergence
of the Emirates as a player," Rubel added. "The economies of the Middle East
are the fastest growing in the world. So what do they do? They buy planes.
But five years ago it was like, 'Who are these guys?' "
Aviation has helped transform Dubai,
which was a desert trading post with hardly a paved road just 50 years ago,
from being fly-over country to a place where people are flying in. About
25.6 million passengers landed there last year.
The plan to develop Dubai was created by
Maktoum's late older brother and is now overseen by the current ruler,
Maktoum's nephew, Sheikh Mohammed bin Rashid Al-Maktoum.
Once a pearl-diving outpost that grew
rich with oil revenues in the 1970s and 1980s, modern Dubai seems built on
hyperbole.
Oil revenues have been declining as a
percentage of Dubai's economy prepares for the day that its reserves
dwindle. Today, oil represents only 5 percent of Dubai's economy, which
increasingly relies on revenue from superluxurious hotels, a growing
financial center and on serving as the regional headquarters for global
brands.
For instance, Halliburton, the oil
services company, is moving its headquarters from Houston to Dubai, and such
American companies as Universal Studios, Nickelodeon, Microsoft and Cisco
are also setting up offices.
Dubai is on a $365 billion building
spree, and more development means more flights for the carrier. Construction
projects include the Burj Dubai, the world's tallest building, and the Mall
of Arabia, the world's largest shopping mall.
The 1,500-square-mile, or almost
4000-square-kilometer, emirate is also building "Dubailand" - a leisure park
bigger than Monaco - and the Dubai Waterfront, a development of condos and
stores that will be the size of Barbados.
At the center of this development spree
is the Maktoum family and Maktoum, 49, who exudes a quiet confidence. In an
interview at the luxurious Bristol Hotel here, where he was about to host a
reception, Maktoum said that "when we started talking about expanding our
airline, people thought we were bluffing or that it would take twenty to
thirty years."
"But we've proven them wrong," he added,
while puffing on an ever-present cigarette. "I do believe we are rewriting
history and we believe that we can do it in a short time."
Emirates currently accounts for about
one-third of all the orders for Airbus A380s. The next closest customer is
Qantas, with 20 A380s on order.
Moreover, since the ruling family is also
the government, there is a minimum of red tape and an ease of
decision-making. Maktoum, for instance, pointed out that if there are
insufficient customs agents to process incoming passengers, he can just get
more.
The airline also benefits from an
enviable location - Emirates bases its strategy on the fact that its planes
can reach any point on the globe nonstop from Dubai and can connect any two
city pairs with just one stop in the Middle East. It also is further along
developing a hub than other airlines in the region.
"Sheikh Ahmed is making a huge bet and
we'll see how it works out," said Edmund Greenslet, publisher of the Airline
Monitor, a trade publication. "We won't know for another decade. His concept
is to make Dubai the hub for travel between Asia and the West. But new
planes are being designed to go from city-to-city nonstop and to make that
paradigm obsolete. He may be making a huge bet on a system that may not be
as valid in the future as it has been in the past."
Cullemore of Aviation Economics
disagrees. While planes might fly nonstop from London to Beijing or Tokyo,
there are a lot of other European, Asian and African cities that cannot
offer nonstop flights.
The Emirates is one of the prime
customers for both Boeing and Airbus, not only for the size of its orders,
but also because it buys the high-margin interiors that please passengers
and are extremely profitable for the aircraft makers.
Its first-class seats feature flat-beds
with in-seat massage and personal mini-bars, while its in-flight
entertainment includes 600 channels, e-mail connections and seat-to-seat
telephones for in-flight chats.
"One of the issues becoming obvious in
the aviation industry is that it is not about the United States anymore,"
said Jon Kutler, head of Admiralty Partners, a Los Angeles aerospace private
equity firm. "It's an extraordinary shift in power. Airlines like the
Emirates are pushing for the latest and greatest. They are making an obvious
distinction with American carriers that are nickel-and-diming the
passengers."
It is not only big planes and a new
airport that Maktoum is spending his $82 billion on.
The rest is going to Dubai Aerospace
Enterprises, which includes aircraft leasing, an aircraft maintenance
program, aviation information technology and a new aviation university. In
addition, $4.5 billion is going to expand the existing Dubai airport to
accommodate A380s.
One remaining market - still somewhat
untapped - is the United States. Emirates has daily flights from New York
and just recently added Houston. It would like to start flights to San
Francisco, Chicago and Los Angeles.
Maktoum doubts that many American
tourists would fly all the way to Dubai for vacation, but he sees a growing
business market, led by Halliburton's relocation to Dubai.
"Once you have one, others will follow,"
Maktoum said. "It's like getting an anchor tenant. It's the pull and the
others will come."
EK confirms
India expansion
4 July 2007
In a major
strengthening of its India operations, Emirates will introduce a third-daily
service to Mumbai and a double-daily operation to Chennai starting 28th
October 2007. The airline will also add three additional flights each to
Cochin and Hyderabad over the summer and winter seasons.
In all, the Dubai-based airline will ramp up its India capacity from the
current 71 to 85 passenger flights per week to eight Indian gateways.
Mumbai - Emirates will introduce the larger-capacity Boeing 777 aircraft on
its existing 19-flights-per-week Mumbai service, and will add two additional
frequencies, bringing the total number of flights to 21-per-week or
triple-daily.
Chennai - Emirates' Dubai-Chennai service will be progressively stepped up
from eight to 11 flights per week by 1st August; and propelled further to a
double-daily service with the induction of three additional frequencies on
28th October. At the start of the winter season, the airline's operations to
Chennai will total 14 flights per week
Emirates adds
to India flights
22 June 2007
As a result of the revised bilateral between India and Dubai, Emirates will
increase frequencies and aircraft size on its Indian services.
New Destination: Ahmedabad (AMD)
Effective 28 October, Emirates will commence 6x weekly flights to Ahmedabad
(AMD).
Flight timings (Daily ex-Tue):
EK538 DEP
DXB 2255 ARR
AMD
0310
EK539 DEP
AMD 0425 ARR
DXB
0610
Flights will be operated by A330-200 on Mon, Wed, Thu, Fri, Sun. The
Saturday flight will be operated by a B777-200.
Other highlights:
DXB-BOM
moves upto a 3x daily from 19x weekly. Also aircraft size is increased to a
B777-300ER on most flights, with the B777-200ER operating a few.
DXB-MAA
moves upto a double-daily from 8x weekly.
DXB-HYD
moves upto 11x weekly from 8x weekly.
DXB-COK
moves upto a 10x weekly from 7x weekly.
The additional frequencies will be phased in over the next few months and
most increases implemented by the end of October 2007.
Although there are no increases on
DEL
services, the new agreement will permit capacity increases from the start of
the summer 2008 schedule (end of March 2008) and beginning of July 2008.
expect DEL
to move up to 10x weekly from end of March 2008 and then up to a
double-daily by beginning of July 2008.
Entitlements on the other India routes (TRV,
CCU
and BLR)
remained unchanged. Remember, Emirates will add a 6th weekly to
CCU
from beginning of February 2008.
The frequency increases and new flights to
AMD
have been clearly well timed to connect with Emirates' new North American
services -
IAH and
YYZ
as well as existing
JFK flights.
Emirates buys
even more 380s
19 June 2007
Emirates Airline yesterday signed
a $2.6-billion deal to buy eight more Airbus A380 superjumbos, taking the
Dubai-based airline's total order for the aircraft to 55.
The letter of intent was signed
at the Paris International Air Show by Shaikh Ahmad Bin Saeed Al Maktoum,
President of Dubai Civil Aviation and Chairman and Chief Executive of
Emirates, and Airbus chief executive Louis Gallois.
Emirates will take delivery of
its first A380 in the third quarter of 2008.
The eight additional aircraft
ordered yesterday are expected to be delivered over 16 months, starting July
2011.
Singapore Airlines, which has
ordered 19 A380s, will be the first airline to fly the aircraft when it
receives the first one in October this year.
Yesterday's deal was the second
additional order this year that Emirates has placed for the A380. In May it
signed a firm order for four additional A380s.
Emirates' current order book of
118 wide-bodied aircraft is worth over $30 billion and includes 55 Airbus
A380s, 51 Boeing 777s, and 12 Boeing 747 Freighters. Emirates is also on the
hunt for up to 100 mid-sized planes and this deal could be $20 billion,
Reuters reported.
Emirates said it would decide on
an order by October and that the design of the Airbus A350 XWB was closing
in on Boeing's 787 Dreamliner, it reported quoting the airline's president
Tim Clark, who ruled out splitting the order for as many as 100 planes
between the two manufacturers.
The A380 orderbook is as
follows:
Emirates 55
Qantas 20
Singapore Airlines 19
Lufthansa 15
Air France 12
ILFC 10
Malaysia Airlines 6
Thai Airways 6
Virgin 6
Qatar 5
China Southern 5
Kingfisher 5
Korea Air 5
Etihad 4
Emirates cabin
upgrade
14 June 2007
Emirates Airline announced plans
to upgrade the interiors of its long-haul aircraft as it continues its bid
to become the dominant carrier between Europe and Asia.
Tim Clark, Emirates CEO, said
over the next 18 months the airline would spend Dh180 million on its
enhanced first-class product alone, which includes flat beds with in-seat
massage, dine-on-demand room service, in-suite personal mini bar and private
sliding doors. These facilities are already installed on some of the fleet
but this will be a better finished product.
Both business and economy classes
will be designed with additional space, and Emirates said all classes would
be outfitted with the industry's largest personal TV screens.
In total, 51 new Boeing 777s will
include the new interiors, and an unspecified number of existing aircraft
will undergo retrofits.
The business class seating
upgrade is key for Emirates as high-value business travelers get flooded
with choice between competing carriers many of whom, like SQ, have announced
major upgrades to their business product.m.
Clark said more announcements
were imminent as Emirates continued to invest in its entertainment system
saying that the airline is close to announcing another multi-million dollar
enhancement to the 'ice' in-flight entertainment system.
The new onboard product will make
its first appearance on Emirates' Boeing 777-300ER ULR (Ultra Long Range)
aircraft being delivered this month, and its 777-200LRs - the first of which
will be delivered in August 2007.
Over the next 18 months, Emirates
will receive 24 aircraft fitted with this product, and will also implement a
programme to retrofit its existing Boeing 777 long-haul fleet.
Emirates' enhanced First Class
private suites are larger with extended floor space, more stowage room for
hand baggage and a bigger personal wardrobe within the suite. It also
features leather upholstery with a honey walnut finish. A high cabin ceiling
adds to the sense of space, and travellers can also relax at the new
communal First Class bar area.
On business class, the multi-zone
massage seats recline to a 78-inch long lie-flat bed. The seats also ensure
maximum personal space with privacy dividers.
In economy, Emirates' new seats
provide more legroom and comfort. The seats come with a fully adjustable
winged headrest, wide flat footrest and articulated seat bottom pan for
greater comfort. Best of all, the introduction of the in-flight
entertainment system onboard will remove the need for boxes underneath
seats, which will increase legroom and eliminate bruised shins.
Emirates A380
plans
8 June 2007
Emirates airline, the largest
customer of Airbus A380 superjumbo aircraft, will carry a massive 644
passengers in some of the 47 planes it has on order when it begins receiving
them next year.
Emirates has announced that its
A380s will have three separate seating configurations tailor made to
different routes. The highest density configuration will seat 644 in
business and economy with no first class.
Routes to Sydney, Melbourne and
New York will be served by a three-class configuration carrying 490
passengers, while so-called "11-hour routes" such as Dubai-London will also
have three classes and carry 514 passengers, Flanagan said.
Emirates is the eighth largest
carrier by international traffic, and a recent report by Boston Consulting
Group noted they could become the largest international airline by 2012,
partly due to its expansion with the A380s. Industry experts say Emirates
will profit from integrating the new planes into its network, they note
having three different seating plans for the A380 fleet could be risky. No
other airline has yet announced more than one configuration, and no one has
announced anything over 550 seats.
It should be noted that EK flies
its large 777 fleet with a number of different configurations. This will be
no different. But 644 passengers on an airplane (flights to BKK will be a
prime example) is an awful lot of people. Boarding should be fun !
Emirates to
Toronto
7 June 2007
My old home town
of Toronto (I lived there from 1988 to 1994) is set to become the second
North American destination for Emirates.
Emirates said
yesterday that, beginning Oct. 29 and subject to government approval, it
will begin flying three times a week between Toronto and its hub in Dubai.
At present, the only other destination Emirates serves in North America is
New York, although the airline hopes to cash in on oil-industry traffic with
flights to Houston by December.
While Emirates
would prefer to fly to Toronto daily, Ottawa's air-service agreement with
the United Arab Emirates won't permit the extra flights. Once the flights
have started do not be surprised to see this move quickly to daily flights.
In the meantime the crew will be happy as they will have a 2 or 3 day
layover in Toronto.
The non-stop service will take 14
hours and 20 minutes. The return journey will be completed in about 13
hours.
The 777-300ER aircraft will be
fitted with eight private suites in First class, 42 of its latest lie-flat
seats in Business class, and an Economy-class cabin for 304 passengers
Emirates is among
the fastest-growing airlines in the world. It launched in 1985 with just two
leased planes and now operates a fleet of 103 aircraft to 89 destinations in
59 countries though its Dubai hub.
Emirates Airline set to be world's
largest long-haul carrier
27 May 2007: Source - Gulf News
Emirates airline could become the
world's largest long-haul carrier by 2012 (by seats), according a recent
study.
An analysis by the Boston
Consulting Group (BCG) predicts Emirates will pose a formidable challenge to
Asian and European carriers after it triples its capacity over the next
eight years through new orders and bigger planes, citing low labour costs,
24-hour flying schedule and optimal geographic location as ingredients of
its success.
Emirates, currently the eighth
largest carrier of international traffic, will expand its fleet of 102
aircraft with 47 Airbus A380 superjumbos over the next few years. The
airline's net profits rose 25 per cent in 2006, to Dh3.1 billion ($844
million).
"It would be risky for a
competitor to assume that [Emirates and Qatar Airways] will not have the
resolve to implement their aggressive plans," noted the study, which was
quoted in a recent article in Aviation Week.
Key factor
Despite its massive orders,
Emirates should be able to run its new fleet through its Dubai hub, which
will concentrate heavily on flights in and out of Europe, the report said.
"It is clear that European and
Asian airlines are going to be facing large, new blocks of low-cost capacity
in the Europe-Asia corridor."
One reason why the Dubai-based
airline has been such a runaway success is that it has far lower labour
costs than its western rivals. Boston Consulting Group found that Emirates
holds a cost advantage of at least 18 to 21 per cent over its western
rivals, and on par with what Asian carriers pay.
Acknowledging its geo-strategic
location, open skies regime and 24-hour airport, an Emirates spokesperson
told Gulf News, "Certainly being based in Dubai has been one of the key
factors to Emirates' success."
"Our staff are competitively
remunerated as we benchmark salaries against international standards," she
said. "It should also be noted that the majority of our staff are
expatriates and we incur costs that other airlines do not - for instance
providing accommodation for our staff and their families."
The European Centre for Aviation
Development (ECAD), a consultancy affiliated with Lufthansa, also found
other reasons for Emirates' success. Landing fees are nearly nine times more
expensive in Germany than Dubai, it said. And while Emirates pays its cabin
crew roughly the same as Lufthansa does, income taxes and other fees force
Lufthansa to spend 28 per cent more per attendant than Emirates.
Benefits from geographic
location of its hubs
Boston Consulting Group: Emirates
benefits from geographic location of its hubs, which can operate 24 hours a
day, making possible very high aircraft utilisation.
Emirates, Etihad and Qatar
Airways supply around 9 per cent of all long-haul seats globally, but they
have 25 per cent of the long-haul aircraft order backlog.
"If it succeeds, Emirates will
catapult itself ahead of a dozen bigger airlines to become the world's
largest long-haul carrier by 2012."
ECAD: Though cabin crew salaries
are comparable, Lufthansa spends 28 per cent more, mainly for income taxes
and other labour fees and costs.
Emirates benefits from export
credit financing of planes. Only available if planes are built in another
country. Thus in Germany, where some Airbus planes are built, Lufthansa
can't take advantage of it.
Emirates finances 21 per cent of
aircraft purchases with export credit. Landing fees are nearly 9 times
more expensive in Germany than in Dubai.
Emirates USA
plans
24 May 2007
It may be the land
of the paranoid but it may be the land of plenty for Emirates Airline. The
middle east carrier is already filling three flights a day to New York;
their growth plans for the US make it the most significant growth market for
the airline.
Emirates has confirmed it would purchase 60-100 midsize widebody aircraft
(B787s or A350s) later this year, which will be a “winner-takes-all” order,
according to President, Tim Clark. The airline is reportedly pushing for a
slightly larger version of the B787.
The carrier, which is destined to become the world’s biggest operator of
B777s, as it takes delivery of one per month over the next five years, will
add the first of ten 266-seat B777-200LRs to its fleet from August 2007,
adding to its ultra-long range capability. Houston (a 17-hour non-stop
journey) will be added to its route map first, followed progressively by Los
Angeles, San Francisco, Atlanta, Boston, Chicago, Philadelphia, Washington
DC and Seattle - all non-stop.
The US is therefore a key expansion target and Boeing is expected to pull
out all the stops to ensure locally manufactured aircraft are selected to
operate there. Emirates currently has 101 aircraft in service, of which 46
are B777s.
How geography
and innovation propel Emirates
21 May 2007 -
from Aviation Week
Capacity constraints and aircraft shortages appear to be
the only factors slowing the growth of Emirates, but the airline is still
developing into a huge threat to European and Asian airlines.
Emirates has been the role model of a new breed of
carriers taking advantage of two factors: geography and technology. From
hubs in Dubai, Abu Dhabi or Doha, they can now reach any point on Earth
nonstop and connect any two city pairs with only one stop in the Middle
East. Recent enhancements in aircraft technology have made this possible,
with the introduction of ultra-long-haul airplanes such as the Airbus
A340-500 and Boeing 777-200LR.
Emirates now has an all-widebody fleet of 103 aircraft and
has an additional 107 on firm order, among them 47 Airbus A380s. The company
is evaluating further orders for around 100 Airbus A350s or Boeing 787s to
ensure future expansion. It is hardest hit by the delay of the Airbus A380:
By the time the first A380 is delivered in August 2008, Emirates should have
already been operating 18.
The story of Emirates is intertwined with the development
of Dubai into a commercial and financial center midway between Asia and
Europe, strongly promoted by the ruling al-Makhtoum family. The al-Makhtoums
have been trying to make Dubai less dependent on oil for years, and now oil
revenues only account for about 6% of Dubai's GDP. The government continues
to invest billions in infrastructure, tourism and industry projects to raise
Dubai's profile. Others in the region, like Abu Dhabi and Qatar, are
following suit, beginning to develop into trade and tourism destinations,
too.
Fully state-owned Emirates is a key ingredient to the plan
and its success can only be explained when the Dubai story as a whole is
taken into account. The company has had just one loss-making year in its
history and now is among the most profitable carriers worldwide. Emirates'
rivals claim it benefits from state subsidies, but none of them has been
able to prove the allegations yet. For several years, Emirates' results have
been audited by an independent firm. Last year, the airline's profit rose
23% to $942 million on $8.5 billion in revenues, which are themselves up
28%.
Particularly its biggest European rivals Air France-KLM
and Lufthansa are strongly lobbying against further traffic rights for
Emirates and its peers. A recent study made by a consultancy affiliated with
Lufthansa, the European Center for Aviation Development, pointed out that
Emirates benefits from low user charges and handling fees at Dubai airport
and the fact that there is no income tax in the emirate, among other things.
However, another study recently completed by Boston Consulting came to a
different conclusion: Emirates is enjoying the benefit of the geographic
location of its hubs, which can operate 24 hr. a day with no curfews,
providing it very high aircraft utilization.
The Boston Consulting analysis shows that Emirates' rivals
have good reason to worry. The study finds Emirates enjoys a unit cost
advantage of at least 18-21% over its European and North American
competitors and is no more expensive than airlines based in Asian countries
that have extremely low labor costs. "It is clear that European and Asian
airlines are going to be facing large, new blocks of low-cost capacity in
the Europe-Asia corridor," Boston Consulting says.
Emirates and its much smaller peers, Etihad and Qatar
Airways, today supply around 9% of all long-haul seats globally, but they
have 25% of the long-haul aircraft order backlog, according to Boston
Consulting's analysis. Emirates alone plans to triple its capacity over the
next eight years, not only through additional aircraft, but also by scaling
up average aircraft size as a result of the A380 integration. "If it
succeeds, Emirates will catapult itself ahead of a dozen bigger airlines to
become the world's largest long-haul carrier by 2012," Boston Consulting
predicts.
The consultancy's report concludes that "it would be risky
for a competitor to assume that these airlines will not have the resolve to
implement their aggressive plans." Boston Consulting's in-depth analysis of
the network forecasts that "Emirates should be able to deploy its new fleet
fully through its Dubai hub. . . . Emirates' new capacity will be very
heavily concentrated on flights eastward out of Europe and back."
The cost advantage is biggest for Emirates when it can
combine two long-haul flights from secondary cities in Europe to secondary
cities in Asia, such as Barcelona, Spain, to Trivandrum, India. Its
competitors would have to channel traffic on this route through two hubs and
operate two relatively high-cost short-haul connecting flights. Boston
Consulting cautions, though, that Emirates' unit cost advantage is partly
eaten up in some markets by longer flying distances. Nonetheless, in 39% of
all Europe-Asia markets, Emirates will still have a cost advantage,
according to the study.
However, it will be difficult for Middle Eastern carriers
to attract high-yield business traffic on the key trunk routes, the
consultancy's analysis also shows. While they may offer lower fares and
equal or better onboard service, the flying distance to Asian destinations
north of the equator is typically longer when adding a stop in Dubai. And
while leisure travelers may put up with the inconvenience, "it could be a
significant issue for business travelers who may have to wake up during the
journey to change aircraft," notes the study.
These days, Emirates is to a certain extent becoming the
victim of its own success. The airline is facing an increasingly serious
capacity shortage at its Dubai hub, and, set back by the A380 program
delays, it can do little but watch its competitors play catch-up.
Dubai's airport should have opened its second terminal
last year at the latest, but it is now not expected to open before mid-2008.
A shortage of steel, concrete, workers and a lack of interest by the
construction industry on the project appear to have been the main obstacles.
"When I ask seven construction companies to submit offers
for a certain work share at the terminal, four of them don't even bother to
answer," says Gary Chapman, president of Group Services and Dnata. In the
huge construction boom in Dubai, companies in the sector focus on the really
big projects, among which an airport terminal would be a small piece of
work. The new facility is planned to be exclusively used by Emirates.
With 17.5 million passengers annually, the airline is
severely pinched in the existing building. At peak times, it is difficult
even to walk through the terminal because it is so crowded, and it is at
times impossible to find an empty seat in one of the lounges. While Emirates
is complaining about the two-year delay in the A380 program, it is hard to
see how the carrier would have accommodated 18 aircraft in a hub-and-spoke
operation at the current facilities.
The constraints have an impact on service quality, too.
Aircraft often have to be parked at remote stands and sometimes different
flights are simultaneously boarded from the same gate. The shortage of
aircraft has forced Emirates to delay the opening of new routes and shift
aircraft with different cabin layouts through the system, leading to a
sometimes inconsistent product offering.
With the second terminal opening next year and the third
building slated for usage in 2010, much of the crunch should be relieved and
Emirates can start to build up its gigantic A380 fleet. But as far as the
route network is concerned, "we have only seen the tip of the iceberg," says
Emirates President Tim Clark. And so he has to hope that one of the largest
construction projects underway in Dubai does not face similar delays: Djebel
Ali airport--now promoted as Dubai World Central--is scheduled to open as a
cargo airport initially next year. But in its final expansion phase, it is
supposed to accommodate 120 million passengers annually through six runways.
Jebel Ali move
expected by 2016
20 March 2007
Emirates could relocate its entire
operation from Dubai International airport to the city's new development at
Jebel Ali in the middle of the next decade, if proposals to accelerate the
huge infrastructure project are agreed.
The initial phase of Dubai World Central
(dubbed "JXB") at Jebel Ali is due to open next year and the airport will
eventually incorporate six parallel runways and additional terminals to give
it an annual capacity of 120 million passengers by 2030.
Emirates Airline president Tim Clark says
that he hopes discussions will start in "a couple of months" about
accelerating the airport's development. "The existing airport will be
reaching maximum capacity by 2013, so by 2016, we should be moving to Jebel
Ali," he says.
Emirates eyes head start for its A380
preparation
20 March 2007
Emirates hopes to gain extra time to
prepare for next year's service entry of its A380 fleet if Airbus can remain
ahead of schedule with the completion of its first aircraft.
The Dubai-based airline's first A380 is
MSN011, which is due for delivery in August next year. The aircraft was
structurally completed at Toulouse by early 2006, but has been undergoing
reworking along with other early-build A380s following wiring problems.
Emirates Airline president Tim Clark says
an audit by Emirates of the rework and completion effort, as well as
information provided by Airbus, indicates the first aircraft could be
completed early next year, slightly sooner than Airbus had previously
forecast.
Clark says the first plane could be ready
by January or February. Emirates could still take delivery in August, but
the earlier availability would allow the airline to undertake extensive
systems checks and be used for crew training in Toulouse.
However, Clark cautions that MSN011 is
still to have its buyer-furnished equipment installed, and with the prospect
of possible industrial action at Airbus, the schedule could still change.
Emirates has a 1 November 2008
service-entry target, by which time it should have received its first three
A380s. Leading launch destination candidates include London, New York and
Sydney.
Latest updates
to Emirates schedule
18 March 2007
A few developments
that are expected in the new summer schedule on Emirates Airline network
Johannesburg will
initially get four extra 77W flights a week from 3 June 2007. Under the new
bilateral agreement with South Africa Emirates have also been granted rights
for a daily Cape Town service. This is unlikely to start until late this
year or early 2008. Expect to see a build up in fights to South Africa
before the 2010 World Cup.
Beijing will go
double daily with a 340-300. Shanghai is also expected to become double
daily. The second China flights each day are likely to be timed to connect
to and from the new Johannesburg flight.
As previously
mentioned new services start to Sao Paulo (six a week), Venice, Houston
(initially three a week) and Newcastle.
Also expect
Jakarta to become double daily; at the moment there are 10 flights a week.
An announcement is
expected on March 20th about additional rights for Emirates operating into
Australia. Expect Brisbane to have a non - stop flight by year end with an
A340-500; Brisbane would then match Sydney and Melbourne with two daily
flights, one non-stop and one operating via Asia.
Emirates A380
woes
17 March 2007
Emirates President
Tim Clark has said that the operating costs of its A380 fleet will be higher
than originally planned due to an extra six tons of weight which will cost
the airline extra money in operation for the next 10 or 15 years.
Emirates' 45
A380s, which constitute a $15 billion investment, each should generate $200
million for the airline annually. The weight issues are compounded by the
money EK is losing because of the program's delay. Emirates will take
delivery of its first A380 in August 2008, 21 months later then scheduled.
Originally by August 2008 the airline would have had 18 A380s already in
service, with each vehicle flying 15 hours a day and transporting 500-600
passengers.
Emirates and
Airbus are nearing a delay compensation agreement. Meanwhile a Boeing sales
team was in Dubai about two weeks ago to discuss the 747-800
Intercontinental, which Emirates apparently like but which would not be able
to fulfill certain missions important to the carrier, like nonstop Dubai-Los
Angeles service with 400 passengers and a full cargo payload.
Airbus are
presenting their final A350 XWB version to EK next month. Airbus received a
big boost with a substantial order from Qatar Airways for eighty
A350s.
EK announces Houston from Dec 2007
8
February 2007
Emirates has
announced the December 3rd launch of its new Boeing 777-200LR non-stop
service between Houston and Dubai which will initially operate three times a
week, increasing to a daily service starting February 1, 2008.
Flight EK212
departs Houston (IAH) at 6:25 p.m. on Mondays, Wednesdays and Fridays and
arrives in Dubai (DXB) at 7:35 p.m. the next day.
The return flight EK211 departs Dubai at 9:05 a.m. on Mondays, Wednesdays
and Fridays, and arrives in Houston at 4:10 p.m. the same day.
Currently, Emirates has three daily flights to Dubai from JFK.
Emirates' new non-stop service from Houston further expands its North
American presence, adding a key component to its rapidly growing global
route network by making service to Dubai easily accessible from the
Southwest, West Coast and Midwest regions of the U.S.
In announcing the new service, HH Sheikh Ahmed bin Saeed Al-Maktoum,
Chairman and Chief Executive, Emirates Airline and Group said, "We believe
there is a strong and growing demand for convenient air travel connections
between the U.S. and cities in the Middle East and Indian Subcontinent, as
illustrated by the success of Emirates' services from New York's JFK.
"It has been our intention to expand our presence in North America and the
delivery of our new 777-200LRs aircraft later this year will enable us to
operate these ultra long-haul routes efficiently, while providing our
passengers with the latest comforts and amenities onboard. We very much look
forward to starting services from Houston, our second gateway in the U.S."
On the Houston-Dubai route, Emirates' technologically-advanced 777-200LR
aircraft will offer the latest in-flight amenities, featuring 266 seats in a
three-class configuration with up to 18 tons of cargo capacity. Designed for
optimum comfort on ultra long-haul travel, it will be fitted with eight
luxurious private suites in First class, 42 of its latest lie-flat seats in
Business class, and generous space for 216 passengers in Economy class.
Emirates will also operate the flight with two crews onboard, to ensure
passengers receive the highest levels of service and care throughout the
journey.
When launched, the Houston-Dubai non-stop service will also be one of
Emirates' longest flights -- at just over 15 hours flying time to Dubai,
while the longer return journey will be at 17 hours flying time.
Passengers in all classes will enjoy the award-winning service from
Emirates' international cabin crew recruited from over 100 countries around
the world, meals prepared by gourmet chefs, as well as the airline's
cutting-edge 'ice' (information, communication, entertainment) system, which
offers a selection of over 600 channels of entertainment on-demand and the
ability to send and receive email and text messages from their personal
in-seat entertainments systems.
In addition to Houston, Emirates has already unveiled plans to start
services in 2007 to Venice in July, Newcastle in September, and Sao Paulo in
October.
EK to Brazil from October
24 January 2007
Exciting times for
Emirates as it announced
yesterday
that it would become the first Gulf airline to break into the Latin American
market in October with direct flights to Sao Paulo, Brazil.
Emirates will fly six days a week
from Dubai to the commercial centre of Brazil once it receives the first of
its new fleet of Boeing 777-200LR aircraft this summer.
The nearly 15-hour flight will be
the first-ever non-stop service between South America and the Middle East
and will allow Emirates to connect travellers to South America to its
network of 14 destinations in the Middle East as well as its routes to the
Far East and the Indian subcontinent.
Spare a thought for the flight
deck and cabin crew; a near 15 hour flight on a 777 is a long haul indeed.
It is interesting to note that airlines like Singapore Air fly their 15 hour
flights with a premium economy cabin offering larger seats and more legroom
than the standard economy class. Emirates will still configure its 777-200ER
economy class in its crowded narrow aisle 3-4-3 configuration.
Sao Paulo is the commercial heart
of Brazil and a key financial and industrial centre in Latin America.The new
link is expected to stimulate more trade and tourism between the two
economies and be well received by business and leisure travelers.
Experts are predicting that
Emirates could expand even further to the Americas this year, with Toronto,
Canada, and Buenos Aires, Argentina, as likely candidates. Emirates
currently serves the region with three daily services to New York.
Emirates' new long range Boeing
777s will offer eight private suites in first class, 42 lie-flat seats in
business class, as well as 216 passengers in economy class. The aircraft
will also carry up to 18 tonnes of cargo.
Flight EK261 will depart from
Dubai at 09:30am daily except Thursday, and arrive in Sao Paulo at 6pm. From
Sao Paulo, flight EK262 will depart at 1:25 am daily except Friday and
arrive in Dubai at 11:05pm.
Emirates goes
to Tyneside
12 January 2007
Newcastle is to
become the newest addition to the
Emirates route network. The airline has announced that it will start
daily non-stop services from the north-east airport to its hub in Dubai from
September 1. The service will be Newcastle’s first ever scheduled long-haul
service.
Vic Sheppard,
Emirates' vice-president UK & Ireland, says: “We firmly believe there is a
significant potential market for Emirates in the North-East – one that
currently remains largely untapped – and believe this new route will prove
hugely successful for both Emirates and the North-East. With the involvement
of the local community, it has the potential to boost inbound trade and
tourism, whilst also helping to foster strong trade and tourism links
between the North-East, Dubai and other destinations we serve.”
Flight EK036 will
depart Newcastle International Airport each day at 1340, arriving into Dubai
International Airport at 0005 the following day. The return flight, EK035,
is scheduled to depart Dubai at 0720 every day, arriving in Newcastle at
1210. The service will be operated by an Airbus A330-200 aircraft.
Emirates bullish for 2007
4
January 2007
Spokesperson:
Mike Simon, divisional senior vice president corporate communications,
Emirates Airline and Group
Plans for
2007?
In 2007, Emirates will continue to expand its operations, supported by the
completion of several new major facilities, including: the opening of Dubai
airport’s new Terminal 3 dedicated to Emirates' passengers; a new cargo mega
terminal; new flight catering kitchens; new crew training centre and a new
corporate head office building for the expanding workforce. Emirates will
strengthen its route network with the addition of several new destinations
and will increase flight frequency and capacity on high-demand routes. The
airline expects to continue receiving one new aircraft per month on average.
The Emirates Hotel and Resorts division expects to launch its $82 million
Emirates Marina Serviced Apartments and Spa in Dubai by mid-2007. This will
be the company’s second hospitality property after the Emirates Al Maha
Resort and will offer 251 apartments and eight penthouse suites.
Is
Emirates bullish about 2007? Why?
Global demand for air transport services has
been growing steadily and Emirates believes this trend will continue. In
fact, demand for travel has proved resilient despite several shocks in the
past five years to the air travel industry from terrorism, health scares and
high fuel prices. Emirates rather wishes it could fast-track the delivery of
the 90 plus new jets on order, as it is confident it can fill them. For
Emirates, business is booming and it is confident that this will continue
into 2007.
For business or leisure, Emirates find that people today want to travel more
often and further in greater comfort and in a shorter time. This demand for
air transport is being driven by global economic growth and the availability
of instant information via the internet or satellite, rising incomes mean
people can now better afford to travel and the instantaneous flow of
information stimulates travel demand by opening new possibilities for a
mobile workforce, international trade and the leisure traveller. IATA
forecasts that international air travel will continue to expand at an
average annual rate of 4.8 per cent between 2006 and 2010, while air freight
traffic is expected to continue growing at 5.3 per cent annually on average.
Strategy
in the face of competition?
Competition is nothing new to Emirates, being
based in Dubai, where it competes with over 100 airlines under an ‘open
skies’ policy with no protection or subsidies.
Emirates takes all competition seriously, but does not spend a lot of energy
monitoring its competitors. The carrier prefers to focus on its resources on
finding out what its passengers want and then delivering these demands.
Emirates is investing millions to enhance the entire travel experience with
new services onboard and on the ground. The aim is to provide customers with
the best value for money. This means providing them with high quality
service and a competitive product at reasonable prices.
New for
passengers?
Emirates is set to become the first airline to offer passengers the option
of using their own mobile phones onboard in 2007. Emirates is also
developing a new children’s product to be introduced in the next 12 months,
which will include nutritious meals, puzzles and toys. More travellers can
look forward to enjoying lie-flat business class seats on long-haul routes,
a refreshed cabin interior and the 600-channel ‘ice’ entertainment on-demand
system throughout the entire fleet.
New
markets?
Emirates is fortunate to be based in Dubai, where its geocentric location
allows it to potentially serve a large catchment area of some 5.5 billion
people within an eight-hour flight. It is no secret that the airline would
like to expand in the Americas. The airline is also hoping to strengthen its
operations in Australia, Africa and several cities in Europe, as it believes
there is till a lot of under-served demand, if granted the rights.
Emirates to
order mid-size jets
7 December 2006
Dubai: Emirates has plans to order up to 50 or more mid-size jets to fill
a gap in its fleet, a company official confirmed.
Mike Simon, senior vice president of corporate communications for
Emirates, said the airline was talking to Airbus about its new A350XWB and
to Boeing about its 787 Dreamliner to expand its fleet of planes in the 250-
to 350-passenger category.
"It probably would be around 50, or maybe more," Simon said. At around
$150 million per plane according to list price, such an order would come out
to $7.5 billion.
Emirates already has about 100 planes on order, including 43 of the giant
Airbus A380s which are suffering a 22-month delay.
Emirates has given its design preferences to both manufacturers, said
Simon, suggesting that the company that Emirates selects for the contract
may be the one that changes its planes to fit its needs.
'Nitty-gritty'
"We have talked to Boeing and we are hoping that they will eventually
produce a 787 with a longer range and a bit higher [seating] capacity,"
Simon said. He also said Emirates still needed to get into the
"nitty-gritty" and see what the A350 planes could do. "It's still in the
very early stages," he said.
On December 1 Airbus announced it would go ahead with the A350XWB, a
larger, more powerful version of its A350 with a carry capacity of between
270 to 350 passengers.
The first of the A350WXB planes will be ready in 2012, right at the time
Emirates will replace its Airbus A330 aircraft and its older Boeing 777s.
From the Korea
Times
3 December 2006