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    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

    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

    [UAE Country Report] Emirates Airline Flies Sky High

    Emirates Airline, an airline based in Dubai, United Arab Emirates (UAE), is growing at an eye-catching pace.

    Established in 1985 by the Dubai government, Emirates launched operations that year with a pair of leased planes _ a Boeing 737 and an Airbus 300 B4.

    Today the airline boasts an award-winning fleet of more than 90 aircraft, which regularly fly to more than 80 destinations around the world.

    In addition, the 21-year-old carrier is now the world’s third-most profitable airline and has membership in two prestigious clubs _ the world’s 20 largest international airlines and the world’s fastest-growing airlines.

    The annual growth rate of Emirates has never fallen below 20 percent. In its first 11 years, the carrier doubled in size every 3.5 years and has doubled every four years since.

    Emirates, which carried 14.5 million passengers in fiscal year 2005, also has an enviable bottom line. The company has been profitable every year for the past 18 years.

    The Emirates Group, which owns Emirates Airline, announced a record net profit of $762 million with total group revenue of $6.6 billion for the financial year that ended March 31.

    What catapulted the company into the ranks of the world’s top airlines in two decades despite operating in Dubai, where the local population is less than 4 million and there is no domestic air traffic to speak of?

    Behind the success of Emirates is its brisk long-haul business backed by Dubai’s ``open skies’’ policy that permits any airline to fly to Dubai without restriction.

    Using wide-bodied planes, Emirates developed a lucrative market by connecting smaller cities to major cities through its primary Dubai hub.

    Combined with the Emirates’ culturally relevant in-flight services, the intercontinental point-to-point strategy has worked well, helping Emirates evolve into a successful long-haul carrier.

    Emirates is now responsible for more than 50 percent of all flights in and out of Dubai International Airport. It has hundreds of flights every week to 80-plus destinations in five continents.

    Long-Haul Hub

    But Emirates is not resting on its laurels. It looks to advance by jacking up the rate of its flights at Dubai International Airport from 50 percent to 70 percent by 2010.

    Furthermore, the carrier hopes to develop Dubai into a long-haul air transport hub unlike anything seen before.

    The ambitious target may be realistic in light of the geo-strategic location of the second-largest emirate in the UAE.

    Using current commercial airplanes, China, India, Europe and Africa are all within easy reach from Dubai, the UAE’s most populous emirate.

    Up to 5.5 billion people live within eight hours’ flying time from Dubai, and that figure is expected to grow to 7.8 billion by 2050.

    Within a 16-hour radius _ the reach of new ultra long-range aircraft _ Dubai’s air hub could serve a population of 6.3 billion, projected to be 8.5 billion by 2050.

    The potential is enormous. If only 10 percent of the population within the 16-hour radius travel by air and a mere 20 percent of those choose to travel via the Gulf hubs, there would be a user base of some 170 million in 2050 for Gulf operators.

    Then, as the No. 1 carrier in Dubai, Emirates Airline would be in a good position to grow. The airline seeks to capitalize on the momentum and its first goal is to connect Dubai directly to more than 100 cities around the globe by 2012.

    As foreign investment soars in the region, Emirates is in a position to gain and believes that the sky is the limit for its future.

    Young Fleet

    Another strength of Emirates Airline is its aircraft. The firm flies the youngest and one of the most modern fleets in the world, with an average aircraft age of just 61 months.

    This lets Emirates, which has received more than 300 international awards in recognition of its customer service, offer the best in in-flight facilities, entertainment, meals and services.

    The young age of the aircraft results from Emirates’ efforts to offer the best services to its passengers with the latest planes. At the moment, more than 100 new planes are on order.

    Emirates announced it had ordered 42 Boeing 777 planes in a deal worth $9.7 billion at list prices during the ninth International Aerospace Exhibition in 2005.

    That was the largest order ever for the Boeing 777 family of planes. The first plane is scheduled for delivery in 2007. Emirates will also purchase 20 more Boeing 777 airplanes.

    At the Paris Air Show in 2003, Emirates announced the largest aircraft order in aviation history, worth $19 billion, adding a total of 71 new planes _ a mix of Airbus and Boeing _ to its fast-growing fleet.

    Emirates also has strong ties to Korea. The carrier opened an office here in March 2005 and embarked on daily non-stop services from Seoul to Dubai two months later.

    Emirates has nearly 500 Korean cabin crew members and offers a Korean menu that changes monthly and includes dishes such as barbequed beef, seaweed soup, soybean soup and kimchi fried rice.

    Emirates to fly the Aussie cricketers

    23 November 2006

    The Aussie cricketers are justifiably famous for inflight drinking binges; David Boon allegedly holding the record for the most beers consumed between Australia and England in a single flight. So it is not without irony that the Australian crocket team is now to be sponsored by an airline from a Moslem nation.

    Emirates announced yesterday that it has become the official airline of the Australian cricket team for the next three years.

    Rocky Ponting reading carefully from a prepared script said that "from the players' perspective, flying internationally with an airline like Emirates means we'll arrive and get home in the best shape possible. We're really looking forward to flying with Emirates from next year."

    The sponsorship strengthens Emirates' association with Australia and its sporting passions. It does seem to me rather sad that the Aussies are not supported by their own national airlines. At least the English team flew to the Ashes on Virgin Atlantic.

    James Sutherland, Cricket Australia Chief Executive Officer, said the new partnership with Emirates was fantastic news for Australian cricket.

    "Emirates is considered one of the world's premier airlines and we're proud to form an alliance with them as our international carrier for the next three years," he commented.

    "This partnership and the support Emirates will provide to the Australian cricket Team means that they will travel in unparalleled comfort and style when playing abroad, providing them with best preparation possible and helping them maintain the level of success."

    The first major trip the Australian team will take aboard Emirates will be when they head to New Zealand in early 2007.

    Ipods for Emirates

    14 November 2006

    Apple Computer Inc. said Tuesday it its iPod music players will be integrated into the in-flight entertainment systems of six airlines.

    Passengers on U.S. airlines United Airlines, Continental and Delta, as well as Dubai-based Emirates, Dutch carrier KLM and Air France, will be able to power and charge their iPods during flights and watch the video content on their iPods on their seat back displays.

    The service will be available on the airlines beginning in mid-2007.

    A head for heights in Dubai

    There is turbulence at Airbus, but the superjumbo's biggest customer still thinks it can leave the rest of the world behind, Emirates president Tim Clark tells Oliver Morgan

    Sunday November 12, 2006
    The Observer

    Tim Clark would like to see the airline he runs become the biggest in the world. He strongly believes it can be done and is quite forthright in saying so.

    'We could have 300 planes by 2020, why not?' he says. 'Then it becomes the largest international long haul network carrier.'

    Given that 20 years ago this airline was a fledgling operator with a fleet of two - a Boeing 737 and an Airbus A300, both leased - it is quite a claim. However, Emirates, the carrier in question, has become to globetrotters what Ryanair and Easyjet are to city-hoppers - a fast-growing challenger to formerly nationalised airlines. From its small beginnings, it now has 100 planes - still less than half of British Airways' 284 - but it has doubled in size every three to four years since 1985 and has become familiar through aggressive marketing that Chelsea and Arsenal fans will recognise.

    Until recently, the plan was to add a further 50 planes by 2012-13, including 45 550-seat Airbus A380 superjumbos, but this has been thrown into question because of problems at the Toulouse plane-maker. These began with difficulties with wiring systems and ended with the resignations of two Airbus chief executives and a boss at its parent EADS this summer.

    The problems, which have caused three sets of delays to A380 deliveries, have propelled Clark, president of Emirates, and technically number three at the airline, into the international spotlight.

    Rather than vice chairman Maurice Flanagan, or the ultimate boss, chairman and chief executive Sheikh Ahmed bin Saeed al-Maktoum, Clark has moved to centre stage to take the flak and send some back to Airbus. It has enhanced his reputation as a plain speaker and boosted his profile, which is important in an organisation as political as Emirates.

    He faces a dilemma: as the A380's biggest customer, Emirates is essential to Airbus, but as a $15bn investment, the A380 is also essential to Emirates. He says: 'This plane was critical to growth post- October 2006.'

    The reason is that the A380 fits the profile of Emirates' routes - capable of carrying high volumes from its Dubai base to international 'hub' airports such as Sydney, Hong Kong, Shanghai, Kuala Lumpur and to the US, where capacity is often constrained.

    Emirates was due to take its first A380 this autumn, and is set to be flying 18 of them by August 2008, the new target date. Clark says this will cost between 10 and 13 per cent of revenues until then. On expected revenues this year of between $7bn and $8bn, that could mean from $700m to over $1bn a year.

    So Clark is desperate for the planes. His problem now, he says, becomes managing the growth he expects without the 'massive capacity uplift' provided by the A380.

    His first priority is to get to the bottom of the problems at Toulouse. He is 'confident' that Airbus will be able to get back on track by 2012/13, but he does not rule out another delay, and so has contingencies in place. 'We are trying to get hold of five more [long range] Boeing 777 ERs. We have to - just in case the A380s are late again.'

    There are other pressures. Competitors in the Middle East, such as start-up Etihad and Qatar Airways, are looking to emulate Emirates' growth. There are questions over capacity at Dubai: the existing airport is set to grow to handle 70 to 80 million passengers a year, but even that would constrain the kind of growth Clark has in mind. He believes plans for a new six-runway airport at Jebel Ali capable of handling 147 million passengers a year are vital for that development.

    Clark has a wry confidence, attributable, perhaps, to more than three decades in the industry. He describes setbacks as 'accidents' and 'hiccups' and expresses hope that there will be support for expansion from the Maktoum family. (The Maktoums control the government, which owns the airline and regulates it.) He ought to know: he has worked with them since 1985, when he joined the airline as one of its founding team.

    He says the Maktoums have been supportive, but have not written blank cheques. 'Sheikh Mohammed [the founder] had a clear vision of what he wanted. He gave us strong rules: I will give you $10m, you will not be protected, there will be no subsidies, you will make profits. I was there and I wrote those rules into a business plan.'

    Emirates says it has made profits in every year except its second.

    Clark says Emirates has stood on its own since, avoiding the global alliances into which many national flag carriers grouped themselves. Its competitors point out that it has been able to avoid many of the legacies they face. They add that it benefits from low labour costs and light regulation, does not have strikes because they are banned and does not face serious pensions issues. Sheikh Ahmed, for example, combines his role as Emirates chairman with presidency of Dubai's Department of Civil Aviation.

    This may be true, but Clark says the airline's key asset is Dubai itself, where Emirates carries 50 per cent of passengers. 'In the Eighties, Dubai was treated as a stopover by the major airlines. When Emirates came along, we talked about Dubai as a destination. At that stage we did not have the global ambitions we have today, but as we moved eastwards we began to see traffic cross-flows, and as we ran bigger aircraft from Dubai we realised there was a real market there.'

    At the same time, he says, Emirates tried to make its name by being the first to introduce TVs on board and chauffeurs for business class passengers.

    By the mid-Nineties, the internet and globalisation created demand for travel in countries that had never previously been considered markets - such as Africa and China. 'The internet changed the way we all lived. Instead of Africa being perceived as poor and aggrieved, there was a huge amount of business they realised they could suddenly do.'

    Dubai could play a part in serving emerging eastern economies. Meanwhile, competitors note, it can fly passengers from Asia to the US, bypassing all European airports. Clark believes the centre of gravity in aviation is moving east and will continue to do so.

    As if to prove a point, Emirates has also invested in Sri Lankan Airlines - it bought a stake in 1998 and holds 40 per cent of the company.

    Meanwhile, it has resisted taking the advice of the markets and bankers to buy a big European carrier like BA. Clark says: 'We do not have any intention of doing that.' However, he adds: 'As an entrepreneur, if I was looking at something like BA, its market cap is attractive, it is one hell of an airline, it has fantastic political grandfather rights, its fleet needs upgrading.' And then he stops.

    As a self-acknowledged 'coal-face man', he wants to grow organically. This year, Emirates is expected to carry 7 million passengers. Pointing to Emirates' record of growth, he says: 'Things can double up very quickly; it does not take long to get to 45 million passengers.' The target is to reach 40 million between 2012 and 2015.

    'But we can do more,' he continues, coming back to the new airport at Jebel Ali. If this were built, he believes Emirates could become the world's biggest carrier. But he is mindful of the politics of working in a company owned by a government that is controlled by a ruling family. 'It is not for me to say. It is up to the ownership to decide.'

    What would he advise them? 'We will put to them the possibility that they could do this,' he says. And the alternative? Clark says with a wistful smile: 'Then we don't have Jebel Ali, we limit ourselves to 160 aircraft and we will continue to fly them around the world.'

    The CV

    Name Tim Clark

    Job President, Emirates Airlines

    Education and awards London University, degree in economics; Fellow of the Royal Aeronautical Society

    Career 1972, joined British Caledonian; 1975-1985, Gulf Air, Bahrain; 1985, joined Emirates on its launch as head of airline planning, later becoming president; now also managing director of Sri Lankan Airlines

     

     

     

     



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