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Emirates posts new record profits - Press release

30 April 2008

Eleven airline have already ceased operating in 2008; which means the 2007/8 financial results from Emirates for the year to 31 March 2008 are quite remarkable. The press release follows: the airline also declared a profit share of 14 weeks of base salary for staff. At the top end of staff expectations this should be suitably motivating!

"· Group profit up 54.1% to AED 5.3 billion (US$ 1.45 billion)
· Airline profit up 62.1% to AED 5 billion (US$ 1.37 billion)
· Dnata marks net profit of AED 305 million (US$ 83 million)
· 20th consecutive year of net profit for the airline and group
· Ownership to receive AED 1 billion (US$ 272.5 million) dividend
· Group’s estimated contribution to Dubai economy worth AED 47 billion (US$ 12.8 billion)

DUBAI, UAE, 30th April 2008 - The Emirates Group today reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year.

Group net profits increased 54.1 per cent to AED 5.3 billion (US$ 1.45 billion) for the financial year ended 31st March 2008, on revenues of AED 41.2 billion ($ 11.2 billion) compared to the previous year’s AED 31.1 billion ($ 8.5 billion). The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.

The Group also retained a robust cash balance of AED 14.0 billion ($ 3.8 billion), compared with AED 12.9 billion ($ 3.5 billion) the previous year. Emirates will pay a dividend of AED 1 billion ($ 272.5 million)to its owner, the Government of Dubai. In 2007-08, the Group estimates a direct contribution of AED 22 billion ($ 6 billion), and another AED 25 billion ($ 6.8 billion) in indirect contribution to the UAE economy.

The 2007-08 Annual Report of the Emirates Group – comprising Emirates Airline, Dnata and subsidiary companies – was released in Dubai today at a news conference hosted by His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The Group’s latest record performance reflects its success in growing customer demand through the strategic expansion of its business operations across six continents, supported by ongoing investments in the latest technology, products and customer service while keeping a tight rein on costs. This is illustrated by the 21.2 million passengers who flew with Emirates in the latest financial year, 3.7 million more than in the previous year; as well as the expansion of Dnata’s international ground handling operations to 17 airports in seven countries.

Sheikh Ahmed said: “It was another record year for the Group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains.

“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins. Emirates is fortunate to be located in Dubai at the centre of the new Silk Road between East and West.
I believe the threat of an economic downturn will be offset for Emirates by the boom in the Middle East, especially the thriving travel industry of tourism and commerce.”

Fuel costs remained the top expenditure for the 4th year running, accounting for 30.6 per cent of total operating costs compared with 29.1 per cent the previous year and 27.2 per cent the year before.

The airline’s fuel risk management programme continued to reap rewards, saving the company AED 888 million ($242 million) in 2007-08, as WTI crude oil prices hovered around the US$ 90 per barrel mark in the second half of the fiscal year, 50 per cent more than US$ 60 per barrel in the same period the year before. In total, the fuel risk management has saved in excess of AED 3.7 billion ($ 1 billion) since the financial year 2000-01.

In his opening review in the 2007-08 Annual Report, Sheikh Ahmed highlighted some major milestones for the Group which included the move of most of the company’s Dubai-based staff to the new Emirates Group Headquarters; the launch of 11 new passenger and freighter destinations across the globe including Emirates’ first South American destination; and the massive 2007 Dubai Air Show aircraft order which has been described as the largest in civil aviation history worth US$ 34.9 billion at list prices.

He also noted that the continued ability to attract and retain the best talent for the company’s growing requirements will be one of the Group’s biggest challenges.

He said: “As we plan for the next decade, our biggest challenges will be to find more pilots, engineers, cabin crew and skilled staff across our various business units. Fortunately, Emirates has thus far been a strong employer brand, with more than three million unique visitors browsing job opportunities on our online recruitment website last year, from which we received over 288,000 applications for positions within the Group. Being based in Dubai also has its advantages as the city itself is already preparing to welcome 15 million visitors by 2010 and there is massive investment in infrastructure to serve and attract the increasing number of expatriates.”

He also reiterated the Emirates Group’s support for Dubai’s new low cost airline which has been established as a separate entity from the Emirates Group; and remarked on competition in the region, saying: “This is a big cake and admittedly, Emirates has a big slice of it, but there is plenty for the other airlines and we welcome them to the region.”

Sheikh Ahmed concluded: “The Group’s excellent performance this year is very satisfactory. As with previous years, we do not intend to rest on our laurels. We plan to secure our future growth by investing in the latest technology and products, so that we can continue to provide our customers with the high quality experience that they have come to expect from us.”

Emirates Airline’s revenues totalled AED 39.5 billion ($ 10.8 billion), an increase of 32.3 per cent from AED 29.8 billion ($ 8.1 billion) the previous year. Airline profits of AED 5 billion ($1.37 billion) marked a 62.1 per cent increase over 2006-07’s record profits of AED 3.1 billion ($844 million).

This result was due to improved yields and higher load factors on increased capacity; as well as other operating gains.

In 2007-08, the airline’s fleet expanded with 11 new Boeing 777s delivered, including Emirates’ first 777-200LR passenger aircraft. At the end of the financial year Emirates’ fleet reached 114 aircraft, including 10 freighters, boasting an average age of 67 months – one of the youngest commercial fleets in the skies.

The record aircraft order at the 2007 Dubai Air Show brings Emirates’ total order book, excluding options, to 182 aircraft at the end of March 2008, worth approximately US $58 billion.

During the year, the airline launched passenger services to seven new destinations - Newcastle, Venice, Sao Paulo, Ahmedabad, Toronto, Houston and Cape Town - and strengthened its existing network by adding services onto existing routes most notably to high-demand cities in China, India, Middle East and Africa.

Passenger seat factor increased to 79.8 per cent from 76.2 per cent the previous year. Traffic increased faster by 16.6 per cent to 14,739 million tonne kilometers as compared to the capacity increase of 13.7 per cent to 22,078 million tonne kilometers. While yield improved for the sixth consecutive year to 236 fils (64 US cents) per RTKM (Revenue Tonne Kilometre), up from 216 fils (59 US cents) in 2006-07; high jet fuel prices and rising costs drove breakeven load factor up to 62.7 per cent from 59.9 per cent last year.

Emirates continued to enhance its products in the air and on the ground, completing the refurbishment of four Boeing 777 classic aircraft with its new First, Business and Economy Class seats, as well as the latest ice inflight entertainment system with 1,000 channels on-demand.

On the ground, chauffeur drive services were expanded to operate in about 40 destinations - including the first offline city in Lugano, Switzerland, and in Venice where an innovative adaptation saw luxury powerboats used for the airport transfers. Emirates also continued to develop its dedicated lounge product around its network, launching its latest in Brisbane that offers stunning 360 degree views and is the first in Australia capable of boarding passengers directly from lounge to the aircraft, including to the upper deck of an A380.

Skywards, Emirates’ frequent flyer programme, welcomed its 3.4 millionth member over the course of the year. It also launched The Emirates High Street, an exclusive mail-order catalogue where Skywards Miles or credit card payment may be used to purchase unique items from a wide range of upmarket merchandise.

The airline’s internet and e-commerce gateway, www.emirates.com, was redesigned and launched across 76 different sites in 10 languages, offering improved online booking features and a more user-friendly experience.

Emirates SkyCargo performed well in what was a turbulent year for the air cargo industry, marking healthy revenue and tonnage carried despite high fuel prices, a U.S. slowdown from the sub-prime crisis, and bad weather affecting agricultural production in key areas. The division carried 1.3 million tonnes of cargo, an improvement of 10.9 per cent over the previous year’s 1.2 million tonnes and recorded a revenue increase of 20 per cent to AED 6.4 billion ($ 1.8 billion), up from AED 5.4 billion ($ 1.5 billion) in 2006-07.

Cargo revenue contributed 19 per cent to the airline’s total transport revenue, yet again one of the highest contributions of any airline in the world with a similar fleet. During the year, Emirates SkyCargo introduced freighter-only destinations to Djibouti, Hahn, Toledo and Zaragoza. At the end of the financial year, the freighter fleet was 10 aircraft – five leased and five owned. In all, Emirates SkyCargo carried freight in 114 aircraft, including bellyhold space in the passenger fleet, to 99 cities on six continents.

The Destination & Leisure Management division of Emirates Airline had another billion-dirham year, reaching sales of AED 1.4 billion ($382 million), bettering its 2006-07 performance by 22 per cent. Arabian Adventures and Emirates Holidays cared for a total of 397,000 tourists, an eight per cent increase. Arabian Adventures also played host to 297,000 visitors to Dubai over the year, up 13 per cent from 2006-07.

Emirates Hotels & Resorts expanded from its original Al Maha property into a multi-property hotel operation with International Central Reservations, a Corporate Sales and Business Development unit, global online distribution systems and support services for the design and development of its growing resort portfolio.

The Harbour Hotel and Residence in Dubai Marina opened its doors in November 2007, quickly earning a reputation for quality and increasing occupancy to 85 per cent within three months. Al Maha retained its position as one of the world’s most successful small luxury resorts, recording an average occupancy rate of 78 per cent.

Operations geared up for the opening in May 2008 of Emirates Hotels & Resorts’ luxury Green Lakes Serviced Apartments; and construction began on the conservation-based Wolgan Valley Resort & Spa in Australia’s Blue Mountains, scheduled to open end 2009; and Seychelles’ Cap Ternay Resort & Spa entered the detailed design phases for its late 2010 opening.

Dnata recorded strong revenue growth of 27.2 per cent to AED 2.6 billion ($718 million), compared with AED 2.1 billion ($565 million) the previous year. Profits reached AED 305 million ($83 million) despite a challenging year for airport and cargo operations with ongoing construction at Dubai airport and peak traffic congestion.

As Dnata moves into its 50th year of operation in 2008, it remains at the core of Dubai’s rapid traffic growth, handling 119,510 aircraft (up nine per cent), 35.6 million passengers (up 18.4 per cent), and 632,549 tonnes of cargo (up 18.2 per cent).

During 2007-08, Dnata continued to expand its international ground handling operations, investing in ground handling businesses in Switzerland, Australia and China, to bring its reach to 17 airports in seven countries. It opened FreightGate-5 in Dubai Airport Freezone to handle premium freight, and also saw operations at Dubai Terminal 2 increased with the opening of a 37,000 square foot extension that will serve 700 more flights per week and an annual throughput of approximately 5 million passengers.

Through investments in staff, technology and marketing, Dnata Travel Services continued to win new retail and corporate customers to report revenue growth of 26 per cent. It expanded its retail presence across the UAE with seven new outlets including a one-stop travel shop in Abu Dhabi, extended its successful Holiday Lounge concept to new locations across Dubai, signed new GSA representation contracts, and broadened its portfolio of travel products services with innovative new offerings such as Camel Polo by Gulf Ventures.

In all, the Emirates Group’s Facilities/Projects Management department commissioned and opened AED 2.12 billion ($578 million) worth of new buildings during 2007-08, including the impressive new Emirates Group Headquarters, the Engineering Centre, Dnata Cargo’s Free Zone Logistics Centre, The Harbour Hotel & Residence, and a new crew training college. Projects currently in progress total AED 3.9 billion ($1.1 billion), including new buildings in Dubai such as the Destination & Leisure Management Annexe, Emirates Call Centre and staff accommodation at Ras Al Khor, Al Majan and Media City.

As of 31st March 2008, the Group employed 35,286 staff, representing 145 different nationalities. During the year, the Group hired more than 7,000 people including some 2,000 cabin crew and 400 new flight deck crew."

 Thailand's next coup?

29 April 2008

The Bangkok Post reported yesterday on the Thai Prime Ministers growing paranoia about the timing of Thailand's next coup; the risk is that if he says it enough it will in fact happen.

"After a week rife with rumours of a military coup, Prime Minister Samak Sundaravej on Sunday charged that forces aligned against his government are trying to goad the army into seizing power again.

In his weekly TV address, Mr Samak said there were attempts afoot to remove him from the prime minister's seat and to discredit him, just like former prime minister Thaksin Shinawatra had faced.

"(They) want to trigger it again. (They) think that after triggering it, the military will stage another coup... But I say that would be difficult. There would not be a reason" for another coup, Mr Samak said.

The People Power party leader said the satellite-based ASTV channel, which supports the People's Alliance for Democracy (PAD), accused him of disrespecting the royal institution. He claimed there were attempts to stir up people and create the conditions for another coup, and said he would not let it happen.

The satellite station is run by Sondhi Limthongkul, one of the PAD leaders.

Mr Samak said it was fair for him to use the state-run media to counter such an accusation and to defend himself.

Pracha Prasopdee, a PPP MP for Samut Prakan, echoed Mr Samak's claims the PAD was creating the conditions for another coup. He also denied that the government was trying to amend the constitution just to prevent the dissolution of three coalition parties.

The 2007 constitution allows the dissolution of political parties if any of their executives break the election law. Executive members of PPP, Chart Thai and Matchimathipataya, all coalition parties, were accused of vote buying in the Dec 23 election last year.

PAD coordinator Suriyasai Katasila said the PAD had not done anything to encourage another coup, and was opposing the government's attempt to amend the constitution by peaceful means.

However, the PAD was trying to warn the government not to take any action or create any conditions that could lead to another coup, he said.

The PAD called on the government to ask the public through a referendum whether voters agree with its bid to amend the constitution.

A referendum should prevent another coup and at the same time stop the constitution from being ripped apart, Mr Suriyasai said.

EOS to cease operations

27 April 2008

There is yet another casualty in the aviation industry with all business class carrier - EOS Airlines - declaring bankruptcy and ceasing operations with effect from today. The business class-only airline is planning to operate its final flights between London's Stansted Airport and New York's Kennedy Airport today.

Chief Executive Officer Jack Williams said in a statement that the "challenging economic and credit environment" forced the company to file a voluntary petition for Chapter 11 bankruptcy.

The airline launched round-trip service for business travelers from New York to London in 2005. It was recently in talks to secure a $50m (£25m) cash injection in the hope of breaking even next year. This obviously fell through.

Media reported that a filing with America’s Department of Transportation shows that the airline lost $37m in the first nine months of last year on sales of $53m.

Since starting flights in October 2005, it had raised $212m from US investors, including Golden Gate Capital, Sutter Hill Ventures and Maveron, a venture-capital firm co-founded by Howard Schultz of Starbucks. According to the filing, the company had net assets of $97m at the end of September.

Silverjet, the British airline that is Eos’s main rival, has seen its shares slump in recent months. It said it had received approaches that could lead to a takeover bid. Failing a trade sale, Silverjet may be the next casualty.

EOS had been planning to expand operations to Dubai. Silverjet already flies to Dubai. Their failures are of course all good news for cash rich Emirates as it protects its premium business to the UK

Freerice.com

26 April 2008

CNN had a profile on www.freerice.com earlier today. It is a sister site of the world poverty site, Poverty.com. Am happy to promote a very worthwhile initiative here.

FreeRice has two goals: to provide English vocabulary to everyone for free and to help end world hunger by providing rice to hungry people for free.

This is made possible by the sponsors who advertise on this site. Whether you are CEO of a large corporation or a street child in a poor country, improving your vocabulary can improve your life. It is a great investment in yourself. Perhaps even greater is the investment your donated rice makes in hungry human beings, enabling them to function and be productive. Somewhere in the world, a person is eating rice that you can help provide.

One-stop curio shopping in Bangkok

Steve Burgess Calgary Herald

26 April 2008

Looking for a bookshelf? Some Thai silk? A pet squirrel? Or a sacred Tibetan Buddhist relic made from the actual skull of a monk? Maybe a tea cosy?

There are few places in the world where the above list could be considered one-stop shopping. Perhaps only one--the Chatuchak Weekend Market in Bangkok. It's one of my favourite places in the world. Not that I'm particularly fond of squirrels, or anything. But if I wanted a few, Chatuchak would be the place to go. The sprawling maze of stalls and vendors covers 35 acres on the outskirts of Bangkok, and according to various estimates includes anywhere from 9,000 to 15,000 different merchants. With time, perseverance, and maybe a good compass, you can find almost anything you're looking for. But what makes the market so fascinating is the stuff you weren't looking for. Until I encountered them at Chatuchak, I certainly wasn't looking for Tibetan skulls. Is anyone?

I first visited Chatuchak--also referred to locally as Jatujak, or just J.J.--about five years ago on a typically hot Bangkok afternoon. Like most newcomers, I was overwhelmed. There's really no choice. On a warm, humid day this commercial labyrinth can be both intimidating and suffocating. The close air and even closer throngs of browsers navigating through the web of narrow aisles will cause more than a few first-timers to flee or faint. There are wider thoroughfares between sections though, and unless the heat is truly unbearable that day the market, which is mostly covered, isn't so bad. On my last visit the January temperatures were hovering around the low thirties and the atmosphere inside Chatuchak was downright pleasant. Hydration is key, but don't worry--there are plenty of people ready to sell you any beverage you want. And maybe a pet squirrel.

Bangkok traffic is murderous but thanks to modern transport, Chatuchak is no longer a difficult place to reach. The quick, efficient Skytrain whisks you to the terminal Mo Chit station, a short walk from the heart of the market; and the even newer subway system (MRT) plunges you right into the thick of it via the Kamphaeng Phet stop (locals were slow to accept the subway on account of a fatal accident shortly after the long-delayed system opened, but they seem to have overcome their initial reluctance).

The Kamphaeng Phet MRT stop offers one big advantage--it leads you almost directly to Ann Wisaijorn's Green Chili Restaurant. After disembarking at Kamphaeng Phet take the Chatuchak Weekend Market exit (#2), go up the escalator, do a U-turn to the right and make your way to the far end of the food court. If Chatuchak held nothing more of interest, the Green Chili would be reason enough to visit. Occupying nearly one-half of the court located at market gate 29, Green Chili has expanded as its reputation has grown. Wisaijorn starts cooking her sauces, soups and broths on Tuesday just to have it all ready for the weekend. It's the kind of old-fashioned Thai cooking that locals tell me is increasingly hard to find in Bangkok. A lunch of favourites like Penang Moo and crispy fish with rice will prime you to plunge into the maelstrom that is Chatuchak. (While you're at it, stop at the nearby juice stall to grab a bottle of the extra-sweet, fresh-squeezed juice made with Thai oranges. Only a dollar for a large bottle. It's my favourite local drink.)

Chatuchak is built for serendipity. The easiest thing to do is wander aimlessly; the hardest is to find a specific stall you're looking for. It can be done--there are addresses marking section and lane numbers at each corner, and each shop is numbered. But this place will challenge the best orienteers. At least I imagine so. As someone evidently born without any navigational brain parts, I can only speak for myself.

Luckily, wandering brings endless fascination. There is a great deal of duplication among merchants, particularly in specific market neighbourhoods. But turn a couple of corners and you'll be in some different world, crossing boundaries between lacquered handicrafts, handmade furniture, ornamental fountains, Afghan jewelry, incense, silk draperies, electric fans, handmade candles, flowers, tailor-made fashions, electronics, sculpture, religious objects, puppets, housewares, cafés, restaurants, bars, Tibetan jewelry, lapis lazuli, precious stones, insects (live and fried), puppies, kittens, birds, and exotic animals. And yes, a woman with a cage full of sleepy squirrels.

The animal trade represents one of the dark sides of Chatuchak. Periodic police raids target dealers in endangered species. You're still in Bangkok after all, and in one of the complex and mysterious parts of it at that. In a place as Byzantine as this, there is bound to be much that goes unseen by passing tourists.

Among the things unseen--two items, wrapped in newsprint, pulled from an old trunk in a Tibetan antique shop at my request. My eye had been drawn to the unusual vessels on display in a corner stall--vases, jugs, dishes, made from something I could not identify. "What are they made of?" I asked the proprietor. He rapped on his head. "Skull," he said.

After waiting some minutes for my lower jaw to snap shut, I enlisted a passerby to help me translate. These items, the owner explained, were derived from the traditional Tibetan "sky burials," in which the dead are left in trees for birds to devour. Afterwards, the bones can be used by artisans to make beautiful objects. It's considered an honour. In fact, only revered monks become the raw material for certain special objects. It was two of these special objects that were now emerging from the old trunk. Once unwrapped and placed on elaborate brass stands, they are revealed in all their glory: elaborate metal faces with glass eyes and headdresses made of coral and turquoise stone. They are meant to represent the Monkey King of popular Buddhist mythology. But underneath the metalwork and colourful decoration are the skulls of beloved Tibetan monks.

There are flowers too, if you prefer. Just keep walking--you'll find it all eventually.

Insider's Tip:

How to get your tchotchkes home: Buying is one thing--getting your stuff home is another. Shipping companies are dotted throughout the market and they've handled it all. Air freight is fast and usually door-to-door. But shipping by sea, while much slower, is the cost-effective choice for big stuff. When you ship by sea you can fill a crate and are charged by volume rather than weight. However, you will probably have to arrange transport from the port to your door.

Emirates- new long range 777s enable American expansion

26 April 2008

From: Anna.aero is produced by PPS Publications Ltd, the world’s leading airports industry publisher.

With deliveries of the ultra long-haul Boeing 777-200LR (configured with 266 seats in a three-class layout), non-stop flights to most of North America are now possible. Emirates has taken delivery of four 777-200LRs and has a further six on order. Its fleet also includes 32 777-300ERs.

In the six-month period between April and September 2007, Emirates saw passenger numbers climb 23% to 10.3 million. This suggests that in the full calendar year, the airline will have transported around 20 million passengers, the vast majority of whom will have either passed through Dubai, or started or ended their journey there. Traffic has virtually doubled in the last four years as the fleet has grown to over 100 long-haul aircraft, but load factors have consistently remained in the 75% to 80% range and, more significantly, the airline has reported healthy profits.

With deliveries of the ultra long-haul Boeing 777-200LR (configured with 266 seats in a three-class layout), non-stop flights to most of North America are now possible. In the last year, the airline has announced new routes to Houston (which started in December) as well as Los Angeles and San Francisco, both of which will start operating later this year.

Since last July, the airline has either started or announced 11 new routes.

Apart from three new US routes (to complement the existing double-daily New York JFK service), Emirates also started operating to Toronto and Sao Paulo last year to broaden its presence in the Americas.

As a global hub - linking the Americas and Europe with the Middle East, Asia and Africa - it helps that Dubai airport operates throughout the day and night. A closer look at the airline’s schedules reveals the main peaks in terms of arriving and departing flights.

There are two major waves of inbound flights. One is between 23:00 and 01:15 and the other is between 05:00 and 07:00, while the corresponding outbound waves occur between 02:00 and 03:45, and 07:00 and 10:15. Since Dubai is unconstrained in terms of opening hours, many of the flight timings are influenced by curfews and flight restrictions at the destination airport.

Around one quarter of all flights and seats operated by Emirates from Dubai are to just two countries - the UK and India. Six destinations are served in the UK: both major London airports, Manchester, Birmingham, Glasgow and most recently, Newcastle.

A total of nine destinations are currently served in India, with a 10th (Calicut) due to start in July. Emirates serves just four destinations in Germany (Dűsseldorf, Frankfurt, Hamburg and Munich) and would like to serve more. However, Lufthansa has been exerting pressure on the German regulatory authorities to try and prevent the airline from being allowed access to additional markets, such as Berlin or Stuttgart.

China and South Africa both appear in the top six country markets and with the Chinese government investing heavily in various African infrastructure projects, Emirates offers ideal connections between these two regions serving Beijing and Shanghai in China and Johannesburg and Cape Town in South Africa, plus daily flights to Kenya, Nigeria, Ethiopia, Sudan and Tanzania.

Living in Dubai

25 April 2008

This is a post from a crew website written by one of EK's captain's. He is obviously writing about the decision to move to an airline job in Dubai but this is good advise to anyone who is considering a move to Dubai in any industry. There are clearly many frustrations encountered living in Dubai; but most importantly your expereince here will be based in large part on where you are coming from.

"Moving to a new job and a new home (let alone a new country with for some, a very different culture) are two of the most stressful events in life (I think divorce and death (?) are the other two.

Rather than looking at 'happiness' you may wish to investigate the various factors that influence life here. Also, and this is a 'biggy', where do you come from. I have learned a lot over the last couple of years as to the importance of this question.

I have worked with people who, to me, have left good jobs with seniority. But then they tell me about how dangerous their countries are to live in. They find Dubai a safe and refreshing change and EK a decent company to work for.

EK.
It has its frustrations as do most if not all airlines. Some people cope well with them, others don't. For example, the ULR flights are 'killing' me because they mess up my sleep so much and I find the bunks to be totally inadequate. On the contrary I know of some who sleep very well in them and cope adequately with the sleep patterns. When I joined this was not an issue ( we had no 'long' trips) and back then we had very few eastern trips. I now find myself in a state of perpetual fatigue - this ranks high on the list of reasons why I am looking to leave.

My Arab masters have no concern about me and are explicit about this in many ways so I feel little disappointment when I am treated with disregard. If they come to my country they have rights, benefits and the right to citizenship etc. There are many people here who have been born in the UAE and know nothing else, and yet if they cannot renew their visa they have to return to the country of their passport (the next time you hear an arab complaining about the plight of the Palestinians, ask him/her why so many are stateless despite having been born in a 'brother' arab country). My perception is that the society here is two tiered, we're on the lower tier. Hypocrisy is a word that will come to mind too often in this part of the world.

Housing.
EK housing is a pretty good deal on paper and can be in actuality. The company has a tremendous challenge trying to house people let alone keep them happy. However their problem is not yours as one's home is a critical component in the decision mix. By and large you don't get to choose where you live and who your neighbours are. The guy you didn't like flying with maybe your neighbour. You may wish to close out work when you get home but find yourself surrounded by it living in company accommodation. You need to use your imagination to look at the pro's and cons.

If you decide to move out of company accommodation it is very very expensive. A house (villa) will cost you around 200,000 rent annually. Add on the increasing energy and water costs, AND, the property taxes (aka Dubai municipality fee) and your out of pocket expenses become substantial. A colleague went to HSBC about 5 years ago looking for a mortgage. The lady assumed (he was an FO at the time) that his housing allowance was at least 160K per annum when the actual amount was 80K. I think it is fair to say that the housing allowance at the company is grossly inadequate and compared to other expatriate allowances ranks very poorly.

Pay.
How much is enough. Never enough for some. The dirham according to an official statement a week ago, lost 37% of its value against a basket of currencies in the last 5 years. Inflation has 'officially' been running at an average of a little less than 10%. They do not publish the items against which they measure the inflation rate. The papers often refer to the official rate and compare it to the higher assessed rate by a bank or other financial concern. The government has introduced subsidies for locals. A recent article in the Gulf News (weekend section two weeks ago?) spoke of racism against whites when it comes to charging higher prices compared to non-white customers.

Lifestyle.
This one is so subjective. Issues that effect it are your hobbies, friends, what keeps not just you, but your family sane. One colleague who has been here almost nine years can count an average of a different couple they know splitting each year - the wife cannot take it any longer for whatever reason. I fly with some whose families are very happy here. These people (that I know of)are FO's and many, increasingly, come from countries where safety is a real issue. The longer they have been here the more I hear that their plan for staying at EK has changed. What I have heard to be the 3, 5, and 7 year plans. The 3 year is to fulfil the contract, the 5 is to get some PIC (pilot in charge) time (so that they can go to another contract?) and the 7 is to get the full moving expenses. I think another poster described it well when he said that for many, Dubai has a shelf life. It is an 'island'.

Values.
Increasingly not a big issue for many, money has replaced it and in Dubai, money is king. Dubai has become a 'frontier' town. Perhaps it has been for decades but in the 'cut and thrust' of business speculation the property market and other opportunities have attracted life's 'interesting' characters. The demographic is unbalanced as there are disproportionatley a greater number of young people here for a short time. Your friends will take on a greater importance as the rudeness and selfishness level here is beyond anything I have ever experienced. We have clubbed together with other parents to provide books for our children. Public libraries are for the locals and the reading there is either arabic or a very limited supply of 'simple' english titles. Your internet is CENSORED yet your satellite TV channels will routinely show some nudity.

Dangerous driving.
Don't underestimate how significant this is. For some it is a reason not to drive at all. Do not expect justice and you can expect a police force which is so not up to the job of policing. You get what you pay for - most are from other arab countries whose standard of driving pales in comparison to Dubai. You can expect Indian subcontinent drivers to tailgate you at speed - I don't think they have any malicious intent but that they come from a culture where if you give the next guy the slightest chance he'll get in front of you - you can see it when they jump the queue - waiting your turn is not in their culture. The arab drivers are intentionally dangerous - the favourite manoeuver is to tailgate you and when you don't get out of their way in time, they pass you out, then move in front of you and brake. It should be criminal but shows how arrogant they are about their position in society when they can do such things.

Interestingly for all the talk of 'greening' the UAE, the cars don't have catalitic converters. Dust and sand add to the polution mix. Though the construction here is an eighth wonder of the world -it is hard not to be impressed with how fast the infrastructure changes (I'm sure the construction labour has an opinion on that).

Lifeplan.
What do you do after EK. Direct entry captain position are available in China, India and other such places. How long will that last? I am amused by those who say that they will leave for a contract job after getting 1000 hours PIC in their EK aircraft. EK is contract and by contract standards is one of the best companies out there. Contract sounds good until you start looking at what's available out there. How long do you want to be away from your family. A friend of mine was making good money on a contract but now that he is going through a divorce with two children, how much of that money is left - perhaps he'd still have a marriage if he hadn't been away from home so much. I used to think that a Korean contract would be interesting until I did a few 9 day trips with EK and realized that I don't want to be away from my family for such a long period of time. Others have done the family thing and are happier away and for some of those Asia has a certain appeal.

I started off hoping to be close to objective but I think I failed. I am looking to get out, somedays desperately. However where to go is the biggest challenge. If you resign from one of the 'good' jobs you lose seniority and as we all know, even if you were a Chuck Yeager with every type rating in the world you still most likely will start at the bottom as the most junior FO on the list if you get hired by a good company. Could many egos take that after being a 'heavy' captain.

That was long - hope it helps, I don't mean to stir any of the one liner respondents but hoped to give a helpful perspective to those who are making a huge decision ( I was about to lose my job when EK hired me - that's my excuse).

EK feedback

I always enjoy reading the comments from passengers flying EK. There are many reviews on http://www.airlinequality.com/Forum/emrts.htm

Recent comments in the last month: there are some recurring themes. The 10 across seating in Economy is hugely unpopular but seems to be offset by the ICE entertainment system and decent catering. The cabin crew can make or break a flight. The premium class cabins are very inconsistent in terms of quality largely due to different seating and older cabins. The Dubai hub is a mess; the new terminal 3 when it eventually opens should reform the transfer experience.

The comments follow:

Economy - Glasgow to Perth - Our first experience was fine due to excellent cabin crew, decent entertainment and better than average catering.

Business - Gatwick to Jakarta - Business class Gatwick to Jakarta via Dubai and Singapore - a really poor experience with this airline. The planes were old and seats did not fully recline. No toiletries were supplied on the first leg (unlike Qatar Airways for instance). The Gatwick lounge was excellent but Dubai was overcrowded and the ladies' toilets an absolute disgrace. Dubai airport is too small and the transfer to the plane by bus (no business class bus) took 20 minutes of standing uncomfortably. The food on the return journey was of a poor standard and the cabin staff service indifferent. I would not use them again.

Economy - London to Heathrow to Bangkok (via Dubai). All flights operated by Boeing 777-200ER/300ER aircraft. Departing Heathrow, the aircraft was almost completely full, but departed on time. Staff were all particularly miserable and unhelpful and the hot dinner was acceptable, although the meat was grissly.The flight to Bangkok was brilliant and a fairly empty one, too, with about a 30% load, meaning that we could move around. Cabin staff were all very friendly and were present for just about every last minute of the flight, offering drinks, meals and snacks. Both of the return flights were also very full, although not particularly enjoyable. Meals were acceptable, cabin staff appeared very laid back, with many even chewing gum as they served meals. Inflight entertainment with Emirates cannot be faulted - access to hundreds of hours of audio and video entertainment on demand. Unfortunately, the biggest letdown for this airline, and the reason why I will never fly with again is because of their very narrow seats. Unlike any other airline operating this type of aircraft, Emirates has 10-abreast seating in economy class. The 'norm' is 9-abreast. These narrow seats can be extremely troublesome during meal service and eating can be an impossible task as you constantly hit the elbows of the other passengers around you.

First. Bangkok - Dubai First B777-300ER with lie flats, service and food ok, seat comfort adequate but it doesnt fully recline. Biggest complaint is reserved for excessive PA announcements in English and Arabic. ICE in-flight entertainment despite offering better selection than before, still disappoints mainly because of heavy censorship of almost all movies. Why feature an R rated movie then downgrade it to PG?

Economy Zürich to Male, Maldives. Airplanes almost new, seats good, space is better in A330 than B777. Entertainment is top with a large variety of movies and series. The crew was international but coordination was good. Staff customer oriented and helpful all the flight

LHR-DXB-MEL-AKL return. Economy legroom on London to Dubai far too tight for such a long flight, as was seat configuration. Food very average. Have flown long haul to Australia and New Zealand many times and was disappointed to discover that Emirates isn't a patch on any of the main Pacific rim airlines. Would avoid in future.

Totally disappointed with Emirates Business Class - we did 4 different fights all with different configuration of seats and only one flight was OK. Gatwick and Singapore lounge was fantastic, Dubai was the pits, an absolute disgrace for the hub of Emirates. We have flown other airlines on this route and will never bother with Emirates again. Might as well saved our money and flown economy

Toronto-Dubai-Delhi and back. The 777-300ER is configured 3-4-3 in Economy, which is most uncomfortable. Most airlines configure their 777s with 9 abreast seats. I doubt very much I will fly Emirates again on a long-haul sector such as the 13-hour Toronto-Dubai leg. Emirates has got everything else right, so why the need to pack economy class passengers like sardines.

Auckland to Brisbane. It was the most uncomfortable flight I have ever had. The 10 across seating is appalling and the pitch was so tight that I had to remove everything from the seat pocket to get my legs in. The aircraft was full and the cabin staff did their best, but could barely cope.

JFK-DXB-DAC and return. JFK-DXB-JFK excellent flights. Boarding organized and inflight service was great. However, once you head towards a third world country, it seems they don't care about you anymore. Boarding DXB-DAC leg was chaotic. It was an older 773, FA's seemed stressed out, service was worse than JFK-DXB leg. The food was also considerably worse on the DXB-DAC and return portion of the trip. The ICE system that EK prides itself on, was on and off. If I kicked the box, it came back online. In conclusion, Emirates can be somewhat of a schizophrenic airline depending on the route one travels. If you are headed towards a poorer country, beware of the service, it could get pretty bad.
 

Justice avoided

25 April 2008

Two weeks ago (see 11 April) I reported on the tragic death by suffocation of 54 Burmese in a container truck smuggling them in to Thailand. Tragedies like this I wrote should shame us all. Sadly it has not shamed the Thai authorities into taking any sort of action that could stop this trafficking and safeguard lives. Justice avoided as the following summary of an editorial in the Bangkok Post makes clear.

Fifty-four people perished in Ranong. But the police are refusing to touch the human smuggling ring. Guess why? Harsh poverty and political oppression are not the only principal factors for this endless influx of migrant workers from Burma. Add to that Thai complicity and corruption.

This hideous modern slave trade is thriving in Thailand. Had it not been for the fatal breakdown in the ventilation system, the cold storage truck that was ferrying 121 workers would have made a safe trip to its destination in Phuket, as it had done countless times before. The local police would have been able to continue pretending - as they always have - that they know nothing about the blatant trade in human beings that is being carried out practically every day right before their eyes.

Though the police cannot now feign blindness to the Ranong tragedy, it is interesting to see how they have reacted.

If a case is registered as human trafficking, the migrant workers must be treated as victims entitled to state help and compensation. They must also be protected as witnesses so that the authorities can go after the masterminds and those involved in the human trade.

But the police fiercely insist that the Ranong tragedy is not a case of human trafficking, because the workers had not been "lured or forced" to come to Thailand. In addition, the workers were "on the way, without a destination". Therefore they may not be defined as slave labour. As such, the case can only be processed as one of illegal entry into the country, which means these Burmese migrants must be arrested, fined and deported immediately.

These excuses are absurd.

How on earth can the police know that the workers were not lured or forced? How does the police define consent?

According to the United Nations' definition, trafficking in persons covers the recruitment, transportation, transfer, harbouring or receipts of persons by different means, be it through threats, use of force, coercion, abuse of power, or promise of future benefits. Consent is irrelevant when money changes hands for the purpose of exploitation.

In the Ranong tragedy, the truck was headed for Phuket. How can the police claim the lack of a destination? Money changed hands several times in the transport of these workers, to feed the underground labour market run by the local mafia. How can the police say this is not an organised crime of human trafficking?

It is the police's narrow, self-serving definition of human trafficking that has made Thailand a hub in the smuggling of humans in the region.

Thailand's promises to the international community to combat human trafficking are empty because the police refuse to change their ways. And why should they? Last month, Prime Minister Samak Sundaravej suggested an innovative way to discourage the migration of ethnic Muslims from Burma into Thailand: round them up and leave them on a deserted island.

There have also been attempts to mislead the public into thinking that the law against human trafficking is not yet in effect. This is not true. The present anti-human trafficking law protects only women and children, so it is being amended to cover male workers, too. The amendment will take effect in June.

Of the 54 people who died of suffocation, 37 were women. There were also children among those in the deadly container truck. Why didn't the police use this law to go after the big fish in the human trade ring? We all know the answer. That is why we cannot combat human trafficking - until we start combating our own police.

As I said two weeks ago it is the responsibility of ASEAN to force change in Burma. Sadly there is no will or consensus to do anything.

Feeding at the trough

25 April 2008

A message on the tag-board alerted me to another piece o sad politics in Thailand. Such a lovely country; such warped politics. The story is as follows. Prime Minister Samak Sundaravej said on Tuesday he has signed permission for Duang Yubamrung to return to the army, less than seven years after he was cashiered over accusations he was involved in the night club murder of a policeman.

Duang, formerly known as Duangchalerm, is the son of Interior Minister Chalerm Yubamrung. He was dismissed from the army in October, 2001, after the murder of a policeman inside a Ratchadaphisek night club. The timeline is as follows:

October 29, 2001: Sergeant Suwichai Rodwimut is shot dead inside the Twenty Pub, allegedly during a brawl with Duang Yoobamrung and his friends. Police call Duang for questioning but he disappears. Police begin a nationwide search but fail to find him.
May 2, 2002: After six months on the run, Duang walks into the Thai Embassy in Malaysia and says: "Help me get home". He shows up with his eldest brother, Artharn, and his uncle, Thalerng.
March 26, 2004: Duang is acquitted by the Criminal Court on grounds that prosecutors presented insufficient evidence and conflicting witness testimonies.
May 25, 2004: Suwichai's wife Supatra appeals against the verdict.
July 5-6 , 2004: Prosecutors and police agree not to appeal against the verdict

Duang was removed from his military post and stripped of his rank after he failed to report for work within 15 days.

After his acquital, police did not seek another suspect, and there have been no other arrests. Several witnesses who testified said they had received threatening telephone calls to warn them not to tell what they had seen, and no direct testimony ever was admitted.

Duang's brother Wan, previously known as Wanchalerm, also got permission from Mr Samak to take a posotion in the new government, where his father is a minister. Public Health Minister Chaiya Saosomsab promoted him to be Mr Happy Toilet, to teach Bangkokians how to use the loo. Somehow that feels like an appropriate role.

Together, during the 1990s, the Yubamrung brothers were well known to, and openly reviled by Bangkok society for a series of violent confrontations in night clubs. Cases brought to trial always wound up with lack of witnesses.

As always in Thailand political loyalty appears to require the honouring of certain promises in return at whatever the cost is in terms of personal or government credibility.

Rice - the new global currency

24 April 2008

Interesting article on global rice prices. Posted on April 24, 2008, Printed on April 24, 2008 - From Alternet.org

"The global food crisis is a monetary phenomenon, an unintended consequence of America's attempt to inflate its way out of a market failure. There are long-term reasons for food prices to rise, but the unprecedented spike in grain prices during the past year stems from the weakness of the American dollar. Washington's economic misery now threatens to become a geopolitical catastrophe.

Months ago, I offered that China, Russia and other cash-rich nations held the antidote to the incipient credit crisis: "If the US wants to remain the magnet for world capital flows it became during the 1990s, it will have to allow the savers of the world to become partners in the US economy, that is, to buy into its first-rank companies."

No such thing occurred, of course, as Washington has made it clear that it would not allow sovereign funds to own the likes of Citicorp. What are the world's investors doing with the trillion dollars a year they used to invest in American securities, including subprime derivatives and various forms of collateralized obligations that turned out to have more obligation than collateral? They aren't buying American companies because they are not permitted to. They are buying food and other stores of value instead.

Washington has weakened the value of the dollar as a palliative for the credit crisis, so much so that "nobody seems to doubt that the US dollar will lose its status as the world's reserve currency", as journalist Amity Shlaes wrote in an April 9 Bloomberg News column entitled "Monks may hold clue to dollar's future".

"Perhaps the dollar won't surrender its anchor role so soon," Shlaes continued. "And perhaps that loss, if it comes, will happen because of events that take place nowhere near men in suits at a central bank. Maybe the answer to the dollar's riddle can be found in the cellphone photo image of a Tibetan monk in crimson and orange squaring off with a Chinese soldier China might recede into years of ethnic chaos. In any of these cases, the new Chinese government won't be forced to deliver the same growth, and therefore won't spend commensurate energy tending the dollar The flash of orange in the robe of the monk is important enough to change the picture for the greenback."

Misguided is not the word for this sort of thinking. However unlikely it might be, one cannot exclude the possibility that "ethnic chaos" will afflict China at some future point. The one thing that can be stated with certainty is that long before chaos reaches China, it will have shattered a great deal of the rest of the world.

China is exchanging its depreciating reserves of US dollars for things of value, notably rice, with frightening consequences for dependent countries, and deadly consequences for American foreign policy.

The chart below shows the price of 100 pounds of rice against the euro's parity against the US dollar during the past 12 months. The regression fit is 90%. There is an even tighter relationship between the price of rice and the price of oil, another store of value against dollar depreciation.

Rice price vs Euro/US$ rate, April 15, 2007 to April 15, 2008
 

As the chart makes clear, the ascent of the cost of rice to $24 from $10 per hundredweight over the past year tracks the declining value of the American dollar. The link between the declining parity of the US unit and the rising price of commodities, including oil as well as rice and other wares, is indisputable. China has bid aggressively for rice all year, and last week banned rice exports, along with Vietnam and several other producers.

Euro/US$ rate vs rice and oil, April 16, 2007 to April 16, 2008
 

For developing countries whose currencies track the American dollar and whose purchasing power declines along with the American unit, this is a catastrophe, as World Bank president Robert Zoellick warned the Group of Seven industrial nations in Washington last week. Food security suddenly has become the top item on the strategic agenda.

Never before in history has hunger become a global threat in a period of plentiful harvests. Global rice production will hit a record of 423 million tons in the 2007-2008 crop year, enough to satisfy global demand. The trouble is that only 7% of the world's rice supply is exported, because local demand is met by local production. Any significant increase in rice stockpiles cuts deeply into available supply for export, leading to a spike in prices. Because such a small proportion of the global rice supply trades, the monetary shock from the weak dollar was sufficient to more than double its price.

It is not only rice, of course, that the cash-rich countries of the world are buying as a store of value; the price of wheat, soy and other grains has risen almost as fast. This might deal the death-blow to America's hapless efforts to stabilize the Middle East, where a higher proportion of impoverished people eat off state subsidies than in any other part of the world. Egypt has been the anchor for American diplomacy in the Arab world since the Jimmy Carter administration (1977 to 1981), and is most susceptible to hunger. Food prices have risen by 145% in Lebanon and by 20% in Syria this year. Iraqis depend on food subsidies financed by American aid.

Reduced to essentials, America's foreign policy sought two unattainable objectives: to stabilize the Middle East and destabilize China. That is an exaggeration, of course, for Washington hoped not to sow instability, but only to put China in its place over the Tibetan affair.

The George W. Bush administration might as well have used the State Department as a set for the Jackass reality show. American arrogance has eroded the ground under many of the governments on which its foreign policy depends. It is hard to characterize what will come next, except, like the stunts on Jackass, that it is going to hurt."

Copyright 2008 Asia Times Online Ltd.

AlterNet is making this material available in accordance with Title 17 U.S.C. Section 107: This article is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

Thai AirAsia drops Xiamen

24 April 2008

The no-frills carrier Thai AirAsia (TAA) has dropped Xiamen in southeastern China from its network as it shifts aircraft capacity to two new routes that potentially offer greater economic returns.

TAA said it will stop Xiamen from March 31 due to higher operating costs, a limited load factor and a price war with Thai Airways International.

The no-frills carrier believes it will be more profitable to use the planes on two new routes, Bangkok-Jakarta and Bangkok-Ho Chi Minh City (HCM).

TAA started flying daily to Jakarta on April 1 and to HCM on April 4, starting with two flights a week. It doubles those to four flights a week on April 27.

With Xiamen removed from its network, the only point in mainland China that TAA is still serving is Shenzhen. TAA inaugurated Bangkok-Shenzhen service in July last year.

TAA's earlier plan to start flying from Bangkok to Guangzhou this year has yet to take off as the airline grows more cautiously.

TAA is advancing the retirement of its Boeing B737-300 fleet and replacing them with brand-new Airbus A320 jetliners. By the end of next year, its fleet will consist entirely of A320s.

TAA has ordered 40 A320s, three of which were delivered last year. Five are due this year and five more next year.

Dubai announces tram system for Burj

24 April 2008

In another excuse for more noisy construction close to where we live Emaar Properties unveiled plans on Wednesday for a $136 million advanced tram system for its Downtown Burj Dubai flagship project.

The 4.6km Downtown Burj Dubai Tram System tramway has been designed to meet the commuting needs of residents and visitors to the $20 billion mixed-use neighbourhood, comprising more than 30,000 homes, and over 3.77 million square feet of retail space, Emaar said in a statement.

The first phase, scheduled to be up and running by the end of 2009, will feature a 1.1km twin track express link shuttle service between the Burj Palace interchange station with Dubai Metro and The Dubai Mall.

The driverless service will have a one-way journey time of 2-3 minutes with 1-2 minutes between trams, and include an intermediate stop at a new hotel development, currently being planned.

Phase two will consist of a 4.6km, single track, clockwise commuter service operating from and to the Burj Palace interchange station with Dubai Metro.

It will service all ten stations that network the 500-acre development featuring architectural milestones such as Burj Dubai, the world’s tallest building, and the Dubai Mall, one of the world’s largest shopping and entertainment destinations.

The complete one-way journey time will be approximately eight minutes. This phase is planned to be fully operational in 2010.

Automatic fare collection will be compatible with the RTA’s Unified Automatic Card system, enabling integrated travel across Dubai’s public transport system.

EK new routes before end 2008

23 April 2008

EK's Chairman announced yesterday that there are another three new routes to be opened in 2008. One in Europe. One in the Far East and one in Algeria,

Well, Algeria can only be Algiers. Is there really enough demand for flights from Dubai to Algiers?

But Europe - time to speculate - either Madrid or Copenhagen.

And one more route in the Far East. That is tough - they have covered the major cities well. Unless at last they can get into Tokyo. Failing Tokyo then where? Two guesses: Fukuoka in Japan or Ho Chi Minh City in Vietnam. Both would be something of a surprise. Watch this space.

EK double daily to Moscow

21 April 2008

Next additions for Emirates is to take its busy Moscow route double daily from 1 March 2009.

The daily flights will now be:

EK133 DXB 0930 - 1355 DME 773 D
EK131 DXB 1740 - 2205 DME 332 D

EK134 DME 1700 - 2315 DXB 773 D
EK132 DME 2340 - 0555+1 DXB 332 D
 

A Quest too far

20 April 2008

You have to love those kinky Brits. The latest to get into trouble is also the most annoying reporter on television. But hemay not be around for too much longer in order to save his employer CNN from further embarrassment.

Richard Quest used to be more famous for shouting his news reports and irritating everyone that he interviewed. He was arrested early last Friday morning for drug possession when police found him in Central Park well after the park's 1 a.m. curfew. The initial reports said Quest told police he was carrying methamphetamime in his pocket, but leave it to the New York Post to add the really interestingt details.

Quest, 46, was arrested at around 3:40 a.m. after a cop spotted him and another man inside the park near 64th Street, a police source said.

Not only did Quest have drugs, he also had a "rope around his neck that was tied to his genitals, and a sex toy in his boot." The Post also reported, "It wasn't immediately clear what the rope was for."

Quest, who was in jail most of Saturday, was charged with loitering and drug possession (but not lewdness because he wasn't exposed). His lawyer claimed Quest was "returning to his hotel with friends" and had no idea there was a curfew for the park. Quest will attend six months of drug counseling and if he stays out of trouble, the charges will be dismissed and his case sealed.

A law unto themselves

19 April 2008 - From The Economist

Reforming a corrupt and politicised police force will be tough

IN THAILAND'S most sensational crimes, the prime suspects are often the police. Among current cases are a group of border police accused of abducting innocent people and extorting money from them, and a huge car-theft ring thought to have been run by bent coppers. The prime minister, Samak Sundaravej, this month sacked the national police chief, Sereepisut Taemeeyaves, for alleged corruption. Mr Sereepisut insists he is the victim of a conspiracy by crooked subordinates.

Earlier this month the justice minister visited Chalor Kerdthes, a former police general serving life in jail, belatedly seeking progress on the “blue diamond” affair of the early 1990s, which wrecked Thailand's relations with Saudi Arabia. After the priceless gem and other jewels were stolen from a Saudi royal palace by a Thai worker, three Saudi diplomats seeking their return were murdered in Bangkok. The Thai police supposedly solved the case but the jewels they sent back to Riyadh were fake. Mr Chalor arranged the murders of the family of a gem dealer involved in the case. It is suspected he can dish the dirt on other former police chiefs.

Cases of police graft and abuse of power are legion. In 2003 Thailand's then prime minister, Thaksin Shinawatra—a former mid-ranking policeman and businessman—told police to wage “war on drugs”, resulting in at least 1,300 extra-judicial killings. The army removed Mr Thaksin in a coup in 2006, promising a thorough investigation of the deaths. It had made little progress by last December's election, won by allies of Mr Thaksin.

In March the American government's annual human-rights report on Thailand criticised the widespread torture of suspects. Last year 751 people died in prison or police custody. Abuses by police (and soldiers) have worsened an insurgency in Thailand's mainly Muslim southern provinces, in which 3,000 people have died since 2004. Predictably, opinion polls show the police are widely mistrusted.

Experts say Thailand's force is not the world's worst: it does have some honest, capable investigators. However, for a country of a fairly high state of development, its record is abysmal. After decades of failed attempts at police reform, a panel set up after the 2006 coup proposed sweeping changes, including creating an independent police-complaints body. Some of the panel's reformists may be sincere. But this looked suspiciously like an attempt to curb Mr Thaksin's power base in the police. Now Mr Samak, although a supposed ally of Mr Thaksin, seems to be building bridges with army chiefs to bolster his own power. So his motives in sacking the police chief and talking of continuing the military government's reforms are also bound to be questioned.

Thai governments tend to rely on the army or the police (or both) to remain in power. So their commands have always been deeply politicised. Like other public institutions they are dominated by a narrow elite of families with tentacles everywhere. “You find the same few surnames wherever you look,” notes Michael Nelson, a political scientist in Bangkok. Indeed, Mr Sereepisut's replacement as police chief has the same surname as a former army chief—his brother.

Thai public servants are less loyal to the institutions that employ them than to their loose network of connections—relatives, ex-classmates from military training or old university chums. The 2006 coup pitted Mr Thaksin's schoolmates against those of General Sonthi Boonyaratglin, the then army chief. Police reforms elsewhere have generally succeeded only where a public-spirited and untainted political leadership forced them through. When will Thailand get that sort of leadership?

Dubai - another UK visitor guide

Head for heights in Dubai  - The Independent - Saturday, 19 April 2008 - always interesting to read how others view our building site!

For his 1979 travel book Arabia: Through the Looking Glass, Jonathan Raban stopped off in Dubai as the petro-dollar boom kicked in. Thirty years ago, no-one in Dubai could have foreseen the seven-star hotels, the extravagant shopping trips of Colleen McLoughlin and her fellow Wags, or George Clooney dropping into town. But its arrogance and aspiration was already evident to Raban.

"We passed the Dubai Hilton," he wrote. "It looked to me like a Hilton but it was marked by one of those singular honours which count for so much and seem – to an outsider – so numbingly unimportant. At that particular moment it was The Tallest Building In The Gulf and Sheikh Rashid of Dubai was apparently doting on it like a favourite child. Looking at its smug, slab-sides cliffs of glass and concrete, I hoped that it would not be allowed to enjoy its pre-eminence for too long."

It certainly didn't. That title has passed through many hands and rests now with the Burj Dubai, a massive steeple rising through the clouds. Still under construction, it hit 629m at the beginning of April, breaking the record for the tallest man-made structure not just in the Gulf, but in the world.

It surpassed North Dakota's KVLY-TV mast, which held the title since 1963, and that certainly hasn't got luxury apartments at the top.

I caught my first glimpse of the Burj Dubai as my flight swept past on its descent into Dubai's airport. From the sky, you can the see an eruption of towers in this thin strip of a city lying between the Arabian sea and vast plains of sand. Dubai is undoubtedly brash – and built on vaunting ambition. So I decided my mission would be to get as high in Dubai as possible: during my five-day holiday I would climb any skyscraper I could talk or drink my way into.

My hotel was the Grosvenor House, in the new development of West Marina Beach, to the west of Dubai. Standing at 210m, the hotel briefly made the top 100 tallest buildings in the world when it opened in 2005. Just three years later it languishes closer to the 300 mark. Constructed from what appeared to be massive peach and black Lego blocks, it does still tower, just, over the neighbouring construction sites.

Passing tourists were welcomed in the evening at the hotel's Bar 44, a showy, if soulless, cocktail lounge. However the real treat was reserved for the hotel guests who, for a supplement, could take breakfast and afternoon tea in the adjacent lounge on the 44th floor overlooking the Arabian Sea.

Sitting on the balcony outside, with a perfect afternoon tea of jam and scones, I got my first, giddying, view of Dubai. Out in the water was the Burj Al Arab, the sail-shaped "seven-star" hotel; facing it lay its sister hotel, the wave-shaped Jumeirah Beach. Beneath me, just beyond the coast, was the "World" development, for which sand has been lovingly dredged into the shapes of the continent for property tycoons and A-listers to purchase in their own acts of mini-colonialism.

Tommy Lee Jones has apparently bought "Greece" for his ex-wife Pamela Anderson, though rumours that Brad Pitt and Angelina Jolie had joined the scramble for Africa and snapped up Ethiopia have been denied by the couple.

It occurred to me that residents of "The World" will never fully appreciate what they eventually live on because it takes being at the top of a tall building such as the Grosvenor to see the full glory (and the full folly) of this particular project.

I turned my eyes towards the heart of the city. The main thoroughfare dissecting Dubai is the Sheikh Zayed Road, the eight-lane highway which runs from the heart of old Dubai out to West Marina Beach. It is along this street that the forest of skyscrapers grows strongest and thickest. Here lies the Chelsea Tower, the two Emirates Towers and the Burj Dubai, with many more still gestating in their scaffolding wombs.

My first stop was the Chelsea Tower. The taxi driver needed no further instructions; it is his trade to transport legions of businessmen and tourists from one high-class destination to the next.

His English, and his Arabic, was broken – he came from India – but he knew the name of every skyscraper I asked him about. We glided down the spanking new highways that dissect the city, past the hoardings over the developments (with their taglines such as "Be Unlimited" and "Limitless").

The Chelsea Tower is the 14th-tallest residential skyscraper in the world and 123rd-tallest building in the world. With most of Dubai's population being foreigners, there is a steady stream of businessmen and their holidaying families who avail themselves of their short- and long-term hotel apartments.

I asked whether I could see one as high as possible and was shown around a crisp, clean, set of rooms up on the 40th floor. Few pictures hung on the walls but, given the massive windows and the vast views they captured, u o there was little need of them. I persuaded the management to allow me up onto the roof of the building, somewhere not normally accessible to guests. A security guard called Mohammed accompanied me. It seemed a little difficult to breathe at 250m high, but that wasn't to do with the altitude; Mohammed pointed out the thin layer of yellow that hung across the city, a shroud of dust thrown up by all the building works going on. The spiked top of the Burj Dubai was almost invisible.

Over the road was my next target, the twin Emirates Towers. This office tower, at 355m high, is the 15th-tallest building in the world, followed closely by its sister building, the Emirates Hotel at 305m. The apexes of the Emirates Towers are equilateral triangles sloping at 45 degrees. Beneath the precipitous glass and steel roof of the Emirates Hotel is the Vu bar. Up on the 51st floor, it is open to the public in the evening (at least, those members of the public who have a dinner reservation). With its heavy wood decor and odour of tobacco, it had the feel of a gentleman's club. A floor below is the well-appointed Vu restaurant, serving scallops and foie gras. Dinner there for two cost around 940 dirhams (£130) – and a decent dose of vertigo.

Looking down from this glass enclave at the top of the Emirates Tower, I found myself contemplating the other Dubai. So far, I'd been in a city manufactured for moneyed foreigners. Like a suction pump, each air-conditioned building I'd entered was designed to pull me upwards. Super-speed elevators had shuttled me away from the realities of the hustle and heat and traffic of the city, into a far more rarefied world: the highest of pedestals. The streets looked up at us in our glazed towers, and we in turn were obliged to look down upon them. I peered downwards too, and decided to explore this alternative Dubai.

Low-rise areas carpet the inner city. Al Karama is a little series of boxy concrete residential blocks containing shops selling old furniture. It also boasts a thriving counterfeits market. It was the first place I heard the mantra that then followed me through the old town: "Rolex! Tag Heuer! Cartier! Omega!".

An Iranian spotted me as a potential buyer and led me up some back stairs to a room stacked high with handbags, shoes and trays of watches.

He gave me a Coca-Cola while he displayed his wares. "You like Gucci?" he asked. "Juicy Couture? Everything's very good quality." I declined his offers and moved onto a store where the Keralan shopkeeper let me try on a burka and a belly-dancing outfit. I left with a camel puppet as a souvenir.

Next, I got a little lost on a city stroll between the Al Karama market and an area called Deira, which lies on the other side of Dubai's river, the Creek, and is home to the Gold Souk. But during the process of regaining my bearings, I kept meeting people with tales to tell of how they had arrived on these shores.

There was the South African estate agent who walked with me a while, and informed me this was the only place to do business in his industry, but that he missed home. There was the Pakistani ship's captain who, over a beer in the slightly seedy Sun Hotel, described a complicated personal life involving his wife, nine daughters, and a nubile Korean lover. He had been naturalised in Dubai but wanted to move to Manchester. A suited woman from Mumbai told me she had come to Dubai to escape a broken heart.

The backdrop to these conversations were streets filled with African women in flowery headdresses; Chinese labourers; Indian stall-holders and mechanics; all following the pulse of money. I eventually yielded to the watch-buying mantra and purchased a "Cartier" watch from a vendor in Deira. He assured me it was the finest timepiece that Singaporean counterfeiters had ever produced.

At street level it becomes abundantly evident that the culture of this city is trade. Only one in five of Dubai's inhabitants is Arabic; it is the international traders who make it tick. Everyone from the street hawker to the high-flying businessman is integral to the city. Its culture has been fostered by the ruling Al Maktoum royal family – and the skyscrapers are monuments to their success. But down on the ground the fuel for it all is the constant stream of newcomers with a hunger to do well.

My last vertical trip was to the Burj Al Arab, as heavy on the wallet as it is on the skyline. This 321m sail-shaped hotel, built on a man-made island out at sea, epitomises Dubai's gaudy excesses. To get past the tight security on the front gates, one needs either a reservation at the hotel or in one of its extraordinarily expensive restaurants.

It's worth the effort. The Burj-al-Arab has the highest atrium in the world, at 180m, a butler dedicated to each of the 27 floors of the hotel, and a fleet of Rolls-Royces for its guests. It feels like it had been built for another age, awash with gold trim and architectural flourishes. I ascended in the panoramic lift at six metres a second into the crow's nest of the hotel, the 27th floor, which houses the Al Muntaha Restaurant.

On offer was a good European menu and classy, if somewhat bright, cocktail bar. At 200m high, the view over the Arabian Gulf and the city was the best I had seen. The biggest thrill, though, was plummeting down to earth again in the elevator. For a moment I thought we were being bulleted down deep into the sea.

It didn't take me long to feel seduced again by the old city. The Creek, which cuts through old Dubai, is about as wide as the Thames and is chock-full of old wooden cargo ships. These vie for space with little passenger ferries that run between Bur Dubai and the souk on the Deira bank opposite. As we traversed the Creek on one of these makeshift ferries, sitting jammed up against dockers, businessmen and tourists, I caught the sticky smell of the "put-put" engine's petrol fumes. For all the heights of a city that had risen on the petro-dollar, this was the first real whiff I'd had off the stuff.

The ferryman asked if I would like a private, hour-long, tour of the Creek for 100 dirhams (£14). I accepted, and we set off down the river past more gleaming edifices. Soon our boat was chugging along beside the Dubai Hilton. Surely this squat little thing was not the Hilton of Raban's Dubai? No: his Hilton was torn down many years ago, its dubious glories lost forever in the rubble of this ever-changing city. It may all be built of concrete and steel round here, but there is still something ephemeral about it. Will it stand the test of time? My "Cartier" watch certainly didn't. It broke shortly after my return home.

In praise of Bournville

18 March 2008

Tai is leaving for Birmingham on Sunday. Her first visit to the city I was born in. I grew up in the Cadbury village of Bournville. It is an unusual village; built by a Quaker family with strict social values it still retains a real sense of community despite how close it is to the city of Birmingham. It sounds a bit mean but I was always a bit upset with my Dad for taking us away from the village and my school when I was 10 years old.

This BBC article from 2007 describes the village well.

Is this the nicest place to live in Britain?
By Dominic Casciani
BBC News Online community affairs reporter

Bournville. Just the way it rolls off your tongue makes it sound a nice place to live. And yet at first glance it's just another red-brick estate in the suburbs of Britain's second city. But academics say the Birmingham estate built by chocolate baron George Cadbury is much more than that. It is quite simply one of the nicest places to live in Britain.

There's no end of research on what makes a bad neighbourhood. But what about what makes a good place to live? The Joseph Rowntree Foundation has tried to answer this question by funding research into Bournville, long reputed to be neighbourly, peaceful and, well, nice.

Bournville was born in the last years of the 19th Century when George Cadbury, a classic Victorian philanthropist, decided he wanted homes next to his factory south-west of Birmingham city centre. He said the estate should "ameliorate the condition of the working-class and labouring population... by the provision of improved dwellings, with gardens and open space to be enjoyed therewith".

A century on, the model village is a large garden suburb of 1,000 acres, 7,800 homes and 120 acres of open space. At the heart of the area is Bournville Village itself - to all intents and purposes a slice of rural Britain in the heart of a city, complete with village green, shops and a war memorial.

All the homes have big gardens on wide roads, though the houses themselves are neither too grand nor too small. Some 40% of residents rent from the charitable trust, but they are intermingled with owner-occupiers creating a social mix you don't often find. What the researchers found was that Bournville's success comes down to a seamless mix including quality homes, neighbours from different backgrounds, services and open space.

Factors like these (and perhaps the sweet smells of a chocolate factory) encourage residents to more actively commit to an area's prosperity, creating a virtuous circle of neighbourliness - also known as social cohesion. On top of this, the Bournville Village Trust exercises an unusually high level of control. Residents can't just put up a satellite dish without permission.

Furthermore, they cannot buy alcohol within its boundaries. Not that it seems to bother anyone that pubs were not part of the Cadbury vision. The Rowntree research found that across a range of national indicators Bournville residents were simply happier.

Tenants were twice as likely to describe the area as "pleasant" than those elsewhere. They even make fewer complaints about the thing we all fear most - neighbours from hell.
So is this the epitome of Arcadia transplanted into suburbia?

"This was the first purpose-built community in Britain," says Alan Shrimpton, director of estates for the Bournville Village Trust. "George Cadbury wanted to build good housing for all people. He sat down and asked himself how people wanted to live. "I don't think anyone got it as right as Cadbury did."

The trust rejects suggestions that Cadbury's vision has come at a price, such as the right to buy a bottle of wine. Instead, says Mr Shrimpton, people willingly enter a social contract with their neighbours, the trust and wider community. "These kinds of rules are supported by the residents themselves," says Mr Shrimpton. "The last time this was discussed the consensus was the drawbacks of allowing the sale of alcohol would outweigh the advantages. "If you want to live in harmony with your neighbour, there is sometimes a price to pay. It seems at Bournville people want to pay it."

David Smith, his wife and two young sons, are among the new-comers who are happy with that social contract. He loves it so much he says he will probably stay forever.

"We only used to live a few miles away in Selly Oak," he says. "But we've now found a real community spirit." Mr Smith runs a community website to link up all the residents' groups, friends, neighbours and societies, something he was encouraged to do by the atmosphere of the area. "People just tend to be generally friendly in Bournville," he says. "There are newsletters and notice boards of what's going on. I hadn't seen that anywhere before."

The Trust concedes its one major mistake was Shenley, a multi-storey post-war project which abandoned the Cadbury principles and has been beset by problems. It also accepts that it needs to do more for the young and tackle a social mix that could worsen as the stable population ages and the highly desirable private homes soar in value.

But others are trying to learn from Bournville, the most recent being the Prince of Wales' own Poundbury community in Dorset. Meanwhile, Joseph Rowntree's own model village just north of York, New Earswick, continues to thrive a century after it was founded.

Rosemary Shutt of the local Bournville Historical Society says the most important thing others can take away is the essence of what makes a community work - collective experience. "A lot of the old people who live in Bournville went to the school in the village centre, worked for Cadbury's and still live here," says Mrs Shutt. That means there is a real sense of shared memories. "I think if George Cadbury came back today, he's still be happy with Bournville. There's probably more litter, but the spirit of Cadbury is still here."

Thomson Reuters is launched today

17 April 2008

NEW YORK (Reuters) - The new Thomson Reuters Corp may compete most directly with Bloomberg LP and Reed Elsevier, but Chief Executive Tom Glocer thinks the company also may jostle with Google Inc and Microsoft Corp.

"There are going to be a handful of 'information majors,'" Glocer, 48, said in an interview in his office at the Reuters building in Times Square on the eve of Canadian publisher Thomson Corp's completion of its more than $16 billion purchase of Reuters Group Plc.

"We're all going to keep an eye on each other," Glocer said. "We're all going to compete in some areas, cooperate in some others."

Thomson Reuters, which begins trading in London, Toronto and New York on Thursday, will be known primarily for its worldwide news service, data products and technology for financial professionals and its portfolio of products serving the legal, scientific, accounting and health-care sectors.

Behind that is Glocer's idea of what he calls "intelligent information" -- his longer-term goal of lacing data sources from both companies together. He wants to offer people easy access to the information they need to do their jobs -- and wants them to pay for the convenience.

Most of these tools have a low profile in the eyes of the public, but Glocer prefers to focus most on that field rather than competing directly against the Googles and Microsofts of the world in the wider consumer space.

"We are not going to own a film studio. We are not going to launch a teenage social networking service," he said, referring to News Corp properties 20th Century Fox and the MySpace social networking site.

"We're really focused only on professionals, people who will pay us for our content and services," he said. "What would you pay me for tomorrow's New York weather forecast? Probably nothing."

On the other hand, he said, an insurance company might pay dearly for getting "bespoke, proprietary meteorological content on the long-range hurricane forecast for Florida in the 2008 hurricane season."

"You'll pay me for that if I can improve the profitability of your underwriting book as a result," Glocer said.

Still, information and communications conglomerates have a way of growing into new territory over time, Glocer noted.

"I think Google is clearly there as the monetization device for lots of consumer content. The question mark is if they want to get into anything other than the low end of professional," he said. "I think News Corp-Dow Jones has a potential seat at the table. I think Microsoft-Yahoo does if they pull it off (merge) and if Microsoft embraces content more than it has before."

While Glocer is largely sticking to professional services, he does embrace free, new ways to communicate to the world. He maintains a profile on the Facebook social network and is the proprietor of a blog at tomglocer.com. He also gave the green light to Reuters to set up a news bureau in Second Life, a virtual world on the Internet.

Glocer was a mergers and acquisitions lawyer with New York's Davis Polk & Wardwell before joining Reuters in 1993 as a vice president and deputy counsel, and went on to hold positions as general counsel and chief of Latin America.

In July 2001, he became CEO, eight years after joining the company -- and just before a global market slump that led to falling revenue and the company's first loss since 1984.

In the near future, Thomson Reuters will have to negotiate another perilous financial landscape.

"We're not immune to the financial cycle," Glocer said. "There's clearly been an enormous dislocation in the credit markets, which have pulled down a whole bunch of funds and obviously Bear Stearns as well