Good news for all future EK profits!

[boeingoriaintgoing]

EK Profits will...
Did anyone read Friday's Khaleej Times?Mohammed Orders State-linked Firms to Transfer Surplus to Govt Treasury (http://epaper.khaleejtimes.com/KT/KT/2009/12/18/ArticleHtmls/18_12_2009_001_007.shtml?Mode=0)
His Highness installed law 35 of 2009 which now requires all profitable companies owned by the Dubai government to hand over all profits to the state fund. If you're wondering if Emirates is on the list of companies, look no further than page 30. Emirates Airlines heads the prestigious list. I guess we won't be seeing any profit reports and chest beating by the company anymore, nor profit sharing for that matter. :D Just another reason to make you want to come here if you don't need the job.:ugh:The good news is that those greedy bastards in Abu Dhabi, who didn't over-extend themselves and now find themselves bailing out their brothers up north, won't get their grubby paws on our hard earned money directly from us.:= They'll be getting it directly from His Highness himself now.:D

[Watchdog]

No real surprises I guess, but now it's official. :(

[CAVnotOK]

I guess there is no point in staying until April then....... let the exodus begin.

[break dancer]

They're just emptying the coffers of all the cash before the companies are handed over to Abu Dhabi.

Imagine now getting government approval for the budget and going cap in hand for cash to fund any rapid expansion to take advantage of any situation that may arise.....

Gone is the advantage of being able to move quickly. EK have just suffered a real creditability issue which will be interesting to see how the financing for future aircraft will be affected.

[pool]

Remember the hefty pay increase for government employees a few years ago? We didn't get squat, apparently EK was not a government entity then.
Now suddenly we are, as it goes to bail out the greedy dishdashs.

Double standard is standard with this breed.

At least we no longer have to bother to save any dirham with yoghurts or single engine taxi. The savings would only go into Abu Dhabis pockets, maybe even to cover EY's chronical losses .....

I simply couldn't care any longer.

Fine move your highness.

[Watchdog]

I wonder how the various department heads in the EK group will address this permanent(?) removal of any profit share.

Clearly, all the employees will have little motivation for doing all those 'little' things to help the bottom line.

As for those 'little' things in Flt Ops, Engineering etc they will amount to millions!

Perhaps the bosses better dish out some substantial alternative compensation to keep the troops flying the EK flag, or the profit will go down quicker than a five dollar hooker! :uhoh:

[theidler]

...which now requires all profitable companies owned by the Dubai government to hand over all profits to the state fund. If you're wondering if Emirates is on the list of companies...So, what about the reports that Abu Dhabi is now a significant shareholder of EK?
Don't suppose they would support this statute if they are.

And I wonder what TC will make of it.

[330 Man]

It will be interesting to see how this all pans out. The new law says to "hand over all profits". It does not say anything about freezing salaries to increase profits. Is the government going to tell EK how to run it's daily business so it can use our profit to help recover? Or are they going to let EK run it"s business as they see fit and then turn over any profit that is made?

How will our management pull this one off. If the press is to be believed, 1 billion profit this year and 400 million last year. Will our management give raises this year, raise education allowance, any bonus is good, and either lower the overtime threshold or double flight pay. Or will they make 1.4 billion profit in 2 years with no raise or bonus and give all of the money to the same people that created the Dubai financial crisis in the first place. Smoking loaded shisha to me....

This is not as big a change as it seems. We give most of our profit to the government every year in the form of a preferred dividend. That dividend has been paid in the years of large raises, large bonuses, and small raises and bonuses. The main difference that I can see here is now we will have to give all of our profit to the government. That will be interesting when you consider how much cash we need to fund expansion and aircraft purchases.

I imagine that the uncle will win the debate with the nephew on this one. We will see.

Happy holidays

330 Man

[planesmack]

What credibility does the "Doctor whats his face" of some "what cha call it group" know ....???? It seems to be that royalties are paid to the original finaciers of Emirates Airlines and bonuses for the most part with exception to last year have always been paid. When did the "English Managed Indian Run and Expats Suffering" Airlines become a government operation?

Best Wishes to all in the Holiday season.

[Jet II]

It will be interesting to see how this all pans out. The new law says to "hand over all profits". It does not say anything about freezing salaries to increase profits. Is the government going to tell EK how to run it's daily business so it can use our profit to help recover? Or are they going to let EK run it"s business as they see fit and then turn over any profit that is made?


As EK is 100% owned by the 'government' then surely all it's profits (after staff remuneration etc) have always gone to the 'government'?

Who else would they go to?

[Ketek400]

Yes no 3% increase and no bonus this year.

[Air1980]

Here you all go; how the world views Dubai now....but you probably cannot get youtube in the UAE free state of Dubai.....

YouTube - Hignfy S38E07 part 2/4 (http://www.youtube.com/watch?v=J-o-UXQmm6E&feature=related)

[shakealeg]

Just checked youtube, yeah we can get it, and beer, and pork and..and surprised to see your view is of Hislop and Jo Brand. These guys are comics on a par with TCAS and E the T horse and so are not too be taken too seriously but I do note your US tag so I expect you might see this as serious politcal commentary. Anyway I enjoyed the clip. Thanks.

Just a matter of interest, I think the UAE accounts for 2% of the world GDP so why is there so much interest in it. And in the sheme of things the debt isn't that much compared to other nations. Makes me think the rest of the world is real boring.

[PorkKnuckle]

yeah we can get it, and beer, and pork and....

...and hos. Not sure how they're weathering the "soft" financial times though. Atiuta might know.

[kingoftheslipstream]

those who've flown with me heard it first:

We've seen our last ever EK Profit share (Jun '08).

Remember who we're working for and their opinion of us infidels...

Let the exodus begin indeedee!

Hang in there folks 'n fly safely.

[Air1980]

US tag, but expat Brit here....I just thought it was a humorous and appropriate take on the whole debacle, and one which Dubai's illustrious leaders may want to watch, lest they think everyone worships them and trusts their word....

[ConstantFlyer]

Emirates is to commence a daily flight from Dubai to Prague in July next year, adding to new routes to Amsterdam and Tokyo for 2010.
The Prague route will start on July 1, served by Airbus A330 aircraft configured for 27 business class seats and 251 economy class (http://www.businesstraveller.com/news/emirates-to-launch-prague-service#) seats. Flight EK139 will depart Dubai at 1030, landing in Prague at 1450, with the return leg leaving the Czech Republic at 1620 and arriving in Dubai at 0015 the next day.
Other new routes for Emirates next year include Tokyo (March 28) and Amsterdam (May 1), and the carrier says that “more announcements are on the way, supported by continuing aircraft deliveries”.
The only current direct service from Prague to Dubai is a once-weekly flight served by Smartwings, a low-cost carrier based in Prague.

Welcome and long-awaited entry for Emirates into central Europe.