Emirates aims at sixfold growth
From the Khaleej Times today:
By a staff reporter
"EMIRATES airline is aiming at a sixfold growth by 2010, its chairman Shaikh Ahmed Al Saeed Al Maktoum said yesterday.
This will be achieved by acquiring between 100 and 175 aircraft over the next decade, and through a prudent policy of route expansion and destination consolidation, he said.
"When Terminal 3 of Dubai International Airport is operational, we will have a collective capacity to handle 50 million passenger throughput a year," said Shaikh Ahmed, who also heads Dubai's Department of Civil Aviation.
"If deemed necessary, we will consider building more concourses and terminals to increase our passenger handling capacity."
This year, the airport is expected to handle 14 million passengers, as from April 2000 (when the new Shaikh Rashid Terminal opened) to April 2001, 12.8 million passengers had used the airport.
He said that infrastructural support, include airport facilities and air transportation, will act as a catalyst to inbound tourism. "It is the vision of Gen. Shaikh Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and UAE Defence Minister, to increase visitors to Dubai to over 15 million in the next 10 years, and we must have the mechanisms in place to make that happen.
Emirates' chairman said that the fleet acquisition programme was fluid and need-determined, and Emirates was looking at every new futuristic product, including the Boeing supersonic jet.
Asked if Emirates had a propensity towards Airbus rather than Boeing, Shaikh Ahmed said, "It is not the question of leaning towards Airbus or Boeing - it is a matter of our requirements. In the next two years we will have 19 Boeing aircraft, so this will mean a 50-50 split in our fleet between Boeing and Airbus."
Group Managing Director Maurice Flanagan is planning a visit to Boeing's Seattle headquarters in a few days to discuss details of the proposed aircraft."We are interested in the supersonic jet as it is fast and will cut flying distances tremendously," he said.
The airline which will acquire its first A340-500 aircraft in January 2003, is also looking at the A340-600 which is currently doing intesnive flight test runs. "The A340-500 and 600 are from the same family type, just as the Boeing 777-200 and 300 are," said Shaikh Ahmed.
In order to help finance this expansion, the airline is taking a step towards a bond issue during the second half of this year, Shaikh Ahmed said, answering questions at emriates' double decker aircraft stand at the ATM. The bond floatation will be offered initially to "corporates, not individuals" and will raise $150 million.
"Emirates is the major carrier at its Dubai hub and has 50 per cent share of all flight movements from Dubai International Airport. In accordance with the instructions of Gen. Shaikh Mohammed Emirates' share should increase to 70 per cent of flight movements in and out of Dubai," he said.
Asked if growth at such rapidity would undermine Emirates' reputation as a world class airline, Shaikh Ahmed said, "we will continue to ensure that with a good staff and team, high volumes will not affect quality."
On the question of joining or forming any airline alliance grouping, Shaikh Ahmed reiterated the airline's intentions to stick it out independently: "We are going to stay solo for the time being."
He also ruled out privatisation for the time being, commenting that those airlines which lose money look at privatisation as an option. "Emirates is making money, as we have a good management."
In 2003, Emirates is set to go nonstop to Australia and North America. Most immediately, it will start flights to Hyderabad in India's Andhra Pradesh state from July 1. Indian Ocean destinations of Mauritius and Seychelles are on the cards, but Moscow is not in the plans for at least another two years, Shaikh Ahmed said.
Regarding medical innovations on flight, which Emirates has been in the forefront of, introducing Medical satellite link, defibrillators on board and offering free frequent flyer medical cards for passengers with chronic ailments, Shaikh Ahmed said that the airogym exerciser recently introduced on flights "for passengers to exercise their legs while seated" had received a good response from the public."