Yep, it's official, no profit-share. Since we only made AED 1.49 billion (USD 406 million), instead of the target AED 5 billion (USD 1.3 billion), no way can we share any of that! My goodness, how will they get by on a paltry few hundred million dollars?!
Oh yeah, and the world is collapsing, the sky is falling, companies are collapsing, dogs and cats living together, etc etc etc.....*yawn*
Just as expected, back to sleep.
Chairman's Office
High and unstable fuel prices, slackening demand, currency fluctuations and the grim reality of the global economic meltdown - it all happened in our financial year 2008-2009. A crippling year, by any definition, that tested the Emirates Group to its very limits.
While others have been swept away in the maelstrom, the Emirates Group has survived it - but only just.
For the financial year 2008-09, we have returned a net profit of AED 1.49 billion (US$406 million), representing a 72 per cent decrease on the previous year's profit and 70 per cent below the group profit share target of AED 5 billion!
As your Chairman and colleague, I share your disappointment in not being able to enjoy a bonus this year, but we are woefully short of the target. This is also why we have cancelled the town hall style staff meeting that is traditionally held to celebrate our achievements.
While it might seem the fruits of our extraordinary grit and determination, hard work and improved efficiencies will go unrewarded, I would like you to consider this: we have managed to retain everyone, while others are slashing staff numbers; we have dramatically increased travel benefits for you and your extended family; we continue to invest in training and development, albeit in more rational ways; and above all, we have not reduced the quality of our award-winning services, which means we will be in an excellent position to capitalise on increasing demand after the financial storm abates.
Departments across the group are working hard to counter the economic crisis. Several have cost-saving measures firmly in place and projects across the organisation are being thoroughly scrutinised. The Secondment Programme has helped relocate colleagues from slower areas of the business to busier departments. The Unpaid Leave policy offers you the opportunity to take up interests or academics and fulfil plans that you probably could not pursue during your annual leave.
The rumours about these programmes resulting in redundancy are just that - rumours. Please remember that these programmes, and any others that we decide to implement, are temporary measures to help us tide over the crisis and we will be right back on track soon.
What does tomorrow hold for the Emirates Group?
Reflecting the global economic meltdown, the airline industry is predicted to lose US$4.7billion (AED 17.3 billion), adding to an industry debt of US$170 billion (AED 624 billion). The Emirates Group will not be immune to this financial meltdown predicted for the industry.
Experts have declared this the bleakest economic climate in living memory. Companies are crashing, industries are being wiped out and whole communities are suffering immense hardships around the world. Thirty airlines have gone bankrupt. The bigger challenge, of course, is that in the short-term there seems to be no end in sight.
All is not lost, however. Middle East passenger numbers are set to grow by 1.2 per cent, and while overall capacity will increase by 3.8 per cent, we are in the right place, geographically and business-wise, to leverage the predicted growth.
In fact, I believe 2009-2010 will be a year of satisfactory growth for the Emirates Group. Our plans remain on track. We do not intend to slow down, but will forge ahead, as we shape our services to meet the ever-changing demands of our clients around the globe.
We will be taking delivery of 18 new Boeing 777s and A380s this year, representing a 19.6 per cent increase in capacity measured in available tonne kilometres. This growth in capacity will bring a fresh set of challenges to the group.
You might have read my New Year's address in Safar, and the same message holds today. It is imperative that we all work together as one unit, with all hands on deck. We must continue to be flexible in customer service, adapt to the new world travel order, and remain vigilant with costs, without affecting the customer experience. This formula will ensure that despite softening demand, our expanded aircraft fleet continues to grace the skies worldwide, not grounded on the tarmac, and that Dnata proudly flies its 50th anniversary flag this year.
Speaking of Dnata, I'm very proud that the company at the very forefront of aviation in Dubai has not just achieved a 22 per cent increase in revenue last year, but has also ramped up its focus on quality, service and safety standards.
I have to say though that our bullish business plans stem from my confidence in each one of you. I'm often asked by media to pick the best asset of the Emirates Group from a list of aircraft, facilities and products. My answer has always been 'the incredible people of the Emirates Group'.
We need to build a win-win partnership where your loyalty, hard work and creativity are rewarded by the organisation's stability, security and progress, and when the profit share targets are met, with a bonus! Your drive and enthusiasm convinces me that we will emerge from this downturn stronger, fitter and in fine fettle for many more profitable years ahead.
And as for the profit share bonus target for next year, to be honest, given the ambiguity and the turmoil in our markets worldwide, it is difficult to compute those numbers just yet. Let the world economy stabilise and we will be in a better position to review and arrive at a target.
Thank you for being an extraordinary group of people - around 48,000 now - and for helping the Emirates Group ride the economic storm on its own terms.
Ahmed bin Saeed Al-Maktoum
Chairman & Chief Executive, Emirates Airline & Group