uplock
2nd May 2006, 15:47
http://www.theaustralian.news.com.au/images/masthead.gif
Thought we may have heard this from our managers rather than read it in an Over Seas paperhere (http://www.theaustralian.news.com.au/story/0,20867,18949971-23349,00.html)
Then again Mr Creedy scored a flight to Dubai so it is written in rather glowing terms.
May be we will all score a pay rise after all with all that money tucked away With $US3 billion in the bank, it's cashed-up and ready to rock and roll, but president Tim Clark says it won't be rushing to buy into other airlines.
Posted the article below Emirates homes in on top spot
The airline spends up big in its quest to lead world aviation, writes Steve Creedy
--------------------------------------------------------------------------------
28apr06
EMIRATES, the airline Qantas loves to hate, is aiming to become the world's biggest international carrier in as little as a decade as it establishes a global network.
The Dubai airline's aggressive growth plans, fuelled by an equally ambitious government vision for the Arabian emirate, has already seen it order aircraft worth $US33 billion ($44 billion), including the world's biggest orders of Boeing 777s and Airbus A380s.
The order is part of a medium-term plan to move from its current fleet of 92 aircraft serving 83 destinations to 156 planes and 101 destinations by 2010. The number of passengers carried is expected to jump by then from 14.5 million to 26 million.
Founder and executive vice-chairman Maurice Flanagan says the Dubai carrier is quickly moving up the global airline ranks from No17, and estimates it could hit the top spot in 10 years and "certainly less than 15 years".
He says growth of traffic through Dubai and for Emirates is "off the clock" and the airline sees no point at which it will tail off.
"Emirates feeds the growth of Dubai and the growth of Dubai feeds Emirates," Flanagan says. "As I've said earlier, it's a massive virtuous circle."
That optimistic outlook was underscored at this week's annual results announcement when chief executive and chairman Sheik Ahmed bin Saeed Al-Maktoum predicted a 13 per cent group profit growth for 2006-07, despite high fuel prices.
The Emirates group, which includes the airline and airports and cargo company Dnata, announced another record annual profit of $US762 million for the 12 months ended March 31 on a 27 per cent jump in revenues to $US6.6 billion. The airline's profit rose a smaller 2.8 per cent to $US674 million but its other statistics all looked good.
With $US3 billion in the bank, it's cashed-up and ready to rock and roll, but president Tim Clark says it won't be rushing to buy into other airlines.
Instead, he says, Emirates will continue growing organically.
"(Mergers and acquisitions) are always a worry to us because of the baggage that they bring," he says.
"So organic and controlling our own destiny is, I think, the way to go. Otherwise you get sidetracked and there aren't enough of us to take it on and drive it all through."
That growth saw Emirates add 16 new aircraft in the past financial year and it says it will continue to add an average of one a month for the next six years.
Despite the big increase in capacity, Emirates' passenger load factor rose more than a percentage point to 75.9 per cent as it attracted an additional 2 million passengers, a 20.2 per cent increase on the previous year.
Yields rose for the fourth consecutive year and Emirates SkyCargo carried more than 1 million tonnes for the first time ever. The airline began building its own network of lounges, with one each opened in Perth and Sydney, and this year it plans to add facilities at another 12 major airports worldwide.
New routes included Abidjan, Addis Ababa, Alexandria, Hamburg, Seoul and Kolkata and it has already announced that destinations this financial year will include Bangalore, Beijing and Nagoya.
It wants to beef up its trans-Atlantic offering, with new US destinations likely to include the West Coast, and is looking at ultra long-haul routes such as Dubai-Buenos Aires for the 777-200LRs due to start arriving next year.
Emirates also intends to go into China strongly and has more Indian destinations in mind.
The 10 passenger 777-200LRs and eight freighters are part of a record $US9.7 billion order which also includes 24 Boeing 777-300ERS. Australians are likely to see the 777-300ERs on the Sydney-Dubai, Melbourne-Dubai routes, which will also host the airline's A380s.
After some concerns about potential delays with the giant planes, Airbus recently gave Sheik Ahmed undertakings that the first of its massive order of planes will be delivered on time next April.
Melbourne, Sydney and Auckland will see Emirates' long-haul version with 489 seats in three classes, but it is also configuring a 514-seat plane for medium-haul flights of up to eight hours and a 644-seat version with just two classes. It is also confident it will get a stretch version of the A380 it has been pushing for but says it has yet to decide between the A350 and the 787.
Clark says the airline is still trying for further improvements to the smaller planes.
"Some time in the course of this year or early next year - when we're ready - we're going to go," he says. "But we're not going to go until we're really ready on this, because what tends to happen is they freeze the specs. Now if you keep them at it, their R&D people going all the time, they will continue to evolve."
Emirates' massive growth plan has unsettled other airlines and seen renewed criticism about support for the carrier by the Government of Dubai.
It vehemently denies it receives hidden government support and subsidies, saying the company's success is based on a business model which focuses on growth and investing in innovations to keep it ahead of the opposition.
But there's no denying that the Dubai Government, also run by the Al-Maktoum family, is making massive investments in aviation infrastructure.
The existing airport is struggling to cope with passenger numbers beyond its limits, and additions now under construction will boost its capacity to 75 million passengers by 2008. Work has also started on a six-runway airport at Jebel Ali designed to take 120 million passengers, with the first runway expected to be ready next year.
The two projects will give Dubai the capacity to take almost three times more passengers than Heathrow can currently handle.
Outside the airport is an even bigger building frenzy producing an astonishing proliferation of high-rise buildings, including hotels, to house an expected increase in residents and tourists.
Dubai itself is estimated to have invested more than $US100 billion in projects that include the world's tallest building and man-made islands. All this development is part of preparations for a future without oil, which already only accounts for 6 per cent of Dubai's income compared with 30 per cent for tourism. Outsiders wonder where it will find the people to fill its many projects, but Flanagan again points to double-digit growth which shows no sign of abating.
"We get 20,000 job applications a month," he says. "Now that reflects two things. One is that Emirates is an airline of choice in the airline business, but also that Dubai is a place of choice for people to come and live and work here. The growth here is amazing."
One area where Emirates would like to see more growth, however, is Australia.
Taking Perth to "double daily" later this year uses up all the landing rights the United Arab Emirates has in Australia.
The airline has already put in a detailed submission backing its case for a phased introduction of more flights, and is hopeful it can convince the Government to accept its argument.
Clark, who will head down to press Emirates' case in the next two months, says the airline is seeing demand for flights to Australia from multiple points in its network, and that the route is the airline's second most profitable.
Emirates' submission argues that the 49 routes it will be operating when Perth goes double daily are good for Australia, the economy and aviation.
"It's not just all about tourism," Clark says. "It's all about business opportunities and trade. And there is clear evidence as to why we need to grow in phases to the kind of numbers we're talking about."
Clark believes Australian business people are aware of the opportunities.
"It's not just the Middle East," he says. "We're reaching into Africa, and if you want to go from Australia to Africa these days it's quite a difficult thing to do. But if you come to Dubai we have multiple spreads into East Africa, West Africa and Central Africa."
And does Emirates have any trans-Pacific aspirations?
"If it comes up, of course we would look at it, but at the moment we're not planning anything," says Flanagan. "What would make a lot more sense would be if Hong Kong freed themselves up, but they really are quite protective of Cathay. We could do Dubai-Hong Kong to a point in the States."
Steve Creedy flew to Dubai courtesy of Emirates
Thought we may have heard this from our managers rather than read it in an Over Seas paperhere (http://www.theaustralian.news.com.au/story/0,20867,18949971-23349,00.html)
Then again Mr Creedy scored a flight to Dubai so it is written in rather glowing terms.
May be we will all score a pay rise after all with all that money tucked away With $US3 billion in the bank, it's cashed-up and ready to rock and roll, but president Tim Clark says it won't be rushing to buy into other airlines.
Posted the article below Emirates homes in on top spot
The airline spends up big in its quest to lead world aviation, writes Steve Creedy
--------------------------------------------------------------------------------
28apr06
EMIRATES, the airline Qantas loves to hate, is aiming to become the world's biggest international carrier in as little as a decade as it establishes a global network.
The Dubai airline's aggressive growth plans, fuelled by an equally ambitious government vision for the Arabian emirate, has already seen it order aircraft worth $US33 billion ($44 billion), including the world's biggest orders of Boeing 777s and Airbus A380s.
The order is part of a medium-term plan to move from its current fleet of 92 aircraft serving 83 destinations to 156 planes and 101 destinations by 2010. The number of passengers carried is expected to jump by then from 14.5 million to 26 million.
Founder and executive vice-chairman Maurice Flanagan says the Dubai carrier is quickly moving up the global airline ranks from No17, and estimates it could hit the top spot in 10 years and "certainly less than 15 years".
He says growth of traffic through Dubai and for Emirates is "off the clock" and the airline sees no point at which it will tail off.
"Emirates feeds the growth of Dubai and the growth of Dubai feeds Emirates," Flanagan says. "As I've said earlier, it's a massive virtuous circle."
That optimistic outlook was underscored at this week's annual results announcement when chief executive and chairman Sheik Ahmed bin Saeed Al-Maktoum predicted a 13 per cent group profit growth for 2006-07, despite high fuel prices.
The Emirates group, which includes the airline and airports and cargo company Dnata, announced another record annual profit of $US762 million for the 12 months ended March 31 on a 27 per cent jump in revenues to $US6.6 billion. The airline's profit rose a smaller 2.8 per cent to $US674 million but its other statistics all looked good.
With $US3 billion in the bank, it's cashed-up and ready to rock and roll, but president Tim Clark says it won't be rushing to buy into other airlines.
Instead, he says, Emirates will continue growing organically.
"(Mergers and acquisitions) are always a worry to us because of the baggage that they bring," he says.
"So organic and controlling our own destiny is, I think, the way to go. Otherwise you get sidetracked and there aren't enough of us to take it on and drive it all through."
That growth saw Emirates add 16 new aircraft in the past financial year and it says it will continue to add an average of one a month for the next six years.
Despite the big increase in capacity, Emirates' passenger load factor rose more than a percentage point to 75.9 per cent as it attracted an additional 2 million passengers, a 20.2 per cent increase on the previous year.
Yields rose for the fourth consecutive year and Emirates SkyCargo carried more than 1 million tonnes for the first time ever. The airline began building its own network of lounges, with one each opened in Perth and Sydney, and this year it plans to add facilities at another 12 major airports worldwide.
New routes included Abidjan, Addis Ababa, Alexandria, Hamburg, Seoul and Kolkata and it has already announced that destinations this financial year will include Bangalore, Beijing and Nagoya.
It wants to beef up its trans-Atlantic offering, with new US destinations likely to include the West Coast, and is looking at ultra long-haul routes such as Dubai-Buenos Aires for the 777-200LRs due to start arriving next year.
Emirates also intends to go into China strongly and has more Indian destinations in mind.
The 10 passenger 777-200LRs and eight freighters are part of a record $US9.7 billion order which also includes 24 Boeing 777-300ERS. Australians are likely to see the 777-300ERs on the Sydney-Dubai, Melbourne-Dubai routes, which will also host the airline's A380s.
After some concerns about potential delays with the giant planes, Airbus recently gave Sheik Ahmed undertakings that the first of its massive order of planes will be delivered on time next April.
Melbourne, Sydney and Auckland will see Emirates' long-haul version with 489 seats in three classes, but it is also configuring a 514-seat plane for medium-haul flights of up to eight hours and a 644-seat version with just two classes. It is also confident it will get a stretch version of the A380 it has been pushing for but says it has yet to decide between the A350 and the 787.
Clark says the airline is still trying for further improvements to the smaller planes.
"Some time in the course of this year or early next year - when we're ready - we're going to go," he says. "But we're not going to go until we're really ready on this, because what tends to happen is they freeze the specs. Now if you keep them at it, their R&D people going all the time, they will continue to evolve."
Emirates' massive growth plan has unsettled other airlines and seen renewed criticism about support for the carrier by the Government of Dubai.
It vehemently denies it receives hidden government support and subsidies, saying the company's success is based on a business model which focuses on growth and investing in innovations to keep it ahead of the opposition.
But there's no denying that the Dubai Government, also run by the Al-Maktoum family, is making massive investments in aviation infrastructure.
The existing airport is struggling to cope with passenger numbers beyond its limits, and additions now under construction will boost its capacity to 75 million passengers by 2008. Work has also started on a six-runway airport at Jebel Ali designed to take 120 million passengers, with the first runway expected to be ready next year.
The two projects will give Dubai the capacity to take almost three times more passengers than Heathrow can currently handle.
Outside the airport is an even bigger building frenzy producing an astonishing proliferation of high-rise buildings, including hotels, to house an expected increase in residents and tourists.
Dubai itself is estimated to have invested more than $US100 billion in projects that include the world's tallest building and man-made islands. All this development is part of preparations for a future without oil, which already only accounts for 6 per cent of Dubai's income compared with 30 per cent for tourism. Outsiders wonder where it will find the people to fill its many projects, but Flanagan again points to double-digit growth which shows no sign of abating.
"We get 20,000 job applications a month," he says. "Now that reflects two things. One is that Emirates is an airline of choice in the airline business, but also that Dubai is a place of choice for people to come and live and work here. The growth here is amazing."
One area where Emirates would like to see more growth, however, is Australia.
Taking Perth to "double daily" later this year uses up all the landing rights the United Arab Emirates has in Australia.
The airline has already put in a detailed submission backing its case for a phased introduction of more flights, and is hopeful it can convince the Government to accept its argument.
Clark, who will head down to press Emirates' case in the next two months, says the airline is seeing demand for flights to Australia from multiple points in its network, and that the route is the airline's second most profitable.
Emirates' submission argues that the 49 routes it will be operating when Perth goes double daily are good for Australia, the economy and aviation.
"It's not just all about tourism," Clark says. "It's all about business opportunities and trade. And there is clear evidence as to why we need to grow in phases to the kind of numbers we're talking about."
Clark believes Australian business people are aware of the opportunities.
"It's not just the Middle East," he says. "We're reaching into Africa, and if you want to go from Australia to Africa these days it's quite a difficult thing to do. But if you come to Dubai we have multiple spreads into East Africa, West Africa and Central Africa."
And does Emirates have any trans-Pacific aspirations?
"If it comes up, of course we would look at it, but at the moment we're not planning anything," says Flanagan. "What would make a lot more sense would be if Hong Kong freed themselves up, but they really are quite protective of Cathay. We could do Dubai-Hong Kong to a point in the States."
Steve Creedy flew to Dubai courtesy of Emirates