Emirates aims at sixfold growth
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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."
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."
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Part of the expansion plans include making DXB-MAN double daily.
In ord er to do this, supplementing the current A330 will be a 777-200 operating DXB-MAN-LAX, subject to govt. approval (remember how long it took for Olympic to go thru all the red tape, only never to start the service).
Subject to the above, the plan is intended to become reality by the end of 2001.
In ord er to do this, supplementing the current A330 will be a 777-200 operating DXB-MAN-LAX, subject to govt. approval (remember how long it took for Olympic to go thru all the red tape, only never to start the service).
Subject to the above, the plan is intended to become reality by the end of 2001.
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Assuming this is pure expansion without acquisition, the numbers just don't add up. From 40 aircraft to 210 in 114-odd months. That's one new airplane every three weeks. Well nigh impossible, unless of course 410 is right..
But EK to buy GF? Too many bruised egos in Bahrain and Abu Dhabi for that idea to be taken seriously. If it works though, there will be carnage regarding seniority. That will be a bunfight worth watching!
What was that curse? Oh, I remember, "May you live in interesting times".
But EK to buy GF? Too many bruised egos in Bahrain and Abu Dhabi for that idea to be taken seriously. If it works though, there will be carnage regarding seniority. That will be a bunfight worth watching!
What was that curse? Oh, I remember, "May you live in interesting times".
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I must agree with 410. Sheikh Ahmed is most definately no dummy, however I cannot see how he can aquire 175 additional aircraft in 10 years. That's 17.5 per year, nevermind staffing them. As far as aquisitions/takeovers his options are very limited within the region. My personal view is that EK need a shorthaul fleet first and then gradually establish longhaul North American routes which at the present time are lacking from the Gulf and have potential.
History has tought us that rapid expansion had in most cases dire consequences.
Good luck to EK in their future plans.
History has tought us that rapid expansion had in most cases dire consequences.
Good luck to EK in their future plans.
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I quote:
""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.""
How will a supersonic aircraft reduce distances?
""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.""
How will a supersonic aircraft reduce distances?
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Could it be that they will buy up the remaining part of UL they don't already own? From a "management" point of view would make perfect sense as the UL guys make about half as much. THEN, they could try a CX ploy, reduce the EK salaries closer to UL. Wonder what would the EK pilots say then? Then, to add insult to injury, recruit more TCN's to replace the high cost European labor. UP go the profits.
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Latest from "local" Middle East papers:
"Emirates airline plans to buy up to 60 new wide-body aircraft worth $10 billion and is negotiating with Airbus and Boeing, the Arabic daily Al-Hayat reported yesterday. However, any deal with Airbus may be affected by differences between Emirates and France over the carrier's traffic rights to Paris, the newspaper said, quoting informed sources.
The London-based daily quoted Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation and chairman of Emirates Group, as telling it: "We usually don't comment on these issues, but we are not happy with the French position and we want the rights to at least daily flights to Paris."
Al-Hayat said Sheikh Ahmed hinted the dispute may have affected relations with Airbus, which is 80 per cent owned by European Aeronautic Defence and Space Co NV and 20 per cent by British defence contractor BAE Systems Plc.
"We were thinking of buying more Airbus A380s, but we decided to put that on the side until matters are clear," he said. Emirates has seven A380s on order and was the first airline to sign a firm deal for the giant 555-seat aircraft, which are scheduled to enter service in 2006.
Mike Simon, director of corporate relations at Emirates, said: "We do not wish to comment on negotiations with Airbus," adding that the French had so far refused Emirates' request for daily flights to Paris instead of the current three flights a week.
Asked about Al-Hayat's report on the plans to buy 60 new planes, Simon said: "We do plan to increase the fleet and will be discussing with both Airbus and Boeing new acquisitions". "We plan a substantial increase in the size of the fleet in the next 10 years," he added, but would not elaborate.
Sheikh Ahmed said Emirates Group Managing Director Maurice Flanagan was in Seattle for talks with Boeing officials on the proposed Sonic Cruiser. "We are interested in the Boeing Delta supersonic... I sent Maurice Flanagan to Seattle last week to meet Boeing officials and I will go to Seattle next month for the same purpose because we are very curious to know this new type (of aircraft) and are interested in buying it," he said.
He said the talks also include buying more 777 aircraft. Al-Hayat quoted sources as saying that Emirates was looking at another 20 to 30 Boeing 777s and that some deal could be announced at the Paris air show next month.
Sheikh Ahmed told the newspaper that Emirates was planning to double its fleet after instructions from General Sheikh Moh-ammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence, to increase the fleet to 100 planes by 2010 from the current 35.
"Our estimates show the number of passengers through Dubai airport will reach 14 million this year rising to 55 million by 2010. Of those we will carry about 65 per cent or about 30 million passengers a year, which justifies increasing the seat and operational capacity of our fleet," Sheikh Ahmed added.
"Emirates airline plans to buy up to 60 new wide-body aircraft worth $10 billion and is negotiating with Airbus and Boeing, the Arabic daily Al-Hayat reported yesterday. However, any deal with Airbus may be affected by differences between Emirates and France over the carrier's traffic rights to Paris, the newspaper said, quoting informed sources.
The London-based daily quoted Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation and chairman of Emirates Group, as telling it: "We usually don't comment on these issues, but we are not happy with the French position and we want the rights to at least daily flights to Paris."
Al-Hayat said Sheikh Ahmed hinted the dispute may have affected relations with Airbus, which is 80 per cent owned by European Aeronautic Defence and Space Co NV and 20 per cent by British defence contractor BAE Systems Plc.
"We were thinking of buying more Airbus A380s, but we decided to put that on the side until matters are clear," he said. Emirates has seven A380s on order and was the first airline to sign a firm deal for the giant 555-seat aircraft, which are scheduled to enter service in 2006.
Mike Simon, director of corporate relations at Emirates, said: "We do not wish to comment on negotiations with Airbus," adding that the French had so far refused Emirates' request for daily flights to Paris instead of the current three flights a week.
Asked about Al-Hayat's report on the plans to buy 60 new planes, Simon said: "We do plan to increase the fleet and will be discussing with both Airbus and Boeing new acquisitions". "We plan a substantial increase in the size of the fleet in the next 10 years," he added, but would not elaborate.
Sheikh Ahmed said Emirates Group Managing Director Maurice Flanagan was in Seattle for talks with Boeing officials on the proposed Sonic Cruiser. "We are interested in the Boeing Delta supersonic... I sent Maurice Flanagan to Seattle last week to meet Boeing officials and I will go to Seattle next month for the same purpose because we are very curious to know this new type (of aircraft) and are interested in buying it," he said.
He said the talks also include buying more 777 aircraft. Al-Hayat quoted sources as saying that Emirates was looking at another 20 to 30 Boeing 777s and that some deal could be announced at the Paris air show next month.
Sheikh Ahmed told the newspaper that Emirates was planning to double its fleet after instructions from General Sheikh Moh-ammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence, to increase the fleet to 100 planes by 2010 from the current 35.
"Our estimates show the number of passengers through Dubai airport will reach 14 million this year rising to 55 million by 2010. Of those we will carry about 65 per cent or about 30 million passengers a year, which justifies increasing the seat and operational capacity of our fleet," Sheikh Ahmed added.
