Profile: Emirates by Colin Ellson
New chapter in a story of success
Modern fleet leads Emirates’ growth plan
WITH a new-look fleet, planned route expansion, and involvement in major development at its Dubai hub, Emirates begins a fresh phase of expansion this year.
Founded in 1985, when airline capacity failed to match Dubai’s growth, the flag carrier of the United Arab Emirates is a product of free enterprise and open-skies policies.
It has received neither oil money nor government guarantees, yet made a whopping $71.33m profit in the last financial year. This has been made possible by dramatic growth, which has seen the carrier double in size every three-and-a-half years. It now carries 4.5m passengers annually to 44 destinations worldwide on a fleet of 23 aircraft.
The basis of further growth will be new aircraft offering increased range or capacity. In the short term, these are the 17 Airbus A330-200s, which will begin arriving this month, with completion of the order by 2002, and two Boeing 777-300s, due at the end of the year.
“The A330s will replace A310s and A300s on the Manchester-Dubai route in March, their increased range allowing us to fly nonstop every day,” said Emirates group managing director Maurice Flanagan.
“The larger 777s will give increased capacity out of Heathrow, from where we will be adding a third daily flight to Dubai in July.”
Even more significant in Emirates’ long-term expansion plans is the $2.4bn deal signed by chairman Sheikh Ahmed bin Saeed Al Maktoum in September for six Airbus A340-500s, with an option on a further 10.
The aircraft will be delivered in 2002 and 2003 and give the airline the ability to serve North Atlantic and Pacific routes.
“It will allow us to fly nonstop from Dubai to the US West Coast and Australia,” said Flanagan. “We already plan to serve New York and Sydney, have pencilled in Los Angeles, and are thinking of other possibilities, like South America.”
Emirates has also invested heavily in in-flight technology. It was the first airline to offer personal videos at every seat in first, business and economy, and will extend its latest entertainment system to the new aircraft.
This features 17 audio-visual and 22 audio channels – all with touch-screen controls.
As on current Airbuses and Boeing 777s, there will also be a central fax machine, and each seat has a telephone, with plans to install modems so passengers can send faxes from their laptop computers.
While it has codeshare partnerships with four airlines, Emirates has yet to go the whole way and join an alliance. “We have been wooed but are keeping our distance,” said Flanagan. “At the moment, any alliance would make an awkward fit, particularly as we don’t have a frequent flyer programme. On the other hand, a loyalty scheme could be launched in 2000.”
On the ground, the airline has been heavily involved in the $540m development at Dubai Airport, where it has new lounges in a second terminal, opened in May, with a third planned.
By 2000, the total number of passengers using the airport is expected to rise from the present 9m to 12m, with up to 50% flying with Emirates.