Emirates Airline

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Emirates
IATA
EK
ICAO
UAE
Callsign
EMIRATES
Founded 1985
Hubs Dubai International Airport
Frequent flyer program Skywards
Fleet size 91(114 Orders)
Destinations 88
Parent company The Emirates Group
Company slogan Fly Emirates. Keep Discovering.
Headquarters Dubai, United Arab Emirates
Key people Sheikh Ahmed bin Saeed Al Maktoum (Chairman/CEO), Maurice Flanagan (Executive Vice-Chairman Emirates Airline and Group)
Website: http://www.emirates.com

Emirates Airline (shortened form: Emirates) (Arabic: الإمارات al-Imārāt) is an airline based in Dubai, United Arab Emirates owned by The Emirates Group. It operates services to the Middle East, Far East, Europe, Africa, Indian subcontinent, Asia-Pacific and North America (with the beginning of October the South American contient will be added to Emirates' scheduled destinations, flying from Dubai to Sao Paulo). Its main base is Dubai International Airport.

Contents

[edit] History

[edit] General

The airline was established in May 1985 by the Dubai government. It started operations with flights to Mumbai (Bombay) and Delhi followed by Karachi in September. A single Airbus A300 and a Boeing 737-300 were leased from Pakistan International Airlines (PIA). Subsequently two Boeing 727-200 Advanced were acquired from the UAE's Royal Flight. These aircraft were used until Emirates began taking delivery of a fleet of newly built Airbus A300-600R and A310-300 widebodied aircraft.

The first European destination to be added in July 1987 was London-Gatwick. Far Eastern operations commenced to Singapore in June 1990. Emirates acquired a financial stake of 40% and a management contract for Air Lanka on 1 April 1998, which subsequently changed its name to Sri Lankan Airlines. Emirates SkyCargo is the cargo subsidiary of Emirates.

Emirates received the prestigious airline of the year award for the first time in 2001 and repeated the feat on 2002 to become a two time award winner of the airline of the year.

For 2004–05, Emirates paid an increased dividend of Dh368 million to the Government of Dubai, compared to Dh329 million the year before. In total, the ownership received Dh1.1 billion from Emirates since dividends started being paid in 1999. Having provided an initial start-up capital of US$10m plus and an additional investment of circa US$80m at the time of the airline's inception,[1] the Dubai government is the sole owner of the company. However, it does not put any new money into it, nor does it interfere with running the airline. [1]

In November 2006 it was announced that Emirates had signed a deal with mobile communications form AeroMobile. This will allow passengers on board Emirates flights to use their mobile phones to call or text people on the ground. This is the first airline in aviation history to confirm a deal which will allow passengers to use their personal mobile phone in early January 2007 on selected Boeing 777. Emirates won the award for best inflight entertainment 2006 from Skytrax, because of their ICE (information communication entertainment) system, with the biggest selling point being over 500 channels of Movies, Television and music.

Emirates has begun construction on its own luxury five star hotel and towers. It is located next to Dnata headquarters on the Sheikh Zayed highway.

In mid-2007, Emirates will feature docking capability for Apple Computer's iPod portable music and video player. This will allow the device's battery to be charged, but will also allow integration with Emirates' In-flight Entertainment (IFE) system. This will also enable the IFE system to play music, television shows, or movies stored on the iPod, as well as function as a control system.[2]

On the 20th of February 2007, Emirates was named the UAE's top brand among 25 other local firms. It has a base value of US$ 6.3 billion.

[edit] Business model

Emirates Airline's commercial success is based on the following principles [2]:

An Airbus A380 seen decorated in the Emirates Airlines colors at the 2005 Dubai Airshow.
An Airbus A380 seen decorated in the Emirates Airlines colors at the 2005 Dubai Airshow.
  • It has a very lean workforce, comparable to the leading low-cost "no frills" airlines rather than other traditional "flag carriers". This, along with a simpler organisational structure, allows the airline to maintain low overhead costs. Its low cost base, which some industry analysts believe is second only to Ryanair on a cash cost per seat basis,[3] allows it to profitably serve secondary destinations as well as connect such places via its global Dubai hub.[4]
  • Emirates has so far refused to join any of the major global airline alliances and questions the advantages such alliances bring for the airlines as well as their customers, especially after taking into consideration the high costs of compliance of alliance membership.
  • It operates an all-widebody fleet resulting in lower unit costs compared with airlines operating mixed narrow/wide-body fleets. This enables Emirates to use these aircraft's cargo capacity to boost its overall revenues and total profits, especially at times when the passenger business passes through a seasonal trough or when an economic downturn adversely impacts the passenger numbers. Its Dubai hub also allows it to take advantage of increasing cargo business between China/India and West Africa.
  • It operates a young, fuel-efficient fleet.
  • It also takes advantage of the lack of night flying restrictions at Dubai International Airport to achieve a high utilisation of its aircraft fleet.
  • As a "youthful" company Emirates has virtually no legacy costs compared with its older, established peers. (It also helps that all forms of strikes are banned in the UAE.)[3]

[edit] Place in airline industry

Large discounts offered by Airbus and Boeing to any airline willing to order new aircraft from either manufacturer during the economic downturn caused by the 9/11 attacks as well as Emirates' strong financial position compared with most of its competitors at the time, enabled the airline to take advantage of this situation by placing huge orders for up to 150 long-haul widebodied jets. These orders included both an order for 45 Airbus A380 "super jumbos" as well as a major order for Boeing's increasingly popular 777-300ER. This will make Emirates the world's largest A380 and 777 operator. Emirates also managed to transform itself from a small- to medium-sized regional airline into a global carrier as a result of placing these orders.

[edit] Controversy

The established network carriers in Europe and Australia, i.e. Air France-KLM, British Airways, Lufthansa, and Qantas, perceive Emirates' strategic decision to reposition itself as a global carrier as a major threat because it increasingly enables an ever-growing number of air travellers to by-pass traditional airline hubs such as London Heathrow, Paris Charles de Gaulle, and Frankfurt on their way between Europe/North America and Asia/Australia by changing flights in Dubai instead. These carriers also find it difficult to deal with the growing competitive threat Emirates poses to their business because of their much higher cost base. Some of these carriers—notably Air France and Qantas—are so concerned about the detrimental effects of Emirates' growth on their future ability to compete with it on a level playing field that they have resorted to openly accusing their Dubai-based rival of receiving hidden state subsidies and of maintaining too cosy a relationship with Dubai's airport authority as well as its aviation authority, both of which are also wholly state-owned entities that share the same government owner with the airline. In addition, they have also accused Emirates of taking unfair advantage of its government shareholder's sovereign borrower status. They claim that this masks its true financial performance and reduces its borrowing costs below market rates. [3][4][5][5]

[edit] Destinations

Main article: Emirates destinations

[edit] Fleet

[edit] Passenger fleet

The Emirates fleet consists of the following aircraft as of March 2007:

Emirates Fleet
Type Total Passengers
(First*/Business/Economy)
Routes Notes
Airbus A310 4
Airbus A330-200 29 237 (12/42/183)
278 (27/251)
Short and Medium haul
European, African and Far East routes
Airbus A340-300 8 267 (12/42/213) Long haul
Airbus A340-500 10 258 (12/42/204) Ultra-Long haul
Airbus A380 (46 orders) Scheduled for delivery in

August 2008

Boeing 777-200 3 303 (18/49/236)
346 (42/304)
Medium and Long haul
Boeing 777-200ER 6 283 (12/35/236) Medium and Long haul
Boeing 777-200LR (10 orders) 266 (8/42/216) Ultra Long-haul To be delivered from
October, 2007 to 2008
Boeing 777-300 12 380 (18/42/320)
434 (49/385)
Medium and Long Haul
Boeing 777-300ER 23
(36 orders)(including lease)
358 (12/42/304)
427 (42/385)
Medium and Long Haul
Total Number of Aircraft 92
(96 on order)
Updated: March 2007

*First Class is Offered Only On Select Routes.

[edit] Cargo fleet

The Emirates Cargo fleet consists of the following aircraft as of October 2006:

Emirates Cargo Fleet
Type Total Notes
Airbus A310-300F 3 Operated by Emirates SkyCargo
Boeing 747-200F 1 Operated for Emirates SkyCargo by Atlas Air
Boeing 747-400F 5 Operated for Emirates SkyCargo by Atlas Air
Boeing 747-8F (10 orders) To be operated by Emirates SkyCargo
Boeing 777F (8 orders) To be operated by Emirates SkyCargo
Will replace the 747-200F

The average age of the Emirates fleet is 5.4 years as of February 2007.

  • Emirates has ordered 45 airbus A380 aircraft. It will be the third airline to receive the aircraft, after launch airline Singapore Airlines and Qantas. Forty-one passenger A380-800s are to be purchased and two are to be leased from International Lease Finance Corporation (ILFC). Two freighter A380-800Fs were ordered for Emirates SkyCargo. However, this was changed to the passenger model in May 2006. Their first A380 was to enter service in October 2006[6] but will now not be delivered until early 2008.
  • As of November 20, 2005, Emirates had an orderbook of Dh990 billion, comprising 105 firm orders, including 45 Airbus A380s (by far the largest of any carrier),[7]
  • Emirates is still evaluating both Boeing's 787 and Airbus's A350. Boeing is now planning to create a larger 787 called the 787-10 in response to Emirates' and other airlines requirement for a larger aircraft than the already launched Boeing 787-8 and Boeing 787-9.[8]
  • On October 27, 2006, Emirates announced that it cancelled its order for 20 Airbus A340-600 aircraft, citing that they believed the A340 lacked the technology offered by more up-to-date planes. They also cancelled the A380 Airbus A380Fs which were due for delivery in 2009. Instead the airline has opted to order ten of the recently launched 747-8 freighters for its SkyCargo subsidiary at the 2006 Farnborough Air Show, much to the annoyance of Airbus which has accused Boeing of intentionally misleading airlines about the capabilities of its new Airbus A380-800F freighter.[citation needed] The reason Emirates has chosen the Boeing 747-8 "derivative" freighter over the all-new Airbus A380F is the Boeing aircraft's nose-loading capability, something the rival Airbus freighter is lacking.[9][10] In addition, Emirates also said that it was evaluating the 747-8I, the yet to be launched passenger version of the Boeing 747-8, especially the "stretched" version now studied by Boeing which would incorporate the same 5.6m stretch as the freight variant instead of the mere 3.6m stretch currently envisaged for the passenger model. This would bring the -8I's capacity closer to the A380-800's typical three-class 555-seat capacity (470 seats in a three-class-configuration instead of 450).

[edit] Emirates Hotels and Resorts

Emirates Hotels & Resorts is the new, premium hospitality division of the Emirates Group and this launch heralds a significant boost to its unrelenting commitment to the scope and calibre of its activities within the travel and tourism sector.

Emirates Hotels & Resorts’ focus revolves around three key elements - service, luxury and location – a successful mix that has already delivered a plethora of awards for Emirates Al Maha Desert Resort & Spa, located within Dubai Desert Conservation Reserve. This, coupled with the phenomenal equity developed by the quality of its airline operation, Emirates Airline, means that establishment of the new property portfolio is hardly uncharted territory for the Group. In fact, it’s a natural extension to the Emirates Group’s current operations, credentials and reputation that leverages the best-practices developed and perfected over the last twenty years.

Throughout, delivery of exceptionally high service standards, first-class facilities and the selection of unique, luxurious locations, Emirates Hotels & Resorts’ mission will be to create an experience that exceeds the expectations of today’s sophisticated traveller.

Emirates Hotels & Resorts looks forward to welcoming you to where luxury meets location.

Emirates Al Maha Desert Resort Spa Emirates Wolgan Valley Resort Spa Emirates Marina Hotel and Residence Emirates Green Lakes Serviced Apartments Emirates Park Towers Hotel & Spa Dubai Desert Conservation Reserve

[edit] Skywards

Main article: Skywards

Skywards is frequent flyer program of Emirates, SriLankan Airlines and other Emirates travel partners. Miles are earned through flights with Emirates and SriLankan, or with cooperating airlines such as include Continental Airlines, Japan Airlines, Korean Air, South African Airways, and United Airlines. Like many frequent flyer programs, Skywards offers a tier model of Silver and Gold, which gives additional benefits based upon miles flown in a year.

[edit] Marketing

Emirates is a big global sponsor of sports clubs and events, both at its home base and in the main overseas markets it serves. It also sponsors the annual "Dubai Shopping Festival". As the airline lacks a "ready-made" clientele in its almost non-existent home market, this type of corporate sponsorship is its most effective marketing tool. Perhaps unsurprisingly, for Emirates marketing expenses account for a far greater share of its total costs than for most of its competitors.[3] In the English-speaking world the sponsorship always carries the words "Fly Emirates".

At present the company provides the following sponsorships:

[edit] Incidents and accidents

  • An Airbus A340-313X of Emirates ran off the runway when taking off from Johannesburg International Airport on April 9, 2004. At the call to rotate, the pilot flying pulled back on the stick. However, according to a report, the nose was then de-rotated and the aircraft did not become airborne. The crew felt a rumbling, selected full power, and about two seconds later the aircraft lifted off the ground[1]. The airport says 25 runway threshold and approach lights and part of the runway surface were damaged as the aircraft went over the end of 21R.
  • An Airbus A330-243 en route Dubai-Vienna (Flight EK127) declared an emergency shortly after taking off on May 28, 2006. The aircraft returned for an emergency landing at the Dubai International Airport.
Emirates Airbus A330-200
Emirates Airbus A330-200
Emirates Boeing 777
Emirates Boeing 777

[edit] See Also

[edit] References

  1. ^ The Sunday Times (Emirates boss heads for bigger goals), Times Newspapers Ltd., London, 23 July 2006
  2. ^ "Apple: 6 Airlines To Offer In-Flight iPod Connection In '07." De Weese, J. The Wall Street Journal. November 14, 2006.
  3. ^ a b c The Economist (Eazy Oz - Emirates Airline, Low cost is coming to long haul flights, next could be low fares), pp. 82/3, The Economist Newspaper Ltd., London, 29 October 2005
  4. ^ The Economist (Flights of fancy), www.economist.com, 5 October 2006
  5. ^ Financial Times (Row erupts between Qantas and Emirates), UK Edition, London, 9 November 2005
  6. ^ Airliner World. March, 2005
  7. ^ "Emirates pushes for A340-600 Enhanced in place of high gross weight variant." Kingsley-Jones, M. Flight International. March 17, 2006.
  8. ^ http://www.atwonline.com/news/story.html?storyID=4505
  9. ^ Financial Times (Farnborough Air Show - Boeing lands $3.3bn Emirates order), UK Edition, London, 19 July 2006
  10. ^ Flight International (Farnborough Show Report 7-23 July 2006 [Air Transport - Emirates explains freighter buy]), Reed Business Information Ltd., Sutton, 25-31 July 2006, p. 4

[edit] External links