Emirates Airline
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| Emirates | ||
|---|---|---|
 | ||
| IATA EK | ICAO UAE | Callsign EMIRATES |
| Founded | 1985 | |
| Hubs | Dubai International Airport | |
| Frequent flyer program | Skywards | |
| Member lounge | Emirates Lounge | |
| Alliance | Arab Air Carriers Organization (AACO) | |
| Fleet size | 115 (+ 194 orders, 60 options and 20 Rights)[1] | |
| Destinations | 99 destinations in 62 countries [2] | |
| Parent company | The Emirates Group | |
| Company slogan | Fly Emirates. Keep Discovering. | |
| Headquarters | Dubai, United Arab Emirates | |
| Key people | Ahmed bin Saeed Al Maktoum (Chairman/CEO) Maurice Flanagan (Executive Vice-Chairman) Tim Clark (President) | |
| Website: http://www.emirates.com | ||
Emirates Airline (shortened form: Emirates) (Arabic: طيران الإماراتTayarān al-Imārāt) is a subsidiary of The Emirates Group. Based in Dubai, United Arab Emirates (UAE), it is the ninth largest airline in the world in terms of international passengers carried [3] and tenth largest in terms of scheduled international freight tonne-kilometres flown[4]. It is also the largest airline in the Middle East in terms of revenue, fleet size, and passengers carried. The airline operates over 2,350 passenger flights per week, to 99 destinations in 62 countries all over the world. Cargo activities are undertaken by the Emirates Group's Emirates SkyCargo division. Its main base is Dubai International Airport.[5]
During the 2006/07 financial year, Emirates carried 17.5 million passengers. A total of 1.2 million tonnes of cargo was transported by Emirates Airline and Emirates SkyCargo, the freight subsidiary of The Emirates Group. [6]
Emirates has built up a strong brand, has received many awards, and is an industry bellwether for aircraft purchases,[7] as a trendsetter[8] in terms of service, innovation, and safety.
Emirates will have 122 Boeing 777s by 2011 making it the single largest aircraft type in fleet, and 58 Airbus A380s by 2012. During the 2007 financial year Emirates received 13 new aircraft, and is expecting another 23 aircraft during 2008 which includes 4 Airbus A380s.
Contents[hide] |
[edit] History
The airline was established on May 25, 1985 by the Dubai government. It started operations with flights to Karachi and Mumbai followed by Delhi 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 Airbus A310-300 wide-body aircraft.
The first European destination to be added in July 1987 was London Gatwick and Far Eastern operations commenced to Singapore in June 1990. Emirates acquired a financial stake of 43.6%[9] and a management contract for Air Lanka on 1 April 1998, which subsequently changed its name to SriLankan Airlines. In January 2008, Emirates announced that it will pass the management of SriLankan Airlines to the Sri Lankan government in April 2008.[9][10] There are no plans to remove or decrease the stake in the airline.[9]
Emirates received the airline of the year award for the first time in 2001 and repeated the feat in 2002. Emirates Airline is wholly owned by the Government of Dubai and has 20,273 employees.
[edit] Statistics
International Air Transport Association (IATA) statistics indicate that in 2006 Emirates ranked among the top-ten airlines in the world in terms of passengers (17.54 million) carried and kilometers (71.3 million) flown in 2006/2007. The airline carried 14.5 million passengers in 2005/06, 2 million more than in the previous year. The passenger seat factor increased to 75.9 per cent, up 1.3 percentage points from the previous year, led by an increase in traffic by 20.2 per cent. In the financial year 2005/2006, Emirates carried 14.5 million passengers and one million tonnes of cargo.[6]
| Year | Total Revenue (AED’000) | Total Expenditure (AED’000) | Operating Profit (AED’000) | Net Profit (AED’000) | Yield (Fils per RTKM) | Unit cost (Fils per ATKM) | Breakeven load factor (%) |
|---|---|---|---|---|---|---|---|
| 2002-2003 | 9,709,749 | 8,749,606 | 1,000,511 | 906,747 | 169 | 111 | 65.4 |
| 2003-2004 | 13,286,331 | 11,602,094 | 2,618,789 | 1,573,511 | 181 | 107 | 59.0 |
| 2004-2005 | 18,130,998 | 15,628,282 | 2,652,291 | 2,407,385 | 192 | 111 | 58.0 |
| 2005-2006 | 23,050,927 | 20,489,601 | 2,652,291 | 2,474,999 | 203 | 122 | 60.2 |
| 2006-2007 | 29,839,618 | 26,675,891 | 3,338,873 | 3,096,416 | 216 | 129 | 59.9 |
| Year | Traffic | Passenger seat kilometres | Fleet | Average age of fleet (months) | Aircraft departures from Dubai International Airport | Destinations | Number of employees | Aircraft Departures | Passenger seat factor (%) |
|---|---|---|---|---|---|---|---|---|---|
| 2002-2003 | 8,502,894 | 31,660,547 | 46 | 36 | 45,452 | 64 | 10,507 | 45,452 | 76.6% |
| 2003-2004 | 10,441,345 | 40,110,375 | 61 | 46 | 58,763 | 73 | 12,804 | 58,763 | 73.4% |
| 2004-2005 | 12,528,761 | 51,398,393 | 69 | 55 | 72,057 | 76 | 15,858 | 72,057 | 74.6% |
| 2005-2006 | 14,497,536 | 62,260,070 | 85 | 61 | 79,937 | 83 | 17,296 | 79,937 | 75.9% |
| 2006-2007 | 17,544,140 | 77,946,590 | 104 | 63 | 92,158 | 89 | 20,273 | 92,158 | 76.2% |
[edit] Destinations
Emirates flies to 99 destinations in 62 countries on six continents from its primary hub in Dubai.[11] It has a particularly strong presence in the Southeast Asian region, which together, connects Dubai with more international destinations in the region than any other Middle Eastern airline. The airline also flies the Kangaroo Route. Emirates does not offer any domestic service within the United Arab Emirates.
While Emirates does not maintain sizeable hubs elsewhere, it has taken advantage of liberal bilateral aviation agreements between Dubai and Australia, and with Singapore, to offer more onward connections from Sydney and Dubai.
According to a report by The Seattle Times, Emirates is planning to expand non-stop service globally from its hub in Dubai to Los Angeles International Airport, San Francisco International Airport, Hartsfield-Jackson Atlanta International Airport, Logan International Airport, O'Hare International Airport, Philadelphia International Airport, Seattle-Tacoma International Airport and Washington Dulles International Airport.[12]
In September 2007, Emirates' chairman, Tim Clark, stated that the airline is considering the Boeing 747-8 to serve San Francisco, Los Angeles, and South American cities. He also said that Emirates is working on getting new flyover rights over Russia to minimise the length of the flights to North America's West Coast.[13]
As of February 2008, the airline's most recent destination was Houston in the United States. The airline commenced a three-times weekly service to George Bush Intercontinental Airport on December 3, 2007 using the airline's newly delivered Boeing 777-200LR aircraft. Houston is the airline's second US destination and third North American destination. The airline increased the service's frequency to daily starting 1 February 2008.[14]
| Destination | Frequency (Per week) | Equipment | Commencing |
|---|---|---|---|
| Cape Town, South Africa[15] | 7 (Daily) | Boeing 777-200[16] | 30 March 2008 |
| Kozhikode, India[17] | 6 | Airbus A330-200 and Boeing 777-200 | 1 July 2008 |
[edit] Fleet
Emirates Airlines operates a full wide-body aircraft fleet from three aircraft families: the Boeing 777, the Airbus A330, and the Airbus A340. In keeping with its policy of maintaining a young fleet, which stands at an average of 5.6 years in December 2007,[18] it renews its fleet frequently. The airline's aircraft purchases are often closely watched by other airlines. In mid 2008 Emirates will receive its first Airbus A380 and will be using the aircraft on daily direct flights to London Heathrow, Sydney, Melbourne and New York City.[19]
[edit] Passenger
The Emirates fleet consists of the following aircraft as of November 2007[5] :
Aircraft  | Total | Passengers (First*/Business/Economy) | Routes | Notes |
|---|---|---|---|---|
| Airbus A330-200 | 29 | 237(12/42/183) 278(27/251) | Short-medium haul Africa, Asia, and Europe | Exit from service: 2014 Replacement aircraft: Airbus A350-900 XWB |
| Airbus A340-300 | 8 | 267 (12/42/213) | Long haul | Exit from service: 2015 Former Singapore Airlines Aircraft Replacement Aircraft: Airbus A350-900 XWB |
| Airbus A340-500 | 10 | 258 (12/42/204) | Ultra long haul Australia, New Zealand, Asia, Europe, and North America | |
| Airbus A350-900 XWB | (50 orders) (50 options) | Long haul Africa, Asia, and Europe | Entry into service: 2014 | |
| Airbus A350-1000 XWB | (20 orders) | Ultra long haul Transatlantic, Transpacific | Entry into service: 2015 | |
| Airbus A380-800 | (58 orders) | 489 517 644 | Long haul | Entry into service: October 1, 2008 (Dubai-New York/JFK) |
| Boeing 777-200 | 3 | 290 (12/42/236) 346 (42/304) | Medium-long haul | Exit from service: 2011 |
| Boeing 777-200ER | 6 | 283 (12/35/236) | Medium-long haul | |
| Boeing 777-200LR | 4 (6 orders) | 266 (8/42/216) | Ultra long haul (São Paulo and Houston) | |
| Boeing 777-300 | 12 | 380 (18/42/320) 434 (49/385) | Medium-long haul | Exit from service: 2015 Replacement aircraft: Airbus A350-1000 XWB |
| Boeing 777-300ER | 33 (39 orders) (20 rights) | 358 (12/42/304) 427 (42/385) | Medium-long haul Europe, North America, Australia, New Zealand, South East Asia | Deliveries: 2007-2011 |
[edit] Cargo
[edit] Recent Fleet Developments
The airline has ordered 58 Airbus A380 aircraft and it will be the third airline to receive the aircraft, after Singapore Airlines, the launch airline, and Qantas, which is second to fly. 41 passenger A380-800s are to be purchased and two are to be leased from International Lease Finance Corporation (ILFC). After delivery, the airline will be the largest operator of the type.[20]
As of November 20, 2005, Emirates had an order book of $117 billion, comprising 105 firm orders, including 55 Airbus A380s,[21] and 51 Boeing 777 aircraft.
Recently, the airline converted an order for A380F into passenger version and are due for delivery in 2009. In its place the airline has opted to order ten of the recently launched Boeing 747-8 freighters for its SkyCargo subsidiary. The reason Emirates has chosen the Boeing 747-8 "derivative" freighter over the all-new Airbus A380-F is the Boeing aircraft's nose-loading capability, something the rival Airbus freighter is lacking.[22][23]
In addition, Emirates also stated that it was evaluating the Boeing 747-8 Intercontinental, 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 5.6 m stretch as the freight variant instead of the 3.6 m stretch envisaged for the passenger model. This would bring the 747-8I's capacity 20% closer to the Airbus A380-800's typical three-class 555-seat capacity (470 seats in a three-class-configuration instead of 450).
Emirates Airline is negotiating for up to 20 Boeing 747-8 Intercontinental aircraft, according to Flight International magazine. Emirates SkyCargo already has an order for ten 747-8 freighter aircraft and an option for ten more in a $5.6 billion deal inked September 2007. Emirates is in talks for the 747-8I passenger version, however, as of November 2007, according to an article published in Air Transport World magazine, Boeing stated that it might propose to produce a shrinked version of the 747-8 to allow for more range for service between the North American West coast and Dubai.
On May 7, 2007 Emirates reaffirmed its order for 43 A380s and has committed to another four as well which brought its total order to 47.
On June 18, 2007, during the Paris Air Show, Emirates ordered 8 additional A380s, bringing its total ordered to 55.[24] Emirates, which was deciding between the Boeing 787 and Airbus A350, also stated it would decide on an order worth as much as US$20 billion for mid-sized planes by October 2007, and that the design of the Airbus A350 XWB was closing in on Boeing's 787 Dreamliner.
Clark told local and international media, during a demo flight of Emirate's new Boeing 777-300 ER Ultra Long Range above Dubai on 7 September 2007, that Emirates is spending $10 to $14 million retrofitting each 777 aircraft.
[edit] Awards and accolades
Emirates was named the ninth best Airline of the Year in 2007 by Skytrax. Skytrax also named Emirates the Airline of the Year in both 2001 and in 2002.
[edit] Incidents and accidents
- An Emirates Airbus A340-313X ran off the runway when taking off from OR Tambo International Airport on April 9, 2004. At the call to rotate, the pilot flying pulled back on the stick. However 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. The airport says that threshold of runway 25, approach lights and part of the runway surface were damaged as the aircraft went over the end of 21R. The pilot had received ambiguous instructions regarding rotation technique during his transition training. Emirates Training establishment was censured by Airbus after an investigation.[25]
- On September 18, 2007, an Emirates Boeing 777 aircraft, whilst taxiing to runway 23 at Glasgow International Airport, veered off of the taxiway and became stuck on the grass. The aircraft was evacuated, and all additional weight including the hold luggage had to be removed before the aircraft could be pulled back onto the taxiway. Due to the layout of the airport, the blockage of this taxiway disrupted airport operations. Some arrivals were diverted to nearby Glasgow Prestwick Airport.
[edit] Services
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Emirates in-flight entertainment system, Information Communication Entertainment (ICE), was introduced in 2002 and is now offered to passengers in all classes with over 1,200 entertainment options. Emirates won the award for best in-flight entertainment in 2006 from Skytrax, for their ICE system, with the biggest selling point being over 500 channels of movies, television and music. ICE is found in all of Emirates Airline's Airbus A340-500, and all of Emirates Airline's Boeing 777-300ER and Boeing 777-200 fleet.
Emirates was one of the earliest airlines to introduce high-speed, in-flight Internet service by installing the Inmarsat’s satellite system and became the second airline in the world to offer live international television broadcasts using the same system.[26]
In November 2006 the airline signed a deal with mobile communications firm 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 to confirm such a deal and will allow passengers to use their personal mobile phone on selected Boeing 777s. This system was due to be introduced in early 2007 but is yet to be placed in to service. A revised introduction date has not been publicly announced.
In mid-2007, Emirates will feature docking capability for Apple Inc.'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.[27]
[edit] Newspapers and Magazines
Newspapers and magazines are available to all first & business class passengers on Emirates flights. Free newspapers are also provided to all economy class passengers. The Emirates in-flight magazine, Openskies, is provided to all passengers on all flights.
[edit] Frequent flyer programme
Skywards is the 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 Continental Airlines, Japan Airlines, Korean Air, South African Airways, Virgin Blue and United Airlines. Skywards offers status tiers Silver and Gold, which give additional benefits based upon miles flown in a year.
[edit] Emirates Lounges
First and business class passengers, as well as Skywards Gold and Silver members, have access to Emirates Lounges. In addition to the Emirates Lounge, Emirates passengers are able to use the Department of Civil Aviation's (DCA) First Class lounge in Dubai. The airline has 33 lounges in 16 cities, with plans for 13 more. It also has affiliation with 53 other lounges.
[edit] Cabin
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[edit] First Class
On Airbus A340-500, Boeing 777-200LR aircraft and Boeing 777-300ER ULR aircraft, first class passengers have full suites, complete with closing doors to ensure privacy, mini-bar, coat rack and ample storage. The seat converts into a 2 metre (6 foot 7 inch) fully-flat bed.
[edit] Business Class
In business class, the following features are included on Boeing 777-200LRs and Boeing 777-300ER ULRs:
- Airline seats with a 60" pitch that recline to angled lie-flat beds with ample room for taller passengers on the newer planes
- Electrically operated massage, privacy partition, backrest recline, seat pan extension, footrest extension, leg rest extension and lumbar support on the newer planes.
- Adjustable winged headrest with six-way movement.
- Two individual reading lights and one overhead light in each seat.
[edit] Economy Class
The seat has a seat pitch of 34 in (86 cm) (Boeing 777-200/300, Airbus A340-500 & some Airbus A340-300's) or 32 in (81 cm) (Airbus A330-200 and other non retrofitted aircraft) and a width of 17 in (43 cm) (Boeing 777 & Airbus A340) or 18 in (46 cm) (Airbus A330 and certain aircraft) as well as a 150° seat recline. Like standard economy class seats, adjustable headrests and footrests are available on every seat. On the Airbus A340-500 and newer aircraft there is a 10.6 in (25 cm) screen, and 16.5 cm (6.5 inches) on Airbus A330-200, certain Airbus A340-300 and older Boeing 777-300 aircraft that have not been retrofitted with the new cabins,[28] for in-flight entertainment and in-seat power supply at selected seats.
[edit] Financial performance
The airline has recorded a profit every year since its inception, except the second and growth has never fallen below 20% a year. In its first 11 years, it doubled in size every 3.5 years, and has every four years since. The Emirates Group announced a net profits of Dhs2.8 billion (US$762 million) for the financial year ended 31 March 2006.[citation needed] While the total revenues of Emirates in the previous fiscal year (2004-2005) was $4.9 billion.[29]
For 2004–05, Emirates paid an increased dividend of Dhs368 million to the government of Dubai, compared to Dhs329 million the year before. In total, the government has received Dhs1.1 billion from Emirates since dividends started being paid in 1999. Having provided an initial start-up capital of US$10m and an additional investment of circa US$80m at the time of the airline's inception,[30] 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.[29]
[edit] Business model
Emirates business model has led to their commercial success in the aviation industry.[29] The airline has a lean workforce which can be compared to low-cost carriers rather than traditional flag carriers. It has a simple organisational structure, that allows the airline to maintain low overhead costs and it must pay no income taxes on wages. Due to the low operating costs at its Dubai base, some industry analysts believe the airline is second only to Ryanair on a cash cost per seat basis.[31] Therefore, the airline is able to serve secondary destinations as well as connecting to places via their hub in Dubai.[32]
The airline has not joined any major global airline alliances. The airline operates only wide-body aircraft which results in lower unit costs compared to other major airlines operating a mixture of narrow and wide-body aircraft. It allows Emirates to use the aircraft's cargo capacity to increase its revenues and total profits. Since Dubai International Airport does not have any flying restrictions at night, the airline is able to highly utilise their aircraft. The airline virtually does not have any legacy costs compared to other airlines. It also helps that all forms of strikes are banned in the UAE (except for construction related strikes).[31]
[edit] Employment
Emirates, which hopes to take delivery of 43 Airbus A380 has invested Dh73 million ($20 million) to expand its crew training facility at the Emirates Training Centre. In order to serve its expanding operations the airline has been hiring new cabin crew at a rate of 60 per week, due to rise to 100 per week as larger aircraft, especially the A380s, join the fleet. By 2011, Emirates expects to have more than 14,000 cabin crew on its payroll.[citation needed]
[edit] Controversy
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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 Airport, Charles de Gaulle International Airport, and Frankfurt Airport 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.[33][29][34]
[edit] Partnerships and alliances
Emirates has codeshare agreements[35] with SriLankan Airlines, in which it owns a 43% stake, and Continental Airlines, where it codeshares on selected regional routes.
Emirates also holds partnerships with Fairmont Raffles Hotels International (Swissôtel), InterContinental, Radisson Hotels (Rezidor Hotel Group), Taj Hotels, Resorts and Palaces, and Marriott Vacation Club International.
Emirates signed a deal with Dubai Autodrome in 2006 and later bought a majority stake in the company for an undisclosed amount.
[edit] Codeshare agreements
Emirates has codeshare agreements with the following airlines:[36]
[edit] Marketing and sponsorships
Emirates is a sponsor of sports clubs and events, both at its home base and in its overseas markets. It also sponsors the annual Dubai Shopping Festival, the Dubai Summer Surprises and the West Australian Symphony Orchestra.[37] For Emirates, marketing expenses account for a far greater share of its total costs than for most of its competitors.[31] In the English-speaking world the sponsorship always carries the words "Fly Emirates".
[edit] Gallery
 Manchester International Airport |  Boeing 777 |  One of the buildings on Sheikh Zayed Road which accommodates Emirates cabin crew. |  Emirates Airbus A330-200 at Dubai International Airport |
 Emirates SkyCargo A310F |  Business Class Cabin Of Emirates Boeing 777-200 |
