EK's desire to expand...

Discussion in 'Emirates | Skywards' started by eightblack, Feb 15, 2011.  |  Print Topic

  1. eightblack
    Original Member

    eightblack Silver Member

    Messages:
    152
    Likes Received:
    379
    Status Points:
    470
    This article sums it all up really. Whether good luck or good management, EK's decision to invest heavily in airframes to cater for this planned growth looks wise.
    http://www.iata.org/pressroom/pr/Pages/2011-02-14-02.aspx

    I'm no airline industry expert, but carriers such as QF have been caught out with a lack of new airframes, and having to patch/maintain/cobble together whatever they can. Some of their 767's are close on 20-years old.

    EK on the other hand are already running the largest 777 fleet in the sky, the largest A380 fleet and have a slew of new aircraft coming on stream in 2012. Hopefully they will jettison those old Airbus' as soon as they can, but even EK are stretched capacity wise.

    For example, at my home port in SIN, EK already run 3 x flights daily to DXB (one via CMB). They still cant get enough premium seats to cope with all the business travellers shunting between DXB and SIN.

    Clearly, EK see huge potential in the China and Indian markets (makes sense) and I'm convinced that they're the best prepared carrier to take advantage of the opportunities. It's a huge bet, but one I think will pay off.

    The super hub concept is not for everyone (I will admit the lounge in DXB at T3 is a zoo) but EK are working on expansion plans which hopefully alleviate some of the pressure.
     
    kiwi likes this.
  2. EK do anything it wants with almost unlimited ability to borrow money.
     
  3. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    This is the continual message from the Legacy European, Australian, and N. American carriers. The reality is that EK is profitable so that is not the reason. The big legacies could also borrow money if they had a solid ROI/NPV/IRR projection backed up by an investment bank.
     
  4. yes and a country that backs the debt.
     
  5. Kagehitokiri
    Original Member

    Kagehitokiri Silver Member

    Messages:
    358
    Likes Received:
    218
    Status Points:
    445
    dubai backs EK and abu dhabi backs dubai. :D

    id love to see more foreign "hubs" like BKK/KUL/SIN and SYD/BNE/MEL.

    they led the way with suites and showers too, need top carriers keeping competition going.
     
  6. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    OK- and why is Air France not the size of EK?
     
  7. Rambuster
    Original Member

    Rambuster Silver Member

    Messages:
    323
    Likes Received:
    221
    Status Points:
    445
    That's because it's France. Quite simple. (IMHO the French didn't invent work...)

    Looking through EK balance sheet does reveal however that there is quite a bit of off-balance sheet stuff going on.
    The real (financial) performance figures are nowhere near what they claim...
     
  8. illico
    Original Member

    illico Silver Member

    Messages:
    167
    Likes Received:
    122
    Status Points:
    395
    Out of curiousty, as someone who hasn't had the opportunity to fly this route yet, what type of business drives the DXB-SIN route? Financial, construction...?
     
  9. alex0683de
    Original Member

    alex0683de Silver Member

    Messages:
    97
    Likes Received:
    90
    Status Points:
    270
    Connection pax?

    41,000,000 million passengers went through DXB in 2009.

    Dubai hotels recorded 6 million guests the same year: http://www.dsc.gov.ae/Reports/DSC_SYB_2009_12_06.pdf

    The Dubai metro area has 3.5 million people. If every single one of those people takes one trip by air per year, we're at another 7 million pax. Let's round it up to ten million for good measure, giving us a figure of about 16 million O/D passengers per year. That means less than half of the people using Dubai Airport actually go to Dubai. And it's to be assumed that those using DXB while flying other airlines are more likely to be O/D pax than those on EK because other airlines don't offer much in the way of connections at DXB. Therefore, it is very likely that most pax on any given EK aircraft will not be stopping in Dubai.

    I would imagine EK's passenger numbers on the DXB-SIN-DXB show similar tendencies.
     
    illico likes this.
  10. illico
    Original Member

    illico Silver Member

    Messages:
    167
    Likes Received:
    122
    Status Points:
    395
    thanks. that makes sense.
     
  11. alex0683de
    Original Member

    alex0683de Silver Member

    Messages:
    97
    Likes Received:
    90
    Status Points:
    270
    By the way, the same phenomenon as what EK has at DXB can be seen with Delta at ATL. The number of pax who actually want to go to Atlanta is probably rather small, but DL can start flights from ATL to pretty much anywhere in the world and make them work because they have a critical mass of connection opportunities. Their recent African expansion is a good example of this. How many people in Monrovia actually want to go to Atlanta? Or in Abuja, or Lagos, or Accra?

    But because the hub is what it is, they will find people they can connect. Emirates is doing the same, except it has international flights at both ends, whereas much DL's feed is US domestic.
     
  12. kiwi
    Original Member

    kiwi Gold Member

    Messages:
    16,851
    Likes Received:
    27,973
    Status Points:
    20,020
    There have been times when I've arrived at DXB transfer area when the ratio of transfers to passengers continuing on to immigration has been over 100 : 1
     
  13. Open Fly
    Original Member

    Open Fly Silver Member

    Messages:
    144
    Likes Received:
    158
    Status Points:
    325
    The profitability of EK has always been rather murky.

    I would be suprised if they had a better chance of borrowing money now than your legacy carriers.
     
  14. qasr
    Original Member

    qasr Silver Member

    Messages:
    71
    Likes Received:
    29
    Status Points:
    195
    Why?
    Disagree. They have an implicit government guarantee so I can't see them borrowing at much higher than the sovereign rate.
     
  15. Open Fly
    Original Member

    Open Fly Silver Member

    Messages:
    144
    Likes Received:
    158
    Status Points:
    325
    More to the point, how do you know they are profitable? Most reports tend to quote total group profits and not the airline. Also their debt servicing must be huge.

    Is this the same government that needs its own guarantee from Abu Dhabi, or do you think that Abu Dhabi will provide this guarantee for EK borrowing? Perhaps they may, if EK becomes part of EY.
     
  16. excelsior
    Original Member

    excelsior Silver Member

    Messages:
    173
    Likes Received:
    170
    Status Points:
    325
    Every flag carrier has some sort of IMPLICIT Government guarantee Doesnt mean it works. Look at Alitalia. Look at SAS

    EK borrows at a good price because of its profitability track record and the proven success of its bold expansionary business plan. . its profitability comes partly from the fact that its staff costs are lower than those of many european airlines Now Ive heard many europeans and others moan about how this means they pay people a pittance. They dont They pay well but they hire globally at globally competitive wages compatible with living reasonably well in DXB and saving money. They dont impose nationality restrictions on their hiring and procurement. This helps the bottom line

    AND they take calculated risks that work out in terms of pax loads. No one guaranteed EKs expansion into Africa. Ditto for the Indian subcontinent No one asked the european airlines to provide third rate lackadaisical services on their colonial monopolies They did. Ek jumped at the opportunity. And made money
     
    eightblack likes this.
  17. excelsior
    Original Member

    excelsior Silver Member

    Messages:
    173
    Likes Received:
    170
    Status Points:
    325
    Emirates Airline seeks 4,000 to crew superjumbos



    Emirates Airline is hiring thousands of staff to service its burgeoning fleet of A380 superjumbos, with each requiring more than 150 air crew.
    The airline's record order for the Airbus A380 is prompting it to embark on an ambitious hiring drive across six continents.
    For each A380 that enters its fleet the airline needs 20 pilots and 133 cabin crew, Emirates said yesterday.
    With more A380s expected this year as well as deliveries from Boeing for other large passenger aircraft, Emirates expects to hire about 4,000 cabin attendants, it said.
    "Emirates is currently in full recruitment mode," the airline said on the eve of participating in Europe's largest travel fair, the ITB event in Berlin, where it will recruit more German-speaking cabin crew from a stand whose centrepiece is a 150-tonne, three-storey globe. This year, the giant rotating structure will feature life-size replicas of the A380 onboard shower spa and lounge.
    The airline currently has 12,000 cabin crew, including 2,000 who operate on its fleet of 15 A380s. Emirates has another 75 orders for the 500-seat plane.
    The airline's recent growth propelled it last year into the top spot for international airline capacity worldwide, ahead of Lufthansa.
    Now Emirates has also moved up another set of rankings: it is the world's third-largest airline, ahead of United Airlines, in terms of monthly capacity. The Dubai carrier is expected to fly 16.9 billion seat kilometres this month, up 9.9 per cent from the same period last year.
     

Share This Page