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Thursday, 13 March 2014 00:00 - - {{hitsCtrl.values.hits}}
Q. There seems to be a lot of excitement at Emirates about the launch of flights to Boston. Why is that?
A: For an airline that sees itself as a global connector of people, places and economies, there is something exciting about every new destination added to the route network. But you are right; there is a lot of anticipation about the launch of services to Boston, especially in Sri Lanka. A significant segment of our customers in Sri Lanka fly to the USA for several reasons including education, medical tourism, leisure and visiting family and friends.
Known as a hub for business, finance, IT and higher education, Boston offers Sri Lankan students opportunities to study in some of the world’s best academic institutions such as Harvard and Massachusetts Institute of Technology. Boston is also home to America’s oldest parks and historical monuments as well as sports landmarks, making it the perfect destination for Sri Lankan leisure travellers.
Q: But what specific advantages does Emirates offer with regard to flights to Boston?
A: I think the foremost advantage is convenience – as a result of the frequency of our services, and the location of our Dubai hub. Emirates operates 27 flights a week from Colombo to Dubai. Many of these arrive in good time to connect with the daily Emirates flight from Dubai to Boston, which departs Dubai at 9.45 am every day. Return flights also connect conveniently. Therefore I would venture to say that to travel from Sri Lanka to Boston, there is no better choice than Emirates.
There are other benefits too, in addition to the fabulous in-flight experience that we are known for. One of these is our codeshare partnership with JetBlue, under which Emirates and JetBlue passengers are able to travel on each other’s flights and earn reciprocal miles. Boston is one of JetBlue’s hub cities in the USA, and offers Emirates’ passengers arriving in Boston convenient connections to over 28 onward domestic US destinations.
Q: What other new destinations have been added to the network this year?
A: Boston is the third new destination to be added to the Emirates network in 2014 after Kiev on 16 January and Taipei on 10 February. Emirates also announced recently a daily linked service to Abuja and Kano in Nigeria starting from 1 August 2014, as well as a daily service to Chicago from 5 August 2014, making it the airline’s ninth gateway in the USA.
It has been a busy period in terms of route expansion for Emirates. Since September 2013, we have launched services to five new destinations, Stockholm, Clark in the Philippines, Conakry in Guinea, Sialkot and Kabul, and commenced a new service between Milan and New York.
In the months ahead, capacity to several major destinations on the network is to be increased. For example, Munich will become an all A380 destination from 30 March 2014. On the same day, we will launch the first scheduled A380 service to London’s Gatwick Airport. From 1 August, we will operate a double A380 service daily to Moscow, and on 1 September we plan to operate a second daily flight to Dublin.
Q: Presuming that this is in response to demand, it must mean that Emirates is very confident about the prospects for growth?
A: Yes, we are, although we are never complacent. An indicator of our future growth plans can be seen in the orders we have placed for new aircraft. The Emirates fleet currently comprises of 200 passenger aircraft and 12 freighters. We have 377 aircraft on order for $ 162 billion, not counting options, some of which will be used to replace existing aircraft in our fleet. It was only in November 2013, that Emirates placed the largest order in the history of aviation for 200 aircraft worth $ 99 billion at list prices. However, the order is not about being the largest airline; some of those aircraft are to replace the older ones in our fleet. It is about connecting passengers via frequent services on the most efficient and modern aircraft, with excellent on-board comfort, products and service to match. Emirates Airline President Tim Clark has said that Emirates expects to fly 70 million passengers in 2020, by which time we will have 250 aircraft in service.
Q: Where does that position Emirates in terms of the competition?
A: Being the largest is not really what is important. One of Emirates’ principal roles is to support Dubai’s growth as a major hub for international air travel. Over a third of the world’s population lives within a 4-hour flight from Dubai, and two-thirds are within an eight hour flight. The strategic location of Dubai makes it possible for Emirates to serve almost 90% of the world’s population with non-stop flights; for example our 16-hour Dubai to Houston service on the Boeing 777-300ER, or our 14-hour Dubai to Sydney flight with the Airbus A380. The vision of the management of Emirates is for the airline to be a global connector of people and places, and a global enabler for travel, business and culture.
Q: Where is Emirates, now, in terms of this vision?
A: I think we can already claim to be a truly global airline. In 2013, the Emirates fleet travelled more than 751 million kilometres, which means that our aircraft flew the equivalent of 18,753 circumnavigations of the planet. We operated a total of 164,635 flights, carrying more than 43 million passengers during the year. All of our flights are international operations. This, I believe, earns Emirates’ the status of a global connector of people and places. We are not just offering a way to connect people from point A to point B. Emirates is a catalyst to connect people’s hopes, dreams and aspirations; creating relevant and meaningful experiences that are shaping the world.
Q: Unlike many international airlines, Emirates did profitably in 2013?
A: Yes, we did, despite the numerous challenges. Emirates has a solid business model and a clear strategy. We continue to attract customers not only because we have a strong brand, but also because we provide the best value for their money. We make sure our customers are at the centre of everything we do, and of course like any other company; we have to be smart about embracing new technologies to drive efficiencies, and be extremely conscious about costs.
According to the half year results announced by our Chairman Sheikh Ahmed Bin Saeed Al Maktoum in November, Emirates carried 21.5 million passengers and returned a net profit of $ 475 million for the six months ending 30 September 2013. This was an increase of 2% over the corresponding six months of the previous year, and was achieved in the face of high fuel prices which account for 39% of our expenditure, a still-recovering global economy, and a strong performance of the US dollar against other major currencies impacting revenues. This was in sharp contrast to the trend seen across the aviation industry. The 21.5 million passengers we carried was a 15% increase over the same period of 2012.
Q: How does an airline’s profitability translate to benefits to its customers?
A: Before I answer that, I have to say that an airline is profitable because of its customers. They patronise an airline for many reasons – the route network, frequency of services, reliability of aircraft, quality of in-flight services and ground handling, and price to name a few. An airline that gets the formula right attracts customers and is able to offer them a product, network and service that result in customers choosing to fly with that airline time after time. A profitable airline is one that can afford to buy new aircraft, expand the destination network, build infrastructure, offer value added services and be price-competitive. So customers benefit if the airline is profitable, because the airline can grow and keep pace with or even exceed their expectations. The nature of the business requires that profits are ploughed back for further improvement and growth. A profitable airline is also an asset to the countries it serves, because it means the airline can invest and continue to contribute back to the economy – through direct and indirect job creation and the aviation and tourism supply chain, and also by providing valuable air links that facilitate trade and tourism.
