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Emirates. Getting Ahead Of Themselves?  
User currently offlinePaul From United Kingdom, joined Feb 2005, 374 posts, RR: 3
Posted (8 years 9 months 4 weeks 1 hour ago) and read 2597 times:

Whether the thread has been specifically discussed previously, I apologize.

I was just wondering whether Emirates are making a potentially crippling mistake by placing so many orders for new aircraft. It goes without saying that the airline is growing and developing at a speed comparable to its Hub nation of Dubai. The huge investment into Hotels, properties and such makes one believe that they expect a monumental influx of tourism in the near future. This maybe be a likely eventuality however Dubai has a few barriers that makes tourists quite difficult to attract.

1. The Heat = Slow tourism for half the year. 40 degree (unbearbale to most Westerners) heat for half the year does not bode well for a country trying to bring more tourists to its hotels and beaches.

2. The Hotels. Even the cheapest hotels are very expensive. An average 4 star hotel, when booking in advance will set you back $250 a night (Le meridian). This in turn almost says; Sod Off to Working Class families who travel.

3. Family orientated? I think not. Dubai is not a country so conducive to family holiday makers.

So to arrive at my point. Why have Emirates ordered so many new planes? What is the justification for placing huge orders for a number of High Capacity aircraft? Do they just intend to have the most modern fleet in the world and sell off their older aircraft to smaller airlines?

Or do they plan to purely use Dubai as a gateway to the Far East, Australia, etc?

One could say that they are getting ahead of themselves with the expected future demand of their airline.

However I am just a International Business student, and they are a Blue Chip conglomerate who have a bunch of geniuses planning the future of the company!

Your thoughts?

Paul

[Edited 2005-11-26 15:06:24]


Veni, vidi, vici.
5 replies: All unread, jump to last
 
User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 1, posted (8 years 9 months 4 weeks 1 hour ago) and read 2576 times:

This has been discussed many times. Predictions that EK have ordered too many aircraft and are trying to grow too quickly have been made since their first aircraft order.

EK's plan is to be a hub between Europe, Africa, and Asia. So far, it's working. However, aircraft like the B787-8 will allow high yield passengers to fly nonstop bypassing DXB in many cases. EK will have to achieve a low cost structure to remain successful.


User currently offlineEmirates773ER From Pakistan, joined Jun 2005, 1449 posts, RR: 9
Reply 2, posted (8 years 9 months 4 weeks 1 hour ago) and read 2514 times:

Quoting Paul (Thread starter):
1. The Heat = Slow tourism for half the year. 40 degree (unbearbale to most Westerners) heat for half the year does not bode well for a country trying to bring more tourists to its hotels and beaches.

I lived in dubai for more than 18 years infact I still visit it for a couple of months every year and I have to agree with you that at times the heat can be unbearable. But you should also consider the fact that dubai does not have any natural beauty to show, what they have are all man made structures like luxurious hotel, shopping malls etc which are all air conditioned from one end to the other. If you were planning on going to a mall or a bar you would basically have a AC in your house, in the car, in the pub and all the way back. Shouldn't be too much of a concern for a tourist especially when he has decided to visit a desert!  biggrin 

Quoting Paul (Thread starter):
2. The Hotels. Even the cheapest hotels are very expensive. An average 4 star hotel, when booking in advance will set you back $250 a night (Le meridian). This in turn almost says; Sod Off to Working Class families who travel.

Have to agree with you, the mind set of the emirati's especially those from dubai has changed a lot in the past few years. They seem to be demanding rather than giving which is a likely thorn in their path towards success. Dubai now only wants people with heavy bank accounts to enter and exit with in its borders, laws have been introduced to reduce the number of low income expatriate, rents have shot up to force people with low income out and a toll fees will be applicable from January charging anyone who enters dubai from any other emirates. In other words Dubai is milking its own low income residents to bankruptcy so why should foreign tourist be spared?  ashamed 



Quoting Paul (Thread starter):
3. Family orientated? I think not. Dubai is not a country so conducive to family holiday makers.

Why on earth is dubai not conducive for families? Can you give me one good reason for that?

Quoting Paul (Thread starter):
So to arrive at my point. Why have Emirates ordered so many new planes? What is the justification for placing huge orders for a number of High Capacity aircraft? Do they just intend to have the most modern fleet in the world and sell off their older aircraft to smaller airlines?

Or do they plan to purely use Dubai as a gateway to the Far East, Australia, etc?

Both of these options exist in their future plans, after all they are no ordinary airline thus the extra ordinary planning.  crossfingers 

Quoting Paul (Thread starter):
One could say that they are getting ahead of themselves with the expected future demand of their airline.

Possible, but I used to hear many expats say the same things about dubai itself when it was transforming in the 1990's and I guess they are turning out to be wrong.  bouncy 

Just my  twocents 



The Truth is Out There ---- Face It!!!!!
User currently offlinePaul From United Kingdom, joined Feb 2005, 374 posts, RR: 3
Reply 3, posted (8 years 9 months 3 weeks 6 days 23 hours ago) and read 2414 times:

A few interesting points there Emirates773ER.

I apologize for lack of clarity. What I meant to say was that Duabi was not conducive for family holidays. But if you still don't agree with my point. I can give you a few good reasons why not.

On both occasion that I visited Dubai (October and March) I saw very few families, and I am not surprised. With the prices of hotels, which you agreed with point that they are very expensive. How do you think an average family with young children can afford a family room (at even more of a premium) unless they were well off. They would not. And if they could afford that sort of money I am pretty sure Dubai would not be on top of the list. Speculation would lead me to believe Disney World would be top priority.  bigthumbsup 

Hyperthetically if you were to ask the average seasoned traveler what type of person would go to Dubai for a holiday. I can guarantee you they would not say families. They would say, Middle Age, Retirees looking for a bit of R&R. Which to be honest was all I encountered.

Dubai's image is based on luxury, not a 5 year old brat screaming at his dad to throw him into the pool once again. Most hotels offer pretty generic facilities, but that's my point, apart from the Hotels, flashy restaurants, and malls, Dubai, at the moment does not offer any real facilities to entice the family holiday makers. However my contacts out in the 'Desert' tell me that there soon will be.  Wink

By the way. I am off to Australia soon and am thinking of flying with Emirates. I am worried that their 777 fleet to Brisbane does not offer a competitive product in C Class. Can you clarify or shed any light form past experiences?

Regards

Paul



Veni, vidi, vici.
User currently offlineEmirates773ER From Pakistan, joined Jun 2005, 1449 posts, RR: 9
Reply 4, posted (8 years 9 months 3 weeks 6 days 22 hours ago) and read 2337 times:

Quoting Paul (Reply 3):
On both occasion that I visited Dubai (October and March) I saw very few families, and I am not surprised. With the prices of hotels, which you agreed with point that they are very expensive. How do you think an average family with young children can afford a family room (at even more of a premium) unless they were well off. They would not. And if they could afford that sort of money I am pretty sure Dubai would not be on top of the list. Speculation would lead me to believe Disney World would be top priority.

Hyperthetically if you were to ask the average seasoned traveler what type of person would go to Dubai for a holiday. I can guarantee you they would not say families. They would say, Middle Age, Retirees looking for a bit of R&R. Which to be honest was all I encountered.

Dubai's image is based on luxury, not a 5 year old brat screaming at his dad to throw him into the pool once again. Most hotels offer pretty generic facilities, but that's my point, apart from the Hotels, flashy restaurants, and malls, Dubai, at the moment does not offer any real facilities to entice the family holiday makers. However my contacts out in the 'Desert' tell me that there soon will be.

I agree with you to an extent but again as I said Dubai wants the rich and famous, children and families come next. The only activites relating to children which ever happen in dubai are during the Dubai Shopping festival and Dubai Summer Surprises but as you said it cannot be compared to Disneyland if you are a 5 year old. But still these two festivals attract record number of people every year especially families who come to shop cause the prices are much lower than in the UK or US where you also pay tax on purchases.

Quoting Paul (Reply 3):
By the way. I am off to Australia soon and am thinking of flying with Emirates. I am worried that their 777 fleet to Brisbane does not offer a competitive product in C Class. Can you clarify or shed any light form past experiences?

This may sound a bit hypocritical considering my username but if I were to travel from London to Brisbane I would rather take BA or Cathy. Its a well known fact that the J class which emirates offers stinks in front of its competitors and you will also need to go through two stops Dubai and Singapore. Would only advice you to take EK if you are traveling F Class (or Y class if you get a value for money deal) cause their F product is comparable to all the others. If you wanna take EK anyways then you should go in January during the DSF season, I can bet you are gonna enjoy more than your flight!  bigthumbsup 



The Truth is Out There ---- Face It!!!!!
User currently offlineEurostarVA From Bahrain, joined May 2002, 1296 posts, RR: 7
Reply 5, posted (8 years 9 months 3 weeks 6 days 18 hours ago) and read 2216 times:

Quoting Emirates773ER (Reply 4):
it cannot be compared to Disneyland if you are a 5 year old

 stirthepot  Much for kids to appreciate in Dubai sometime in the next few years!


http://www.conway.com/ssinsider/snapshot/sf031117.htm




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