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Emirates Wants To Be NO. 1 In The World  
User currently offlineEK156 From United Arab Emirates, joined May 2005, 765 posts, RR: 3
Posted (6 years 9 months 6 days ago) and read 10013 times:

In an interesting and extensive interview with Chairman of Emirates, Sheikh Ahmad, with an arabic daily newspaper, he revealed that the Ruler of Dubai, Sheikh Mohammad told the Chairman that he wants Emirates to be No. 1 in the World. So for all those speculating... I think you got your answer....

Other pointers were

1) The compensation that EK got for Airbus for the delay of the 380 was worth the cost of more than 2 new A 380's!!!

2) Emirates is looking at expanding aggresively in North and South American in the next 1 - 2 years

3) Emirates did not suffer much from the Oil prices cause they hedged the prices and the effect was minumum

4) Emirates will break the record in profits that will be announced next month!

5) Emirates is going to sell 25% of its share in an IPO in the Dubai Stock Exchange. They want to use the money to expand and probably buy a European Airline!!!.... which one? He said that is confidential

6) Emirates is still committed to buy 100 airplanes either the B 787 or the A 350 but they are deciding. Deliveries are to be scheduled to start in 2013

7) At the moment EK is not considering an LLC but it might be done in the future... so there is a chance for an LLC


So it seems that alot is going to happen for EK in the next 3 - 5 years. thoughts?

69 replies: All unread, showing first 25:
 
User currently offlineSeansasLCY From Hong Kong, joined Mar 2007, 844 posts, RR: 0
Reply 1, posted (6 years 9 months 6 days ago) and read 10004 times:

In The Times today it had an article which said the chairman of Emirates has said they have no plans to aquire a European Airline as they want to focus on their own growth and development for at least the next couple of years.

User currently onlineStitch From United States of America, joined Jul 2005, 30618 posts, RR: 84
Reply 2, posted (6 years 9 months 6 days ago) and read 9992 times:
Support Airliners.net - become a First Class Member!

No surprise to me. If they can do it, more power to them. They seem to have a nice product.

User currently offlineIkramerica From United States of America, joined May 2005, 21474 posts, RR: 60
Reply 3, posted (6 years 9 months 6 days ago) and read 9906 times:

Quoting EK156 (Thread starter):
1) The compensation that EK got for Airbus for the delay of the 380 was worth the cost of more than 2 new A 380's!!!

Which is why they ordered a couple in 2006 time. Their F would have been canceled anyway, they were discussing compensation, and were given the 2 canceled F models as PAX models for free at that time.

Quoting SeansasLCY (Reply 1):
In The Times today it had an article which said the chairman of Emirates has said they have no plans to aquire a European Airline as they want to focus on their own growth and development for at least the next couple of years.

Well, they have to be cautious here because they are so blatantly looking to dominate the aviation world that countries will start to get nervous and balk at allowing EK unfettered access to their markets.

One must remember that while Dubai is a thriving city, when you open skies with the UAE, you are basically inviting EK (and to a lesser extent EY) to take away most of your international traffic, and in return, you get the ability to fly as many flights as you want to Dubai and Abu Dhabi. But how many flights are your airlines really going to want to run there for O&D alone, and how will they compete with the hometown airline with dozens of flights?

Nations aren't stupid. If they see it's a lose-lose for their country, and if there is evidence of it being lose-lose looking at other nations, EK will find it difficult to expand as much as they are dreaming of.

So threatening to buy an EU airline is not in their best interest in the short term. It just adds more fuel to a protectionist fire that will grow in other parts of the world. EK buying 50+ A380s and 100 A350s will mitigate the uproar in the EU (stealing from Peter to pay Paul), but for nations that EK can't dangle a huge "jobs carrot" in front of, it'll be harder to take over those international markets. And no, I don't think buying 100 787s will help long term in the USA to prevent backlash against EK, but I also don't see EK being able to dominate markets here like they could in the EU and Australia, due to our location.



Of all the things to worry about... the Wookie has no pants.
User currently offlineSwallow From Uganda, joined Jul 2007, 554 posts, RR: 0
Reply 4, posted (6 years 9 months 6 days ago) and read 9889 times:

Yep. They are aiming for the top of the tree using their point-hub-point business model and will probably become the largest 777, 787/350 and 380 operator in the world .

One hopes they can look after their crew better and improve staff retention, given the stories on A.net of staff dissatisfaction and turnover.



The grass is greener where you water it
User currently offlineEvan767 From United States of America, joined Aug 2005, 2957 posts, RR: 2
Reply 5, posted (6 years 9 months 6 days ago) and read 9767 times:

Might as well just change the title to, "The United Arab Emirates wants to be NO.1 in the world"


The proper term is "on final" not "on finals" bud...
User currently offlineOO-VEG From Netherlands, joined Oct 2000, 1081 posts, RR: 1
Reply 6, posted (6 years 9 months 5 days 23 hours ago) and read 9740 times:

Emirates is growing hugely fast. It will probably cease sometime and I still wonder what would happen if that growth suddenly stops still having 60 A350/787 on order. They probably buy Lufthansa and use the slots for flights to TXL and STR.  Smile

User currently offlineER757 From Cayman Islands, joined May 2005, 2496 posts, RR: 7
Reply 7, posted (6 years 9 months 5 days 23 hours ago) and read 9683 times:

They certainly have great expectations and an ambitious goal for themselves. I wouldn't say they can't do it, but Irkamerica raises some pretty valid points. Other airlines and their countries' regulatory agencies are not going to sit idly by and watch it happen. EK will have to fight to grow to the size they envision, but I am sure they already know it won't be a walk in the park.

User currently offlineDoor5right From United Kingdom, joined Dec 2005, 707 posts, RR: 16
Reply 8, posted (6 years 9 months 5 days 23 hours ago) and read 9638 times:

Never with 10 abreast in their 777s!


My soul is in the sky...
User currently offlineIAHFLYER From United States of America, joined Dec 2006, 319 posts, RR: 0
Reply 9, posted (6 years 9 months 5 days 23 hours ago) and read 9618 times:

Quoting EK156 (Thread starter):
Sheikh Mohammad told the Chairman that he wants Emirates to be No. 1 in the World.

There not already? On what basis are they trying to base the ranking on?



Little airports with the big jets are the best!! Floyd
User currently offlineNW748i From United States of America, joined Dec 2006, 362 posts, RR: 0
Reply 10, posted (6 years 9 months 5 days 23 hours ago) and read 9543 times:

No. 1 how? I suspect you mean in profitability... quite possible. I somehow doubt an emirate with one airport has enough domestic traffic to make them #1 in pax/enplanements. Perhaps since the sheik intend to buy up entire airports that will no longer be the case years down.


Hail! to the victors valiant, Hail! to the conqu'ring heroes, Hail! Hail! to Michigan the leaders and best! Go Blue!
User currently offlineJoKeR From Serbia, joined Nov 2004, 2235 posts, RR: 9
Reply 11, posted (6 years 9 months 5 days 23 hours ago) and read 9534 times:

Quoting EK156 (Thread starter):
probably buy a European Airline!!!.... which one? He said that is confidential

OK, I know I'm speculating here greatly, greatly! - but, for the first time ever, this grand old-lady landed in BEG on Saturday carrying a senior "Emirati" VIP (not an official visit, no media coverage), and all that at a time when JU's privatization consultants are about to recommend a privatization strategy - and a future owner.


View Large View Medium
Click here for bigger photo!

Photo © James Mepsted



Its no secret that JU was "offered" to EK in the past (in one way or another), together with basically unrestricted use of BEG Airport and Serbia's lucrative bilaterals and slots at major airports around the world... and all that for "peanuts", something like Euro 150 million.

 scratchchin 



Kafa, čaj, šraf?
User currently offlineTayaramecanici From United Kingdom, joined Sep 2006, 222 posts, RR: 0
Reply 12, posted (6 years 9 months 5 days 18 hours ago) and read 9091 times:

Quoting EK156 (Thread starter):
4) Emirates will break the record in profits that will be announced next month!

5) Emirates is going to sell 25% of its share in an IPO in the Dubai Stock Exchange. They want to use the money to expand and probably buy a European Airline!!!.... which one? He said that is confidential

Any Nutter knows that before releasing an IPO you don't say things like

1) We are going to make the least profits in the 23 years of existence with the largest fleet we ever had.

2) We can't be number one because we are so dependent on the INDIAN market that we are now flying 100 flts/wk and the bloody Indian are allowing 9W, Air Arabia and soon RAK Airways to fly to UAE. Apart from the fact that the freaking US and EU airlines are having a free run of the INDIAN market with their non-stop flts compared to our connectors in DXB which we have to discount to attract the thrifty Indians.

3) Soon the Indian govt will allow more Indian carriers to fly Intl that could eat into our pax and with further growth in the major metro airports the US and EU airlines will increase their capacity there, which we have already saturated.

4) Even if we buy a EU airline in some tiny nation like Bosnia or Serbia we are not sure EU will honor it as the very existence of EU is at stake with the EURO and Common interest rate there playing havoc on their economies.



''You are as good as your nearest competitor'' Bob Crandall.
User currently offlineMMEPHX From , joined Dec 1969, posts, RR:
Reply 13, posted (6 years 9 months 5 days 15 hours ago) and read 8866 times:

Quoting EK156 (Thread starter):
Emirates is going to sell 25% of its share in an IPO in the Dubai Stock Exchange. They want to use the money to expand and probably buy a European Airline!!!.... which one? He said that is confidential

Article in the NZ Herald indicates a valuation of $20-$30Bn US. 25% = $4-$7Bn. Add in the hundreds of millions profit for each of the last few years and that is quite a war chest, I doubt they will look at "second tier" airlines. BA has a market cap of ~$10Bn. An Emirates bid for $11-2Bn? Yes there are lots of problems, pensions included, and before anyone jumps all over me, it is pure and utter speculation, and fleet commonality won't be an issue...(it seems to be the decider factor for a lot of a.netters)

http://203.99.65.121/section/3/story.cfm?c_id=3&objectid=10472933


User currently offlineEmirates773ER From Pakistan, joined Jun 2005, 1449 posts, RR: 9
Reply 14, posted (6 years 9 months 5 days 14 hours ago) and read 8798 times:

Quoting Tayaramecanici (Reply 12):

1) We are going to make the least profits in the 23 years of existence with the largest fleet we ever had.

Because they are not, their profits have increased every year for about a decade.

Quoting Tayaramecanici (Reply 12):

2) We can't be number one because we are so dependent on the INDIAN market that we are now flying 100 flts/wk and the bloody Indian are allowing 9W, Air Arabia and soon RAK Airways to fly to UAE. Apart from the fact that the freaking US and EU airlines are having a free run of the INDIAN market with their non-stop flts compared to our connectors in DXB which we have to discount to attract the thrifty Indians.

Talk about comparing apple to oranges, air arabia and RAK are LLC with no competition to EK. 9W is at least half a decade away in giving EK a run for their money.

Quoting Tayaramecanici (Reply 12):

3) Soon the Indian govt will allow more Indian carriers to fly Intl that could eat into our pax and with further growth in the major metro airports the US and EU airlines will increase their capacity there, which we have already saturated.

Indian population is set to increase from a billion, not to mention when compounded with pakistan the passenger to airline ratio is pretty ordinary.

Quoting Tayaramecanici (Reply 12):

4) Even if we buy a EU airline in some tiny nation like Bosnia or Serbia we are not sure EU will honor it as the very existence of EU is at stake with the EURO and Common interest rate there playing havoc on their economies.

I think someone in europe is starting to lose face in front of competition.



The Truth is Out There ---- Face It!!!!!
User currently offlineETFOkker50 From Netherlands, joined Feb 2006, 107 posts, RR: 0
Reply 15, posted (6 years 9 months 5 days 3 hours ago) and read 8406 times:

And this is news? Some journalist must have been bored  Smile We all saw it coming from 10 miles away

User currently offlinePnwtraveler From Canada, joined Jun 2007, 2227 posts, RR: 12
Reply 16, posted (6 years 9 months 5 days 3 hours ago) and read 8222 times:

Rumour has it from Ottawa that QR will be given rights to YYZ to keep EK in check to the region. I didn't even know QR was interested. The go slow for a bilateral that would allow EK and EY more flights seems to be the word from there as well as they have publically stated. I wonder if it is just bureaucratic sluggishness or indeed some fear of the above is behind it. Rumours being rumours who knows until it actually plays out.

User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 17, posted (6 years 9 months 5 days 3 hours ago) and read 8222 times:

Quoting EK156 (Thread starter):
In an interesting and extensive interview with Chairman of Emirates, Sheikh Ahmad, with an arabic daily newspaper, he revealed that the Ruler of Dubai, Sheikh Mohammad told the Chairman that he wants Emirates to be No. 1 in the World. So for all those speculating... I think you got your answer....

EK156..do you have a link or was it a printed article? I would quite interested in it.... Smile



"Up the Irons!"
User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 18, posted (6 years 9 months 5 days 2 hours ago) and read 7769 times:

Maybe they will buy Alitalia. That would be one way of slowing down the expansion of EK. Can you imagine the Sheik having to deal with those unions?!?!?!  Wink

User currently offlineA3 From Greece, joined Oct 2006, 262 posts, RR: 8
Reply 19, posted (6 years 9 months 5 days 1 hour ago) and read 6915 times:

There is a very strong rumor in Greece that an UAE airline is in talks with the Greek Government over Olympic's Future.....


Don't spend your money on airlines that don't respect your business.
User currently offlineSparkingWave From South Korea, joined Jun 2005, 670 posts, RR: 0
Reply 20, posted (6 years 9 months 5 days 1 hour ago) and read 6780 times:

They can't be no.1 in the world cause not everyone's gonna want to fly through Dubai. They'll never get the extensive route network that only one airline in the whole world could get, and that was Pan Am.

They'll have competitors in all directions fighting them tooth and nail. And if terrorism raises its ugly head in the Middle East, then there could be lots of empty A380s flying up there.



Flights to the moon and all major space stations. At Pan Am, the sky is no longer the limit!
User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 21, posted (6 years 9 months 5 days 1 hour ago) and read 6759 times:

Quoting A3 (Reply 20):
There is a very strong rumor in Greece that an UAE airline is in talks with the Greek Government over Olympic's Future.....

That's almost as good as buying Alitalia!!!  Wink


User currently offlineCF105Arrow From Canada, joined Oct 2007, 319 posts, RR: 0
Reply 22, posted (6 years 9 months 5 days 1 hour ago) and read 6667 times:

Emirates wants to be no.1. They are buying lots of planes, they do have a great 1st class, probably business also but nothing special in economy class or less than special with the 10 abreast in the 777.

This is viewed negatively by Abu Dhabi who feels that the Capital should always take precedence in the UAE and thus Etihad should be the number one. But in the case of Abu Dhabi, they prefer to grow at a slower pace.

Qatar airways is buying a large number of planes. In a few years you will find in a very small geographic area inhabited by a relatively very small number of inhabitants a huge number of planes as the plane orders would have been delivered.

Then, the slug-fest will start and heavy losses will follow.


User currently offlineTonystan From Ireland, joined Jan 2006, 1414 posts, RR: 2
Reply 23, posted (6 years 9 months 5 days 1 hour ago) and read 6626 times:

No 1 at what???

Profitability??? Not for a while consider the spending splurge they seem to be undergoing all the time and the constant investment in DXB.
Cabin Service??? Also not likely, unfortunately with the expansion of the airline standards have indeed dropped and there is a major inconsistency amongst aircraft cabin products across the fleet.
Size and Route structure??? Well perhaps indeed no 1 in that.



My views are my own and do not reflect any other person or organisation.
User currently offlineB777A340Fan From United States of America, joined Oct 2005, 768 posts, RR: 0
Reply 24, posted (6 years 9 months 5 days ago) and read 6353 times:

Quoting EK156 (Thread starter):
3) Emirates did not suffer much from the Oil prices cause they hedged the prices and the effect was minumum

Well yeah, it's easy when you literally have oil gushing in your own backyard.

Is anyone speculating (and I do mean SPECULATING) that EK receives great funding from the state and is hence, not technically a "private" company in the general sense of the term?


25 Post contains images Mestrugo : The UAE sit in the midst of the route from Europe and Africa to Asia and Oceania. I guess their strategy is based in having a zillion of flights linki
26 YOWza : Less than 3% of Dubai's revenues come from oil and gas. So your comment is a little off base. YOWza
27 Flysherwood : Where does the other 97% come from?
28 B777A340Fan : I don't think you got my point properly.... UAE is the world's 10th largest producer, 6th largest exporter of oil.... so oil prices are not necessari
29 Mestrugo : If I'm not wrong, Dubai is an important finantial center, and they rely heavily on tourism, too. They're also strong on the IT market.
30 CF105Arrow : Everything you said is true, but the Oil is in Abu Dhabi the home of Etihad and is thus owned by the Government of Abu Dhabi. There is a very small q
31 B2443 : I think the real danger of EK expanding like crazy is that EK would build hubs outside of DXB. With open skies it establishes with other countries an
32 Post contains links and images Lightsaber : Just in time to for the 772's and 773A's to leave the fleet. Interesting if they order 789's. That would be a one for one replacement (almost). EK wi
33 Post contains links Swallow : Make that 3 772A leaving the fleet in 2011, 29 332s & 8 343s in 2013 and 12 773A in 2014 for a total of 52 planes that need replacement. If they orde
34 EK156 : EK is going to float it's stocks to raise money for expansion. I think that is enough evidence that they are not getting any funding from the state!!
35 TruemanQLD : I dont mean to be a Greenie but yeah thats all fine, they will become No.1 in the world but when oil runs out in the UAE they will be gone before you
36 CF105Arrow : You could say that to Etihad but not to Emirates. Abu Dhabi has the oil and they own Etihad. Dubai doesn't have significant oil and get their money f
37 Post contains images Jacobin777 : ...even if EK can get its oil "cheap" from Dubai (which is false, as EK has oil hedging), it still needs to purchase oil for its return trip. .....Du
38 YOWza : Although the UAE is one country the economies of its individual emirates are very separate. That is to say that the welath generated from oil in Abu
39 Post contains links Philzh : Yes they are building it. It's at 24deg 53' 21"N 55deg 10' 27" in Google Earth; here's a few pics of the model.
40 Post contains links CF105Arrow : The airport at Jebel Ali will be built 40 kms from the existing Dubai International Airport adjacent to Jebel Ali Port and Jebel Ali Free Zone. It wi
41 Abrelosojos : = However, to be world-class, you need strong innovation. Copying an economic model rarely works. Singapore and Hong Kong can thank the closed Chines
42 Abrelosojos : = Let me rephase that to ... copying an economic model can get you going ... but rarely works after you reach a tipping point. Cheers, A.
43 Post contains images Jacobin777 : ...I don't see EK/Dubai completely copying Singapore, Hong Kong etc...I think what they have done however is hire people who know their industry very
44 Post contains images Caspritz78 : Sorry but it takes a little bit more then waving with money to become number 1. I doubt that EK will reach this goal with the strategy they apply righ
45 AndesSMF : In my short life I have seen two massive bubbles: the dot.com and housing. I called those as bubbles prior to them bursting and being recognized as su
46 Mariner : Hmmm? Most people recognized both as bubbles. Many believe that the present speculation in the oil market is a bubble. Dubai bears little resemblance
47 AndesSMF : The housing bubble created plenty of profit for many companies, which are now beginning to suffer. Amount of profit does not necessarily mean a bubble
48 Mariner : I did not say that. I pointed out that most of the dot.com the companies were not profitable, but that a lot of people made a lot of money in the bub
49 Abrelosojos : = Personally I found your post to be condescending with the inherently good western capitalism juxtaposed over the evils of another system; very neo-
50 AndesSMF : Nothing, but that is half of what they want to be. Agreed.
51 Post contains images Jacobin777 : ..its a shame you didn't purchase "put" options to protect your positions... ..so is EK's, besides purchasing part of Sri Lankan Airlines they aren't
52 Post contains images Mariner : I never said it was "good" - I make no value judgement on it, simply that is the form they are using, and, since the issue seems to be about profit,
53 Post contains images Abrelosojos : = Let us continue this dialogue over PMs as I would be a hypocrite to continue the same over on aviation forum. I can point out your hidden neo-con .
54 Mariner : Let us not. I don't have a deal of interest in the debate. The moment anyone imputes value judgements to facts, I shrug. mariner
55 Lightsaber : Why has this discussion gotten so far off course? EK has placed a bit on the A380. As an aviation fan, I'm very curious to see how it goes. Until I se
56 Emirates773ER : Not true, bubbles exist when certain part of a economy faces a economic turnout increase due to several factors which are limited due to time. Dubai
57 Post contains images Jacobin777 : ..then how have they been growing? .. ...interesting indeed!
58 Mariner : I'm fascinated. They only started twenty or so years ago, I think, and the growth is spectacular. I first flew them in 1990 - trying out "new" airlin
59 Abrelosojos : = As you wish. It would probably be unproductive anyways as I shrug when anyone passes of value judgements as facts. One thing I am sure we can both
60 Mariner : That's for sure. When someone gets personal and calls me a neo-colonialist in one post and a neo-con(servative) in another, I can't a constructive di
61 Abrelosojos : = I tend to agree with those who consider EK as a bubble waiting to burst. Initially, it was organic growth (1980s, 1990s) ... now, I would tend to e
62 Mariner : I work in show biz. We walk a constant tightrope between success and failure. Almost always, both have wonderful visionaries at the helm. mariner
63 AndesSMF : EK is meant to fly those who have purchased homes in Dubai, also. Hence, if too much was built, it is a little less passengers for the area. That is
64 Swallow : I guess it will be a phased retirement of planes from 2013, as the new birds enter the fleet. No idea if the 332s are leased or owned.
65 Qantas787 : Singapore Airlines growth rate has slowed enormously as will EK's.
66 Fly2CHC : They should buy a large stake in Air New Zealand - would complement their network and growth strategy superbly.
67 Philzh : There's been talk here on A.net about EK building a secondary hub in AKL, even before Dubai tried to buy parts of the airport. I too think that NZ wo
68 Post contains images Fly2CHC : Let the best scenario for aviation prevail Imagine if, as a result of the partnership, Air NZ were directed to firm up some key North & South America
69 Flysherwood : There are so many variables that could lead to a burst. I cannot imagine that the fundamentalists in the region like the idea of such a westernized c
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