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Emirates To Manage New Low -Cost Carrier  
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Posted (6 years 5 months 2 weeks 1 day 8 hours ago) and read 9210 times:

..followings statements from EK's top management,the airline will manage a new budget-carrier using single aisle aircraft as of next year.
The airline-unnamed until today - will be the sixth Low Cost airline in the Gulf region.
Tenders are supposed to be submitted soon,and more deteils should become available later this week.
Here to read


Please respect animals - don't eat them...
28 replies: All unread, showing first 25:
 
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7539 posts, RR: 8
Reply 1, posted (6 years 5 months 2 weeks 1 day 7 hours ago) and read 9024 times:

Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.


"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineLightsaber From United States of America, joined Jan 2005, 13013 posts, RR: 100
Reply 2, posted (6 years 5 months 2 weeks 23 hours ago) and read 8615 times:
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Quoting Burnsie28 (Reply 1):
Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.

From one perspective a LCC makes sense. Having a separate narrow body airline with reduced service in the gulf region will work.

It also makes sense if it is to be based at JXB rather than DXB. The transfer time between the two airports would upset those not expecting it (and the lack of shopping at JXB, initially).

What doesn't make sense is the bilateral slots. I'm not aware of Dubai or the UAE having an open skies with any nation withing narrow body range.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineKaitak From Ireland, joined Aug 1999, 12435 posts, RR: 37
Reply 3, posted (6 years 5 months 2 weeks 22 hours ago) and read 8511 times:



Quoting Lightsaber (Reply 2):
Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.

But they want this to be a LoCo, not just an EK single aisle operation.

Quoting Lightsaber (Reply 2):
What doesn't make sense is the bilateral slots. I'm not aware of Dubai or the UAE having an open skies with any nation withing narrow body range.

I'm sure it will be subject to the same bilateral as Air Arabia, which is based in Sharjah. This might hit them quite badly.

With regard to the EK LoCo, although the article talks of a single aisle operation, I wonder if this will ultimately morph to take over (or supplement) some of EK's routes to places in India, Pakistan and Bangladesh Remember that EK has said that some of its A380s might be operated in a 645 seat 2-class layout for high density routes. As Jetstar has shown, no reason why a LoCo can't be a two class operation.

Finally, did DAE's recent order include any narrowbodies?


User currently offlinePellegrine From United States of America, joined Mar 2007, 2437 posts, RR: 8
Reply 4, posted (6 years 5 months 2 weeks 21 hours ago) and read 8422 times:



Quoting Lightsaber (Reply 2):
What doesn't make sense is the bilateral slots. I'm not aware of Dubai or the UAE having an open skies with any nation withing narrow body range.

Oman, Bahrain, Egypt...

UAE and India have a new bilateral MoU.

There's a lot of guest workers in the region who want to visit home, I'm surprised this hasn't happened earlier. Similar to Singapore and Silk Air, Emirates has a certain reputation to uphold.



oh boy!!!
User currently offlineEK156 From United Arab Emirates, joined May 2005, 765 posts, RR: 3
Reply 5, posted (6 years 5 months 2 weeks 20 hours ago) and read 8340 times:

There is another thread on this New Airline In DXB (by UAEflyer Mar 18 2008 in Civil Aviation)

And also Emirates is not managing the airline as yet. The Airline is owned by Al Maktoum and the chariman is the same but it is a completely different management

Now I wonder is EK will lease one or two of their A 380s to this airline!!!! Could be that all along the A 380 was ordered for this purpose after all!!!


User currently offlineEtihadAirways From United Arab Emirates, joined Dec 2006, 160 posts, RR: 0
Reply 6, posted (6 years 5 months 2 weeks 18 hours ago) and read 8161 times:

I read today in Ittihad newspaper that the new low cost airline will start before the end of this year and it will be Part of Emirates Group with a different name that is realted to Dubia and that it will start from the new AL Maktom Airport (Jabel Ali)


here is a link for Gulf news coz Ittihad only has the arabic virsion



Dubai is to launch a low-cost carrier that will serve the growing budget travel market within the region and benefit the huge number of expatriates in the UAE.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has instructed concerned authorities to set up the low-cost airline company in Dubai.

"While setting fares, the company will be taking the financial and living conditions of passengers into consideration," Wam reported, without elaborating when the airline will be launched and its routes.

Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of the Emirates Group, will also be the Chairman of the new airline, while Gaith Al Gaith, Executive Vice-President for commercial operations at Emirates, will be its chief executive officer.


--------------------------------------------------------------------------------


--------------------------------------------------------------------------------


"Dubai's open-skies policy encourages the growth of air transport, which has and continues to contribute to the development of this city. The new airline, a low-cost carrier, will complement the international air services already provided by Emirates," Shaikh Ahmad said.

Although two Emirates officials have been named chairman and CEO of the airline, it is unclear what relationship will the new airline have with the Emirates Group. Mike Simon, Emirates' vice-president for corporate communications, told Gulf News: "It is a completely separate airline. Emirates has nothing to do with it except the fact we have the same chairman."

The much anticipated move comes at a time when Emirates, a premier full-service airline, has been raising its fares on most routes - leaving room for others to benefit from lower prices.

The new low-cost airline will help Dubai to regain the market gradually being left out by Emirates, analysts believe.

Senior Emirates officials - Maurice Flanagan, Emirates Group vice-chairman, and Tim Clark, president of the airline - have repeatedly said that the airline might launch a low-cost livery, putting A380s on selected routes.

Dubai Aerospace Enterprise - a new aviation investment arm - is placing lease orders for 100 aircraft and analysts expect the new carrier to begin services with DAE's leased aircraft before summer to cash in on the summer traffic.


User currently offlineScbriml From United Kingdom, joined Jul 2003, 12499 posts, RR: 46
Reply 7, posted (6 years 5 months 2 weeks 17 hours ago) and read 8068 times:
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Quoting Kaitak (Reply 3):
Finally, did DAE's recent order include any narrowbodies?

Their firm Boeing order included 70 737s and their MOU with Airbus includes 70 A320s.  smile 



Time flies like an arrow, but fruit flies like a banana!
User currently offlineScouseflyer From United Kingdom, joined Apr 2006, 3389 posts, RR: 9
Reply 8, posted (6 years 5 months 2 weeks 17 hours ago) and read 8042 times:



Quoting Scbriml (Reply 7):
Their firm Boeing order included 70 737s and their MOU with Airbus includes 70 A320s.

It's odd that the Boeing order has been firmed and the Airbus one hasn't. I wonder if DAE are picking up some planes second hand too as I'd be very suprised if they'd be getting any planes this summer that they ordered just before Christmas (or haven't actaully firmed in the case of the A320 and A350).


User currently offlineScbriml From United Kingdom, joined Jul 2003, 12499 posts, RR: 46
Reply 9, posted (6 years 5 months 2 weeks 15 hours ago) and read 7904 times:
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Quoting Scouseflyer (Reply 8):
It's odd that the Boeing order has been firmed and the Airbus one hasn't.

It's been reported that the contracts were signed in December, but that deposits hadn't yet been received by Airbus. Despite the constant claims that Airbus orders are less "honest and transparent" than Boeing's, the order still hasn't been booked.



Time flies like an arrow, but fruit flies like a banana!
User currently offlineEmirates2005 From Germany, joined Jun 2005, 238 posts, RR: 1
Reply 10, posted (6 years 5 months 2 weeks 13 hours ago) and read 7729 times:

Well... seems like the predictions were true... almost year to date...  wave 

Emirates Considers Low Cost



A310, A332, B732, B738, B742, B743, B773, B77W, DC-10, ATR42, TU-134, TU-154, IL-62, MI-8, E190, A320, C172
User currently offlineTS-IOR From Tunisia, joined Oct 2001, 3468 posts, RR: 6
Reply 11, posted (6 years 5 months 2 weeks 12 hours ago) and read 7627 times:

How will they attract crew ? Emirates pilots are already flying too much, and some of them would prefer Ryanair, and this is with a full-service airline... then how with a LCC ?

User currently offlineDABTH747 From , joined Dec 1969, posts, RR:
Reply 12, posted (6 years 5 months 2 weeks 11 hours ago) and read 7156 times:



Quoting TS-IOR (Reply 11):

good point but if it is the same company almost I wonder if they will have the same crews if it does that would be good for some EK crew to fly one week a ULH to lets say GRU or LAX and then one week of a few LCC flights within the Gulf....


User currently offlineEK156 From United Arab Emirates, joined May 2005, 765 posts, RR: 3
Reply 13, posted (6 years 5 months 2 weeks 4 hours ago) and read 6177 times:

Again I say this new airline is NOT part of Emirates

Read this article: http://www.gulfnews.com/business/Aviation/10198636.html


User currently offlineAznMadSci From United States of America, joined Dec 2007, 3662 posts, RR: 5
Reply 14, posted (6 years 5 months 2 weeks 4 hours ago) and read 6124 times:

Out of curiosity, would this LCC also expand to other parts of the world such as MNL and the Philippines? I could see EK transferring this route to the LCC and use the A380 in high density mode to cater to the OFWs going to work or going home to see family.


The journey of life is not based on the accomplishments, but the experience.
User currently offlineScbriml From United Kingdom, joined Jul 2003, 12499 posts, RR: 46
Reply 15, posted (6 years 5 months 2 weeks 3 hours ago) and read 6073 times:
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Quoting EtihadAirways (Reply 6):
Dubai Aerospace Enterprise - a new aviation investment arm - is placing lease orders for 100 aircraft and analysts expect the new carrier to begin services with DAE's leased aircraft before summer to cash in on the summer traffic.

Summer which year? DAE only signed their Boeing order in December, there's no way they're getting new 737s this year. Nor probably next year.



Time flies like an arrow, but fruit flies like a banana!
User currently offlineRyanair!!! From Australia, joined Mar 2002, 4755 posts, RR: 26
Reply 16, posted (6 years 5 months 2 weeks 2 hours ago) and read 6021 times:



Quoting Burnsie28 (Reply 1):
Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.

Ever heard of brand equity? No respectable brand would ever do that and go low cost while maintaining the same name.



Welcome to my starry one world alliance, a team in the sky!
User currently offlineCupraIbiza From Australia, joined Feb 2007, 836 posts, RR: 6
Reply 17, posted (6 years 5 months 2 weeks 2 hours ago) and read 6006 times:



Quoting Ryanair!!! (Reply 16):
Quoting Burnsie28 (Reply 1):
Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.

Ever heard of brand equity? No respectable brand would ever do that and go low cost while maintaining the same name.

A full service carrier can own an LCC as long as the only way the two intersect is in "back office" operations, fleet management, catering, freight etc etc - things the customer doesnt see.

all Emirates Group need to do is study the QF/JQ setup - they wrote the textbook



Everyday is a gift…… but why does it have to be a pair of socks?
User currently offlineRyanair!!! From Australia, joined Mar 2002, 4755 posts, RR: 26
Reply 18, posted (6 years 5 months 2 weeks 2 hours ago) and read 5997 times:



Quoting CupraIbiza (Reply 17):
A full service carrier can own an LCC as long as the only way the two intersect is in "back office" operations, fleet management, catering, freight etc etc - things the customer doesnt see.

That is what I meant, QANTAS would not maintain the same name under an LCC-style modus operandi even though the money goes to the same pockets at the end of the day.



Welcome to my starry one world alliance, a team in the sky!
User currently offlineCupraIbiza From Australia, joined Feb 2007, 836 posts, RR: 6
Reply 19, posted (6 years 5 months 2 weeks 1 hour ago) and read 5958 times:

I know BA tried the same with GO in the late 90s. does anyone know what happened with that? Was it not successful? If so why?


Everyday is a gift…… but why does it have to be a pair of socks?
User currently offlineLightsaber From United States of America, joined Jan 2005, 13013 posts, RR: 100
Reply 20, posted (6 years 5 months 1 week 6 days 22 hours ago) and read 5880 times:
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Quoting Kaitak (Reply 3):
With regard to the EK LoCo, although the article talks of a single aisle operation, I wonder if this will ultimately morph to take over (or supplement) some of EK's routes to places in India, Pakistan and Bangladesh Remember that EK has said that some of its A380s might be operated in a 645 seat 2-class layout for high density routes. As Jetstar has shown, no reason why a LoCo can't be a two class operation.



Quoting Pellegrine (Reply 4):
Oman, Bahrain, Egypt...

I didn't realize they had an open skies with those countries. That's a good start! Any links?

Quoting Pellegrine (Reply 4):
UAE and India have a new bilateral MoU.

But its rather restrictive on flights. The new LCC won't be able to fly 140+ flights per week to India. So how will they support a large fleet?  scratchchin 

Quoting Scbriml (Reply 7):
Their firm Boeing order included 70 737s and their MOU with Airbus includes 70 A320s.

Nothing like being decisive.  Wink

Quoting Emirates2005 (Reply 10):
Well... seems like the predictions were true... almost year to date..

 rotfl  Every year, rain or shine?  Wink

I think a LCC will work in Dubai. But what I'm not seeing is the political groundwork. There had been rumors of Easyjet or another European LCC at JXB to take advantage of the host country's bilaterals.

I don't doubt this airline can grow. What I'm wondering is were is the ground work for extensive additional flights from Dubai. For many routes, EK has used up all of Dubai's alloted flights. Yes there is growth, but on the order of 3 to 5 flights per day to many countries. So I am confused on the business plan.

If the LCC is a new airline. A true LCC with two class service but with connections to DXB for international transfers, I can see plenty of growth... assuming my concerns on bilateral flight rights are needless.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineEK156 From United Arab Emirates, joined May 2005, 765 posts, RR: 3
Reply 21, posted (6 years 5 months 1 week 6 days 17 hours ago) and read 5758 times:

Halooooooooooooooooo.... Is anybody reading my comments??? Emirates is NOT managing this airline and it is going to be based out of the new JXB airport. Read the article I attached in my last post

User currently offlineCupraIbiza From Australia, joined Feb 2007, 836 posts, RR: 6
Reply 22, posted (6 years 5 months 1 week 6 days 16 hours ago) and read 5705 times:



Quoting EK156 (Reply 21):
Halooooooooooooooooo.... Is anybody reading my comments??? Emirates is NOT managing this airline and it is going to be based out of the new JXB airport. Read the article I attached in my last post

Who owns Emirates Group?
Who owns this new airlines?

Do you the think the Dubai Government will allow the new airline to harm EK? Of course not. Also your article states Emirates are helping set up the new airline. I dont think they would set up an airline in competition to themselves.



Everyday is a gift…… but why does it have to be a pair of socks?
User currently offlineMoo From Falkland Islands, joined May 2007, 3928 posts, RR: 4
Reply 23, posted (6 years 5 months 1 week 6 days 16 hours ago) and read 5693 times:



Quoting Burnsie28 (Reply 1):
Perhaps they should just add narrow bodies to the emirates fleet.... and just maintain Emirates name which will give them more reach.

Very possibly not, for financial reasons - starting up an entirely new operation from scratch (because thats whats happening, regardless of who does it) means significant financial risk.

By doing it under a subsidiary of the umbrella group, Emirates is buffered from any financial issues the LCC may undergo, and especially not suffer from the short term 'start up' costs all new businesses incur. Theres a significant outlay here in terms of equipment, support costs and staffing, and Emirates already has fairly large financial commitments for the next 10 years.


User currently offlineCupraIbiza From Australia, joined Feb 2007, 836 posts, RR: 6
Reply 24, posted (6 years 5 months 1 week 6 days 16 hours ago) and read 5683 times:



Quoting CupraIbiza (Reply 22):
Emirates is NOT managing this airline and it is going to be based out of the new JXB airport.




From the article you mention....
Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group, is also chairman of the new airline and chairman of DAE.



Everyday is a gift…… but why does it have to be a pair of socks?
25 EK156 : It is quite annoying when someone responds to a thread without clearly reading the article that I linked: The Article CLEARLY says: Dubai: The new bu
26 Scouseflyer : I'm not sure how sucesfull the actual Go airline was but BA decided to concentrate on being a full-service carrier and sold it to a private equity fi
27 AirIndia : Its time the maktoums thought that enough of Air Arabia and Jazeera picking up budget travellers. Might as well spin their own LCC......... i guess i
28 BigTom : The new airline is definitely intended at taking on the likes of Air Arabia, Jazeera, Nas, Air India Express etc. EK's fares out of DXB have been on a
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