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Emirates Announces $1.1 Bn Profit  
User currently offlineAirIndia From United Arab Emirates, joined Jan 2001, 1644 posts, RR: 1
Posted (4 years 5 months 2 weeks 2 days 1 hour ago) and read 13639 times:

http://www.arabianbusiness.com/588006-emirates-profits-story-to-come

Quote:
Sheikh Ahmed bin Saeed al Maktoum, chairman and CEO of the airline, said it 2009 was the 22nd year of profit for the company.

Breaking down the net profit, he added that $964m was for the airline, representing a 415 percent rise, with the remainder for Dnata.


67 replies: All unread, showing first 25:
 
User currently offlineAirNiugini From Australia, joined Mar 2010, 245 posts, RR: 0
Reply 1, posted (4 years 5 months 2 weeks 2 days 1 hour ago) and read 13603 times:

$1.1bn USD?

If it is, then there doing pretty well...



Its time to fly!
User currently offlinezeke From Hong Kong, joined Dec 2006, 9156 posts, RR: 76
Reply 2, posted (4 years 5 months 2 weeks 2 days 1 hour ago) and read 13499 times:

Quoting AirNiugini (Reply 1):
$1.1bn USD?

It would appear so, 4124 million AED, and they use a standard conversion rate of 3.65 to the USD.

http://www.theemiratesgroup.com/engl...ncial_Highlights_tcm409-565494.pdf



We are addicted to our thoughts. We cannot change anything if we cannot change our thinking – Santosh Kalwar
User currently offlineRichard28 From United Kingdom, joined Aug 2003, 1623 posts, RR: 6
Reply 3, posted (4 years 5 months 2 weeks 2 days 1 hour ago) and read 13456 times:

the article also says....

"He said the global economic crisis had not forced its fleet expansion plans to be put on hold, adding that an announcement of A380 orders would be made soon."

more A380's for Emirates??


User currently offlineAirNiugini From Australia, joined Mar 2010, 245 posts, RR: 0
Reply 4, posted (4 years 5 months 2 weeks 2 days ago) and read 13402 times:

Quoting Richard28 (Reply 3):
more A380's for Emirates??

Man! what will they do with them all?  
Quoting zeke (Reply 2):

Good stuff! It just makes me wonder how they can make such a profit when the industry is in "a bit of a pickle".... but good on them.



Its time to fly!
User currently offlinefridgmus From United States of America, joined Oct 2006, 1442 posts, RR: 11
Reply 5, posted (4 years 5 months 2 weeks 2 days ago) and read 13196 times:
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Quoting Richard28 (Reply 3):
more A380's for Emirates??

Is there that much traffic that EK can fill those Whalejets?

Also, on the same page as that article, it said that EK would start flights to Baghdad in July! Very cool.

F



The Lockheed Super Constellation, the REAL Queen of the Skies!
User currently offlinesurfandsnow From United States of America, joined Jan 2009, 2887 posts, RR: 31
Reply 6, posted (4 years 5 months 2 weeks 1 day 23 hours ago) and read 12998 times:

Quoting AirNiugini (Reply 4):
Quoting Richard28 (Reply 3):
more A380's for Emirates??

Man! what will they do with them all?
Quoting fridgmus (Reply 5):

Is there that much traffic that EK can fill those Whalejets?

LOL you guys sound surprised! This is EK, after all. There are plenty of stations that can fill the A380 - FRA, FCO, CAI, JNB, BOM, DEL, DAC, IKA, PVG, MNL, MEL, and (if they can make it) IAH and LAX, to name a few. Heck, EK could probably send an A380 to MLA or MCT and find a way to make money.



Flying in the middle seat of coach is much better than not flying at all!
User currently offlineETinCaribe From Ethiopia, joined Dec 2009, 737 posts, RR: 0
Reply 7, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12445 times:

Good for EK.

Do legacy carriers still accuse EK of being heavily subsidized or not accounting properly? I seem to recall that AF, KLM, others were singing that tune in the past. Is it mostly driven by jealousy?


User currently offlinegoldenstate From United States of America, joined Feb 2010, 573 posts, RR: 4
Reply 8, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12337 times:

Who is their auditor?

User currently offlineUAL747 From , joined Dec 1969, posts, RR:
Reply 9, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12325 times:

Quoting ETinCaribe (Reply 7):
Do legacy carriers still accuse EK of being heavily subsidized or not accounting properly? I seem to recall that AF, KLM, others were singing that tune in the past. Is it mostly driven by jealousy?

If they are heavily subsidized, it should be much easier for them to turn a profit than carriers who are not. I think that subsidies on these "World's Best Airlines" often are the reason why they are the "World's Best Airlines." If the US were a smaller country and we had one or two major carriers who were subsidized by the government, the quality of service would be a great bit higher. Especially if our economy depended heavily on the tourism and service industry. And we had oil money behind it.

UAL


User currently offlinenewark777 From United States of America, joined Dec 2004, 9348 posts, RR: 29
Reply 10, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12280 times:

Quoting Richard28 (Reply 3):
the article also says....

"He said the global economic crisis had not forced its fleet expansion plans to be put on hold, adding that an announcement of A380 orders would be made soon."

more A380's for Emirates??

The WSJ article says:

However, he declined to say how many and which type of aircraft the carrier is looking at

http://tinyurl.com/27ej9fe



Why grab a Heine when you can grab a Busch?
User currently offlineStitch From United States of America, joined Jul 2005, 31123 posts, RR: 85
Reply 11, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12244 times:
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Well that's probably the "20 A380s" Leahey said he has in his pocket.

So another large 77W and A388 order at Farnborough for EK. As I said in the other thread - *snore*  


User currently offlineRJ111 From , joined Dec 1969, posts, RR:
Reply 12, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12182 times:

Quoting Stitch (Reply 11):
So another large 77W and A388 order at Farnborough for EK. As I said in the other thread - *snore*

Yes, it's becoming quite repetitive.

Looks like EK are lining up for a streamlined A333|A35.|77(L|W)|A380 fleet in the future.


User currently offlineeinsteinboricua From Puerto Rico, joined Apr 2010, 3184 posts, RR: 8
Reply 13, posted (4 years 5 months 2 weeks 1 day 18 hours ago) and read 12163 times:

Quoting zeke (Reply 2):
and they use a standard conversion rate of 3.65 to the USD.

Which is also a fixed rate since the Gulf countries decided to create a single currency


Good news for EK. Nice to see they are still growing.



"You haven't seen a tree until you've seen its shadow from the sky."
User currently offlineYOWza From Canada, joined Jul 2005, 4900 posts, RR: 15
Reply 14, posted (4 years 5 months 2 weeks 1 day 17 hours ago) and read 11924 times:

Quoting goldenstate (Reply 8):
Who is their auditor?

Ernst,Young & Maktoum  

Rumor has it that there is immense dissatisfaction among EK pilots. I wonder how this announcement will be absorbed in those ranks?

YOWza



12A whenever possible.
User currently offlineEK773 From Malta, joined Jul 2004, 237 posts, RR: 2
Reply 15, posted (4 years 5 months 2 weeks 1 day 17 hours ago) and read 11893 times:

Quoting einsteinboricua (Reply 13):
the Gulf countries decided to create a single currency

The UAE and Oman are two GCC countries not participating in the single currency, however the AED remains pegged to the USD at a fixed rate.


User currently offlineCentre From Canada, joined Mar 2010, 490 posts, RR: 0
Reply 16, posted (4 years 5 months 2 weeks 1 day 17 hours ago) and read 11871 times:

Quoting ETinCaribe (Reply 7):
Do legacy carriers still accuse EK of being heavily subsidized or not accounting properly? I seem to recall that AF, KLM, others were singing that tune in the past. Is it mostly driven by jealousy?
Quoting UAL747 (Reply 9):
f they are heavily subsidized, it should be much easier for them to turn a profit than carriers who are not. I think that subsidies on these "World's Best Airlines" often are the reason why they are the "World's Best Airlines." If the US were a smaller country and we had one or two major carriers who were subsidized by the government, the quality of service would be a great bit higher. Especially if our economy depended heavily on the tourism and service industry. And we had oil money behind it.

Nonsense....Since it is government owned, if anything EK will be helping out the government of Dubai pay its debt, and not the other way around.
Good for EK!!!!.... That's how business is done  ..... Take a clue DL, CO, UA, AA...etc.



I have cut 4 times, and it's still short.
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 17, posted (4 years 5 months 2 weeks 1 day 16 hours ago) and read 11727 times:

Quoting RJ111 (Reply 12):
Looks like EK are lining up for a streamlined A333|A35.|77(L|W)|A380 fleet in the future.

"Spreading the love".....makes both Airbus and Boeing happy.....  



"Up the Irons!"
User currently offlineSQ_EK_freak From United Kingdom, joined Dec 2000, 1640 posts, RR: 20
Reply 18, posted (4 years 5 months 2 weeks 1 day 16 hours ago) and read 11592 times:

Quoting YOWza (Reply 14):
Rumor has it that there is immense dissatisfaction among EK pilots. I wonder how this announcement will be absorbed in those ranks?

Now where would you have possibly heard that rumour from!?  



Keep Discovering
User currently offlinelightsaber From United States of America, joined Jan 2005, 13263 posts, RR: 100
Reply 19, posted (4 years 5 months 2 weeks 1 day 16 hours ago) and read 11491 times:
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I think IAH and LAX will require the '2012' version of the A388 with the improved aerodynamics, engine upgrade kit, and reduced weight. The question is now when SFO will see the A388.  

I agree with your list (why I quoted you). However, I do not belive BOM is yet A380 ready and DEL becomes A380 ready (IIRC) next year. I would also add NRT to that list in 2012 (after 'station growth' sets in).

Quoting zeke (Reply 2):
It would appear so, 4124 million AED, and they use a standard conversion rate of 3.65 to the USD.

Why does the WSJ ahve a 3.5 dirhams profit?
Quoting surfandsnow (Reply 6):
here are plenty of stations that can fill the A380 - FRA, FCO, CAI, JNB, BOM, DEL, DAC, IKA, PVG, MNL, MEL, and (if they can make it) IAH and LAX, to name a few. Heck, EK could probably send an A380 to MLA or MCT and find a way to make money.
Quoting Stitch (Reply 11):
Well that's probably the "20 A380s" Leahey said he has in his pocket.

So another large 77W and A388 order at Farnborough for EK. As I said in the other thread - *snore*

I would be shocked if EK ordered another 20 A388's. The WSJ link has this quote:
"Emirates is also in talks with plane manufacturers Airbus, a subsidiary of European Aeronautic Defence & Space Co. and Boeing Co. for new aircraft, and plans to make an announcement in about eight weeks, around the time of the Farnborough airshow in the U.K., Sheik Ahmed said. However, he declined to say how many and which type of aircraft the carrier is looking at. In February, he told Zawya Dow Jones that Emirates was looking at "around 10" Boeing 777 or A330s. "

I expect smaller widebodies. (A330's or 77W's). Oh, I'd love to see the 748I bid off against the A388... but I would put my 'beer money' on the A333/77W.

Quoting RJ111 (Reply 12):
Looks like EK are lining up for a streamlined A333|A35.|77(L|W)|A380 fleet in the future.

I agree with that subfleet. Having the A333/A343/A345/772/77A for effectively the same missions is not the most cost effective strategy.

Quoting YOWza (Reply 14):
Rumor has it that there is immense dissatisfaction among EK pilots. I wonder how this announcement will be absorbed in those ranks?

Morale might be bad, but there are enough pilots 'hungry' for a job that they'll fill the slots for the reasons this 2008 article notes:
http://www.gadling.com/2008/04/11/us-pilots-jump-ship-love-emirates/

The pilots have made complaints about fatigue:
http://www.news.com.au/travel/news/a...bable/story-e6frfq80-1225707342621


But I've been reading the same issues with EK pilot morale since 2004 (probably earlier, but when I first paid attention):
http://www.pprune.org/middle-east/120828-emirates-pilot-meeting.html

However, EK seems to have happy pilots and unhappy pilots. Enough of them are 'content enough' to have their buddies join. This isn't 2008. There are plenty of qualified pilots looking for work or to up-gauge (from the regionals).

The question is, what is the cost of hiring new pilots versus a 'rotating staff.' There aren't exactly a lot of waiting carriers for experienced wide body pilots today. However, I expect that to change by 2012.

Lightsaber


Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineStitch From United States of America, joined Jul 2005, 31123 posts, RR: 85
Reply 20, posted (4 years 5 months 2 weeks 1 day 15 hours ago) and read 11000 times:
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Quoting lightsaber (Reply 19):
I expect smaller widebodies. (A330's or 77W's). Oh, I'd love to see the 748I bid off against the A388... but I would put my 'beer money' on the A333/77W.

I will own a 747-8 before EK does...

...and I don't like the 747.

 


User currently offlineCassi From Hungary, joined Apr 2010, 88 posts, RR: 0
Reply 21, posted (4 years 5 months 2 weeks 1 day 15 hours ago) and read 10918 times:

Was EK the most profitable airline in 2009? If so, which one had the second highest profit? Maybe FR?

User currently offlineramzi From Canada, joined Oct 2006, 535 posts, RR: 0
Reply 22, posted (4 years 5 months 2 weeks 1 day 14 hours ago) and read 10364 times:

Quoting ETinCaribe (Reply 7):
Is it mostly driven by jealousy?

Hmm...  
Quoting ETinCaribe (Reply 7):
Who is their auditor?

I would sure love to know.

Quoting RJ111 (Reply 12):

Looks like EK are lining up for a streamlined A333|A35.|77(L|W)|A380 fleet in the future.

I would still bet for a A35x/77x/A380 fleet. Quite an elegant one.

Quoting Centre (Reply 16):
Nonsense....Since it is government owned, if anything EK will be helping out the government of Dubai pay its debt, and not the other way around.

  

Quoting Stitch (Reply 20):
I will own a 747-8 before EK does...

...and I don't like the 747.

Well said.  



There will come a time when you believe everything is finished - that will be the beginning.
User currently offlineGlobeex From Germany, joined Aug 2007, 742 posts, RR: 5
Reply 23, posted (4 years 5 months 2 weeks 1 day 13 hours ago) and read 10152 times:

Since some people already started with it and others will follow concerning the subsidies etc.

1. Why should a company that is constantly turning a profit and even in this economic climate manages to turn a mind-boggling profit of $1 billion? Everery person with some intelligence left and even without any knowledge concering EK should be able to figure that out.

2. Of course did EK receive subsidies in the past in order to get running. However about any other flag carrier in the world did receive some kind of financial assistance in the past while they were still stateowned. Some still do and even the US-carriers can't complain about financial aid in the past by the government with their almost "excessive" chapter 11 filings.

3. Yes Ek might have some advantages. One being cheap labour. However again this is not exclusive to them as 90% of the countries have labour cost which are far below those of the EU or US, yet 99% of the other airlines don't manage to exploit that properly and/or don't get the other stuff managed. Concering tax: EU-airlines can't complain neither as the tickets don't incl. VAT, which gives them a big advantage over other modes of transportation. There are no tax on Jet A anyways.

4. Yes concering some points EK does have some advantages, then again there are a lot of things airlines in the EU don't have to deal with where as EK and other ME-airlines have to.

5. Just face it. EK is an extremly well run company which had a vision that will eventually (if it hasn't done yet) revolutionize the traffic flow between three continents and everybody else in the region now tries to copy. One of the things which proofs to me that it is 90% due to the "system" and the "how well a company is run" and not due to the "competitvie advantages" (excluding the simple fact that they simply are just right in the "middle") is TK. Over the last couple of years they have been following/(imitating) EK's example and just look at how well they are doing without the "advantages" all the people who keep on bashing EK come up with.

Just my two Euro-cents,
GlobeEx

P.S: and BTW if there are 5 countries in the world who are right now not able to pay any subsedies to their flag carrier Dubai would most probably be on it (or at least very far up in that list).

[Edited 2010-05-12 11:41:35]


As you may presently yourself be fully made aware of, my grammar sucks.
User currently offlinerangercarp From United States of America, joined Nov 2009, 144 posts, RR: 0
Reply 24, posted (4 years 5 months 2 weeks 1 day 12 hours ago) and read 9564 times:

Quoting Stitch (Reply 20):
I will own a 747-8 before EK does...

Well you best get your 748 on order quick as EK has 10 748F on order!  

(I know the lightsaber quote was refering to the i, not the F, but you did not discrimate between the two in your post.)



iwgbtp!
25 Post contains images Anshuk : DEL will in fact be fully A380 ready in two months, complete with double decker aerobridges. The new terminal opens this July And seriously, can Duba
26 Post contains images Stitch : I'm still safe because EK sold their 10 to Dubai Aerospace Enterprise and is leasing them back, so they are no longer an actual customer (Boeing's O&
27 huaiwei : What a fantastic bunch of excuses. For every airline you can name who are "heavily subsidised, comes from a smaller country and with one or two major
28 Post contains images lightsaber : Thank you. I'm happy to hear it is earlier rather than later. For some reason I thought it was next year... If they want to borrow billions they do.
29 Post contains images Anshuk : They raced through construction to make sure it was ready in time for the Commonwealth Games later this year. The air trials are actually on as we sp
30 SolarFlyer22 : That's still amazing and great news. I am sure they get some subsidies but not $1 billion worth in a quarter.
31 toobz : I wonder how much they pay for fuel? if AA or DL paid $.08 for a gallon I'm sure they would have made record profit
32 jfklucky777 : If anyone bothered to read the annual report on EK's website, you would see that the audit was done by Price Waterhouse Cooper.
33 Stitch : Fuel apparently now accounts for 27.5% of their costs, versus 32% this time last year. That it is such a large percentage of their cost structure cou
34 Post contains images rangercarp : You win! I guess you don't need to order after all.
35 AirNZ : Can you further explain what exactly you are saying here as I really fail to see the actual point you're 'making'? Lot of 'if's' there which sound li
36 AFGMEL : If they are subsidised is the qualifier. I thought that the American god was free enterprise which is always best? If it's not working then you have
37 AirIndia : You are right. EK as a private co is not obliged to have auditors going thru their accounts. Yet, the management is being transparent. It is critical
38 ojas : Good for EK as they are posting a profit, however a few questions -- * Is this profit for the Emirates group or just of the airline per se? * If for b
39 Post contains images jetfuel : So no audit means nobody checking the validity of the figures. No disclosure on subsidies, rebates, etc. We dont even know if they have deducted long
40 AirIndia : This is group profit. The split is: Airline: US$ 964 million (up 416% from US$ 187 million last year) Dnata: US$ 167 million (up 21% from US$ 138 mil
41 timb777 : PricewaterhouseCoopers Incorrect, PwC has done it for years Agreed, I can't believe it took so long for this mistake to get corrected! Tim
42 ojas : Does the 'airline' include Emirates Sky cargo, Dubai duty free, Emirates Holidays and the hotels that emirates own? I wish to know the operational pr
43 ETinCaribe : I think both descriptions of the carrier could be true at the same time: it is both well-managed and smart company but probably also benefits from ve
44 point2point : My sentiments exactly. Sorry to say, but I don't trust these big accounting firms these days for anything. They missed the 50B with Lehman Brothers,
45 Post contains images JWMD123 : Good news and fair play to EK. Only had the pleasure of flying with them once (DXB-MLE) and I have to say I was impressed. Given all these planes they
46 Pellegrine : Some people simply don't understand that a billion dollars profit is hardly surprising for an airline this size. At least a billion should be the targ
47 karan69 : But most pvt companies announce profit in the manner EK has done, see LH for example includes profit from LX , trading of LHR slots, SR Texhniques, L
48 RyanairGuru : Jetfuel, if you had actually read the posts on this thread (including Airindia just two replies above you) then you would have seen that Emirates was
49 RyanairGuru : Oh, forgot to say, to those still banging on about EK receiving subsidised oil: Again go back and actually read this thread.... Oil accounts for somet
50 mariner : Do you have some hard evidence that Emirates paid $.08 a gallon? It doesn't make a lot of sense, especially given that Emirates has to buy fuel at ou
51 Post contains images par13del : So if EK is able to make a profit in these financial times without subsidies or special tax laws etc. what excuse do EU and Asian carriers have for th
52 maxter : While I agree with all you have said, I really think that refuting the comments is a bit of a wasted exercise. I mean the detractors surely are not s
53 ojas : That is absolutely right, and it holds true for QR as well; even with the reserves that they have.
54 toobz : Don't get me wrong, good for EK! Doesn't change the fact that I am very sceptical of anything to do with oil from an oil producing country. I can writ
55 Post contains images KFly : Exactly right. Just imagine those individuals with a blinkered view of how EK operates covering their ears and chanting "la la la la" when presented
56 mariner : I think you'll find that some of them are quite serious. LOL. mariner
57 Post contains images point2point : You bet. These accountants are paid very well by EK to produce financial reports by EK, for EK. There is no real proof that EK is doing anything but
58 Jacobin777 : You still haven't addressed the fact how EK gets fuel for "$.08/gallon" at places such as SIN, SYD, LAX, SFO, KHI, LHR, FRA, etc. for which you have
59 toobz : Jacobin..I know your smarter than that I don't actually think EK pays $.08 per gallon. I was merely trying to exagerate my point. Something I must be
60 mariner : I'm quite smart and I didn't know. mariner
61 Jacobin777 : Toobz, exaggerate your point to what point? Fuel is almost 1/3 of their total costs (in-line with many carriers).... My point is EK doesn't get their
62 toobz : Thank you for clarifying that. I will put my conspiracy theory to rest!
63 Qslinger : [quote = goldenstate, la r I have no idea what pickle you are talking about buddy, but looking at those ticket prices, I am thinking they are doing ju
64 Post contains images SQ_EK_freak : That's what I am amazed that no one seems to realize!! Exactly, it makes absolutely no sense for Abu Dhabi to help subsidize Etihad's main rival. And
65 huaiwei : Can you name me a list of the world's top oil producing countries, and run a list of the world's most successful airline (by any measure you so choos
66 YOWza : It was a joke. I should have made that clearer. YOWza
67 Post contains links AirIndia : Yes, includes everything you said except Dutyfree...... as Dubai Dutyfree is a seperate company. For details, please download the pdf file from: http
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