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