UAEflyer
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Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 12:31 pm

From March to September Emirates profit grow 29% to $323 million.
For those who will say that the airline get a government support, let me tell you THERE IS NO GOVERNMENT SUPPORT

http://archive.gulfnews.com/articles/06/11/07/10080484.html
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
airfrnt
Posts: 2003
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 4:03 pm

Quoting UAEflyer (Thread starter):
For those who will say that the airline get a government support, let me tell you THERE IS NO GOVERNMENT SUPPORT

Or taxation for that matter... wait a minute...

Let's see what happens when they try to do their Jetblue on steroids expansion with the A380.
 
futurecaptain
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 4:11 pm

Wonder how much of this is late payments from the A380
 duck 

But seriously, good job on their part. I wonder how much they could have made if the A380 was doing revenue flights for them?

Quoting AirFrnt (Reply 1):
Or taxation for that matter

You forgot the cheap fuel and limited competition.  Wink
AirSO. ASpaceO. ASOnline. ASO.com ASO. ASO. ASO. ASO. ASO.
 
UAEflyer
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 4:12 pm

Quoting AirFrnt (Reply 1):
Or taxation for that matter

Well you or me can open an airline company here in Dubai or anywhere in the Arabian Gulf Area, without paying tax. This area of the world doesnt know the tax.

Quoting AirFrnt (Reply 1):
Let's see what happens when they try to do their Jetblue on steroids expansion with the A380.

They have alternatives for this, they are in the process of opening leasing company under the Dubai Aviation Enterprises (DAE)
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
PlaneHunter
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 5:09 pm

Quoting AirFrnt (Reply 1):
Or taxation for that matter... wait a minute...

So what? Any kind of company in the UAE has the same advantage. And if there were any kind of tax, it wouldn't turn around the result.

Quoting AirFrnt (Reply 1):
Let's see what happens when they try to do their Jetblue on steroids expansion with the A380.



Quoting Futurecaptain (Reply 2):
Wonder how much of this is late payments from the A380

EK has been profitable for almost two decades...

Quoting Futurecaptain (Reply 2):
You forgot the cheap fuel and limited competition.

Just because EK is based in the Persian Gulf region it doesn't mean they enjoy low jet fuel prices. And I wouldn't call Qatar Airways and Etihad Airways in the neighborhood "limited" competition, not to talk about all the other airlines which enjoy an open skies-policy at DXB...

http://tvnz.co.nz/view/page/425823/711581


PH

[Edited 2006-11-07 09:38:12]
Nothing's worse than flying the same reg twice!
 
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scbriml
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 5:28 pm

Congratulations to EK!

Been a while since we had a thread giving the EK bashers a chance to vent. sarcastic 
Time flies like an arrow. Fruit flies like a banana!
There are 10 types of people in the World - those that understand binary and those that don't.
 
UAEflyer
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 5:59 pm

Quoting PlaneHunter (Reply 4):
EK has been profitable for almost two decades...

Well, i wouldn't say two decades i believe much less than that.

I can see that every success will be criticized, and that is exactly what is happening with EK. Whenever a thread discussing Emirates first thing we see Government support, low-fuel, no ground services fees......etc
Why it is so weird to be successful nowadays??
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
PlaneHunter
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 6:12 pm

Quoting UAEflyer (Reply 6):
Well, i wouldn't say two decades i believe much less than that.

18 years, to be exact.  Wink


PH
Nothing's worse than flying the same reg twice!
 
jacobin777
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 6:27 pm

Quoting Futurecaptain (Reply 2):
You forgot the cheap fuel and limited competition.  Wink

Maybe you skipped this part.... Wink

"Fuel costs represented nearly a third or 30.7 per cent of the total operating costs, and crossed $1 billion, up by 27.2 per cent for the whole of last year."*

*-source:http://www.gulf-news.com/business/Aviation/10080484.html
"Up the Irons!"
 
UAEflyer
Topic Author
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 6:35 pm

Quoting Jacobin777 (Reply 8):
Maybe you skipped this part....

"Fuel costs represented nearly a third or 30.7 per cent of the total operating costs, and crossed $1 billion, up by 27.2 per cent for the whole of last year."*

You have a really amazing memory, thank-you you saved alot of time and talk!
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
Airlittoral
Posts: 54
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 8:30 pm

to refresh memories...:
http://www.emirates.com/uae/AboutEmi...EmiratesStory/TheEmiratesStory.asp

True, I believe Emirates does not receive substantial financial help from the Government (ie: from their owners).
I think the petrodollars are there as a safety net and a collateral. They're a great airline, no doubt about that. But would they have had the same explosive expansion without the petrodollars guarantee? that's a different debate, but worth a discussion...
 
khi747
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 9:27 pm

Its absurd to dismiss the success of Emirates as an airline,i mean you could,as many above have,but you are only fooling yourselves.The fact of the matter is that EK is THE success story of modern day civil aviation.99% of A.Net members were already around in 1985 when EK made its humble beginings from just a SINGLE leased A300 from PIA.Probably it can buy PIA 10 times over now,all within our lifetime.

No other airline in the world has done to a city and put a country on the map like Emirates.No other airline in the world does such an effecient and well planned transfer from A to Z and from Z to A via its Hub.
The "Sheikhs" are'nt mad that they would keep putting money into EK if it wasnt a properly run profitable organization considering all the other things going on in UAE.

Emirates's success is there for the whole world to see,there is no denying it.The argument that they have endless money supply that allows them to keep buying planes again does not hold because there is no shortage of capital in the world,any airline in the world can get cash to buy as many planes as they like provided they have a business plan to support it.Im sure in the early days they had access to cheaper capital but no government in the right mind would continue supporting an airline provided it could'nt sustain itself.If simple cash injections simply did the trick then Gulf Air should have been several times bigger then Emirates today,or even Saudi Arabian.

They are booming where others are struggling to stay alive even.Something has to be going right in order to justify all those added flights and new a/c.Look how they have captured the Australia/NZL-Europe market,how they have captured the Subcontinent-Europe/US market,Europe-Far East and they have barely started with North and South America right now.I think in a short period of time they will dominate the Brasil-Far East market too.As long as DXB comes in the way,they will take you from any country in the world to the other-thats their philosophy.

Maybe like me some of you dont like flying with EK,& think their business class apart from the A345 sucks and that they are the most grossly over rated airline in the world but for the love of God dont deny that they are one heck of a company with a vision like no other and they have EARNED,not BOUGHT,their success.
 
cobra27
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RE: Emirates Half-year Profit Grows 29%

Tue Nov 07, 2006 11:37 pm

I just can't wait when somebody will say that oil contributes only 4 procent of UAE economy...... They must really be running dry
 
dz09
Posts: 361
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RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 12:45 am

Quoting Cobra27 (Reply 12):
I just can't wait when somebody will say that oil contributes only 4 procent of UAE economy...... They must really be running dry

There is hardly any oil left in Dubai. Most of the oil is in Abu Dhabi and I don't know how much abu Dhabi shares the wealth with the other emirates.

EK is a successful company, and as always anything which is arab, in the eyes of so many, is not capable of achieving success.
 
cobra27
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RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 12:51 am

Quoting DZ09 (Reply 13):

There is hardly any oil left in Dubai. Most of the oil is in Abu Dhabi and I don't know how much abu Dhabi shares the wealth with the other emirates.

Only around 10% known oil and gas reservs
 
PlaneHunter
Posts: 6518
Joined: Tue Mar 14, 2006 3:17 am

RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 12:57 am

Quoting Cobra27 (Reply 14):
Only around 10% known oil and gas reservs

Abu Dhabi has 5% of the known gas and 10% of the known oil reserves - but Abu Dhabi is not Dubai.


PH

[Edited 2006-11-07 16:58:05]
Nothing's worse than flying the same reg twice!
 
mptpa
Posts: 402
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RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 1:02 am

Quoting Futurecaptain (Reply 2):
You forgot the cheap fuel

You seem to forget the cheap fuel may be just at DXB. Where do you think they will the fuel in SYD or SIN when they are there, and the price they pay? They will pay the market price unless they have huge tankers waiting to ofload into EK tanks!! The fuel hedging is not there at all stations and they are running a tight ship, just like any other airlines should.

If the country has lower taxation due to their revenu from other sources, it is great for all the businesses based there. Just because we have high taxes and other costs associated with labor (union, vacations, etc.) and higher cost of borrowing, does not mean that the airlines that are making money are not run properly and getting "Amtrak" like subsidies. Give credit when and where it is due. I am certain some of the positive bottom line came from for other sources such as sale of assets, compensation from Airbus, etc if it actually got paid by Airbus in the last quarter.

Congrats to EK and all other airlines that are making a profit. It is just about time....
 
UAEflyer
Topic Author
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RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 12:55 pm

Quoting KHI747 (Reply 11):
they have EARNED,not BOUGHT,their success.

That is the statement that all of us should memorise.
Everything in this region is booming, i have an example of a land that was bought in 1985 (same year when EK was borned) for $700,000 and yesterday it was sold for $150 million!! imagine the difference, this is exactly what is happening in this region of the world. Very sharp rise

We never satisfy our growth by 0.5%, 1%, 2% or 3% we always look at 10% at least for growth and for the return.
We should understand that every region on this planet have it's own specifications, look at China and India, the world is begging them to stop their aggressive growth.
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 1:17 pm

Quoting UAEflyer (Reply 9):
You have a really amazing memory, thank-you you saved alot of time and talk!

lol..thanks..but I think it is more of a function of me being a loser and reading too much aviation items on a weekday evening... spin 

Quoting AirLittoral (Reply 10):
True, I believe Emirates does not receive substantial financial help from the Government (ie: from their owners).
I think the petrodollars are there as a safety net and a collateral. They're a great airline, no doubt about that. But would they have had the same explosive expansion without the petrodollars guarantee? that's a different debate, but worth a discussion...

EK might (use that term loosely) use some "petrodollars" as some kind of collateral (which I doubt), however, they still finance their planes....

IIRC, they recently financed one of their new A345's from a bank in China...
"Up the Irons!"
 
Airlittoral
Posts: 54
Joined: Tue Sep 19, 2006 10:30 pm

RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 2:53 pm

Quoting DZ09 (Reply 13):
EK is a successful company, and as always anything which is arab, in the eyes of so many, is not capable of achieving success.

Oh please, NO ONE ever said that, come on! How come that every time you try to have a critical and analytical view on businesses and on the economy of the Gulf countries we get all these paranoid complains...
Look, just because we try to understand the reasons for the success of an airline doesn't mean we are trying to say that there must be something wrong and that arabs can't achieve anything.

Quoting UAEflyer (Reply 17):
Everything in this region is booming, i have an example of a land that was bought in 1985 (same year when EK was borned) for $700,000 and yesterday it was sold for $150 million!! imagine the difference, this is exactly what is happening in this region of the world. Very sharp rise

We never satisfy our growth by 0.5%, 1%, 2% or 3% we always look at 10% at least for growth and for the return.
We should understand that every region on this planet have it's own specifications, look at China and India, the world is begging them to stop their aggressive growth.

This is a useless generalization. And yes, the UAE were able to BUY at least part of their economical development BECAUSE they had a lot of petrodollars, that's a fact. And there is nothing to be ashamed of...I don't see why it should be a problem.

Quoting Jacobin777 (Reply 18):
EK might (use that term loosely) use some "petrodollars" as some kind of collateral (which I doubt), however, they still finance their planes....

IIRC, they recently financed one of their new A345's from a bank in China...

I never they said they didn't finance their planes. Of course they do. What I was clumsily trying to say is that the wealth of the United Emirates State, the only owner of Emirates, helps them (and has helped them in the past) to ink big deals with banks. Which is something that I don't criticize.
 
UAEflyer
Topic Author
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RE: Emirates Half-year Profit Grows 29%

Wed Nov 08, 2006 5:58 pm

Quoting AirLittoral (Reply 19):
And yes, the UAE were able to BUY at least part of their economical development BECAUSE they had a lot of petrodollars, that's a fact.

Well prove your fact for me sir
dont you see that Saudi Arabia sell 13 million oil barrel a day, why they are not success? dont tell me corruption, because never ever a royal family would allow another family to beat them and that is what happening with the royal families in this region, they are more like competitors or public companies chose what you like
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.
 
dz09
Posts: 361
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RE: Emirates Half-year Profit Grows 29%

Thu Nov 09, 2006 12:44 am

Quoting AirLittoral (Reply 19):
Oh please, NO ONE ever said that, come on! How come that every time you try to have a critical and analytical view on businesses and on the economy of the Gulf countries we get all these paranoid complains...

Yes I am paranoid! you're obviously either not from the region, even though your profile says you are, or you're too naive to see that. You're not going to find anybody who's going to admit to that openly, but believe me that's how most people see those countries. As to the petrodollars, well I am glad that they're finally putting them to good use. I am a businessman more than anything else, and I am always happy to see people succeed regardless of who they are.

EK is a great airline and I am happy for their success. How they got there is irrelevant to me.
 
Emirates773ER
Posts: 1318
Joined: Mon Jun 27, 2005 9:10 am

RE: Emirates Half-year Profit Grows 29%

Thu Nov 09, 2006 1:22 am

Quoting UAEflyer (Reply 17):
Everything in this region is booming, i have an example of a land that was bought in 1985 (same year when EK was borned) for $700,000 and yesterday it was sold for $150 million!! imagine the difference, this is exactly what is happening in this region of the world. Very sharp rise

We never satisfy our growth by 0.5%, 1%, 2% or 3% we always look at 10% at least for growth and for the return.

Dubai is booming alrite but at the cost of the expatriates living there. Inflation and unemployment are running at an all time high with pricing of every necessary commodity doubling twice within a few months. Satisfying a countries growth by using economics to your advantage is something I have always looked up to in any developing country but when you start generating money by leaching the laymen in the streets then things start turning nasty.
The Truth is Out There ---- Face It!!!!!
 
a389
Posts: 58
Joined: Thu Jan 13, 2005 9:41 pm

RE: Emirates Half-year Profit Grows 29%

Thu Nov 09, 2006 1:42 am

Quoting UAEflyer (Reply 17):
we always look at 10% at least for growth

... 15% for the rents!!!!  banghead 
Anyway, good news for EK!
A389
 
Airlittoral
Posts: 54
Joined: Tue Sep 19, 2006 10:30 pm

RE: Emirates Half-year Profit Grows 29%

Thu Nov 09, 2006 2:36 pm

Quoting DZ09 (Reply 21):
EK is a great airline and I am happy for their success

Right, I never said to the contrary...

Quoting AirLittoral (Reply 10):
They're a great airline, no doubt about that.



Quoting DZ09 (Reply 21):
How they got there is irrelevant to me.

It is to me...and that's also the topic of this thread by the way.

Quoting UAEflyer (Reply 20):
why they are not success?

Because they are more conservative with regards to the religion and thus were never able to attract a huge crowd of expats like Dubai or Abu Dhabi did...However Saudi Arabia is richer (per capita GDP, GDP...) than the UAE.

Quoting DZ09 (Reply 21):
you're obviously either not from the region

Yes I am and I love it here thanks.
 
dz09
Posts: 361
Joined: Mon Sep 11, 2006 1:20 am

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 3:03 am

Quoting AirLittoral (Reply 24):
Because they are more conservative with regards to the religion and thus were never able to attract a huge crowd of expats like Dubai or Abu Dhabi did...However Saudi Arabia is richer (per capita GDP, GDP...) than the UAE.

There are about 3 times (~ 6 millions) as many expats in Saudi than there are in the UAE. In my opinion, Sharjah is stricter in terms of religion than Saudi Arabia, and that's where you have the heaviest concentration of expats. Saudi arabia is so successful in many other fields and much richer than the UAE that they do not want to get heavily involved in the airline business. They're just big enough to handle their own needs.
 
Fly2CHC
Posts: 443
Joined: Wed Jun 15, 2005 10:35 pm

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 3:20 am

Not hard to believe such profitability when their flights seem to always be full!
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 4:38 am

Quoting Fly2CHC (Reply 26):
Not hard to believe such profitability when their flights seem to always be full!

Either full of pax and/or full of cargo... Wink
"Up the Irons!"
 
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Devilfish
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RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 4:40 am

Quoting UAEflyer (Reply 3):
Well you or me can open an airline company here in Dubai or anywhere in the Arabian Gulf Area, without paying tax.



Quoting UAEflyer (Reply 3):

They have alternatives for this, they are in the process of opening leasing company under the Dubai Aviation Enterprises (DAE)

Would these two statements explain your interest in new or used business jets, and the A318 airliner and Elite corporate variant in particular? Any plans for an LCC?  scratchchin 
"Everyone is entitled to my opinion." - Garfield
 
boysteve
Posts: 887
Joined: Sun Apr 25, 2004 7:02 am

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 7:09 am

Quoting Futurecaptain (Reply 2):
You forgot the cheap fuel and limited competition.

As others have already pointed out, EK do not get cheap fuel at LHR/JFK/SYD etc even if they did actually get cheap fuel at DXB. As for limited competion, I flew EK from MAN - SIN, I had a choice of SQ, BA, AF, LH, KL at the time!
 
khi747
Posts: 1532
Joined: Tue Oct 31, 2000 6:30 am

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 10:30 am

Quoting AirLittoral (Reply 24):
However Saudi Arabia is richer (per capita GDP, GDP...) than the UAE.

I dont know which Saudi Arabia you are talking about,but if its the one in the same peninsula as the UAE,without even looking it up UAE GDP per Capita is probably 2 X that of Saudi.There is a clear difference in the standard of living in the 2 countries and one has to be blind not to notice that.
 
UAEflyer
Topic Author
Posts: 1045
Joined: Thu Nov 02, 2006 8:29 pm

RE: Emirates Half-year Profit Grows 29%

Fri Nov 10, 2006 3:30 pm

Quoting DEVILFISH (Reply 28):
Would these two statements explain your interest in new or used business jets, and the A318 airliner and Elite corporate variant in particular? Any plans for an LCC?

LoL not yet

Quoting KHI747 (Reply 30):
I dont know which Saudi Arabia you are talking about,but if its the one in the same peninsula as the UAE,without even looking it up UAE GDP per Capita is probably 2 X that of Saudi.There is a clear difference in the standard of living in the 2 countries and one has to be blind not to notice that.

well i dont know even which Saudi Arabia he is talking about.
My friend i do invite you to visit UAE and see it by your self, and when you go back come again same time next year you will see a different thing than last year
Big Balloon, Bigger than the Sun & Moon, Flying High in the Sky.

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