AFa340-300E
Topic Author
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

EK Australian Strategy

Sat Oct 21, 2000 11:34 pm

Hello,

Emirates Australian Strategy

Emirates was not certain it would start the first nonstop services between Australia and the Middle East planned for October when the airline's authority starts for non-stop Dubai to Perth service. The route was planned to be operated by a Boeing 777-300 but Emirates wasn't sure it would be economic due to increase in crew costs and a loss of freight capacity to extra fuel.

Emirates wants to operate that route mainly in order to enter the Kangaroo Routes market - UK-Australia routes. And Perth was recently dropped by British Airways, which used to operate daily services using a 747-400 and partly replaced by a Qantas 767 service to Singapore.
Although there are already quite a few players in the market (British Airways, Qantas and Asian carriers like Singapore Airlines, Cathay Pacific and Malaysia Airlines), its still proves to be worth, notably with freight volumes.

Emirates apparently delayed the start of the new route until late 2002 when it is expected to take delivery of its first Airbus A340-500 and Sydney could be the first choice for the new Airbus as it will generate more traffic.

An A340-500 would have an advantage over a 777-300 in being able to carry a full passenger load (280 passengers for the A340-500) with more freight capacity than the 777-300, and still be able to carry enough fuel for the journey. And Emirates gets about 20% of its revenue with belly freight.

Since 1997 Emirates has been providing direct service from Dubai to Melbourne with a stopover in Singapore. From 26 March 2000 it operates four weekly flights from Singapore to Sydney, as it got allowed to under an Open Sky-like agreement between Australia and the United Arabian Emirates.


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SriLankan following its shareholder?
SriLankan operates the CMB-SYD route with an Airbus A340-300 four times a week (Mon, Thu, Sat, Sun both ways)

UL678 CMB-SYD 05:00 - 20:30 Duration: 11h30
UL679 SYD-CMB 21:50 - 04:00 the following day Duration: 10h10
Local times

Could anyone tell me what is Emirates strategy with their Australian operations please?


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Best regards,
Alain Mengus
 
Marco
Posts: 4005
Joined: Sun Jul 09, 2000 3:41 pm

RE: EK Australian Strategy

Sat Oct 21, 2000 11:38 pm

They started with Melbourne and it proved to be profitable, and was upgraded to daily from 4X a week. The same thing is going to happen with the sydney service, it'll be upgraded to daily with the A330. However I don't think Perth would be very profitable, as it's not a major financial center like Melbourne or sydney...

Regards
Proud to be an Assyrian!
 
emirates777
Posts: 648
Joined: Wed Feb 09, 2000 12:53 am

RE: EK Australian Strategy

Sun Oct 22, 2000 2:55 am

Emirates are looking to go daily to Sydney from 2001 onwards using B777s.

In my view this is Emirates Australian expansion predicament:

They want to fly to Perth and Brisbane but don't have aircraft, let alone the right aircraft. In an ideal world they see Perth as a non-stop market but acknowledge that they can't do it at the moment and will have to stop in one of SIN or KUL. They prefer SIN but they already serve this city 15x weekly. All their other Aussie flights stop through this gateway. The point being made about Perth being not as profitable - well i would question that.

In fact I think EK's passenger yield's to Australia are not very high hence I think addition of Perth wouldn't make much difference from a yield perspective at the margin. Where i think there is potential is in the freight market. EK has an excellent cargo business which they are developing just as rapidly as their passenger ops. Therefore, operating the route by maximising cargo potential is something that is at the forefront of their agenda and they are unwilling to sacrifice that.

They are due to get some more A330s and this once again opens up the question of whether they will be used to Perth and Brisbane.

BTW, similar to Perth, Emirates seriously want to fly to Brisbane, but they are having the same issues. I have heard though that they may start BNE sooner than PER given the high demand for the gold coast traffic esp. with the likes of BA pulling out.

 
AFa340-300E
Topic Author
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

Europe-Australia, Via Middle East

Sun Oct 22, 2000 4:44 am

Hello,

Thank you very much for your comments and information!

Looking at different airlines website, I have noticed Gulf Air operates services to SYD and MEL (if some one could give me information about these ops please).

But Saudi Arabian Airlines doesn't operate any flight to Australia.

Any other Middle East airline appyling this strategy, on the Europe-Australia market?

Thank you,

Best regards,
Alain Mengus
 
MAS777
Posts: 2757
Joined: Sun Jul 11, 1999 7:40 am

RE: EK Australian Strategy

Sun Oct 22, 2000 6:16 am

I had read somewhere that EK was keen to enter the Malaysian-Australian market soon and there's no better time to do it than now with BA pulling out of Malaysia - there will be extra traffic to carry from the UK to Malaysia.
 
AFa340-300E
Topic Author
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

EK To Enter KUL-Oz Market

Sun Oct 22, 2000 6:38 am

Hello Mas777,

They would upgrade their DXB-KUL to non-stop and open new routes from KUL to Australia?

They currently stop at DAC on their DXB-KUL, right?

Why are they keen to enter this market? A large Malaysian expat basis in Australia? (what city more precisely?)

Thank you,

Best regards,
Alain Mengus
 
emirates777
Posts: 648
Joined: Wed Feb 09, 2000 12:53 am

RE: EK To Enter KUL-Oz Market

Sun Oct 22, 2000 8:02 am

Emirates have also indicated they intend to upgrade flights to KUL to non-stop and daily by November this year. They have also indicated that they would be considering options of flying from KUL onward to Australian points.

However, we have seen no action on this. I think the problem they are having is that they don't have enough acft. They could do it with A330s but feel they would get better returns with 777s.
 
Guest

RE: EK Australian Strategy

Sun Oct 22, 2000 9:13 am

Emirates? Strategy? HAHAHAHAHAHAHAHA