Emirates turns 30 on Sunday, and while it has risen to become the world's largest international airline in that time, its next phase of growth will be more challenging amid increased costs, competition and protectionism in foreign markets, analysts say.
It was a relatively modest beginning – a US$10 million budget, a deadline to start operations within five months and two aircraft leased from Pakistan International Airlines – with the inaugural flight between Dubai and Karachi taking-off on October 25, 1985.
Fast forward three decades to an expansive route network of 140 cities, and 267 aircraft on order worth $128 billion. Emirates carried 50 million passengers in the past financial year.
Sheikh Ahmed bin Saeed Al Maktoum, the Emirates airline and group chairman and chief executive, said it was a “daring” idea that gave credit to the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister.
“From day one, Sheikh Mohammed’s expectations for Dubai’s aviation industry have been clear, driving us – the airline, the airport and the entire ecosystem – to be worldclass and No 1 globally,” said Sheikh Ahmed.
The world's biggest operator of the Airbus A380 aircraft has also come to define luxury in modern air travel – from private suites to showers on planes. The "I do it solo"airline has also thrown its weight behind sport around the world.
Until now, Emirates’ cost base model has been critical to its ability to compete, but with Dubai more expensive than it was in recent years and dwindling oil prices taking their toll on the region’s economies, this advantage could now come under pressure.
Add to this the existence of three major competitors in proximity, each aspiring to turn their airports into world-class hubs.
“I think Emirates’ planning function has comfortably targeted a selection of routes to meet their growth plans over the next 10 years – and to do so profitably,” said Peter Morris, the chief economist at the UK-based Ascend aviation consultancy. “One challenge will be the effect of increasing competition on profitability, particularly from Qatar, Etihad and Turkish Airlines.”
A rising mood of protectionism is another thorn for Emirates. The trend of liberalisation that once enabled its speedy growth, spearheaded by the Open Skies framework of agreements, is now under threat, particularly in North America and Europe.
“This indicates that this liberalisation trend could stand still or even be reversed,” said Mr Morris. “It is difficult to predict because of the sudden currents that can spring up in international politics.”
There are also question marks about the future of the A380 superjumbo, the backbone of the Emirates fleet, with about 65 operating and more than 70 on order, because its manufacturer Airbus has to date failed to commit to more fuel-efficient engines in the absence of new customers.
“Without an A380neo, Emirates would need to choose between ordering an older, less efficient A380 aircraft, or joining the queue for 777X and A350 aircraft with a step down in seat capacity,” said Mr Morris.
But in the medium term Emirates has Expo 2020 in Dubai to build towards. The trade event is expected to draw 20 million visitors and generate Dh300bn from tourism activities, according to the airline. By 2020, Emirates expects to fly 70 million passengers on a fleet of 300 aircraft.
“To ensure we stay ahead of the game, we will also continue to invest in new technologies, in developing our products and services, and in nurturing our talent pool,” said Sheikh Ahmed of Emirates.
selgazzar@thenational.ae
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Fight card
1. Bantamweight: Victor Nunes (BRA) v Siyovush Gulmamadov (TJK)
2. Featherweight: Hussein Salim (IRQ) v Shakhriyor Juraev (UZB)
3. Catchweight 80kg: Rashed Dawood (UAE) v Khamza Yamadaev (RUS)
4. Lightweight: Ho Taek-oh (KOR) v Ronald Girones (CUB)
5. Lightweight: Arthur Zaynukov (RUS) v Damien Lapilus (FRA)
6. Bantamweight: Vinicius de Oliveira (BRA) v Furkatbek Yokubov (RUS)
7. Featherweight: Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)
8. Flyweight: Shannon Ross (TUR) v Donovon Freelow (USA)
9. Lightweight: Mohammad Yahya (UAE) v Dan Collins (GBR)
10. Catchweight 73kg: Islam Mamedov (RUS) v Martun Mezhulmyan (ARM)
11. Bantamweight World title: Jaures Dea (CAM) v Xavier Alaoui (MAR)
12. Flyweight World title: Manon Fiorot (FRA) v Gabriela Campo (ARG)
The specs
Engine: 6.2-litre V8
Power: 502hp at 7,600rpm
Torque: 637Nm at 5,150rpm
Transmission: 8-speed dual-clutch auto
Price: from Dh317,671
On sale: now
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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RESULTS
6.30pm Maiden (TB) Dh82.500 (Dirt) 1,400m
Winner Meshakel, Royston Ffrench (jockey), Salem bin Ghadayer (trainer)
7.05pm Handicap (TB) Dh87,500 (D) 1,400m
Winner Gervais, Connor Beasley, Ali Rashid Al Raihe.
7.40pm Handicap (TB) Dh92,500 (Turf) 2,410m
Winner Global Heat, Pat Cosgrave, Saeed bin Suroor.
8.15pm Handicap (TB) Dh105,000 (D) 1,900m
Winner Firnas, Royston Ffrench, Salem bin Ghadayer.
8.50pm UAE 2000 Guineas Trial (TB) Conditions Dh183,650 (D) 1,600m
Winner Rebel’s Romance, William Buick, Charlie Appleby
9.25pm Dubai Trophy (TB) Conditions Dh183,650 (T) 1,200m
Winner Topper Bill, Richard Mullen, Satish Seemar
10pm Handicap (TB) Dh102,500 (T) 1,400m
Winner Wasim, Mickael Barzalona, Ismail Mohammed.
Race card
1.30pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
2pm: Handicap (TB) Dh 84,000 (D) 1,400m
2.30pm: Maiden (TB) Dh 60,000 (D) 1,200m
3pm: Conditions (TB) Dh 100,000 (D) 1.950m
3.30pm: Handicap (TB) Dh 76,000 (D) 1,800m
4pm: Maiden (TB) Dh 60,000 (D) 1,600m
4.30pm: Handicap (TB) Dh 68,000 (D) 1,000m
Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
Sholto Byrnes on Myanmar politics
