2019 ‘a year of recalibration’ for Emirates airline, says Clark

      Published on Thursday, 2 January , 2020      223 Views     
2019 ‘a year of recalibration’ for Emirates airline, says Clark

  • Business

Emirates president Sir Tim Clark has described 2019 as “a year of recalibration” as the Dubai government-owned airline adjusted to news European planemaker Airbus was to cease production on the A380 superjumbo and focused on enhancing customer service.

“This was a year of recalibration in terms of our fleet and network plans, when it became clear that the A380 programme will cease. Emirates’ dynamic approach to capacity deployment – during the southern runway renovation at Dubai International, as well as in response to the capricious forces of politics and socio-economics throughout the year – demonstrated our agility and yielded results. We’ve also stayed focussed on delivering our “fly better” promise to customers through enhancing our product and service proposition at every touchpoint,” Clark, who announced last month he would be stepping down as president of the airline, said in comments issued on Tuesday.




“In 2020, we’ll continue to leverage our partnerships to provide even more connectivity and value for our customers. And we look forward to welcoming the world to Dubai for Expo2020, where we will showcase the future of aviation at the Emirates Pavilion.”

Orders

n February, Airbus announced that the company would end A380 production by 2021, after Emirates reduced its last orders in favour of the A350 and A330neo aircraft. Airbus continues to provide maintenance, support and retrofitting services for the A380.

Bob Lange, senior vice president and head of market and product strategy at Airbus, told Arabian Business at the Dubai Airshow in November the A380 would remain an important part of its portfolio but it had no plans to build any aircraft models to replace it.

“We needed to take a decision on the A380, which we did,” he said. “It will be the backbone for the air transport industry for that whole 20-year period [through 2038]… We expect the smaller aircraft to catch up in 20 years’ time, but it will still be fairly balanced market between smaller and larger aircraft,” he added.

Reorganise

The Dubai-based carrier announced at the airshow it would buy 50 Airbus A350-900 widebody aircraft in a deal worth $16 billion, with delivery to begin in May 2023.

The largest in the Middle East, it has been forced to reorganise its fleet after cutting orders of the A380 superjumbo. It has a whopping 271 large aircraft, including 113 Airbus A380 superjumbos and 158 Boeing 777 planes.

It also confirmed an order for 30 Boeing 787s worth $8.8 billion at list prices, together with 126 larger 777Xs.

Over the last twelve months, the airline has carried close to 58 million passengers on around 186,000 flights.

Travelling more than 885 million kilometres around the globe to 159 destinations, new additions to the network included Bangkok (via Phnom Penh), the Portugese city of Porto and a new service to Mexico City via Barcelona.

The carrier ended the year with 26 codeshare partners and 156 interline partners in 200 countries, with new agreements with China Southern Airlines, Africa World Airlines, LATAM Airlines, SpiceJet and Interjet. Emirates and flydubai marked two years of partnership, carrying more than 6 million passengers.

Profit

In November the Emirates Group announced an 8 percent rise in half-year net profit to AED1.2 billion ($320 million) despite a fall in revenues due in part to the 45-day runway closure at Dubai International Airport.

Emirates airline carried 29.6 million passengers between April and September, down 2 percent from the same period last year but passenger yield increased by 1 percent while the volume of cargo uplifted at 1.2 million tonnes decreased by 8 percent while yield declined by 3 percent, reflecting the tough business environment for air freight in the context of global trade tensions and unrest in some key cargo markets.

Emirates’ net profit was AED862 million ($235 million), up 282 percent, compared to last year while revenue of AED47.3 billion was down 3 percent.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO, Emirates Airline and Group said at the time: “The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world.

“Both Emirates and Dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity.

“The lower fuel cost was a welcome respite as we saw our fuel bill drop by AED2 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately AED1.2 billion from our profits.”



In a bid to concentrate on customer service, the airline spent $150 million refurbishing 10 Boeing 777-200LR aircraft; it boosted its inflight entertainment offering invested $27 million in inflight connectivity systems, such as Wi-Fi.

Keywords:
Category Business | 2020/01/02 latest update at 3:00 PM
Source : Arabian Business | Photocredit : Google
224 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Dubai Today would like to give all of its readers from Gulf and Dubai and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Dubai Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Dubai, the Gulf and the world.


Sheikh Mohammed launches Dubai Council to map out 50-year vision for emirate Emir

Sheikh Mohammed launches Dubai Council to map out 50-year vision for emirate

The Dubai Council has been established by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister…

Sheikh Mohammed bin Rashid Al Maktoum Emir

Sheikh Mohammed bin Rashid Al Maktoum

Vice President, Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al…

Sheikh Mohammed leads call to find next Emirati astronaut Emir

Sheikh Mohammed leads call to find next Emirati astronaut

The race to become the next Emirati in space is on after His Highness Sheikh Mohammed Bin Rashid…

Dubai ruler appoints Emirates chairman to oversee Dubai Holding, Meraas Business

Dubai ruler appoints Emirates chairman to oversee Dubai Holding, Meraas

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum has appointed the chairman of Emirates airline to temporarily oversee his…

GULF TV

Popular in GULF TV

Freelancing in the UAE region

6102 Views

The global freelancing market is set to grow $20bn by 2020. Where does the market stand here in…

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government