UAE: Flydubai Wants Compensation From Boeing And Replacement Of 737 Max

Most airlines across the world grounded 737 Max after an Ethiopian Airlines jet crashed in March. Flydubai may prefer an option of replacing its order of more than 100 Boeing 737 Max jets with Airbus A320neos.

Then further demand compensation from the US plane-maker for the loss incurred following the grounding of 14 narrow-body aircraft, Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the low-cost carrier said on Monday.

Speaking at the Arabian Travel Market, Sheikh Ahmed, who is also Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, said the airline had to cancel up to 15 flights a day after grounding almost 10 per cent of its fleet.

Most airlines across the world grounded 737 Max after an Ethiopian Airlines jet crashed in March and a LionAir jet crashed last October, killing a total of 346 people.

Sheikh Ahmed did not say when flydubai would exercise the option for replacing the order nor did he reveal how much was the compensation flydubai would demand from Boeing.

The Dubai-based carrier operates a fleet of only 737 aircraft and is one of the largest Max operators having ordered 250 of the plane in November 2017 in a deal valued at $27 billion.

With so much aircraft on order, he said he couldn't sit and do nothing but needed to look at options such as the Airbus A320.

He stressed the replacement option and compensation are flydubai's rights.

We didn't ground those aircraft just because we wanted to. Even if we wanted to fly this aircraft, it would not be possible as nobody will allow it to fly within their airspace.

Sheikh Ahmed said he expects the US plane maker to improve communication with customers. We do not have a definite idea about the date when Max aircraft will be flying again.

On Boeing's claim that it is developing a software fix and new pilot training for regulatory approval to get Max recertified, Sheikh Ahmed said there was lack of clarity about those fixes and how long the plane grounding will last.

I have to see when this aircraft will be flying again and what assurances we will be getting, and how much compensation we will get. I don't want the delay to continue, he said.

On the higher fuel price and its impact on the airline's profitability, he said several other factors, including geopolitical issues, are posing challenges of all operators, but the full year 2018 results would be positive for the group. However, I would like to see oil prices at $60.

On the status on the talks with India to boost bilateral seat quota, Sheikh Ahmed said he expects to get more capacity, but did not say when a new agreement could be inked.

On Airbus 380 aircraft of the world's largest commercial jet-liner of which Emirates is the largest operator in the world, he said although its production would cease, the plane would continue to be operational for another 15 years.

We are today at 107 aircraft, it will go up to 125 before we see that some of the older aircraft come out of the fleet, he said.


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UAE: Emirates Makes Profit Of $1.1 billion

The Emirates Group has announced its 30th consecutive year of profit and steady business expansion.

According to a statement from the airline in its 2017-18 Annual Report, the Group posted a profit of AED 4.1 billion (US$ 1.1 billion) for the financial year ended 31 March 2018, up 67% from last year.

The Group’s revenue reached AED 102.4 billion (US$ 27.9.billion), an increase of 8% over last year’s results.

the Group’s cash balance increased by 33% to AED 25.4 billion (US$ 6.9 billion) supported by the bond issued in March and strong sales due to the early Easter holidays at the end of March.

In line with the overall profit, the Group declared a dividend of AED 2.0 billion (US$ 545 million) to the Investment Corporation of Dubai.

Chairman and Chief Executive, Emirates Airline and Group, His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum said: Business conditions in 2017-18, while improved, remained tough.

We saw ongoing political instability, currency volatility and devaluations in Africa, rising oil prices which drove our costs up, and downward pressure on margins from relentless competition.

On the positive side, we benefitted from a healthy recovery in the global air cargo industry, as well as the relative strengthening of key currencies against the US dollar.

We’ve always responded to the challenges of each business cycle with agility, while never losing sight of the future, and this year was no exception.

In 2017-18, Emirates and dnata delivered our 30th consecutive year of profit, recorded growth across the business, and continued to invest in initiatives and infrastructure that will secure our future success.

In 2017-18, the Group collectively invested AED 9.0 billion (US$ 2.5 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.

Emirates announced two significant commitments for new aircraft during the year: a US$ 15.1 billion agreement for 40 Boeing 787-10 Dreamliners which will be delivered from 2022, and a US$ 16 billion agreement for 36 additional A380 aircraft, including 16 options.

dnata’s key investments during the year included: acquisition of AirLogistix USA, marking its entry in the US cargo market.

Expansion of cargo handling capabilities with new warehouses and equipment at London Gatwick, Amsterdam-Schiphol, and Adelaide; new catering facilities in Dublin and Melbourne; and new marhaba lounges in Karachi and Melbourne.

Sheikh Ahmed said: While expanding our business and growing revenues, we also tightened our cost discipline.

Across the Group, we progressed various initiatives to rebuild and streamline our back office operations with new technology, systems and processes.

In 2017-18, our reduced recruitment activity, coupled with restructured ways of working gave us gains in productivity, and a slowdown in manpower cost increases.

Across its more than 80 subsidiaries, the Group’s total workforce declined by 2% to 103,363, representing over 160 different nationalities, as part of the overall productivity improvement initiatives in Emirates and dnata.

Sheikh Ahmed concluded: Looking ahead, Emirates and dnata remain focussed on delivering safe, efficient and high quality services consistently to our customers.

Our ongoing investments in our people, technology, and infrastructure will help us maintain our competitive edge, and ensure that we are ready to meet the opportunities and stay on course for sustainable and profitable growth.

Emirates’ total passenger and cargo capacity crossed the 61 billion mark, to 61.4 billion ATKMs at the end of 2017-18, cementing its position as the world’s largest international carrier.

The airline moderately increased capacity during the year over 2016-17 by 2%, with a focus on yield improvement.

Emirates received 17 new aircraft, after last year’s record number during a financial year, comprising of eight A380s and nine Boeing 777-300ERs.

At the same time, eight older aircraft were phased out, bringing its total fleet count to 268 at the end of March.

This fleet roll-over involving 25 aircraft was again one of the largest managed in a year, keeping Emirates’ average fleet age at a youthful 5.7 years.

It underscores Emirates’ strategy to operate a young and modern fleet which is better for the environment, better for operations, and better for customers.

The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.


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UAE: Emirates And flydubai Combine In An Extensive Partnership Agreement

- Passenger benefits to include access to over 200 unique destinations, seamless travel experience and frequent flyer programmes alignment

- Partnership includes an expansive codeshare agreement, schedule alignment and network optimisation

- Passenger benefits to include access to over 200 unique destinations, seamless travel experience and frequent flyer programmes alignment

- Both airlines to continue being managed independently

Emirates and flydubai unveiled an extensive partnership which will see the two Dubai-based airlines join forces to offer customers unmatched travel options. Both airlines will continue to be managed independently, but will leverage each other’s network to scale up their operations and accelerate growth.

The innovative partnership goes beyond code-sharing and includes integrated network collaboration with coordinated scheduling. The new model will give flydubai customers seamless connectivity to Emirates’ worldwide destinations spanning six continents. For Emirates’ customers, it opens up flydubai’s robust regional network.

The two airlines will also further develop their hub at Dubai International, aligning their systems and operations to ensure a seamless travel experience through the ultra-modern airport; currently the world’s busiest for international passengers.

HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group and Chairman of flydubai, said: “This is an exciting and significant development for Emirates, flydubai, and Dubai aviation. Both airlines have grown independently and successfully over the years, and this new partnership will unlock the immense value that the complementary models of both companies can bring to consumers, each airline, and to Dubai.

Emirates today has a wide-body fleet of 259 aircraft, flying to 157 destinations,including 16 cargo-only points. flydubai operates 58 New-Generation Boeing 737 aircraft to 95 destinations. The current combined network comprises 216 unique destination points.

The partnership is working to optimise the networks and schedules of both airlines, to open up new city-pair connections offering consumers greater choice. Additionally, this will help both airlines feed more traffic into each other’s complementary networks. By 2022, the combined network of Emirates and flydubai is expected to reach 240 destinations, served by a combined fleet of 380 aircraft.

The Emirates and flydubai teams are working together on a number of initiatives spanning commercial, network planning, airport operations, customer journey, and frequent flyer programmes alignment.

The partnership will be rolled out over the coming months, with the first enhanced code-sharing arrangements starting in the last quarter of 2017. Further details will be communicated as they become available.

Fully owned by the Investment Corporation of Dubai (ICD), both Emirates and flydubai are operated independently and under separate management teams.

The Emirates story started in 1985 when they launched operations with just two aircraft. Today, they fly the world’s biggest fleets of Airbus A380s and Boeing 777s, offering customers the comforts of the latest and most efficient wide-body aircraft in the skies.

Emirates inspires travellers around the world with a growing network of destinations, industry leading inflight entertainment, regionally inspired cuisine and world-class service.

flydubai strives to remove barriers to travel and enhance connectivity between different cultures across its ever-expanding network. Since launching its operations in 2009, flydubai has:
• Created a network of more than 90 destinations in 44 countries.

• Opened up 63 new routes that did not previously have direct air links to Dubai or were not served by a UAE national carrier from Dubai.

• Operates a single fleet type of 58 Next-Generation Boeing 737-800 aircraft and will take delivery of more than 100 aircraft by the end of 2023.

• In addition, flydubai’s agility and flexibility as a young airline has enhanced Dubai’s economic development, in line with the Government of Dubai’s vision, by creating trade and tourism flows in previously underserved markets.



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UAE: Emirates And Flydubai May Merge Within 18 Months

Emirates President Tim Clark has said the airline’s owners are working bring the airline together with Flydubai under one unit in plans that could bear fruit within the next 18 months.

“We are minded to accelerate a greater joining of the hip, of what we do, there’s a lot of work going on there to extract value for the shareholder,” Clark told reporters during a briefing at the Paris Air Show.

“We could do things better together than apart.”

Emirates Chairman Sheikh Ahmed had also said during Arabian Travel Market in April that he wanted to explore more synergies with Flydubai.

The move could open up slots for Emirates, said Clark and likely delay the move to Dubai World Central, Dubai’s second airport, to “sometime between 2026 to 2030,” he added.

Closer linkages are in prospect between Dubai-based Emirates Airline and local low-cost carrier (LCC) flydubai.

“There’s no competition between us, but I think we’ve just done our own thing and I’ve thought it could have been done better if it was a little more coordinated,” Emirates president Tim Clark said in Paris June 21.

“It makes a lot more sense to work together. Flydubai has moved from its original low-cost model. It now has lounges and lie-flat beds in business class; they’ve moved more towards a full-service model. Because they’ve moved closer to us, it becomes far easier to move high-yielding passengers across, certainly between premium classes.”

The two carriers’ route maps are complementary, with Emirates’ fleet of Boeing 777-300ERs and Airbus A380s focusing on long-haul sectors (although the A380 is deployed on trunk routes as short as a hour in duration within the Gulf) while flydubai has a dense network within the Gulf and just beyond.

“You’ve got places like Alexandria, Sharm-el-Sheikh and Djibouti, destinations that we would never fly to, but they give us business, either because people want to come through Dubai [on transit] or they have business in Dubai.”

One factor that would have to be improved to allow greater cooperation between the airlines would be improvements in transport between the terminals at Dubai International Airport: “We would have to improve the bussing option between Terminal 2 into the South Terminal. That’s difficult, because the airport is so compressed. It’s difficult to move ground vehicles around.”

Even today, without formal cooperation between the carriers, “We move around 1,200 passengers a day across the two airlines. For example, they fly to places like Belgrade [and] there’s quite a lot of people from Australia, [of Serbian ancestry] going into Serbia.” Those passengers fly into Dubai from Australia on Emirates, then transfer on to flydubai.

Both airlines have the same chairman, Sheikh Ahmed bin Saeed Al Maktoum, who has made it clear he would like to see more cooperation between the carriers: “Sheikh Mohammed wants this to happen and when you get that ‘push’ from the shareholder, you get things done,” Clark said.

UAE: Sheikh AhmedSays Dubai Expo 2020 To Inspire The World

The 158th General Assembly of the Bureau International des Expositions (BIE) in Paris on Wednesday officially confirmed Dubai as host city of the World Exposition in 2020.

The meeting ratified the Expo 2020 Registration Document, which sets out detailed plans for the delivery of the event.

Members of the Expo 2020 Dubai Higher Committee led by Sheikh Ahmed Bin Saeed Al Maktoum travelled to Paris for the historic announcement, which marks the start of the next chapter in Dubai’s journey to 2020.

Sheikh Ahmed said: “For two years we have worked tirelessly to plan and prepare for a truly exceptional World Expo in 2020. Today, the member nations of the BIE have officially endorsed these plans.”

The 158th General Assembly of the Bureau International des Expositions (BIE) in Paris on Wednesday officially confirmed Dubai as host city of the World Exposition in 2020.

The meeting ratified the Expo 2020 Registration Document, which sets out detailed plans for the delivery of the event.

Members of the Expo 2020 Dubai Higher Committee led by Sheikh Ahmed Bin Saeed Al Maktoum travelled to Paris for the historic announcement, which marks the start of the next chapter in Dubai’s journey to 2020.

Sheikh Ahmed said: “For two years we have worked tirelessly to plan and prepare for a truly exceptional World Expo in 2020. Today, the member nations of the BIE have officially endorsed these plans.”

He paid tribute to the international support that Dubai has received, saying: “On behalf of the Expo 2020 Dubai Higher Committee and the people of the United Arab Emirates, I want to thank the BIE and the International Delegates for the great vote of trust they have bestowed upon our nation.”

He added: “There is no time to rest. Now is the time for us to translate our vision into reality, as we deliver an Expo that will inspire the world to come together and begin to solve some of our most pressing global challenges.”

The Expo 2020 Registration Document, which was officially submitted to the BIE for review in July, was the result of comprehensive research and rigorous planning, and provided detailed information about the mega-event, including the theme Connecting Minds, Creating the Future, the site masterplan, participant and visitor engagement strategies, communications and marketing, business operations, sustainability and the post-event legacy.

To mark Dubai’s formal appointment, Sheikh Ahmed was presented with the official BIE flag (below).

In moving from the planning to delivery phase, activity will increase to include formal engagement with international participants, including nations, corporations, multilateral organisations, NGOs and academic institutions.

Opening its gates to the world on October 20, 2020, Expo 2020 Dubai is expected to welcome more than 25 million visits and over 200 participants over its six months duration.

UAE: Emirates To Fly To More Destinations In China

Emirates Airline has announced that it will expand its services in mainland China with four weekly flights to Yinchuan and Zhengzhou, starting from May 3, 2016.

The Dubai-based carrier said in a statement that the new services will expand its destination offering on the mainland to five, including Beijing, Shanghai, and Guangzhou.

Yinchuan, the capital of Ningxia which has a large Muslim population, is positioned as a hub for economic and trade cooperation and cultural exchange between China and the Middle East.

Zhengzhou, the capital of Henan Province and a major transportation interchange for central China, is an educational, technological and economic centre.

“With the opening of these new strategic routes, Emirates looks forward to contributing to the enhancement of China’s trade links with the rest of the world, in particular with the UAE and Arab world.

We believe the new international air links that we are launching will help create tourism and trade opportunities for Chinese business and leisure travellers that may not otherwise exist,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.

Emirates flights to Yinchuan and Zhengzhou will depart on Tuesday, Wednesday, Friday and Saturday using a Boeing 777-200LR aircraft, offering 266 seats and 14 tonnes of cargo capacity in the bellyhold.

Popular commodities expected to be transported on these services include electronics, such as mobile phones from Zhengzhou, and agricultural products such as goji berries and cashmere from Yinchuan.

Ties between Dubai and China continue to grow stronger. A growing number of Chinese banks and businesses are establishing branches within Dubai’s business and financial districts and the city is now home to over 3,000 Chinese companies and 200,000 Chinese residents. Growth in visitor numbers to Dubai from China grew by 25 percent in 2014.

Emirates was the first airline to establish non-stop connectivity between the Middle East and mainland China, first with freighter operations to Shanghai starting in 2002, followed by passenger services in 2004.

“As China's regions continue to open up to the global economy, Emirates remains keen to support this with the further expansion of air services in mainland China. In particular we’re interested in exploring the opportunity of daily services to Hangzhou and Chongqing, and a second daily service to Guangzhou,” said Al Maktoum.

UAE: Emirates Introduces Two Routes In One Day

On the same day, but 11,767 kilometres away in Mashhad in Iran, the airline also marked the start of operations to its second Iranian destination. The five times weekly service is complimentary to flydubai’s existing daily service.

Emirates launched its 10th US destination with the start of daily non-stop passenger service between Dubai (DXB) and Orlando (MCO) on 1 September. A VIP delegation and a contingent of international media were on board the inaugural flight, which carried passengers from 29 different countries to Orlando.

“Our new daily service will enable Emirates to grow alongside Orlando, one of the world’s premier leisure destinations and a dynamic business centre,” said HRH Sheikh Ahmed bin Saeed Al Maktoum, Emirates Chairman and CEO. “The launch of this non-stop route will bring Emirates’ unique product and award-winning service to passengers flying from Central Florida to our home in Dubai and beyond to more than 140 global destinations. Since 2004, Emirates has carried more than 11 million passengers on its US flights.” On the special occasion of its Orlando launch, Emirates dispatched its flagship A380 to celebrate the milestone and meet demand for the first flight, however regular scheduled service on the route will be offered on its 266-seat, 777-200LR aircraft.

Orange County Mayor Teresa Jacobs, Emirates CEO HRH Sheik Ahmed bin Saeed Al Maktoum and GOAA Chairman Frank Kruppenbacher answered questions from the media before moving onto the more important matter of cutting the new route cake celebrating the beginning of Emirates’ tenth US destination to Orlando on 1 September.

“Emirates is a premier airline and this is a significant new air service route for Orlando International as it opens the gateway to the Middle East, Asia, Africa and beyond,” said Frank Kruppenbacher, Chairman of the Greater Orlando Aviation Authority. “The benefits of this new daily service will be measured both financially and culturally.

The $100 million annual economic impact to Central Florida will be coupled with the potential to connect to diverse cultures of the world.” On the same day, Emirates extended its reach into Iran by linking Dubai with Mashhad (MHD), the country’s second largest city, adding a second passenger gateway into the country after Tehran.

The airline will fly five weekly flights, operated by a combination of three- and two-class configured A330-200s. Emirates commenced services to Iran in 1990 with twice-weekly flights to Tehran. It now operates four daily flights to the capital city. Since then, Emirates has carried 7 million passengers in and out of Iran.

While the route to the US faces no direct competition, its in-house LCC flydubai already operates to Mashhad on a daily basis.