Page 6 - Arabian Business
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FIRST WORD  |  SHAYAN SHAKEEL, CEO MIDDLE EAST EDITORST WORD | SHA
        FIR

                                                                                      Q THE BOTTOM LINE IS, THE WAY
                                                                                       EMIRATES IS POSITIONED IN THE
                                                                                    REGION, IT IS HARD TO SEE IT LOSE”





        Emirates just keeps winning
        With planes fi lled to capacity, a succesful start to the Flydubai deal and a new fl eet of

        aircraft on its way, last week’s A380 order puts Emirates even further ahead of the pack

        LAST WEEK, EMIRATES AIRLINES                                                        Q IF OTHER CARRIERS
        announced a $16bn deal to
        buy 20 Airbus A380s, with an                                                        ADOPT THE SUPER-
        option for 16 more at a later                                                       JUMBO, EMIRATES
        date. The order is a big win                                                        STILL HAS FAR MORE
        for the carrier – especially
        considering that this figure is                                                     OF THEM, FLYING TO
        the list price; Emirates must                                                       MORE DESTINATIONS”
        have received steep discounts
        to secure a deal of this size and
        importance. And it’s giving the
        A380 a whole new lease of life,                                                     solves the capacity-constraint
        which could prove to be the                                                         issue in the short-term,
        gift that keeps on giving.                                                          but airports will need to
          Tempted by the prospect                                                           develop their infrastructure
        of similar discounts, British   u The giant reawakens The A380 has a big future thanks to Emirates  to accommodate an increase
        Airways has emerged as a                                                            in superjumbo flight
        candidate to add to its A380                            minimum. Emirates won that   frequencies. Some will want
        fleet. Chinese airlines have   Arriving soon            argument, and more sales    to do so just to lure more of
        also expressed an interest,                             to other airlines guarantee   the aircraft away from other
        if some of the plane’s four    Emirates’ other orders   production for even longer.  hubs. Once again, Emirates
        million parts can be produced                             Saj Ahmad, chief analyst   carries more passengers on
        locally – which Airbus is                               at Strategic Aero Research,   the A380 than anyone in the
        willing to do. And last week                            is less gung-ho than Leahy,   world, and would be able to
        Malaysian Airlines said a                               and doesn’t believe Airbus   secure first mover advantage
        trial service taking pilgrims                           will attract further substantial   at any airport that wants
        to Saudi Arabia on its A380s                            orders. Even if he’s right   additional passengers filing
        has been successful enough                              then Emirates still wins,   through its gates.
        for it to consider spinning the                         as that would ensure the      If airports aren’t able to
        model off into a new group;                             continuation of its “biggest   modernise fast enough,
        a plan that has surely caught                           and grandest” proposition.   Emirates has the partnership
        the ears of other airlines     150                      Passengers enjoy flying in the   with Flydubai to rely on. The
        looking to boost revenues.                              A380, and will continue to do   budget carrier’s narrowbody
                                       Boeing 777Xs, valued     so given Emirates’ customer   fleet will grow exponentially
                                       at $56bn, from 2020      pitch to “upgrade your      following an order for 225
        A win both ways
        Airbus’ sales chief, and                                airline”. And if other carriers   Boeing 737 Maxs at last
        arguably the most successful                            adopt the superjumbo,       November’s Dubai Airshow.
        aircraft salesman ever,                                 Emirates still has far more   Both airlines will soon
        John Leahy, is confident he    40                       of them, flying to more     operate out of a new hub at
        can win “at least one more                              destinations than anyone    Dubai World Central, and by
        order this year,” as he told   Boeing 787-10 Dreamliners,   else, and thus able to capture   feeding into each other, are
        Bloomberg TV last week.        valued at $15.1bn, from 2022  any incipient demand.  sure to reach any destination
        If he does, Emirates wins                                                           faster and with more
        even bigger. The key point                              Luring in the traffi c       strength at the back than
        of contention in Emirates’                              One problem the A380 faced    any would be competitor.
        negotiations with the          36                       is that it was built in response   The bottom line is, the way
        European manufacturer                                   to congested airspaces and   Emirates is positioned in the
        was to keep the programme      Airbus A380, valued at   runways across the world.   region, it is hard to see it lose,
        running for a decade at        $16bn, from 2022         More A380s in the skies     whatever the competition. a
        6                                                                                        Vol. 19/04,  January – Feburary 2018
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