Page 6 - Arabian Business

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