Category Archives: Emirates Airline

The United Arab Emirates and the United States conclude civil aviation discussions

The United Arab Emirates issued this statement:

The UAE General Civil Aviation Authority welcomed the announcement on May 14 on civil aviation in Washington that strongly reaffirmed and maintained all the provisions of the 2002 bilateral Air Transport Agreement between the United Arab Emirates and the United States.

The understanding confirmed at a meeting between the Foreign Ministers of both countries reinforced the principles of Open Skies that advance competition and allow airlines to freely add or adjust services to best serve travelers.

Commenting from Washington after his meeting with US Secretary of State Mike Pompeo, UAE Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan thanked the Secretary for working to achieve understandings on civil aviation and noted:  “Aviation is at the center of a UAE-US trade and commercial relationship that generates enormous benefits for both countries.  This announcement confirms business as usual by validating all of the rights and benefits –including ‘Fifth Freedom’ services — of the 2002 Air Transport Agreement between the two countries.  UAE and US airlines will continue to have complete commercial flexibility to add or adjust service to meet travelers needs.”

“We are pleased that the discussions with the US have come to an end.  They confirmed what was clear from the very beginning – that the UAE’s international airlines have operated in complete compliance with the 2002 Agreement,” said UAE Minister of Economy and Chairman of General Civil Aviation Authority His Excellency Sultan bin Saeed Al Mansoori. “Importantly, there is no freeze on or any change to operating rights.  The UAE’s international airlines can plan and begin new service, including Fifth Freedom flights, without limits and consistent with the 2002 Agreement.”

UAE airlines currently serve 12 US gateways with 131 flights a week. These flights generate tens of billions of dollars into the US and UAE economies, supporting hundreds of thousands of jobs in both countries. The US has a $15 billion trade surplus with the UAE, largely driven by sales of Boeing aircraft with GE engines to UAE airlines, and the UAE also invests hundreds of billions of dollars into the US.

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Emirates announces a yearly profit of $1.1 billion

Emirates' 2018 "Expo 2020 Dubai UAE"

Emirates Group made this announcement on its financial performance for the past fiscal year:

The Emirates Group on May 9, 2018 announced its 30th consecutive year of profit and steady business expansion.

Released today in its 2017-18 Annual Report, the Emirates Group posted a profit of AED 4.1 billion (US$1.1 billion) for the financial year ended March 31, 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, and 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.

His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, 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 Airbus 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 performance

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.

During the year, Emirates launched two new passenger destinations: Phnom Penh (Cambodia) and Zagreb (Croatia). It also added flight capacity to 15 existing destinations, offering customers more choice of flight timings and onward connections.

Emirates also grew its global connectivity and customer proposition through strategic partnerships. During 2017-18, Emirates entered into significant partnerships with flydubai and Cargolux, expanding the choice of air services on offer to passenger and cargo customers respectively. Emirates also received authorisation to extend its partnership with Qantas until 2023.

In spite of political challenges impacting traveller demand and fare adjustments due to a highly competitive business environment, Emirates managed to increase its revenue to AED 92.3 billion (US$ 25.2 billion). The decline of the US dollar against currencies in most of Emirates’ key markets for the first time in a number of years had an AED 661 million (US$ 180 million) positive impact to the airline’s bottom line.

Total operating costs increased by 7% over the 2016-17 financial year. The average price of jet fuel increased sharply by 15% during the financial year. Including a 3% higher uplift in line with capacity increase, the airline’s fuel billincreased substantially by 18% over last year to AED 24.7 billion (US$ 6.7 billion). Fuel is now 28% of operating costs, compared to 25% in 2016-17, and it remained the biggest cost component for the airline.

The airline successfully managed strong competitive pressure across all markets and increased its profit to AED 2.8 billion (US$ 762 million), an increase of 124% over last year’s results, and a profit margin of 3.0%.

Overall passenger traffic growth continues to demonstrate the consumer desire to fly on Emirates’ state-of-the-art aircraft, and via efficient routings through its Dubai hub.

Emirates carried a record 58.5 million passengers (up 4%), and achieved a Passenger Seat Factor of 77.5%. The increase in passenger seat factor compared to last year’s 75.1%, is a result of successful capacity management in response to political uncertainty and strong competition in many markets despite a moderate 2% increase in seat capacity.

Supported by the weakening of the USD against most currencies, passenger yield increased to 25.3 fils (6.9 US cents) per Revenue Passenger Kilometre (RPKM).

To fund its fleet growth during the year with high ongoing new aircraft deliveries, Emirates raised AED 17.9 billion (US$4.9 billion), using a variety of financing structures, including the successful execution of a US$ 600 million sukuk in March to fund the acquisition of two A380 aircraft to be delivered in 2018.

Emirates continues to tap the Japanese structured finance market in conjunction with debt from a wide-ranging group of institutions in China, France, the United Kingdom, and Japan. The company raised in excess of AED 3.7 billion (US$ 1 billion) during the year from this source. Emirates has also refinanced a commercial bridge facility (due to non-availability of ECA cover) of AED 3.8 billion (US$ 1.0 billion) via an innovative finance lease structure for five A380-800 aircraft, accessing an institutional investor and bank market base from Korea, Germany, the United Kingdom and the Middle East.

These deals align with Emirates’ financing strategy and demonstrates its ability to unlock diverse financing sources through access to global liquidity. It also underscores its sound financials and the strong investor confidence in the airline’s business model.

Emirates closed the financial year with a healthy and increased level of AED 20.4 billion (US$ 5.6 billion) of cash assets.

Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues. Europe was the highest revenue contributing region with AED 26.7 billion (US$ 7.3 billion), up 12% from 2016-17. East Asia and Australasia follows closely with AED 25.4 billion (US$ 6.9 billion), up 12%. The Americas region recorded revenue growth at AED 13.4 billion (US$ 3.7 billion), up 7%. Gulf and Middle East revenue decreased by 2% to AED 8.5 billion (US$ 2.3 billion) whereas revenue for Africa increased by 8% to AED 9.4 billion (US$ 2.6 billion). West Asia and Indian Ocean revenue increased by 5% to AED 7.8 billion (US$ 2.1 billion).

Through the year, Emirates introduced product and service improvements on board and on the ground.

Key highlights include: the launch of fully-enclosed suites in First Class together with refreshed Business Class and Economy Class cabins on the 777-300ER aircraft; new, wider Business Class seats arranged in a 2-2-2 layout on the 777-200LR aircraft; and a refreshed version of the popular Onboard Lounge on the Emirates A380.

On the ground, Emirates added a new dedicated lounge in Boston for its premium passengers and frequent flyers; refurbished existing lounges in Singapore and Bangkok, and completed a US$ 11 million makeover of its lounges in Dubai airport Concourse B.

Emirates also invested in new channels and technology to offer even better and more personalised customer experiences online, on mobile, as well as via its retail and contact centres.

For 2018-19, Emirates has announced new routes to London Stansted in the UK, Santiago in Chile, Edinburgh in Scotland, and an additional flight between Dubai and Auckland via Bali, aside from capacity upgrades to existing destinations.

Emirates SkyCargo recorded a strong performance in a resurgent market, and continues to play an integral role in the company’s expanding operations, contributing 14% of the airline’s total transport revenue.

In an airfreight market with fast-changing demand patterns, Emirates’ cargo division reported a revenue of AED 12.4 billion (US$ 3.4 billion), an impressive increase of 17% over last year, while tonnage carried slightly increased by 2% to reach 2.6 million tonnes.

This year, freight yield per Freight Tonne Kilometre (FTKM) increased by 14%, reflecting a very positive market environment for the industry, and the weakening of the USD against major currencies.

Emirates’ SkyCargo’s total freighter fleet stood at 13 Boeing 777Fs. In addition to belly-hold capacity to Emirates’ new passenger destinations, Emirates SkyCargo launched new freighter services to Maastricht (Netherlands), Luxembourg, and Aguadilla (Puerto Rico).

Emirates SkyCargo continued to develop innovative, bespoke products tailored to key industry sectors. In November, it signed an MoU with Dubai CommerCity to develop new solutions for the e-commerce sector using Dubai as a hub.

During the year, Emirates SkyCargo launched Emirates Fresh for perishable commodities such as fresh cut flowers, fruits and vegetables. For temperature-sensitive Pharma products, Emirates SkyCargo rolled out a pharma corridors programme to offer enhanced origin-to-destination protection, and it also partnered with DuPont to introduce White Cover Xtreme, a next generation thermal blanket to protect sensitive cargo.

Emirates’ hotels recorded revenue of AED 746 million (US$ 203 million), a moderate increase of 1% over last year in a highly competitive market mainly in the UAE.

DNATA performance

In its 59 years of operation, 2017-18 has been dnata’s most profitable year, crossing AED 1.3 billion (US$ 359 million) profit for the first time. Building on its strong results in the previous year, dnata’s revenue grew to AED 13.1 billion (US$ 3.6 billion), up 7%. dnata’s international business now accounts for 68% of its revenue.

The strong performance was achieved through organic growth with key contract wins coupled with solid customer retention across its four business divisions, as well as the impact of acquisitions from previous year.

dnata continued to lay the foundations for future growth by investing AED 600 million in new facilities and equipment, acquisitions, leading-edge technologies and people development.

One of its key initiatives in 2017-18 was to embark on the journey to implement a new Enterprise Resource Planning (ERP) solution that will transform its business support functions, and provide real time information to enable better decision making, governance, efficiency and scalability for continued growth and expansion.

In 2017-18, dnata’s operating costs increased accordingly by 8% to AED 11.9 billion (US$ 3.2 billion), reflecting the impact of organic growth across all lines of business coupled with integrating the newly acquired companies mainly across its international airport operations.

dnata’s cash balance reached AED 4.9 billion (US$ 1.3 billion), a new record high. The business delivered an AED 1.9 billion (US$ 506 million) cash flow from operating activities in 2017-18, which is also a new record in line with the enhanced cash balance.

Revenue from DNATA’s UAE Airport Operations, including ground and cargo handling increased by 4% to reach AED 3.2 billion (US$ 859 million).

The number of aircraft movements handled by dnata in the UAE declined by 2% to 211,000 impacted by the geopolitical situation in the region, whereas Cargo handling increased by 2% to 731,000 tons, supported by the strong overall air cargo market.

In addition to the steady delivery of initiatives started in 2014 to optimise its operations, covering facility improvements, process changes, infrastructure upgrades and IT development, dnata also successfully tested the use of blockchain technology to further streamline and simplify its cargo delivery processes from origin to final destination.

DNATA’s International Airport Operations division grew revenue by 14% to AED 3.8 billion (US$1.0 billion), on account of increasing business volumes, opening of new locations and winning new contracts.

International airport operations continue to represent the largest business segment in dnata by revenue contribution. The number of aircraft handled by the division further increased substantially by 10% to 449,000, and Cargo noted a substantial growth of 10% to 2.4 million tonnes of handled goods.

DNATA continued to win over customers with its high quality standards, inking over 90 contracts with new and existing customers during the year.

During the year, dnata made significant investments which expanded its capability and global presence. In May, DNATA entered the US cargo market with its acquisition of AirLogistix USA. The investment includes state-of-the-art cargo handling facilities in Houston and Dallas Fort-Worth. dnata also expanded its cargo handling capabilities at Gatwick, opened an additional cargo warehouse in Schiphol, and a new airside cargo facility in Adelaide.

In the US, it received a new licence to provide ground handling services at John F. Kennedy International Airport’s (JFK) Terminal 4; and it commenced operations at JFK’s Terminal 8. In Singapore, dnata began operations at Singapore Changi Airport’s new Terminal 4; and opened a new maintenance base for ground service equipment.

DNATA’s Catering business accounted for AED 2.1 billion (US$ 585 million) of its total revenue, up 7%. The inflight catering business uplifted more than 55 million meals to airline customers.

During the year, dnata opened a state-of-the-art catering hub at Melbourne airport, the largest such facility in the southern hemisphere, and a second catering facility in Ireland at Dublin airport. It also entered the Canadian market when it was awarded a licence to provide flight catering services to airlines departing Vancouver International Airport, and has commenced plans to build a dedicated catering facility there.

DNATA strengthened its presence in the North American market with the acquisition of 121 in-flight catering, a New York-based in-flight and VIP caterer in March. This is pending approval from the Committee of Foreign Investments in the United States (CFIUS). In April 2018, dnata announced the acquisition of Qantas’ catering business, subject to the approval of the Australian Competition and Consumer Commission.

Revenue from DNATA’s Travel Services division has seen a turnaround after last year’s decline with an increase of 8% to AED 3.4 billion (US$ 922 million). The underlying total transaction value (TTV) of travel services sold increased by 6% to AED 11.3 billion (US$ 3.1 billion).

This solid performance was supported by dnata’s ability to tap on the upswing in both inbound and outbound tourism demand in the Middle East, and a healthy increase in long-haul travel and cruise bookings in Europe and Australia.

In 2017-18, dnata completed its acquisition of a stake in Destination Asia, a leading destination management company with operations across 11 Asian countries, making its entry into South East Asia’s inbound travel market. Its UK-based Imagine Cruising business, completed a successful first year of trading in Australia, and acquired Holiday Planet, a leading travel company in Perth to boost growth in this market.

During the year, dnata invested in technology to provide enhanced functionality and a better service experience for its partners and customers. This included the creation of two travel reservation systems for Emirates Holidays and dnata Travel’s B2B business, to replace existing ones.

Copyright Photo: Emirates Airline Airbus A380-861 A6-EEW (msn 153) (Expo 2020 Dubai UAE) LHR (SPA). Image: 941810.

Emirates aircraft slide show:

Emirates to launch a daily service to Edinburgh

Emirates Airline Boeing 777-300 ER A6-EQK (msn 42359) PAE (Nick Dean). Image: 941792.

Emirates, the largest international airline in the world, today announced it will start a daily service between Scotland’s capital city, Edinburgh, and Dubai, from October 1, 2018.

Edinburgh will become Emirates’ second destination in Scotland after Glasgow and its 8th in the United Kingdom after the airline starts its daily service to London Stansted in June. The new service will be operated by an Emirates Boeing 777-300ER in a three class cabin configuration, with 8 private suites in First Class, 42 lie flat seats in Business Class and 304 spacious seats in Economy Class.

Photo: Emirates.

Flight EK023 will depart Dubai daily at 0955 hrs and arrive in Edinburgh at 1450 hrs, while the return flight, EK024 will depart Edinburgh at 2015 hrs and arrive in Dubai at 0640 hrs the next morning. The arrival of the flight is conveniently timed for connecting to Emirates’ services to popular outbound destinations for Scottish travellers, such as Bangkok, Lahore, Hong Kong, Singapore, and Australian cities, Perth, Melbourne and Sydney.

Top Copyright Photo: Emirates Airline Boeing 777-300 ER A6-EQK (msn 42359) PAE (Nick Dean). Image: 941792.
Emirates aircraft slide show:

Emirates Skywards boosts reward opportunities with increased flexibility in managing Miles

Emirates has made this announcement:

Emirates Skywards has made it even easier to redeem reward flights and earn travel and lifestyle rewards by giving members more flexibility in managing their Skywards Miles. Members of Emirates’ award-winning loyalty programme can now buy, gift or transfer Miles to their loved ones at a more attractive rate.

The cost of buying or gifting Miles has been adjusted to $30 per 1,000 Miles, while transferring Miles costs $15 per 1,000 Miles giving members the opportunity to earn rewards faster.  Transaction limits have also been increased enabling members to buy or gift up to 100,000 Skywards Miles per year and transfer up to 50,000 Miles a year.

In addition, the programme now enables members to reinstate expired Miles. Members who have miles that have expired in the last six months can reinstate them at a nominal charge of USD 20 per 1,000 Miles.

“We constantly look at all avenues to enhance the Emirates Skywards programme and deliver greater value to our global membership base,” said Dr Nejib Ben Kheder, Senior Vice President, Emirates Skywards. “Our members know how to maximise the value that Skywards offers and can now enjoy greater flexibility when they buy, gift, transfer or reinstate their Skywards Miles. With our programme continually evolving, the coming months will see the addition of even more features enabling our members greater opportunity than ever to earn Miles and access rewards across our wide range of flights, travel and lifestyle related products.”

Emirates Skywards partnered with Points, the global leader in powering loyalty commerce, to enhance the functionality to buy, gift, transfer and reinstate Skywards Miles giving members more flexibility in managing their Miles. The transactions can all be made at emirates.com once the member is logged in.

Emirates Skywards membership is free. Besides flight rewards and upgrades, members can earn and redeem Skywards Miles through over 100 programme partners including airlines, hotels and retail & lifestyle outlets. Members also enjoy money-can’t-buy-experiences at popular events worldwide and access to 41 Emirates lounges in major cities worldwide. Other benefits include lounge access, priority check-in and boarding and special privileges for Wi-Fi and advanced seat selection on board.

Photo: Emirates.

Best April Fools’: Emirates reveals SkyLounge

Today is April Fools’ Day (April 1).

According to Wikipedia:

April Fools’ Day (sometimes called All Fools’ Day) is an annual celebration in some European and Western countries commemorated on April 1 by playing practical jokesand spreading hoaxes. The jokes and their victims are called April fools.

We will look at some of the better ones as we find them today:

The first is from Emirates:

Emirates reveals SkyLounge, the most exclusive Onboard Lounge to be introduced on its Boeing 777X fleet from 2020. A completely transparent lounge with unmatched aerial views and unparalleled luxury, Emirates SkyLounge promises window views like no other.

All images by Emirates.

 

Video: Emirates’ Airbus A380 makes a historic landing in Beirut

On March 29, 2018, Emirates flew the first Airbus A380 to Beirut’s Rafic Al Hariri International Airport. Watch highlights of the flight, the on-board celebrations and historic landing with water cannon salute:

Video:

Emirates now has 10 aircraft in the “Year of Zayed 2018” special livery

"Year of Zayed 2018" special livery

Emirates has announced on social media it has reached the 10 aircraft mark with the “Year of Zayed” special livery:

The airline issued this statement:

Emirates has completed the application of the specially-designed ‘Year of Zayed’ livery on ten of its aircraft. This tribute to the late His Highness Sheikh Zayed bin Sultan Al Nahyan was first unveiled in November 2017 on the fuselage of Emirates’ 100th A380 aircraft, and commemorates the 100th year of HH Sheikh Zayed’s birth.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “His Highness Sheikh Zayed was a legendary leader, a true pioneer, and an inspirational figure.  His legacy for sustainable development lives on in the spirit of the UAE.  Emirates is proud to spread his universal message to global audiences in airports and cities around the globe.”

Five Airbus A380s and five Boeing 777-300ERs with the ‘Year of Zayed’ livery have circled the globe on over 1,500 flights to date, and will continue to carry its message of inspiration from the UAE’s late founding father throughout 2018.

The “Year of Zayed” is a year-long tribute to HH Sheikh Zayed’s remarkable legacy and values which have shaped the formation of the UAE.  Through the pillars of wisdom, respect, sustainability and human development, the inspirational leader has created a lasting vision of prosperity, determination and tolerance – attributes that remain strongly embedded in UAE culture.

Each bespoke decal covers an area of 480m² on the A380 and 312m² on the Boeing 777-300ER. Since November 2017, the ten aircraft have travelled to 90 destinations across six continents including Rome, Sydney, Hong Kong, Los Angeles, Buenos Aires and Accra. The aircraft have collectively flown more than 4 million kilometres. Dedicated Emirates staff at the Emirates Engineering Aircraft Appearance Centre spent a total of 119 days to install the decals.

Top Copyright Photo: Emirates Airline Airbus A380-861 A6-EUA (msn 211) (Year of Zayed 2018) ZRH (Andi Hiltl). Image: 940555.

Emirates aircraft slide show:

Video: