Emirates Airline adding 19 new aircraft
Posted on 19 February 2009 with no comments from readers
Emirates Airline will add 19 new aircraft to its fleet in the 2009-10 financial year, bringing the total fleet size to 151 wide-bodied airplanes, a notable contrast to rival Singapore Airlines which said it was mothballing 17 aircraft due to falling demand earlier this week.
This will expand seating capacity by 14 per cent and cargo capacity by 17 per cent across the Emirates’ network. The airline’s customers also have the benefit of its magnificent new terminal three at Dubai International Airline.
Expansion track
Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said that despite the expansion, ‘2009 will be a year of consolidation for us, with fewer new routes launched than in previous years. Instead we will concentrate on strengthening our presence on routes where there is greater demand from our customers.’
His Highness pointed to Africa and the Middle East as markets where demand was growing at 17 and six per cent respectively. Extra services have been added to five regional cities and flights to Lagos and Durban. Thrice weekly flights to Los Angeles and San Francisco will go daily.
On the other hand, fuel prices have plummeted this year which is good news for any airline, and this $500 million penalty to the airline’s profits last year has gone.
Filling seats
The challenge is more to fill seats at a time when global demand for air travel is likely to be falling and not rising. Singapore Airlines is not the only carrier to be mothballing planes and slashing back its route network.
That almost certainly means better deals for Emirates customers and for its frequent flyer program members. Fare prices have already fallen sharply thanks to lower fuel costs, while special deals for Skywards members have become very attractive.
Emirates is clearly relying on its superior business economics to see it through the global aviation slowdown, and is going to be picking up those passengers dropped by other airlines as uneconomic.
Is Emirates over-stretching itself? It is perhaps a gamble to carry on expanding into a slump but there is scope for heavy discounting to attract passengers to seats, and the whole Dubai tourism sector is going to have to work together to stay solvent in 2009.
