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Emirates Airline (United Arab Emirates)

Emirates
IATA
EK
ICAO
UAE
Callsign
EMIRATES
Founded 1985
Commenced operations 25 October 1985
Hubs Dubai International Airport [A]
Frequent flyer program Skywards
Member lounge Emirates Lounge
Alliance Arab Air Carriers Organization
Subsidiaries
Fleet size 126 (+150 orders) excl.Cargo [B]
Destinations 101[1] [C]
Parent company The Emirates Group
Company slogan "Fly Emirates. Keep Discovering"
"Fly Emirates. To over Six Continents"
Headquarters Dubai, United Arab Emirates
Key people Ahmed bin Saeed Al Maktoum (Chairman/CEO)
Maurice Flanagan (Executive Vice-Chairman)
Tim Clark (President)
Website: http://www.emirates.com

Emirates Airline (shortened form: Emirates) (Arabic: ayarn al-Imrt) is a major airline in the Middle East, and a subsidiary of The Emirates Group. It is the national airline of Dubai, United Arab Emirates (UAE). Emirates operates an international network from its hub at Dubai International Airport, spanning North America, South America, Europe, Asia, Africa, the Middle East and Oceanica. The airline operates over 1,990 passenger flights per week[2], to 101 destinations in 61 countries across 6 continents.[1] The company also operates four of the world's longest non-stop commercial flights from Dubai to Los Angeles, São Paulo, Houston, and San Francisco, all on the Boeing 777-200LR[3][4].

Emirates has diversified into airline-related businesses such as aircraft handling and engineering.Cargo activities are undertaken by the Emirates Group's Emirates SkyCargo division.

In 2008 the airline was the eighth-largest airline in the world in terms of international passengers carried,[5] and fifth-largest[6] in the world in terms of scheduled international passenger-kilometres flown. It is also the ninth-largest in terms of scheduled freight tonne-kilometres flown (eighth in scheduled international freight tonne-kilometres flown).[7]. The airline ranks amongst the top 10 carriers worldwide in terms of revenue, passenger kilometres, and has become the largest airline in the Middle East in terms of revenue, fleet size, and passengers carried[8]. It is the eighth largest airline in Asia, in terms of passengers carried.[9]

Its main base is Dubai International Airport.[10] On 16 October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3, a new terminal exclusively for Emirates. Terminal 3 is over 1,500,000 m2 (370 acres), the largest building in the world by floor space. Emirates currently handles 60% of all passenger traffic at Dubai International Airport, and 38% of all aircraft movements at the airport.

Emirates is one of only six airlines to operate an all wide-body aircraft fleet.[11] Emirates has orders for 58 Airbus A380's and became the second operator of the Airbus A380-800 when their first aircraft was delivered on 28 July 2008. Emirates has won numerous awards and is an industry bellwether for aircraft purchases, purchasing over 130 aircraft in 2007 alone.[12]

Emirates has built up a strong brand name as a trendsetter in the aviation industry, particularly in terms of service excellence, coupled with consistent profitability.[13] In 2009, Emirates was voted the fifth best airline in the world by research consultancy firm Skytrax, from 2008 (ninth), 2007 (ninth), 2006 (fifth) and 2005 (third).[14]

Contents

History

Origins

Emirates was conceived in March 1985 with backing from Dubai's royal family, whose Dubai Air Wing provided two of the airline's first aircraft, used Boeing 727-200/Advs. It was required to operate independent of government subsidies, apart from $10 million in start-up capital. It also leased a new Boeing 737-300 from Pakistan International Airlines which was returned back in 1987.[15]

The first flight of the airline was, Dubai-Karachi on 25 October 1985[16]. The airline leased an Airbus 300B4-200, from Pakistan International Airlines. Bombay and Delhi were the next destinations for the airline.

Emirates became profitable within its first nine months. During its first year, it carried about 260,000 passengers and 10,000 tons of freight.

In 1986, the airline added Colombo, Dhaka, Amman, and Cairo to its route network. Emirates launched daily nonstop service to London Gatwick on 6 July 1987 with two new Airbus A310s. It also started flights to Singapore. The airline in 1987 added Frankfurt via Istanbul, and Male (Maldive Islands). Emirates lacked a regional network, as its main competitor Gulf Air also dominated the region. Even today, Gulf Air still has the most extensive regional network.

This growth came as the region was experiencing a downturn, with the Gulf War and the laying off of expatriate workers as factors. In its second year, competitors had accused Emirates of starting a price war, something the airline's competitors still accuse Emirates of doing.

By the end of 1987, Emirates was serving 11 destinations. [17]

Incorporation and growth

Emirates had become one of the world's fastest growing airlines. Revenues increased by about $100 million each year, approaching $500 million in the year 1993. It carried 68,000 tons of cargo and 1.6 million passengers in the same year. The Gulf War had helped Emirates by keeping other airlines out of the area. Emirates was the only airline to continue flying in the last ten days of the war.

A partnership agreement with US Airways entered in the fall of 1993 allowed Emirates to offer services around the world. It previously had cooperation agreements with Cyprus Airways.

By 1994, the airline was connecting 32 destinations with its 15 aircraft. At this time Emirates was the sixth largest airline in the Middle East.

Emirates took in revenues of $643.4 million in the year ending 30 March 1994. The airline had 4,000 employees and carried two million passengers a year between 34 destinations with a fleet of 18 Airbus aircraft. Seven new Boeing 777s worth over $1 billion were ordered in 1992 which began to arrive in the spring of 1996. One of the planes was used on a new service to Melbourne via Singapore. Emirates placed a large order with Airbus later the same year. In spite of the large capital expenditures, the Dubai government had laid out only $50 million since the airline's inception.

A total of 92 air carriers were flying to Dubai International Airport in the mid-1990s. Emirates was still able to grow, despite restricted markets internationally and intense competition at its home base. It carried about three million passengers during 1997/98. The growing cargo business accounted for 16 percent of the airline's total revenues.

By May 1998, Emirates paid the Sri Lankan government $70 million for a 40 percent stake in Air Lanka (later changed its name to Sri Lankan Airlines). Emirates practically received full management rights as the Sri Lankan flag carrier was heavily in debt and operating at a loss and needed new capital to upgrade its outdated fleet. [18]

In January 2008, Emirates announced that it will pass the management of SriLankan Airlines to the Sri Lankan government in April 2008.[18][19] There are no plans to remove or decrease the stake in the airline.[18]

Modern history

Towards the end of the year 2000, Emirates was planning to start ultra-long-haul service to the East Coast and West Coast of the United States as well as nonstop flights to Australia and Argentina. Traffic continued to grow at a rate of 20 percent in 1999-2000.

In 2005, Emirates began flying non-stop to New York City's John F. Kennedy International Airport using their new Airbus A340-500. These flights marked new non-stop air services between the United Arab Emirates and the USA, after Delta Airlines's flights since 2001, terminated later [20][21] and restarted again in 2007.

South Asia is an important region for the Emirates network. Pakistan was the first country to receive flights from the airline and it still does to this day. [22]. India was the second country to receive flights from Emirates, and continues to expand an extensive network in India. Currently Emirates is the largest airline operating internationally, in India, and operates over 185 flights a week across 10 cities.[23]

Emirates has been steadily capturing the traffic from South Asia to North America, allowing passengers to bypass the traditional hubs of London Heathrow, Frankfurt, and Paris Charles De Gaulle; the home bases of British Airways, Lufthansa, and Air France, with a transit stop at Dubai International Airport instead. Similarly, Emirates competes with British Airways, Qantas, Singapore Airlines, and other airlines on the lucrative London to Sydney Kangaroo Route.[24]

Airbus A380

Emirates announced an order in April 2000 as the first launch customer for the Airbus A3XX (later named Airbus A380), the largest civil aircraft ever built. The deal compromised five Airbus A380-800s and two Airbus A380-800F. The deal was confirmed on 4 November 2001 and Emirates announced orders for 15 more A380-800s at the same time. Two years later Emirates once again ordered 21 A380-800s. In April 2006, Emirates ordered two more A380-800s, however they cancelled their two orders for the freighter variant. In 2007, Emirates ordered 15 A380-800s, bringing their order to 58. [25]

Emirates justified its order saying that purchasing the 481- to 656-passenger super jumbo to was to maximize its use of scarce takeoff and landing slots at crowded airports like London Heathrow.

In November 2005, the first A380-800 in full Emirates livery was flown to Dubai, where it was displayed at Dubai Airshow 2005.[26] On 20 November 2005, Emirates order 42 Boeing 777s, to help with its expansion. This order came one day after Airbus announced that the A380-800 superjumbo would be delayed by another six months.[27] A third delay was announced on 3 October 2006, pushing the initial delivery of the first A380-800 to October 2007.[28] The announcement was met with anger by EK's chief executive officer, Tim Clark, who threatened to cancel their Airbus order as it was effecting the airlines expansion plan, saying:

It's very serious. This will do us serious damage. Compensation is not our target, what we really seek is to give a chance for Airbus to deliver what they promised so that we can assess, because we need that aircraft[29]

In total as of April 2008, Airbus paid as much as $110 million during 2007 in compensation for the late delivery of the A380-800 to Emirates for the delays.[30]

On 1 August 2008 Emirates flew its first A380-800 flight, with 489 passengers, from Dubai to New York City's John F. Kennedy International Airport. [31] [32] The airline uses their new Airbus A380-800 on flights to Bangkok[33], Sydney, Toronto, Auckland[34], and London Heathrow[35].

In February 2009, Emirates raised many issues concerning its A380 superjumbos.[36] [37] Emirates gave a 46-page presentation in Toulouse, infroming Airbus officials about heat-damaged power cables, defective engines and numerous malfunctions reportedly to be mainly caused by the two showers built in the aircraft.[38][39][40] [41] [42]

Terminal 3
External videos
A promotional video used by Emirates on Terminal 3

Dubai International Airport's Terminal 3 was built exclusively for the use of Emirates at a cost of $4.5 billion and officially opened 14 October 2008. Terminal 3 is the largest building in the world by floor space, with over 1,500,000 m2 (370 acres) of space. The Terminal has annual capacity of 27 million passengers, and with the expansion of Concourse 3, will have an annual capcity of 43 million passengers by 2011, once concourse 3 is complete.[43] The new concourse 3 will be exclusively for the A380- 800.[44]

It opened in four phases to avoid the problems that London Heathrow Terminal 5 faced when it first opened.[45] [46]

Corporate management

The airline is a subsidiary of The Emirates Group, which is a subsidary of the Dubai government investment company, Investment Corporation of Dubai.[47] [48] [49] The airline has recorded a profit every year, except the second, and growth has never fallen below 20% a year. In its first 11 years, it doubled in size every 3.5 years, and has every four years since.[50]

In 2008 Emirates payed dividends worth US$776 million to the Government of Dubai. For 200405, Emirates paid an increased dividend of Dhs368 million to the government of Dubai, compared to Dhs329 million the year before. The government has received Dhs1.1 billion from Emirates since dividends started being paid in 1999. Having provided an initial start-up capital of US$10m and an additional investment of circa US$80m at the time of the airline's inception,[51] the Dubai government is the sole owner of the company. However, it does not put any new money into it, nor does it interfere with running the airline.[50]

Structure

Emirates has diversified into related industries and sectors, including airport services, engineering, hospitality services, catering, and tour operator operations. Emirates has 6 subsidiaries and its parent company has 20.[52]

Some of the subsidiaries include:

Company Type Principal activities Incorporated in Group's Equity Shareholding
Emirates Holidays Subsidiary Tour operator United Arab Emirates 100%
Congress Solutions International Subsidiary Hospitality Services United Arab Emirates 100%
Arabian Adventures Subsidiary Tour operator United Arab Emirates 100%
Emirates Tours Subsidiary Tour operator United Arab Emirates 100%

Labour

Emirates airlines employed a total of 28,037 staff at the end of the fiscal year on 31 March 2009.[53] Its parent company, The Emirates Group, employed a total of 48,246 employees of which 10,324 were cabin crew, 2,141 were flight deck crew, 1,849 were in engineering, and 9,379 were listed as other.[54].

Financial and operational performance

In the financial year 2008-09 reached 22.7 million, representing an increase of 7.1% over last year. Cargo carried in 2008-09 improved by 9.8% to 1,408,300 tonnes (2007-08: 1,282,134 tonnes) [55].

The airline's profits were also down 72% for the 2008/09 fiscal year. Its profit of 1.49bn dirhams ($406m; £255m) for the year to March 31 compared with a 5.3bn dirham profit for the previous year.[56][57]

International Air Transport Association (IATA) World Air Transport Statistics' 52nd edition (published in 2008), covering the year from January to December of 2007, indicates that Emirates is ranked among the top-ten in the world, in terms of international passengers carried (20.45 million - 8th rank) and scheduled international passenger-kilometers flown (90.53 million - 5th rank), although the final top-ten ranking in terms of total passenger numbers and passenger-kilometers including domestic traffic doesn't contain Emirates Airline. [58] [59] In the fiscal year 2008/09, passenger seat factor increased to 79.8 per cent, up 2.6 percentage points from the previous year, led by an increase in traffic by 20.2 per cent.[60]


Emirates Airlines Financial Highlights [61]
Year ended Revenue
(AEDm)
Expenditure
(AEDm)
Operating profit
(aedm)
Net Profit(AEDm) Breakeven load factor (%)
31 March 1997 1,198.7 1,097.1 242.6 101,623 -
31 March 1998 4,089.1 3,826.7 434.5 262,413 63.9%
31 March 1999 4,442.9 4,130.2 437.2 312,959 64.7%
31 March 2000 5,113.8 4,812.9 513.3 300,900 64.5%
31 March 2001 6,417.3 5,970.7 665.6 421,825 65.5%
31 March 2002 7,274.6 6,783.7 625.7 468,231 65.4%
31 March 2003 9,709.7 8,749.6 1,000.5 906,747 65.4%
31 March 2004 13,286.3 11,602.1 2,618.8 1,573,511 59.0%
31 March 2005 18,130.9 15,628.3 2,618.8 2,407,385 58.0%
31 March 2006 23,050.9 20,489.6 2,652.9 2,474.97 60.2%
31 March 2007 29,839.6 26,675.9 3,338.8 3,096.4 59.9%
31 March 2008 40,196.6 35,121.7 4,450.9 5,020.4 64.1%
31 March 2009 44,188.9 43,143.4 2,573.3 981.7 63.9%


Emirates Airlines Operating Highlights
Year ended Passengers
(thousand)
RPK
(million)
Cargo carried
(thousand)
Fleet Aircraft Movements Passenger seat factor (%)
31 March 1997 3,114.3 11,014.1 159.4 24 - 71.4%
31 March 1998 3,683.4 11,450.5 200.1 26 26,115 70.0%
31 March 1999 4,252.7 13,908.2 214.2 26 28,677 74.5%
31 March 2000 4,775.4 16,129.8 269.9 32 32,482 71.9%
31 March 2001 5,718.8 20,468.5 335.2 35 35,310 75.1%
31 March 2002 6,765.1 24,230.5 400.6 38 38,914 74.3%
31 March 2003 8,502.8 31,660.5 525.2 46 45,452 76.6%
31 March 2004 10,441.3 40,110.4 659.8 61 58,763 73.4%
31 March 2005 12,528.7 51,398.4 838.4 69 72,057 74.6%
31 March 2006 14,497.5 62,260.0 1 ,018.5 85 79,937 75.9%
31 March 2007 17,544.1 77,946.6 1,155.9 104 92,158 76.2%
31 March 2008 21,229.2 94,345.7 1,282.1 115 101,709 79.8%
31 March 2009 22,730.9 101,762.5 1,408.3 127 109,477 75.8%

Branding

External videos
A promotional video launched in 2008, to promote the airline's new First Class Airbus A380-800 product

During the 1990s, Emirates used the slogan Be Good to yourself. Fly Emirates. From 2004, the airline changed its slogan to Fly Emirates. Keep Discovering, and When was the last time you did something for the first time.

In 2008, Emirates launched a slogan mainly revolving around their route network of over 100 destinations across six continents - Fly Emirates. Keep Discovering and Fly Emirates. To over Six Continents.[62]

Emirates introduced a new design in August 2008 for its 16,000 uniformed staff, designed by Simon Jersey plc. It was introduced on the first flight of the Airbus A380-800. The offboard uniform includes the Emirates hat, red kick-pleats in the skirts, and more fitted blouses. For the onboard uniform, male and female crew wear chocolate brown suits. The male flight attendants wear a chocolate brown suit, featuring pinstripes, with a cream shirt and a caramel, honey and red tie.[63]

Livery

The livery of Emirates includes a section of the United Arab Emirates flag on the tail, a calligraphy of the logo in Arabic on the engines and the "Emirates" logo on the fuselage both in Arabic and English. The colour scheme used since 1985 was changed in November 1999 to the one still in use today. This change saw the modification of logotype, the enlargement and move of the English logo (the Arabic remaining smaller) towards the front of the aircraft and a different, flowing flag on the tailfin [64].

Some newer Emirates aircraft such as the Airbus A380-800, have the Emirates logo painted on the belly of the aircraft. Some Emirates aircraft have the Fifa World Cup logo on them. [65]

Destinations

Emirates operates 1,883 flights every week across its network of over 100 destinations in 61 countries on six continents from its hub in Dubai.[66]

Route Network

Emirates has a strong presence in the Southeast Asian region, which together, connects Dubai with more international destinations in the region than any other Middle Eastern airline. The airline also flies the Kangaroo Route. Emirates does not offer any domestic service within the United Arab Emirates.

While Emirates does not maintain sizable hubs elsewhere, it has taken advantage of liberal bilateral aviation agreements between Dubai and Australia, and with Singapore, to offer more onward connections from Sydney and Dubai. For example, Emirates now uses their A380-800 to fly to Auckland via Sydney, allowing passengers in Sydney and Auckland to do the journey across the Tasman with Emirates' new super jumbo.[67]

In September 2007, Emirates' chairman, Tim Clark, stated that the airline is considering the Boeing 747-8 to serve Latin American cities such as Buenos Aires and Mexico City.[68]

Cities on the West Coast being looked at by Emirates for possible expansion include Phoenix, Arizona[69] and Seattle, Washington.[70]

Emirates is also considering launching service to Atlanta, Boston, Chicago, Dallas/Ft. Worth, Miami, Seattle, and Washington, D.C.,[71][72] and plans to begin service to Madrid and possibly Barcelona, Spain in Spring 2009.[73] The airline is also interested in initiating service to Calgary and Vancouver some time in 2009, although economic conditions and government regulations will determine whether such service is viable.[74]

On 16 April 2009, The Deputy Minister of Foreign Trade & Tourism of Colombia, released a statement stating that Emirates Airline will start flying to Bogotá by the end of 2009 as its second South American destination after São Paulo. A service with both cargo and passenger service will be introduced.

In addition, flights to Alexandria, Egypt were suspended on 10 September 2008 also due to the record price of airline fuel.[75]

As of 1 April 2009, Emirates plans to add two new destinations for the year, Durban, South Africa and Luanda, Angola, as well as frequency upgrades on several other routes.

New Destinations
Destination Frequency
(per week)
Aircraft Commencing References
Luanda, Angola 3 Boeing 777-300ER 4 August 2009 [76]
Durban, South Africa 7
(daily)
Airbus A330-200 1 October 2009 [77]
Bogotá, Colombia N/A Boeing 777-200LR Begins late 2009 [78]

Codeshare agreements

Emirates has code-sharing partnerships with 12 airlines as of 1 April 2009:[79]

In March 2008 Emirates ceased its codeshare agreement with SriLankan Airlines.[80]

Fleet

Emirates operates a wide-body aircraft fleet from four aircraft families: the Airbus A330, Airbus A340, Airbus A380 and the Boeing 777. In keeping with its policy of maintaining a young fleet, which stands at an average of 5.7 years in April 2008,[81] it renews its fleet frequently. It operates the youngest fleet of any major airline as of May 2009.

In July 2008, Emirates received its first Airbus A380-800 and in August 2008, it became the second airline to fly the Airbus A380-800, after Singapore Airlines.[82]

Emirates Aircraft utilisation remains one of the highest in the industry at 13.7 hours per day.[83]

Passenger

The Emirates fleet consists of the following widebody aircraft as of May 2009:[10][84]

Emirates Fleet
Aircraft Total Orders Options Passengers
(First/Business/Economy)
Routes
Airbus A330-200 29 237 (12/42/183)
278 (0/27/251)
237 (0/54/183)
Africa, Asia, Europe, Middle East
Airbus A340-300 8 267 (12/42/213) Africa, Europe, Middle East
Airbus A340-500 9 258 (12/42/204) Asia, Europe, Oceania
Airbus A350-900 50[85] * TBA (TBA/TBA/TBA) TBA
Airbus A350-1000 20 * TBA (TBA/TBA/TBA) TBA
Airbus A380-800 5 53 489 (14/76/399)
517
604
Asia, Europe, Oceania, North America
Boeing 777-200 3 290 (12/42/236)
346 (0/42/304)
Europe, Asia, Middle East
Boeing 777-200ER 6 290 (12/42/236) Asia, Africa, Europe, Oceania
Boeing 777-200LR 10 266 (8/42/216) Asia, North America, Oceania, North America, South America
Boeing 777-300 12 364 (12/42/310)
380 (18/42/320)
434 (0/49/385)
Asia, Africa, Europe, Middle East, Oceania
Boeing 777-300ER 44 28 354 (8/42/304)
358 (12/42/304)
364 (12/42/310)
427 (0/42/385)
442 (0/42/400)
Asia, Africa, Europe, Middle East, North America, Oceania,
Total 126 150 [note 1] 50*

Footnotes
  1. ^ Emirates ordered 30 A330-300 and 30 A350XWBs which were just a Letter of Intent and NOT firm orders according to the Airbus Orders and Deliveries Press Release dated May 2009.

[86]

Cargo

Environmental record

The airline claims to have lower emissions than other airlines due to its fleet which has an average fuel burn of less than four litres for every 100 passenger kilometres they fly.[87]

The Cargo division of the airline uses an efficient hub-based operation, using fewer flights needed to transport the same number of people.

Fleet efficiency
External videos
Emirates Environmental Corporate Video

Awards and accolades

The airline has won over 400 awards and accolades. Emirates was named the fifth best airline in the Airline of the Year awards 2009 up 4 positions from the previous year. Skytrax also named Emirates the Airline of the Year in both 2001 and in 2002. For 6 continuous years Emirates has been awarded best inflight entertainment by Skytrax. [91]

Incidents and accidents

Emirates Airlines Reported Incidents
Flight Date Aircraft Location Description
EK 764 April 9, 2004 Airbus A340-300 OR Tambo International Airport At the call to rotate, the pilot pulled back on the stick. However the nose then dropped and the aircraft did not become airborne. The crew felt a rumbling, selected full power, and about two seconds later the aircraft lifted off the ground. The airport says that threshold of runway 25, approach lights and part of the runway surface were damaged as the aircraft went over the end of 21R. The pilot had received ambiguous instructions regarding rotation technique during his transition training. ref>Safety: Illusory Tricks and Overruns</ref>[92]
EK 407 21 March, 2009 Airbus A340-500 Melbourne Airport An Emirates Airbus A340-500, registration A6-ERG, operating as EK 407, bound for Dubai International Airport with 225 passengers on board made an emergency landing in Melbourne after suffering a tailstrike on takeoff. There were no injuries amongst the passengers or crew.[93] The jet is known to have experienced at least one but possibly three or more tail strikes during its takeoff roll. The jet has been severely damaged, broken down to the underlying ribs or stringers in one area, in a part of the structure where the critical rear pressure bulkhead may also have been damaged. Early ATSB report suggests incorrect aircraft weight entered to calculate take off power may have contributed to the incident. #comments</ref>[94][95][96]

Services

Cabin

First Class

First class passengers have a full suite, complete with closing doors to ensure privacy, a mini-bar, a coat rack and storage. They also feature the ICE system and a 23 in (58 cm) LCD screen. The seat converts into a 2 m (6 ft 7 in) fully flat bed. Private suites are being introduced on the latest B777-300ER/ULRs and B777-200LRs and are already installed on all ten of Emirates Airbus A340-500 aircraft, and on all of the Airbus A380-800 aircraft. The suites are available on the Perth, Brisbane, Sydney, Melbourne, Auckland, Christchurch, Johannesburg, New York City, London Heathrow, Zürich, Osaka, Mumbai, Houston, Los Angeles, San Francisco, Toronto and São Paulo routes.

The older Boeing 777-300ERs, Boeing 777-200s and selected Boeing 777-300s feature flat beds with integrated passenger seat control, along with the ICE system and a 19 in (48 cm) screen. First class seats may also include a personal minibar.[97]

On its newly delivered A380-800, first class features private suites[98], two shower-equipped lavatories and spa[99], and access to the first/business class bar area and lounge[100]. Premium class seating is located on the entire upper deck of A380-800 aircraft.

Suites also feature Plug-and-Play feature to view own videos while the Audio player lets create own music play lists. Also there are power access, 2 USB Ports and an RCA Socket for Laptop power.

In 2009, Emirates was voted the second best First Class by Skytrax. Skytrax had said that the Emirates A380-800 product greatly helped influence its position. [101]

Business Class

In business class, the following features are included on Boeing 777-200LRs, selected Boeing 777-300ER/ULRs and selected Boeing 777-300s:

Electrically operated massage, privacy partition, backrest recline, seat pan extension, footrest extension, leg rest extension and lumbar support.

On the A340-500s, passengers have deeply reclining sleeper seats which have a 60 in (150 cm) pitch and are 18 in (46 cm) wide. All A340-500 aircraft feature the ICE system in all three classes.

The Boeing 777-200s and non-retrofitted Boeing 777-300/ER/ULRs have deeply reclining seats which are almost lie-flat. They have a 46 in (120 cm) pitch and are 20.5 in (52 cm) wide. The Boeing 777-200s also feature the ICE system.

On Airbus A330 aircraft and A340-300s, the seats are standard business class recliners and feature a leg rest and seat back screens. These business class seats are smaller than other business class seats in the Emirates fleet as these aircraft are used predominantly on short-medium haul routes.

On their newly delivered Airbus A380-800 aircraft, the seats recline to form a fully flat bed and are equipped with personal mini-bars. Business class passengers also have access to an on-board bar at the rear of the aircraft.[103]. Business class passengers have the ability to customize and save seat and in-flight entertainment settings to a memory key for re-use on future flights.[104]

Economy class

Economy seating on Emirates flights varies by aircraft, with varying specifications for seat pitch and width, along with entertainment systems and amenities. All Emirates economy class seats feature lumbar support, headrests and foot rests and on average, 33 inch seat pitch on all aircraft.

All three classes feature mood lighting on the Airbus A340-500, Boeing 777-200LR, Boeing 777-300ER, and Airbus A380-800 aircraft.

In-flight entertainment system and communication

Emirates was the first airline in the world to introduce entertainment since introducing the worlds first seat-back screens in 1992. All Emirates aircraft are fitted with personal televisions in all classes. Emirates currently uses three types of entertainment system, they are: ice, ice Digital Widescreen, and Emirates tv&radio. Emirates won the best inflight entertianment award by Skytrax in 2009, and has constantly won the Skytrax award for Best Inflight entertainment for 6 years in a row. Emirates main entertainment system, ICE was introduced in 2003. At present almost 70% of the fleet has the ice system, and by 2011, the entire Emirates fleet is set to be fully ice fitted. ICE is currently the largest entertainment system offered by an airline. [110]

Newer additions to the fleet, as well as some older planes, feature a Plug-And-Play system, which works on USB technology, that allow passengers to play their own audio, video and picture media. Some aircraft have in-flight telephony.

ICE

Operated by Emirates Airline, ICE is an in-flight entertainment system.

Emirates Inflight Entertainment (IFE) system, Information Communication Entertainment (ICE), was introduced in 2002 and is now offered to passengers in all classes with over 1,200 entertainment options.[111] Emirates won the award for best in-flight entertainment in 2009 from Skytrax, for their ICE system, and has won it every year since introducing it in 2003. ICE is found in Emirate's Airbus A340-500, and Emirates Boeing 777-300ER and Boeing 777-200/LR fleet. It is also available on selected Boeing 777-300 aircraft that have been retrofitted with flat-beds in First Class, lie-flat seats in Business Class and new generation seats in Economy Class. It will be available on all of the Emirates A380-800 aircraft.[112]

There are two types of ICE available on Emirates Flights:

Information

The system is based on the 3000i system from Panasonic Avionics Corporation. ICE provides passengers with a direct data link to BBC News. ICE is the first IFE system to be connected directly to automatic news updates. This is complemented by ICE's Airshow moving-map software from Rockwell Collins. Exterior cameras located on the aircraft can be viewed by any passenger, through the IFE system, during takeoff and landing.

Emirates was one of the first airlines to introduce high-speed, in-flight Internet service by installing the Inmarsats satellite system and became the second airline in the world to offer live international television broadcasts using the same system.[116]

Communication

ICE also contains a link to an in-flight email server which allows passengers to access, send or receive emails for US $1 per message.[117] ICE also contains a seat-to-seat chat service.

In November 2006 the airline signed a deal with mobile communications firm AeroMobile to allow in-flight use of mobile phones to call or text people on the ground, on selected 777s. The service was first introduced on a commercial service between Dubai and Casablanca on 20 March 2008.[118]

Entertainment

ICE allows passengers to choose from a library of movies, audio CDs, and video games. ICE offers over 130 on-demand movie titles and 15 video on demand channels, 60 prerecorded television channels, 350 audio channels, and around 50 video-game titles. ICE can also be accessed in 10 languages such as English, French, German, Spanish, Arabic, Korean, and Japanese.[119] Since 2003, all entertainment options are available on-demand to all classes with options to pause, forward, and rewind them.

Emirates now features docking capability for Apple Inc's iPod portable music and video player as of mid-2007. This allows the device's battery to be charged, but also allows integration with Emirates' in-flight entertainment (IFE) system. This also enables the IFE system to play music, television shows, or movies stored on the iPod, as well as function as a control system.[120]

Emirates tv&radio

Emirates tv&radio, offered mainly on short haul routes, and 30% of the Emirates fleet, offers passengers with 15 video and 26 audio channels, as well as 50 video games. Also available are BBC headlines, an Airshow and external cameras giving a birdseye view from the plane.[121]

In-flight magazine

The Emirates in-flight magazine Open Skies is provided on all flights. [122] Emirates also has another in-flight magazine Portfolio, for First and Business class pasengers only[123].

Emirates flight catering

Emirates Flight Catering Company has over 5,400 employees and provides in-flight catering and support services for airlines at Dubai International Airport.[124]. It provides the catering for all Emirates flights, and also for other airlines operating at the airport. In 2009, Emirates was voted by Skytrax, the fourth best onboard catering in Business Class, and second best catering in Economy Class.[125]

The catering facility dedicated to service the flights of Emirates Airline is now fully operational. This facility has a design capacity of 115,000 meal tray set-ups per day.[126]

The company provided over 25.5 million meals in 2007. Official figures have not been released for 2008, however 27 million meals are estimated to be produced. In 2009 it expects to produce over 29 millon meals. The daily average meal uplift is 115,000.[127]

Ground services

Passengers may check-in between two to 48 hours prior to flight departure. This may be done over the counter or at the lounge within the airport. Self-service kiosks are also available at Dubai International Airport.[128]

Alternatively, they may check-in through the Internet or by short message service. Online printing of boarding passes is available through Internet check-in. Passengers on short trips may also check-in on their return flight upon departure from the city of origin.

Lounges

First and business class passengers, as well as Skywards Gold and Silver members, have access to Emirates Lounges. In addition to the Emirates Lounge, Emirates passengers are able to use the Department of Civil Aviation's (DCA) First Class lounge in Dubai. The airline has 21 lounges in 18 cities, with plans for 12 more. In 2009, Emirates Business Class Lounge at Dubai International Airport was voted the third best lounge in the world by Skytrax. [129] Emirates currently has two lounges at Dubai Airport, separate for First and Business Class Lounges.

Frequent Flyer Program

Emirates airline uses Skywards as their Frequent flyer program.

Skywards

Skywards is a three tier frequent flier program operated by Emirates Airline. It is used by over 4 million customers. The three tiers are Blue, Silver which requires 25,000 tier miles or 25 sectors for entry, and Gold, which requires 50,000 tier miles or 50 sectors. Economy passengers earn 1 tier mile for every 1-nautical-mile (1.9 km) flown, business class passengers earn 1.5 tier miles per nautical mile while first class passengers earn 2.0 tier miles per nautical mile.[130]

Business model

Emirates business model has led to their commercial success in the aviation industry.[50] The airline has a lean workforce which can be compared to low-cost carriers rather than traditional flag carriers. It has a simple organisational structure, that allows the airline to maintain low overhead costs and it must pay no income taxes on wages.

Due to the low operating costs at its Dubai base, some industry analysts believe the airline is second only to Ryanair on a cash cost per seat basis.[131] Therefore, the airline is able to serve secondary destinations as well as connecting to places via their hub in Dubai.[132]

The airline has not joined any major global airline alliances, as the airline has always believed in more competition between airlines. Emirates believes in competition, and hasn't joined or planned to join any airline alliances. Emirates has said that unless you are the lead participant in an alliance, such as Lufthansa in Star Alliance or Air France in SkyTeam, individual airline members are compromised by their implied collective decision making.[133]

The airline operates only wide-body aircraft which results in lower unit costs compared to other major airlines operating a mixture of narrow and wide-body aircraft. It allows Emirates to use the aircraft's cargo capacity to increase its revenues and total profits. Since Dubai International Airport does not have any flying restrictions at night, the airline is able to highly utilise their aircraft. The airline virtually does not have any legacy costs compared to other airlines. It also helps that all forms of strikes are banned in the UAE (except for construction related strikes).[131]

Canadian expansion

Emirates started its services to Canada on 29th October 2007, operating three weekly non-stop flights on the Dubai - Toronto using its Airbus A380-800 aircraft[134]. Ever since it began flying there, Emirates has seen extremely high seat factors on Emirates existing services, which have averaged 90% since the start of operations between Toronto and Dubai. However, Emirates is currently restricted to only three flights per week between Dubai and Canada. The Canadian Government has stated it does not see the need for more services. [135]

The airline wants to fly to Canada more often. The airline would like to add cities such as Calgary and Vancouver, in the same way that they have enhanced other markets such as Australia, Germany, the United States and the United Kingdom.[136]

The Canadian Government has also stated that Air Canada might be affected by increased operations of Emirates and m ay even be pushed into bankruptcy[137]. Emirates has said that there is no direct competitive overlap between Emirates and Air Canada, since Air Canada does not currently operate services to the UAE or to any points in the Middle East, Africa or the South Asian Subcontinent, places where Emirates flights are quite busy. Emirates also says it benefits Air Canada as the airline redistributed traffic bought by Emirates using its extensive North American network. [138]

German expansion

Emirates commenced its flights to Frankfurt in July 1987. As of 2009, Emirates operates 49 weekly passenger flights from Dubai to Germany, serving the cities of Frankfurt, Munich, Düsseldorf and Hamburg. Emirates also operates 11 weekly cargo flights from Dubai to Germany, serving the cities of Frankfurt Munich, Dusseldorf and Hamburg.[139] Germany is very important to Emirates. Over 1 million passengers flew on its flights between Germany and Dubai in the financial year 2007/08 alone. Germany is one of the most important markets on Emirates' network, being its second largest market within Europe after the UK.[140]

Ever since 2007, Emirates has wanted to expand to more cities across Germany including Berlin and Stuttgart. Emirates has also had to stop flying to New York City via Hamburg, since 2007. [141] In March 2009, Lufthansa had said that it sees an "inbalance" in competition with Emirates for air travel between the two countries. Lufthansa had said that Emirates was affecting its market share on long-haul routes between India and North America, and between Europe and East Asia. Lufthansa also complained about the difference in handling fees in Dubai and unequal opportunities in the two markets, however Emirates quickly reacted defending the claim by Lufthansa. [142] [143]

Emirates has defended saying that Emirates expansion in Germany would not effect any German carrier. [144]

Rivalry

Fuel subsidies

Many airlines have accused Emirates of receiving fuel subsidies from the Government of Dubai. The airline has also fought back the claim of receiving fuel subsidies from the Dubai Government[145], saying that the airline purchases its fuel at the same price and terms as every other commercial airline at all airports at which it operates in. In 2007/08, fuel accounted for more than 30% of Emirates total expenditures, which is comparable with the relevant expenditures of other long haul international carriers such as Qantas, Singapore Airlines, Lufthansa or British Airways. [146]

Landing charges

The airline has always defended that it pays much lower landing charges at its home base, by saying that landing charges are comparable to other cities in the region such as Abu Dhabi, Doha, and Bahrain. It has also defended claims of receiving discount. [147]

Taxes

Many airlines have accused Emirates of having an unfair advantage, since it doesn't have to pay taxes. The airline defends this by claiming that being based in the UAE, where there are no income or corporate taxes it can benefit, and also says that all other airlines operating to and from Dubai International Airport benefit from the tax free environment in the UAE. Also so far Emirates Airline has provided the Government of Dubai with dividends to the value of US$776 million, in return for US$10 million in start up seed capital which was given to the airline started in 1985. [148]

Sixth freedom traffic

The established network carriers in Europe and Australia, i.e. Air France-KLM, British Airways, Lufthansa, and Qantas, perceive Emirates' strategic decision to reposition itself as a global carrier as a major threat because it enables air travellers to by-pass traditional airline hubs such as London Heathrow, Paris-Charles de Gaulle, and Frankfurt Airports on their way between Europe/North America and Asia/Australia by changing flights in Dubai instead. These carriers also find it difficult to deal with the growing competitive threat Emirates poses to their business because of their much higher cost base. The Abu Dhabi based Etihad Airways is also looking to take traffic away from Emirates. In response to this, Emirates has said that if airlines like Lufthansa, British Airways, Cathay Pacific and Singapore Airlines all draw passenger traffic over their home hub airports from different points on their network, then Emirates can do the same. The airline has said that, it offers passengers destinations like Glasgow, Newcastle, Hamburg, Dusseldorf, Perth and Brisbane, and has the ability to connect passenegrs through its wide network. [149]

Relationship between Emirates and the Government of Dubai

Some of these carriersnotably Air France and Qantasare so concerned about the detrimental effects of Emirates' growth on their future ability to compete with it on a level playing field that they have resorted to openly accusing their Dubai-based rival of receiving hidden state subsidies and of maintaining too cosy a relationship with Dubai's airport authority as well as its aviation authority, both of which are also wholly state-owned entities that share the same government owner with the airline. In addition, they have also accused Emirates of taking unfair advantage of its government shareholder's sovereign borrower status.[150]

Emirates has said that it is a fully commercial and independent entity, even though it is owned by the Government of Dubai.

Labour cost advantages

Some airlines have accused Emirates of having labour advantages over other airlines. However the airline has said that it faces the same costs to attract and retain staff recruited from around the world on expatriate terms and conditions. Emirates bears a total cost of over USD$400 million for expatriate employee benefits. [151]

They claim that this masks its true financial performance and reduces its borrowing costs below market rates.[50][152][153]

Marketing and sponsorships

Emirates is a sponsor of sports clubs and events, both at its home base and in its overseas markets. It also sponsors the annual Dubai Shopping Festival, the Dubai Summer Surprises and the West Australian Symphony Orchestra as well as the Melbourne Symphony Orchestra.[154] For Emirates, marketing expenses account for a far greater share of its total costs than for most of its competitors.[131] In the English-speaking world the sponsorship always carries the words "Fly Emirates". Emirates sponsors Arsenal F.C. and their 60,000 seater Emirates Stadium as well as AC Milan, Olympiacos CFP, Hamburger SV, Paris Saint-Germain FC, Asian Football Confederation (AFC), Emirates Cup, the Collingwood Football Club as well having sponsors with Chelsea F.C. from 2001-05.

Emirates also funds many event in Rugby. They co-funded construction of The Sevens, a stadium in Dubai purpose-built for the 2009 Rugby World Cup Sevens, with the Dubai government.[155] They also will sponsor the Rugby World Cup 2011, IRB Referees and Match Officials, IRB Sevens World Series, International Sevens Teams, and the Western Force.

Emirates are also a major sponsor of Emirates Team New Zealand, a New Zealand based yachting syndicate that has enjoyed success in the America's Cup.[156]

In Cricket, they sponsor Cricket Australia[157], Lord's Taverners[158], and Pro Arch Tournament[159]. Their branding also features on International Cricket Umpires shirts.[160] They are also the major sponsor of the Kings Xi Punjab team of Indian Premier League, The largest domestic Cricket tournament in the world.

In Power boat racing they sponsor the UIM Class 1 World Powerboat Championship. [161]

In horse racing they sponsor the National Thoroughbred Racing Association (NTRA)[162]. In races, Emirates sponsor the Dubai World Cup, Melbourne Cup, Champion Stakes, Newmarket, Yorkshire Cup, York, and The Singapore Derby. [163] They sponsor the Godolphin stables, and the Australian Jockey Club.[164][165] Emirates also sponsor the Dubai International Racing Carnival, Melbourne Cup Carnival, and the Australian Jockey Clubs Autumn and Spring Carnival. [166]

In Tennis they sponsor the Dubai Tennis Championships[167], and the Roger's Cup. Emirates also sponsor the Dubai Grand Racing. [168]

In Golf, they sponsor 12 events, including the Dubai Desert Classic, Dubai Ladies Masters, Malaysian Open, Hong Kong Open, BMW International Open, Austrian Open, Volvo Masters of Asia, Hero Honda Open, Australian PGA Championships, Africa Open, Volvo China Open, and the HSBC Champions.[169]

As of April 2009, Emirates spends 2.7% of its of its total budget on Marketing and Communications. [170]

Notes

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  164. ^ http://www.emirates.com/english/about/sponsorships/horse_racing/stables.aspx
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  166. ^ http://www.emirates.com/english/about/sponsorships/horse_racing/carnivals.aspx
  167. ^ http://www.emirates.com/english/about/sponsorships/tennis/tennis.aspx
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