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Emirates wants more
As part of an ambitious plan to continue the airline’s aggressive growth, Emirates Airlines has approached the Federal Government for the right to double flights in and out of Australia.
Increasing from 42 to 84 flights would mean the airline would have to fly three times a day out of Melbourne, Sydney, Perth and Brisbane. This would severerely impact Qantas’ position on the lucrative Australia / Britain route.
Emirates President Tim Clark, in Australia for the Melbourne Cup, said the airline had asked for permission to expand its Australian operations.
“Australia is a very strong market for us,” he said. “In fact, in terms of income generation Australia is now No. 3 in the world for Emirates, which is quite amazing given that many other foreign carriers have backed away from the market.”
He said the jump in crude oil prices would add between $US350 million ($A470 million) and $US400 million to Emirates’ costs this year, but despite that impost, the company’s half-year results, to be released in mid-November, would be an improvement on the the $US350 million profit for the corresponding period.
He also said increased profit growth had been achieved by cutting costs in other areas of the airline as well as revenue growth exceeding expectations.
Mr Clark did however discount the theory that Emirates was after rights to the very profitable Australia / Los Angeles route, stating that it did not suit their strategy just yet.
Graham Muldoon
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