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Monday 17 December 2007

'Our growth in India is market-driven'


'Our growth in India is market-driven'
Antony Thomas, TNN

Emirates is one of the largest international airlines operating in the Indian skies, flying to nine destinations in India. Internationally, the airline flies to 99 destinations spanning 62 countries. The Dubai-Toronto non-stop flight is one of its newest services. ET asked Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline & Group, about Emirates and its India operations.

End October you have started your Dubai-Ahmedabad flight, the ninth destination to India. How important is the Indian market for Emirates?

It is no secret that India is a key economic partner of the UAE, in particular Dubai. Trade between Dubai and India over the last five years has soared 336% from $2.5 billion to $10.9 billion. About 80% of trade between India and the UAE is routed through Dubai.

On October 29, we launched six flights a week to Ahmedabad, our ninth Indian gateway. The launch of services to Ahmedabad also coincides with the strengthening of operations in west and south India. Earlier, Emirates launched its fourth daily flight from Mumbai.

The growth of Emirates services to and from Mumbai has been market-driven. At every stage the flight increases have been matched by growing passenger numbers. We have also introduced a double-daily service on our Chennai route, and added three flights each to Kochi and Hyderabad.

Emirates operates modern jets: with lie-flat massage seats in business class, with more personal space; and the economy class with extra legroom. All our new aircraft are fitted with the next generation, cutting-edge ICE digital widescreen system. Available in all classes, the ground-breaking new system represents a significant enhancement in the overall passenger experience.

You are providing special facilities to transport pharmaceuticals from Ahmedabad. What are these facilities?

Gujarat, home to over 3,000 pharma units, and investing over $1.6 billion in the industry, contributes 28% to the production and export basket of India’s drug sector. For the benefit of this sector, Emirates has introduced 110 tonnes of cargo capacity per week per direction, together with specially-designed air cargo containers that maintain stable interior temperatures throughout the journey.

As a result of a global network spanning 99 gateways in 62 countries and a seamless transportation chain using the latest technologies, life-saving medicines from Ahmedabad can now make their way to the Middle East, Europe, the US, Far East and Africa.

Today, Emirates is one of the largest airlines in the world. How do you plan to make it environment-friendly, keeping in mind global warming concerns?

Emirates is undertaking many initiatives — within the airline and amongst the suppliers and manufacturing partners with whom it works — to minimise the impact on the environment. These include on-ground and in the air efforts. In Dubai, we have reduced vehicle movements around the airport.

We operate one of the world’s youngest fleet, with an average age of 63 months and continue to invest in new, technologically-advanced aircraft. Modern, new aircraft embrace the latest airframe and engine enhancements, producing fewer emissions and minimising impact on the climate and on the neighbourhoods over which we fly.

How much of your operating costs are on account of fuel consumption? How are you tackling the rising fuel prices?

The share of fuel cost in our total costs has jumped from a historical 14% to a record 29.1%, and has become one of our top expenditures. Our biggest challenge is to manage the fuel risk programme within a price range that ensures our net fuel cost remains below market levels. We have a jet fuel risk management programme which continues to help mitigate fuel costs. In 2006-07 financial year, the programme helped the company save Dhs 724 million ($197 million).

Your plan is to make Dubai an aviation hub and a leisure destination...

The government of Dubai has deliberately and aggressively pursued a master plan to develop the city into a global centre — for commerce, tourism and global air transport. Emirates has contributed significantly to this development by facilitating global air traffic flows east-west, or north-south using future new generation aircraft.

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