Dubai aviation sector set to boost GDP share to 35%

Dubai - Emirates expects to fly five million more passengers in 2016

A steady surge in international passenger traffic and a significant capacity expansion drive at its two airports will help Dubai's vibrant aviation sector enhance its contribution to the emirate's economy to 35 per cent from 27 per cent in five years, the head of Dubai's Department of Civil Aviation said on Tuesday.
Shaikh Ahmed bin Saeed Al Maktoum, who is chairman of Emirates airline, the world's largest international carrier, said the airline expects to fly five million more passengers in 2016 as it gears up to take delivery of 36 more aircraft this year.
In 2015, the Dubai-based carrier flew 51 million passengers and recorded a seat factor of 80 per cent. He also expects the load factor to rise to 81 per cent, and with route expansion plans on track, the airline is eyeing a 10 per cent surge in passenger traffic.
Speaking to reporters at the Emirates stand at the Arab Travel Market, Shaikh Ahmed who also heads the Dubai Airport Free Zone Authority, Dubai World, Emirates National Bank of Dubai and Dubai's Supreme Fiscal Committee, said the airline would soon decide whether to place orders for Boeing's 787-9 and 787-10 Dreamliners and Airbus' A350-900.
Shaikh Ahmed said the fleet expansion programme is on track as the airline press ahead with its expansion and aircraft retirement plans. In February, Emirates bought two new Airbus A380s from Japanese carrier Skymark Airlines.
He said there was no further action from Airbus side on Emirates' request for a new fuel-efficient version of the superjumbo - the A380 neo. "It is their decision to go about with the development of the new version. For us the A380 is a flag carrier along with Boeing's 777. We have bought quite a number of superjumbos and could achieve optimum efficiency with the 500-seat aircraft. The aircraft had really helped Dubai airport to record an average of 207 passengers per flight compared to the world average of 180," Shaikh Ahmed said.
He said no aircraft type can depend on one single customer. "Airbus should do a better job selling its A380 superjumbo. They have really to push their sales team to do much better, especially now the aircraft has been in the market for the last eight years. We should be making it easier for them to sell it to the others," said Shaikh Ahmed.
On the subsidy row with the US carriers, including American, Delta and United, Shaikh Ahmed said it had subsided as there was no further allegations after Emirates had made a strong rebuttal a few months ago. He said the airline's expansion plan in the US is on track as it is based on bilateral open sky agreement signed in 1999.
Shaikh Ahmed said he is not worried about the next US president being more protectionist amid an ongoing row with American carriers. "Governments may come and go but it won't have much of an effect." He also insisted that airlines should negotiate disputes with the government, not between themselves.
He said the airline would continue its policy of non-alliance with any of the three airline alliances. "We have several code-sharing agreements, some 21 or so in place." He also ruled out any plan to acquire airlines to speed up expansion.
"We always want to work solely. You have to understand that with the number of aircraft we receive per year, it would be very difficult for me to manage the airline business... also solving someone else's problem because we bought equity."
Commenting of reports that initial investigations on flydubai crash in Russia indicated pilot error was a likely cause, he said, "When it comes to safety, there is no cost cutting. We have a risk management fatigue department where they look all the time at issues, things we hear about. We try to mitigate any risk that can happen."
- issacjohn@khaleejtimes.com