Recently in Berlin
An exclusive breakfast with the President of Emirates Airline, Tim Clark, once again provided insights into the latest developments for travelers.
You once said that with Emirates' move to the new Dubai World Central Airport (DWC), Emirates can develop even further, initiating the next stage of expansion.
Yes, it's part of a possibility, but this airport (DWC) is not ready for us in the next ten years. And I have to be absolutely sure that everything on the ground will be jet-friendly when we have to relocate. I think by 2026 or 2027 we will probably be at the limit of our current Dubai airport. And then, of course, we will have a colossal hub, which will open up several more routes in the region for us, including the possibility of introducing aircraft such as Boeing 737s or Airbus A320s. We work in an industry that is constantly changing and the Middle East is a different place today than it was when we started in the 1980s.
How have your premium products been affected by demand at a time when markets have been hit by financial crises?
Our premium segments are strong and we worked very hard when the financial services industry took a massive hit. One of the biggest USPs we have is the A380. Because the premium upper deck (equipped with First and Business Class) is unbeatable. This plane is full wherever it goes. So premium is not a problem. But if the oil price goes up, say more than 55 usd per barrel, there is a big reset in aviation, you have to adapt how you do business, even in the long term. I think the big volume in business class is not coming back in the way we were used to (e.g. financial business travelers). But there are many other customer segments that want to travel in premium classes, not just business. It's still a good story.
Can you give an update on your A380 fleet?
The first of our 115 aircraft will be completed by mid-2019. Our A380 number 100 will be delivered sometime in the fall. There will be another 25 between 2021 and around 2025. I have one problem, 115 A380s is the absolute maximum we can handle at Dubai Airport. Our first A380 will be retired in 2021. The 25
additional ones have already been ordered to replace older A380s. In 2017, we will receive 17 new aircraft, including A380s and Boeing 777s. The first of the older, original Boeing 777-300ERs will also be retired in May. In 2018, we will hand over 19 aircraft.
Is your cost base low enough to compete with the growing number of low-cost carriers (LCCs) on long-haul routes?
I think it's better if you ask them yourself, and they will say we need to align our cost base with that of an Emirates. The problem for the long-haul low-cost carriers is aeropolitical access. For example, when it comes to secondary cities. They can't fly to major hubs like London Heathrow because they are too expensive. But the long-haul LCCs are a big part of the change in our industry. Emirates operates on the lowest cost base of any international airline. We are at the very bottom.
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