Emirates Embarks on Multibillion Dollar Expansion in Response to UAE's Economic Growth

Strategic Insights -

Emirates, a major United Arab Emirates airline, has initiated a multibillion dollar expansion plan in response to the UAE's rapid economic growth and increasing regional importance. The airline's General Manager for Britain and Ireland, Shoaib Khoory, stated that the strategy is reflected in its recent decision to purchase seven Boeing 777s, with an option to acquire another seven. Emirates has seen significant success since its founding in 1985, with a profit of $20 million in the year ended March and handling a third of Dubai's annual 6 million passengers.

Key Takeaways:

  • Emirates has embarked on a multibillion dollar expansion plan in response to the UAE's economic growth and increasing regional importance.
  • The airline has purchased seven Boeing 777s and has an option to acquire another seven.
  • Emirates made a $20 million profit in the year ended March and handled a third of Dubai's annual 6 million passengers.
  • The airline has averaged 25% growth in passenger traffic and 28% growth in cargo handling over the past five years.
  • Emirates will have 19 weekly flights out of Britain by August 1, with a daily service between London's Gatwick Airport and Dubai.
  • Emirates' chairman, Sheikh Ahmed bin Saeed al-Maktoum, has stated that there are no plans for the airline's privatization.
  • The airline aims to have a global network in place by the year 2000.
  • Emirates has been in operation since October 1985, within seven months of its conception.

Statistics:

  • Emirates made a $20 million profit in the year ended March.
  • The airline handled a third of Dubai's annual 6 million passengers.
  • Emirates has averaged 25% growth in passenger traffic over the past five years.
  • Emirates' cargo handling business grew by an average of 28% over the past five years.
  • Emirates will have 19 weekly flights out of Britain by August 1.

Sources:

  • United Press International (UPI)
  • Emirates General Manager for Britain and Ireland, Shoaib Khoory (as cited in UPI)
  • Sheikh Ahmed bin Saeed al-Maktoum, Emirates Chairman (as cited in UPI)