Disruptions at Dubai likely to hit local flights
About 2500 departures - or 31 services a day - will be cancelled at the world's second-busiest international airport over 81 days next year while repairs are carried out on two runways. The cancellations represent about 14 per cent of flight departures from Dubai.
The airport is yet to finalise the allocation of slots for scores of airlines during the outage but Emirates executive Barry Brown said it would inevitably lead to disruptions.
"We're trying to manage whatever slots are being handed out to us. If we have to make cancellations on certain routes, we will do that," he said. "There will be a bit of pain."
Emirates has 84 services a week between Dubai and Australian cities which makes it the third-biggest international operator after Qantas and Singapore Airlines.
Mr Brown declined to say what impact it was likely to have on Emirates flights to Australia.
However, he said the addition of more A380 superjumbos to Emirates' fleet would help offset the reduced number of flights permitted at Dubai during the three-month period because they can carry more passengers.
Dubai has also become Qantas' main hub for flights to Europe since its alliance with Emirates began in March.
Qantas believes it will be able to retain all its 28 weekly landing slots at Dubai but has said the runway closures may require changes to the timing of its twice-daily flights to Europe.
Mr Brown said neither Emirates nor Qantas would receive preferential treatment from airport authorities in the allocation of landing slots. Between them, the pair control more than half of the market share of passengers who fly between Australia and Europe.
After showing the strain of an influx of large aircraft such as A380s, Dubai Airport will carry out extensive repair work from May, including laying 180,000 tonnes of asphalt on its northern runway.
Like other airlines, Mr Brown said Emirates faced a "mini perfect storm" on international routes worldwide with excess flight capacity, heavy discounting of fares and high jet fuel prices.
"Fuel continues to be a red spike on the balance sheet ... and trading conditions are very difficult, and because of that, prices have come down, particularly with capacity increases into Australia," he said.
"Airlines are vying for market share. You are seeing bigger, wider-body aircraft come in."
But he emphasised that the alliance with Qantas had boosted the number of passengers in Emirates business and first-class cabins on routes to and from Australia, helping to offset lower margins on economy tickets.
He declined to put a figure on the financial gains from the Qantas alliance but said the "strength in the premium cabins is hugely noticeable" from the tie-up.
While it might consider flying to more Australian destinations in the longer term, Mr Brown said Emirates was most likely to use larger aircraft on existing routes than increase the frequency of its services.
Frequently Asked Questions about this Article…
The runway repairs at Dubai Airport will lead to inevitable disruptions in Emirates' worldwide network. Approximately 2,500 departures will be canceled over 81 days, affecting about 14% of flight departures from Dubai. However, the exact impact on routes to Australia is still being determined.
The runway repairs at Dubai Airport will lead to inevitable disruptions in Emirates' worldwide network. About 2,500 departures will be canceled over 81 days, impacting around 14% of flight departures from Dubai.
Emirates plans to manage the disruptions by utilizing larger aircraft, such as the A380 superjumbos, which can carry more passengers. This strategy aims to offset the reduced number of flights permitted during the repair period.
While Emirates has not specified the exact impact on flights to Australia, the airline operates 84 services a week between Dubai and Australian cities. The addition of more A380 superjumbos may help offset the reduced number of flights.
Qantas believes it will retain all its 28 weekly landing slots at Dubai. However, the runway closures may require changes to the timing of its twice-daily flights to Europe.
Emirates plans to manage the impact by utilizing larger aircraft like the A380 superjumbos, which can carry more passengers, to offset the reduced number of flights during the repair period.
The alliance between Emirates and Qantas has boosted the number of passengers in Emirates' business and first-class cabins on routes to and from Australia. This partnership helps offset lower margins on economy tickets.
Qantas believes it will retain all its 28 weekly landing slots at Dubai but may need to adjust the timing of its twice-daily flights to Europe due to the runway closures.
Airlines, including Emirates, are facing a 'mini perfect storm' with excess flight capacity, heavy discounting of fares, and high jet fuel prices. These factors contribute to difficult trading conditions and increased competition for market share.
No, neither Emirates nor Qantas will receive preferential treatment from airport authorities in the allocation of landing slots during the runway repairs.
While Emirates might consider flying to more Australian destinations in the long term, the current focus is on using larger aircraft on existing routes rather than increasing the frequency of services.
The alliance with Qantas has boosted the number of passengers in Emirates' business and first-class cabins on routes to and from Australia, helping to offset lower margins on economy tickets.
High fuel prices continue to be a significant challenge for Emirates, described as a 'red spike' on the balance sheet. This, combined with other market pressures, has led to reduced ticket prices, particularly with increased capacity into Australia.
Airlines, including Emirates, are facing a 'mini perfect storm' with excess flight capacity, heavy discounting of fares, and high jet fuel prices, making trading conditions very difficult.
The runway repairs at Dubai Airport are expected to last for 81 days, during which time extensive work, including laying 180,000 tonnes of asphalt on the northern runway, will be carried out.
While Emirates might consider flying to more Australian destinations in the long term, it is more likely to use larger aircraft on existing routes rather than increase the frequency of its services.
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