Emirates vows to expand service to Asia
Zakki Hakim, Dubai, UAE
Emirate Airlines vows to expand its service in East and Southeast Asia, including Indonesia, hoping to garner more revenue from the fast-growing market.
Company executive vice president for commercial operations worldwide Ghait Al Ghaith said the airline considered Indonesia a special market given its huge Muslim population and the fact that the nation is the largest supplier of workers to the Gulf region.
"Indonesia is very important for us, as it is the largest Muslim country in the world, and there is always a need to connect the country with Saudi Arabia," Ghaith told The Jakarta Post on the sidelines of the company's shareholders meeting on Wednesday in Dubai, United Arab Emirates.
He said that the airline was currently in intensive discussion with the Indonesian government on the possibility of gaining more access in the country.
"We are now focusing on Jakarta, but we are also targeting tourist destinations, especially Denpasar, Bali. However, there is no firm plan yet," he said.
The airline's revenue from East Asia grew by 40 percent to 3.7 billion dirham (US$10.1 million) last year from the previous year's 3.7 billion dirham.
Emirates has set up its regional hub in Singapore and is now eyeing Bangkok as its next main hub aside from Singapore. The capital, Ghaith said had the potential to become a major hub in the region following the Thai government's move to adopt an open- sky policy mid-last year.
He said the airline had "no problem" with its main competitor in the region, Singapore Airlines, and felt no threat from the growing budget airlines in the region.
While several giant airlines in the region, encouraged by the success of several budget airlines in the region, have established their own no-frills subsidiaries, Ghait said Emirates was not interested in the business.
"It's a totally different game. The main ingredient of our philosophy is to take them into our network," he said.
The airline currently has 61 aircraft serving a total of 75 destinations in 53 countries, including one to Jakarta, and is planning to open a passenger service to New York this year.
Emirates Group, which is wholly owned by the government of Dubai, recorded a net profit of $476 million last year, a 67 percent increase from $285.7 million in the previous year. Aside from Emirates Airline, the group also has a cargo service through Emirates SkyCargo, operates hotels and the Dnata Airport in Dubai.
Emirates Airline's profit jumped 73.5 percent to $429 million from $247.1 million in 2002, while Emirates SkyCargo booked a 42 percent increase in profit to $629 million.
"The Emirates Group's strong performance in the latest financial year confirms not just that we are on the right track, but also that we are doing our part to help our government realize its aggressive master plan for Dubai's development," the group's chairman Sheikh Ahmed bin Saeed Al-Maktioum told a press conference on Wednesday.
"We have plans in place for next year to maintain the momentum and to continue to deliver the same kind of performance," he added.
Emirates Airline, which has been consistently profitable -- except in its second year -- since it was established in 1985, carried 10.4 million passengers last year, an increase of almost two million or 23 percent compared to the previous year.
Meanwhile, its cargo service moved nearly 660,000 tons last year, a 26 percent increase from the previous year.