Flying high: Emirates business grows 22% in country

Dubai-based airline expects to double operations from Peshawar.

DUBAI:

Honeymoons in Mauritius and shopping trips in Dubai are becoming more common as Pakistani passengers flying to other countries through Emirates grew by 22% last year, said a top official of the airline in an interview to a group of Pakistani journalists.

The country’s middle class grew considerably in the last two years along with its disposable income, said Emirates Senior Vice President Commercial Operations West Asia and Indian Ocean Sheikh Majid Al Mualla.

With this growing market at its reach, Emirates Airline – one of the largest operators in Pakistan – is looking to expand its operations, said Mualla.

The airline that witnessed a double-digit growth in recent years in Pakistan plans to double its operations from Peshawar, added Mualla. The city is an attractive destination as it includes people from Pakistan and across the border from Afghanistan, where the carrier does not operate. The company recently increased flights from Lahore and Islamabad to seven times a week and three weekly flights from Peshawar.

The company currently operates 45 flights to Pakistan with an average of 82% seats booked in each flight, much more than the industry’s average of around 60% to 62%, said Mualla. The world’s third largest airline fleet-wise has requested the Civil Aviation Authority for more flights from the country, said Mualla, adding that it has the capability to run even 100 flights.

Flights to Saudi Arabia grew the most by 93% followed by Qatar and the US with 53% and 35%, respectively, on a yearly basis.

The fast-growing airline last week placed the single largest commercial plane order in Boeing’s history of 50 Boeing 777s worth $18 billion, which took their aircraft shopping list tally to 239 worth more than $84 billion.

Finance for these orders will not be an issue, said Mualla, adding that Islamic bonds and foreign investors are few of the options the airline is looking into.

The airline is expected to become the world’s largest in the next five years if it grows at its current pace. The company is facing resistance from some countries in expanding routes, however, Mualla is positive that negotiations will end by increasing its wings.

The Dubai-based carrier’s net profit plummeted 76% to Dh827 million for the six months to September 30 from Dh3.39 billion in the same period last year. Mualla cited oil prices as the major factor for the drop in profits.

“A one dollar increase in oil prices causes a $1 billion impact on the entire aviation industry,” said Mualla in an earlier interview with The Express Tribune.

Competition from other airlines of the UAE did not seem to be a problem for Emirates as Mualla said they are always one step ahead.

“Competition is good for customers of the industry as the  service standard improves and prices fall,” he said.

Published in The Express Tribune, November 22^nd, 2011.