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Sky
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11
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Fast Facts
Economic cost of
constrained airports
Infrastructure constraints are a barrier to economic growth
the effect of someone pulling up the handbrake on the
global economy. It leads to frustrated, untapped demand
and hides the true potential between trading partners and
economic regions.
15 billion in lost
trade in 2013
8.1
billion hit to
UK GDP by
2021 through
lost tourism
and FDI
UK
In the UK, the Airports Commission is currently studying several proposals that will
enable the country to maintain its position as a global aviation hub. Britains main hub
airport, London Heathrow, is currently running at 99% capacity and, as a result, can be
severely impacted by adverse weather or other unexpected events. Frontier Economics and
Oxford Economics, two leading economic consultancies, have estimated that the UK could
potentially be missing out on 15 billion worth of trade in 2013, a figure that could double
by 2030, while the cost to the UK economy could be as high as 8.1bn in GDP or 134,100
jobs by 2021, through lost tourism and foreign direct investment.
99
Passengers (million)
70
Terminals
Destinations Served
184
Number of Airlines
84
Cost of capacity
constraints
GDP
3.6bn
Jobs
78,800
GDP
4.5bn
Jobs
55,300
15bn
Australia
Sydney International Airport, Australias largest, is artificially constrained by the 80
movements per hour cap and the curfew between the hours of 11pm to 6am. A Deloitte
Access Economics report demonstrates the potential value of improving infrastructure by
expanding the cap and aligning existing regulations and opening additional gates to support
new generation aircraft.
In a separate paper, Deloitte says that one extra flight per day from Dubai to Sydney is
estimated to add A$342 million to Australias GDP and support 4,400 full time equivalent
(FTE) jobs per year. Merely up-gauging from a B777 to an A380 contributes an additional
A$55mn in GDP and generates an estimated 700 FTE jobs on an annual basis.
By 2060, the cost of not enhancing the aviation infrastructure capacity of Sydney would
result in economic impacts (direct and indirect) of the Australian economy accumulating
to a total of A$59.5bn in foregone expenditure and A$34bn in foregone GDP.
By 2035, the economic impacts could accumulate to as much as A$6bn in foregone
GDP for the Australian economy, and A$8.9bn in foregone expenditure.
3
35.6
3
Destinations Served
97
Number of Airlines
46
Value of an additional
daily A380 flight from
Dubai to Sydney:
A$342 million to
Australias
GDP
4,400
FTE jobs
per year
Benefit of up-gauging
from B777 to A380:
A$55
million in GDP
700
additional FTE
jobs on an
annual basis
Europe
European aviation infrastructure, especially airports, face fundamental capacity constraints.
According to Eurocontrol, an estimated 12% of total demand might not be accommodated
by 2035, leading to a capacity crunch at European airports.
Airline and airport groups such as AEA, EBAA and ACI Europe have noted that the economic
impact estimated will be dramatic. By 2035, insufficient airport capacity will cost Europe
230bn in lost GDP, they estimated. They urged EU institutions, national governments and
regional communities to take a deeper interest in the issue of airport capacity.
US
230 billion
US airport delays are caused by a myriad of factors ranging from infrastructure constraints
to air traffic control delays to peak scheduling. The total cost of air transportation delays in
2007 in the US was $32.9bn, according to an FAA-sponsored analysis.
This included $8.3bn in costs to airlines, $16.7bn in costs to passengers, $3.9bn from lost
demand and a $4bn hit to US GDP.
New Yorks severely slot-constrained JFK, Newark and LaGuardia airports are a special
concern, with one study estimating over $2.6bn in losses to the local economy in 2008 and
projecting a staggering $79bn in losses for 2008-2025 (plus 5,600 full-time jobs not
created) in the absence of corrective action.
1,500
>7.5 billion
900
>3 billion
600
China
US
India
UK
Brazil
2012
2030
2025
2012
2030
2020
2012
2030
2020
2012
2030
2020
2012
2030
2020
2012
2030
2020
2012
300
Germany
2015
2011
2018
2031
Passengers (millions)
1,200
Russia
Global
Source: CAAC, FAA, MOCA, UK DfT, Brazilian Association of Airlines, Infraero, German Airport Association
ADV, German MoT and Airbus.
1.8
billion
2030:
4.9
billion
$21
trillion
2030 :
$56
trillion
Source: OECD
Spotlight on
Dubai World Central
Dubai World Central (DWC) is in the spotlight this month as
it reaches some important milestones.
Passenger airlines
Wizz Air
Jazeera Airways
Cargo airlines
Hungarys Wizz Air is due to become the first scheduled passenger airline to operate from
the new airport in Dubai when it opens for passenger flights on October 27, followed by
Kuwaits Jazeera Airways.
The flights are made possible by the airport, officially named Al Maktoum International at
Dubai World Central, becoming certified for passenger operations last month as well as the
recent completion of the airports first passenger terminal.
Emirates SkyCargo
Atlas Air
Saudi Arabian Airlines
AF-KLM-Martinair Cargo
Etihad Airways
Next month, the airport will be the site of the 13th edition of the biennial Dubai Air Show
running from November 17-21. The air show draws 50,000 visitors and 1,500 journalists and
had previously been held at Dubai International.
DWC is envisioned as a long-term solution to Dubai Internationals looming airport capacity
crunch, and is expected to one day feature five runways and capacity to handle over 160
million passengers per year.
However, DWCs billing by some as the worlds largest airport is incorrect. Today, the airport
offers one runway and capacity for up to 7 million passengers per year. Since its opening in
June 2010 it has been operating solely as an airport for cargo and general aviation flights.
Instead, Dubai Airports has embarked on a progressive, structured and pragmatic approach
to maximise the existing use of Dubai International. Enhancements are planned to increase
capacity and accommodate demand growth until around the 2020 timeframe, when
passenger numbers are projected to reach 103.5 million exceeding Dubai Internationals
maximum capacity of 100 million passengers.
This will necessitate multi-billion dollar investments at DWC and one day, the airport is
expected to become the primary hub for Dubai and the 150 airlines currently serving it. As a
result, the airports planners are developing office, residential and industrial developments in
and around the airport to help defray the infrastructure costs.
103.5
million projected passenger numbers
100
million maximum capacity
Dubai
World
Central
Dubai
International
Airport
5
industry
average in
terms of fuel
efficiency
industry
average in
terms of CO2
emissions
100% increase in
recycling
volumes
6 years
Emirates average
fleet age vs
IATA average
of 11.7 years
ENVIRONMENT
REPORT2012-13
Benefits of wireless
competition
Better service
Lower prices
Consumer demand
R
R
R
Benefits of airline
competition
Better service
Lower prices
Consumer demand
R
R
R
For example, an April 2013 poll from the Consumers Association of Canada found that
77% of Canadians believe allowing more foreign airlines to fly to Canada will lead to more
competition for their travel dollar and better travel options the same type of benefits the
Canadian Government envisions for the wireless sector.
Travel is an industry that helps to keep our economy moving and helps connect us to the
world in a time of increasing global interdependence. Boundaries are dissolving, but travel
is still one of the best ways to understand whats happening. - Hillary Clinton, former
Secretary of State, U.S. Senator and First Lady
There is a level playing field we get screwed everywhere.
Willie Walsh, CEO, International Airlines Group
Jeff Smisek,
CEO United Airlines
The Middle East is a critically important market for New Zealand and the increased capacity
on this route demonstrates the attractiveness of Dubai as a destination for New Zealanders.
It will also help stimulate trade between our two countries The additional capacity this
third A380 brings is equivalent to an extra 100,000 seats on the route, and an additional
$100 million to our economy, every year Adrian Littlewood, Chief Executive Officer,
Auckland Airport
On my last flight on Emirates, I took 15 pages of notes!
Alexandre de Juniac, Chairman and CEO, Air France-KLM
The transatlantic market, for its part, is all but a triopoly now, dominated by oneworld,
SkyTeam and Star joint ventures. Airline Weekly
Today, the big three alliances have 59 members between them. Efforts to swell their ranks
will not be helped by members growing penchants for eloping with their nearest and
dearest. The Economist
Canadian consumers know instinctively that more competition will serve their families well
through better service and lower prices. James Moore, Canadian Minister for Industry
If the government really believed in putting consumers first, it wouldnt confine itself to
wireless telephony. It would also be opening the domestic market in airlines, in agriculture, in
banking, all of which remain protected backwaters. Andrew Coyne, columnist,
National Post
Transport Canada should get an award from the Seattle Chamber of Commerce for driving
so much business to that city over Vancouver through its policy of restricting access of
foreign carriers to the Canadian market.
Bruce Cran, President, Consumers Association of Canada
Liberalisation gave airlines the possibility to freely define their networks and their prices
which led to the creation of new commercial offerings based on innovative products. This
enabled a real democratization of air transport.
French General Commission on Strategy and Economic Foresight
Regional governments are focusing their attention on developing civil aviation, but we need
to develop with them together, integrating planning for airport construction and rational
layout, while strengthening the strategic role of civil aviation in national and regional
economic and social development.
Li Jiaxiang, Vice Minister of Transport, Administrator of the CAAC
Regulators are micro-managing our businesses, telling us how we may advertise our
services, how long we must hold a reservation that has not been paid for and how we are to
manage operational disruptions regardless of the cause. These regulations impose a huge
penalty on the economy and ultimately raise the cost of air travel for all consumers.
Tony Tyler, IATA DG and CEO
Beijing
Falcons
Fashion
Dubai
Footwear
Mumbai
Art
Jakarta
Brisbane
Bilbao
Vigo
Zaragoza
Madrid
Valencia
Alicante
Seville
Granada
Malaga
Murcia
Girona
Barcelona
in Spain
Marbella
35
21
37
A380
IN FLEET
A380
DESTINATIONS
Emirates
A380
20,000
ROUND TRIP
FLIGHTS
265
MILLION
PASSENGERS FLOWN
1,900
KILOMETRES
HONG KONG-BANGKOK
SHORTEST A380 FLIGHT
AIRPORTS VISITED
Years of
18
11,023
KILOMETRES
669 A380
MILLION
KILOMETRES
FLOWN
7,124 A380
CABIN CREW
10
Fifth freedom
flights are a
fraction of
Emirates total
passenger network:
they accounted for
10% of ASKs in
2003 but only 5%
in 2013
- CAPA
Emirates new service between Dubai and New York JFK via Milan opened October 1 and
will support Italys ViaMilano project aimed at developing Milan Malpensa Airport as a
transfer hub.
The services were authorised by ENAC, the Italian Civil Aviation Authority, on an extrabilateral basis. It comes at a time when the airport is courting new frequencies and
operators to support a 15 billion expansion project.
Why Milan-JFK? Emirates is offering a unique product on an underserved route. Alitalia
decided to focus international operations at Rome, Lufthansa ceased its Lufthansa Italia
subsidiary in 2011, and Delta Air Lines recently reduced its seasonal summer operations
from Atlanta to Milan.
With the Emirates service, Milan-New York, with 35 weekly flights, is now on par with services
from similar European airports such as Zurich, while Frankfurt is connected with 49 weekly
flights and Paris CDG with 74 weekly flights to New York.
In addition, Emirates will introduce the only first class offering on the route and the only
service to offer consistent, year-round daily service, whereas other airlines serving the route
such as United Airlines and American Airlines reduce operations during the winter.
The route will also benefit from Emirates codeshare and interline partners JetBlue and
easyJet.
Fifth freedom operations from Europe to the US are not unusual where market demand
exists, and several carriers are exercising fifth freedom traffic rights via Europe to New York
in particular.
The US Governments Open Skies policy has endorsed the concept of fifth freedom
operations since its inception in the 1990s. Providing carriers with the commercial flexibility
to operate fifths if market conditions warrant is a standard element of all US Open Skies
agreements, and US carriers led by Delta at Tokyo Narita avail themselves of the opportunity
to rely on them.
Deltas extensive fifth freedom routes in Asia include daily services between Tokyo Narita
and Bangkok, Beijing, Hong Kong, Manila, Shanghai, Singapore and Taipei; and five weekly
services between Nagoya and Manila.
266 tonnes
US
US$10bn
Africa
Asia
US$110m US$657m
Europe
US$15.5bn
Bonds
US$5bn
11
From orphans to
academic overachievers
Four children from Beyond the Orphanage in Addis Ababa
are celebrating excellent results on their university
entrance exams.
The Ethiopian organisation, which serves children in need by reaching out to orphans through
their drop-in centre, is sponsored by the Emirates Airline Foundation.
Beyond the Orphanage provides tutoring for kids after school as well as a library and
computer centre. It also offers counseling for children and a medical clinic. In addition, they
help to buy clothes and teach practical skills, aiding in career development.
Thanks to the support of the Emirates Airline Foundation and the generosity of Emirates
customers, the children here are blossoming with belief, said Geoff Hucker, the
organisations founder.
Fast Facts
Aircraft in fleet
Number of destinations
Passengers (2012-13)
Cargo (2012-13)
Passenger Seat Factor (2012-13)
Employees - Airline (2012-13)
Emirates dedicated lounges
Number of on-board meals a day
Emirates flights daily
Financial Auditor
Financials (Airline - 2012-13)
Fuel Costs (Airline - 2012-13)
First flight
Longest flight
New passenger routes (2013-14)
206
135
39.4 million
2.08 million tonnes
80%
47,678
35
150,000
420 (arrivals and departures)
PwC
Revenue US$19.39 billion, profit US$622 million
US$7.6 billion
25 October 1985
Dubai - Los Angeles (16 hours 20 minutes)
Haneda, Stockholm, Manila-Clark, Milan-New York,
Conakry, Sialkot, Kabul, Kiev, Taipei and Boston
A380 fleet
Boeing fleet
St. Petersburg
Stockholm
Gothenburg
Moscow
Glasgow
Copenhagen
Newcastle
Manchester Hamburg
Dublin
Amsterdam
Birmingham
Warsaw
Dusseldorf
London
Kiev
Liege
Prague
Paris
Frankfurt
Zurich
Vienna
Geneva Munich
Lyon Milan Venice
Nice
Zaragoza
Rome
Istanbul
Madrid
Barcelona
Lisbon
Athens
Tunis
Algiers
Larnaca
Malta
Casablanca
Tripoli
Cairo
Seattle
Toronto
Chicago
San Francisco
Los Angeles
Boston
New York
Washington, DC
Dallas/Fort Worth
Graphic illustration only, not a complete representation or to scale. 2013. Emirates. All rights reserved.
Houston
Dakar
Khartoum
Kano
Djibouti
Addis Ababa
Conakry
Abidjan
Accra Lagos
Luanda
Dubai
Chennai
Bengaluru
Kozhikode
Kochi
Thiruvananthapuram Colombo
Eldoret
Nairobi
Dar es Salaam
Lusaka
Harare
Tokyo
Osaka
Shanghai
Taipei
Hong Kong
Clark
Manila
Bangkok
Ho Chi Minh City
Phuket
Kuala Lumpur
Singapore
Seychelles
Medina
Jeddah
Jakarta
Mauritius
Johannesburg
Brisbane
Route Map
October 2013
Perth
Adelaide
Melbourne
Sydney
Auckland
Christchurch
Passenger Routes
Freighter Routes
Passenger & Freighter Routes
---- Proposed Passenger Routes for 2014
Please visit our website for more information on our international and government affairs and environment activities
www.emirates.com or write to us igea@emirates.com
12
Dammam
Bahrain
Doha
Riyadh
Sanaa
Lilongwe
Durban
Tehran
Baghdad
Beirut
Amman Damascus
Basra
Kuwait
Rio de Janeiro
Cape Town
Buenos Aires
Seoul
Mal
Entebbe
Viracopos
So Paulo
Beijing
Peshawar
Islamabad
Sialkot
Lahore
Delhi
Karachi
Dhaka
Guangzhou
Ahmedabad
Kolkata Chittagong
Hanoi
Mumbai
Hyderabad
Kabul
Dubai
Muscat