Initially, there was one weekly flight from Dubai to India and Great Britain; by February 1938 there were four weekly flights, and in 1940 Dubai became a connection point for a flight from Sidney to London. By the end of 1944, there were eight flights landing weekly in Dubai.
The Route to Success: Dubai International Airport
In 1959, the ruler of Dubai, the late Sheikh Rashed Bin Saeed Al Maktoum, launched the construction of a civilian airport in Dubai, which comprised a single 6,000-ft condensed sand runway, with the space necessary for future expansion. The new airport was located 2.5 miles away from Dubai’s city center, and was officially inaugurated by Sheikh Rashed on December 30, 1960. In 1962 the runway was upgraded to asphalt, and in 1963 an adjacent 1.7-mile runway was established.
The first major expansion took place in 1965, when the airport was adapted to accommodate the huge aircraft of Middle East Airlines, as well as the Comet aircraft of Kuwait Airlines.
By the 1970s, with the establishment of Dubai’s Civil Aviation Department (DCAD), increasing aircraft size necessitated further expansions to cater for bigger and more powerful airplanes, such as the Jumbo and the Concord. The airport’s passenger terminal was upgraded as well to reach a capacity of 1,200 travelers per year.
Today, more than 100 carriers utilize Dubai International Airport, linking the emirate to more than 140 destinations worldwide. DCAD is allocating more than AED15 billion for the biggest-ever expansion plan for the airport to increase its annual capacity to 70 million passengers by the end of 2007, compared to the current 25 million passengers.
The new developments include two new concourses and a third terminal in addition to a new mega-terminal for air cargo.
The new facilities will be able to accommodate the new Airbus A380 through providing upper and lower bridges to serve both decks of the new aircraft, in addition to many other services and utilities.
The Sky is the Limit: Emirates Airlines
Renowned for its outstanding growth and record aircraft orders, Emirates Airlines is now ranked the top carrier in the Middle East and one of the best-performing airlines worldwide.
Founded less than 20 years ago, the carrier has expanded its route network to include 80 destinations and expanded its fleet to more than 95 Boeing and Airbus aircraft of different models and sizes.
Serving 14.5 million passengers in 2006 the company reported a net profit of US$762 million for the fiscal year ending on March 31, 2006, with a 27 percent increase in revenues, from US$5.2 billion in 2005 to US$6.6 billion in 2006.
Having placed 45 orders for the Airbus A380 and 42 orders for the Boeing 777, Emirates Airlines stands today as the biggest client for both aircraft producers. Emirates has also placed options for 20 more Boeing 777 aircraft, and orders for other sophisticated and modern aircraft, such as the Airbus A340-600 HGW. Overall, Emirates Airlines has placed orders for 130 aircraft worth US$30 billion.
The group’s operations have been growing by more than 20 percent every year, and Emirates now has activities in diverse sectors ranging from cargo-handling to tourism, logistics, and development. Emirates Airlines accounts for 50 percent of Dubai’s international air traffic and offers some 550 flights per week. The airline aims to increase this stake to 70 percent by 2010
Realizing a Dream: Dubai World Central
Dubai has now launched an even bigger aviation project, Dubai World Central, a new airport at Jebel Ali that will be able to accommodate 120 million passengers annually. The new facility will be the center of a new integrated city specialized in logistics services and commercial activities. The new airport whose initial cost is estimated at more than US$8.1 billion, will be bigger than London’s Heathrow airport and Chicago’s O’Hare airport combined.
Enjoying proximity to Jebel Ali Port, Jebel Ali’s Airport City will cover some 140 sq km and will include a commercial city with more than 850 towers; an aviation city designed to serve as the headquarters of leading international aviation and aviation-related services companies; a science and technology complex; and an exhibition complex covering some 3 million sq ft. The development will be served by a 160-km new road network, a residential development, a golf resort and more.
Dubai World Central will have six parallel runways and several passenger terminals to cater to some 120 million travelers annually, in addition to a cargo complex capable of handling 12 million tons of cargo per year.
Targeting International Lead: Dubai Aerospace Enterprise
Dubai entered a new phase of development with the announcement of Dubai Aerospace Enterprise (DAE), an investment vehicle to channel US$15 billion into creating a global aerospace manufacturing and services corporation.
The new entity will become the holding company for six operational subsidiaries involved in manufacturing and services across 14 industry segments.
Initially, DAE will target the US$100 billion market for global airport development and operations, aircraft leasing and financing, and specialist education and training segments. Backed by the government of Dubai and the signatories to the agreement - Dubai International Capital, Emaar, Istithmar, Dubai International Financial Center, Amlak Finance and the Dubai Airport Free Zone Authority (Dafza) - DAE will progress through a series of phases to establish an integrated aerospace industry cluster. All the involved parties will have proportional equity in the new company’s capital.
The group will also develop a presence in business segments such as space services, aircraft brokerage, aviation media and events, and aviation IT systems. Within a decade the industry is expected to emerge as one of Dubai’s richest sources of revenue.
Some 30,000 new jobs will be created through DAE activities, which are expected to make a major contribution to Dubai’s GDP.
The company has announced that it will purchase at least 30 new aircraft from both Airbus and Boeing for leasing purposes.
HH Sheikh Ahmed bin Saeed Al Maktoum President Emirates Airlines
WSMR: When the first Dubai International Airport was built to accommodate 15 million passengers, people were sceptical that it would never reach capacity. Now Dubai International Airport handles over 25 million passengers annually, and you are not only expanding the existing airport, but also building a second international airport. What do you say to the sceptics?
HH Sheikh Ahmed: When we announced that we were expanding Dubai Airport to make it capable of handling 75 million passengers, people thought we were exaggerating or we were talking about 25 years from now. But we knew we would need this airport very soon.
When people today look at the expansion and the concourse, what they see is only one of two concourses. A lot of people think this is big, but wait until they see the sec
ond one. By the time the new extension is open we will already be handling over 30 million passengers a year, and I think we will reach our maximum capacity very quickly. That is why we are opening the second airport in Jebel Ali. With Jebel Ali, I think you can have 120-180 million passengers. We are opening the first runway next year.
WSMR: What is the major driver for this growing demand in air transport?
HH Sheikh Ahmed: The drive for all this air travel has happened because Dubai became one of the places that attracted a lot of people to come here, as a shopping and tourist destination, and also as a business center.
Dubai is also a big logistics center. You see a lot of companies coming here. Emirates Airlines is playing a major role in making Dubai and the UAE a major hub. Sometimes it is not easy with the resources and manpower and investment, and also to get people to work together. But I think in Dubai we managed it successfully with the government. For any project, we see people working very closely together to make it a success.
WSMR: JP Morgan Securities Research reported that Gulf-based carriers would increase passenger capacity by 140 percent by 2011. How do you plan on reaching this target?
HH Sheikh Ahmed: We have close to 130 aircraft in six years. You are always calculating mileage costs, and how much a seat will cost to operate. The more seats you have the lower the cost will be. That’s how the formula works. When people talk about having a lounge and bigger toilets they have to consider whether they want to pay more for their seats. At the end of the day the people do want to pay less. If you want more space then your revenue will be reduced.
WSMR: Although you are the leading airline in the Middle East, many others are trying to duplicate your achievements. How are you differentiating yourself from the competition?
HH Sheikh Ahmed: I think it’s good to see the other carriers are doing well. We believe it’s more about complementing each other. It’s good for the UAE.
In terms of size we will have over 160 aircraft by 2012. If you are talking about long haul it is between 45 and 80, and these are 150-600 seat aircraft. As an airline we estimated that we have contributed no less than US$7.2 billion to Dubai’s GDP, both in terms of our direct and indirect contribution to the economy.
We have good airlines now in the Arab world. I think what differentiates us is that we are much bigger and much stronger. We started about 20 years back, about it is that we are not the only ones who are being affected by it. Everyone has the same problems. Some are doing better than others because of their fuel costs and hedging. When the costs go down, that may also affect them badly.
WSMR: Over the last decade, Emirates has established itself as one of the fastest-growing airlines in the world. Your fleet size is set to double in the next 5-6 years. What is the secret to your success?
HH Sheikh Ahmed: We find it no problem to bring in all these people. You see it now – try to pick up the phone and you won’t get a room in Dubai, even for influential people. If you look at the hotels, they will tell you that the occupancy is like nothing you can see anywhere else in the world.
I think what we expected to see over a 20-year period we now have seen over a five-year period. People find Dubai a very cosmopolitan place. The service level is quite high. You pay for it, but it is really worth it.
So part of the success of Emirates is our location in Dubai. We have that synergy that whatever is happening in Dubai is happening for Emirates. Dubai is Emirates and Emirates is Dubai.
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