Emirates Posts $1.6 Billion Profit

[Furloughed80]

Around 1989, Emirates had 2 727s and about 7 A300s/A310s. Just over 20 years later, they now have 87 777s and 15 A380s (orders for about 40 more), with additional A330s/A340s. With little to no corporate tax, Dubai's advantageous location, and unlimited financing for expansion; I don't think any US or European airline has a chance competing against Emirates.

DUBAI, United Arab Emirates – The annual profit of the Emirates Group, which includes the Middle East's largest airline, rose nearly 43 percent despite rising fuel prices that cut into the bottom line, the group's head said Tuesday.
Although the gains are significant for the group dominated by the Emirates airline, they are far smaller than last year's nearly 250 percent net profit jump.
Sheik Ahmed bin Saeed Al Maktoum, chairman and CEO of the Dubai-based group which also includes a cargo unit and other services, said net profit in the year to the end of March rose to $1.6 billion, up just shy of a 43 percent increase.
He told reporters that rising fuel costs reduced the year-end figures, with the airline paying at least $200 million in the past four months in higher fuel charges.
Ahmed noted that the airline industry around the globe was rattled by a number of other factors, including the volcanic ash cloud in Europe, record snow fall in the U.S. and Britain, two destructive earthquakes in New Zealand and Japan and political turmoil in the Middle East.
But he said not all "was doom and gloom" because the global number of passengers grew about 8 percent in the past year.
At $1.5 billion, the Emirates airline accounts for most of the Dubai government-owned group's annual net profit. The profit of Dnata, the airline service and cargo wing, reached $152.6 million, making Dnata the world's fourth largest combined service provider, Ahmed said.
Emirates, the largest carrier in the Middle East, has been expanding its operations. It opened six new destinations in the past year, including Amsterdam and Prague, the holy Muslim city of Medina in Saudi Arabia and Basra, an oil-rich city in southern Iraq.

 

[jonjuan]

Wrong board.

 

[Furloughed80]

Why? I think this of concern to 'Major Pilots'; especially when cabotage comes up for discussion.

 

[boxjockey]

At CX we just reported a 1.8B profit, and we got half of the profit share that EK got. Oh well, at least I don't have to live in DXB!!

box

 

[Flyer1015]

With little to no corporate tax, Dubai's advantageous location, and unlimited financing for expansion; I don't think any US or European airline has a chance competing against Emirates.

LOL! Please, please tell me you are kidding.

No corporate tax is an advantage? You're right! And American corporations are FULLY aware of how to handle assets to ensure they minimize or otherwise pay none in corporate taxes. Big corporations have abused the system to ensure they don't have to pay corporate taxes to the best of their ability.

As for "strategic location" you can't change the land dealt to you. DXB is a good point for travel throughout the world. Flight schedules are convenient, connecting North/South American flights right through DXB to flights through the M/E and Asia. Similarly on the way from Australia and Far East, flights schedule perfectly to catch those European, African, and N/S American flights.

Don't even dare compare Emirates to ANY US Airlines. The difference is beyond night and day! On Emirates, I received the best service in economy that I've ever had on any airline, US airlines included. The FAs were nice, smiling, and yes, attractive and fit. Unlike the legacy FA haggards here who are overweight, dont know what a treadmill is, take out their frustrations on passengers, never smile, and generally not nice. The food was awesome, very nice tasting, the chicken makhni was impeccable! Here in the US, on a 4-hr flight I'd have to pay $10+ dollars for a cold shriveled chicken sandwich that tastes bland and nasty.

As for 'unlimited financing' there are options here too. AMR sold bonds to raise some cash. Airlines can borrow, they can hold some of their owned airplanes as collateral against a loan, etc. The difference between EK and the US airlines is that EK actually wants to do well and make money. Whereas here, the US airline management team is interested in nothing but lining their own pockets (exception SWA), at the expense of everything else. This merger mania has landed many people golden parachutes, and quite frankly, people like Tilton and Steenland could care less once they pulled their rip cord on the golden parachute. Just as soon as Parker can land another merger with US Air, he'll pull the cord and bail out too.

Cabotage? Maybe. But foreign airline pilots, like the ones at British, Cathay, Virgin Atlantic, Qantas, etc, make for than us American counterparts. In fact, many European, Asian, and Australian pilots would be 'offended' to make the wages offered here.

 

[densoo]

Looks like they're taking over the world

10-year Captain: $10,548/mo.
10-year FO: $6,200/mo.
Pay freeze in effect.
Nice to see they're sharing the wealth with the pilots.

However,

Salary is tax free up to $85,700 for U.S. citizens
Provident fund: 12% of basic salary thru year 10; after year 10, 15%
Housing: if married, pilot receives a villa; married, no kids: 3 bedroom condo; single: 2 bedroom condo or you can opt out of all housing and get approx $3,000 USD/month
And,

Ordered 32 more A380s in June
10 747-8Fs on order with 10 options, delivery beginning 2010
Orders for 11 A380s, 70 A350-900s, and 12 Boeing 777s
50 A350 options
58 A380s on order
Hiring. 250 new-hires in 2010 and 500 in 2011 with worldwide roadshows now scheduled.

Three year training bond, $36K.

 

[Kharma Police]

10-year Captain: $10,548/mo.
10-year FO: $6,200/mo.
Pay freeze in effect.
Nice to see they're sharing the wealth with the pilots.

However,

Salary is tax free up to $85,700 for U.S. citizens
Provident fund: 12% of basic salary thru year 10; after year 10, 15%
Housing: if married, pilot receives a villa; married, no kids: 3 bedroom condo; single: 2 bedroom condo or you can opt out of all housing and get approx $3,000 USD/month
And,

Ordered 32 more A380s in June
10 747-8Fs on order with 10 options, delivery beginning 2010
Orders for 11 A380s, 70 A350-900s, and 12 Boeing 777s
50 A350 options
58 A380s on order
Hiring. 250 new-hires in 2010 and 500 in 2011 with worldwide roadshows now scheduled.

Three year training bond, $36K.

Must be nice for EK management knowing that trade unions are illegal in the UAE.

 

[jonjuan]

Must be nice for EK management knowing that trade unions are illegal in the UAE.

What's nice for them is that people are just giddy to work there.

 

[formerdal]

Whats nice for them is they are government funded....

 

[HA25]

If they doubled their wages, I'd actually start taking them seriously as a career.. but for that kind of money, I'll hang tight and fly for a 3rd rate ACMI before I call that a career.

 

[nimtz]

Even if you double the wage and put me in a shiny A380, I won't live anywhere near that corrupt cesspool. If Emirates ever got foreign basing ala Cathay the ex-pats would be racing to the first Western base they could hold. Sadly for Dubai after building too many sky scrapers on debt, it's most attractive asset is Emriates.

 

[HA25]

Even if you double the wage and put me in a shiny A380, I won't live anywhere near that corrupt cesspool. If Emirates ever got foreign basing ala Cathay the ex-pats would be racing to the first Western base they could hold. Sadly for Dubai after building too many sky scrapers on debt, it's most attractive asset is Emriates.

well, I fully agree, a US base would make EK the new UPS or Fedex... but I think you're being a bit dramatic with regards to the "corruption"... Dubai is no more or no less corrupt than any other country... and certainly less corrupt than most.. Don't forget, here in the US we also have corruption, but it's in the open... in the form of Lobbies and PACs.

 

[jonjuan]

Sadly for Dubai after building too many sky scrapers on debt

Are you talking about the U.S. or Dubai?

 

[Secret Squirrel]

If it was the U.S. he would have said "they built too many entitlement programs on debt."

 

[HA25]

If it was the U.S. he would have said "they built too many entitlement programs on debt."

err... I think you mean too much military industrial complex?

 

[Secret Squirrel]

Show me the balance of the social security trust fund. Oh wait, it is a bunch of IOU's for tens of trillions of dollars that do not exist.

 

[HA25]

Show me the balance of the social security trust fund. Oh wait, it is a bunch of IOU's for tens of trillions of dollars that do not exist.

cause they were used to fund nuclear carriers, F22's and B2's...

 

[Secret Squirrel]

cause they were used to fund nuclear carriers, F22's and B2's...

So you admit all those projects are FUNDED and the entitlement projects are UNFUNDED.

 

[HA25]

So you admit all those projects are FUNDED and the entitlement projects are UNFUNDED.

of course I do, otherwise I'd be in a circular argument, like you are.

you gotta pay the military industrial complex.. they don't take IOUs...

 

[nimtz]

well, I fully agree, a US base would make EK the new UPS or Fedex... but I think you're being a bit dramatic with regards to the "corruption"... Dubai is no more or no less corrupt than any other country... and certainly less corrupt than most.. Don't forget, here in the US we also have corruption, but it's in the open... in the form of Lobbies and PACs.

You won't see me arguing the US is a 'shining city on a hill' in that and a lot of matters. That being said I prefer my world with a heavy dose of cynicism so I doubt I would fit Sheikh Mohammed bin Rashid al-Maktoum's expat profile. Dubai is still in business because of it's less cool older brother Abu Dhabi who *surprise* has more nat gas/oil revenue then they know what to do with. To each there own, but this career is not worth chasing around the world anymore especially if home is a McVilla in the desert. Probably good fun for a few years, but the next 30 no thanks.