UAE/TURKISH BUSINESS RELATIONS

UAE/TURKISH BUSINESS RELATIONS

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  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
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    'New Era' in Middle East aviation?
    Low-fare air just landed smack-dab in the middle of the Middle East - specifically in skies-the-limit Dubai. That’s the place they’re building the world’s tallest building, the Burj Dubai, which already towers some 2,300-feet above the desert.

    Dubai is known for grand schemes and projects writ large. Its service-intensive, globe-girdling airline is Emirates, which flies A380s replete with shower baths for First Class flyers. That’s why it’s so seemingly out of character for a low-fare new-entrant to set up shop in this opulent desert kingdom, somewhat as now-defunct Skybus did in Columbus (CMH). Skybus was the quintessential “unbundled” airline. After paying a pittance for the seat itself, you shelled out for virtually everything else a la carte – a practice that’s gained lots of traction over the past couple of years among not just discount airlines, but majors as well.

    Dubai’s cheapseater is called flydubai, and it too charges for 'extras' (you do get to carry on one 10kg handbag gratis). Maybe the name’s in lower case so you’ll think ‘discount airline.’ Anyway, in its press statement, the carrier doesn’t even capitalize the first letter of its name when starting a sentence.

    The idea, according to the company is to “make travel a little less complex, a little less stressful, and a little less expensive.” Flydubai intends to start service from Dubai (DXB) to a slew of regional cities. Among the first batch: Beirut (BEY), Amman (AMM); Alexandria, Egypt (ALY); and Damascus (DAM). The conveyance of choice is the Boeing 737-800NG (Next Generation). The carrier has ordered 50 of the narrowbodies, the first of which was just delivered.

    An announcement of when the first flight will take wing should come shortly.

    It’s doubtful flydubai will meet the same fate as Skybus. The carrier is nicely capitalized. It also has a ready customer base craving cheap, dependable passage. Dubai is Expatville. Expatriates are everywhere. Westerners (increasingly looking for ways to save a buck) help run the commercial sector, and cheap labor from throughout the region and much of South Asia keeps the gears of commerce grinding away. That’s the audience – and that’s why flydubai should work just fine, perhaps causing a cascade of competitive ripples in a part of the planet where change doesn't come all that readily .

    Source: http://www.examiner.com
    • 10 Jun 2009, 12:15 pm
  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
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    Dubai’s airlines run risk of overcapacity
    Airlines – in particular Emirates – are synonymous with Dubai. From the rebadging of Arsenal’s Highbury football stadium in London to high-profile purchases of giant Airbus A380 aircraft, Dubai has used its flag carrier as a pillar of a decades-long marketing effort to project an image of dynamism and club-class luxury.

    Emirates “has managed to find its niche as this long-haul, low-cost carrier which is almost the holy grail of the airline industry. If you can operate long-haul at low-cost then you are likely to be very profitable”, says David Kaminski of Flight International, a trade publication.

    Since its first flight in 1985 Emirates has been engaged in an ambitious expansion programme. It has 135 aircraft in operation and has a further 158 worth a massive $52bn on order, excluding options.

    But in May, Emirates announced that its annual profits in the year to the end of March fell 72 per cent to Dh982m ($268m).

    The airline said that sky-high oil prices were to blame for the plunge in profitability. The airline lost Dh1.57bn ($428m) as hedging strategies went awry, according to its accounts.

    Oil prices have now moderated but Dubai Inc is facing financial problems. The emirate faces a host of financing calls this year amid a crash in local property prices. The question is whether the airline can maintain its dramatic growth in constrained circumstances – or whether it has over-reached itself.

    In June Giovanni Bisignani, the director-general of the International Air Transport Association, warned in Dubai: “The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced.”

    However, in the same month, Dubai International Airport saw a 10.3 per cent year-on-year rise in passenger traffic to 3.36m.

    Sheikh Ahmed bin Saeed al Maktoum, the chairman of Dubai Airports and of Emirates airline, said that the emirate was still committed to an investment programme of $17.2bn in its airports.

    This includes the construction of what is intended to be the world’s largest airport, the Dubai World Central-Al Maktoum International, at Jebel Ali. The behemoth, the first runway of which his due to opened next year, is due to have five runways in total and be able to cope with 160m passengers a year.

    Analysts, mindful of the experience of Gulf Air, counsel caution. In the 1980s, Gulf Air, based in Bahrain and then owned by four Gulf states, expanded too rapidly, they say, and has never been the same since. Moreover other, wealthier, Gulf states – Abu Dhabi with Etihad and Qatar Airways – are venturing into the premium markets occupied by Emirates and can exploit the same cost advantages that it has pioneered.

    “I think the issue is the timing. They [Emirates] have a huge number of aeroplanes on order. Sooner or later there will be room for all of them but it is a question of whether their timetable matches that of the world economy and that of Dubai,” says Mr Kaminski.

    It may then seem an odd time to launch another airline given the worst recession in decades.

    At the beginning of June the emirate launched Flydubai, its first foray into the budget airline market.

    The start-up is facing established competition in the form of Air Arabia, which operates out of Sharjah, Sama of Saudi Arabia and Jazeera Airways of Kuwait.

    In keeping with the Dubai approach, Flydubai is nothing if not ambitious. The new operation is planning to purchase a total of 54 Boeing 737-800s.

    Ghaith al-Ghaith, Fly­dubai’s chief executive, says that in Europe penetration by budget airlines is about 20 per cent of travellers and there are projections that this will grow to 50 per cent. In the Middle East, however, budget travellers make up only a low single-digit percentage of passengers.

    Bill McKnight of AT Kearney, the consultants, says that unless Flydubai publishes separate accounts from Dubai Inc it will be difficult to tell whether the venture is a success or not.

    “Any airline can offer lower fares, at least for the short term. The question is always whether an airline can make a profit by doing so and that depends heavily on its cost structure,” he says.

    Flydubai says no decision has been taken on whether to issue separate financial statements, as Emirates does.

    Mr Kaminski thinks the Flydubai venture is a defensive move on the part of Dubai’s rulers, perturbed by the success of nearby rivals. “I think part of it is to stop too much of a drift to other budget carriers in the region because if you can’t beat them, join them,” he says. “I suspect that is keeping part of the market in Dubai rather than elsewhere.”



    Source: http://www.ft.com
    • 28 Jul 2009, 5:18 pm
  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
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    Re: Al Maktoum International airport receives first flight
    The first test cargo flight from what will be the world's largest airport landed on Sunday at Dubai World Central-Al Maktoum International airport, giving the green light for operations to begin next Sunday.

    Emirates Flight EK9883, a Boeing 777 freighter operating Hong Kong-Dubai and piloted by Captain Ahmad Bin Huzaim and First Officer Nabil Yousuf Ahmad Mohammad Rai Al Boom, touched down on Sunday afternoon as officials looked on.

    "This is an important milestone, not only for the airport's certification process, but as another step towards achieving Dubai's vision to become the pre-eminent centre for aviation worldwide," said Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Airports.

    The airport is part of a $33 billion Dubai World Central (DWC) project that will take Dubai's reputation for a transport hub to a whole different level.

    The master plan includes six interrelated developments; the world's largest airport, Al Maktoum International Airport, Dubai Logistics City, DWC Aviation City, DWC Residential City, DWC Commercial City and DWC Golf City.

    The combined developments are designed to serve the city's aviation, tourism, commercial and logistics requirements up to 2050 and beyond.

    The first phase of the airport will feature one A380 capable runway, 64 remote stands, one cargo terminal with annual capacity for 250,000 tonnes of cargo and a passenger terminal building designed to accommodate five million passengers per year.

    When completed, Dubai World Central-Al Maktoum International will be the largest airport in the world with five runways, four terminal buildings and capacity for 160 million passengers and 12 million tonnes of cargo.

    The facility opens initially for cargo carriers, with passenger operations currently slated to start up at the end of March 2011 in concert with the IATA schedule change, operating company Dubai Airports announced on Monday.

    DWC will combine air and land cargo while its location just a few kilometres from one of the region's largest port at Jebel Ali connected by a dedicated highway, will give it the ability for one of the quickest transfer time for goods.

    During the live operation, the flight effectively tested Air Traffic Control procedures, airfield and taxi way signage and routes, radio communication and a host of processes and procedures related to ground and cargo handling, fuelling, catering, customs, immigration and security.

    The trial also tested communication links between all the parties involved – Emirates SkyCargo, Dubai Airports, Dubai Air Navigation Services, Dubai Police, Customs, Immigration, Engineering Projects, Dubai Logistics City, Dubai World Central, JAFZA, Dnata, Swift Freight and the Roads and Transport Authority.

    Here are some pictures:
    http://gulfnews.com/pictures/business/al-maktoum-internation...

    Kind regards,
    Nilgun Birgoren
    • 22 Jun 2010, 4:10 pm