Tuesday 03 / December / 2024
An interview with HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group
This year all airlines are facing great financial challenges and a decrease in operational operations and sales compared to previous years due to the COVID-19 pandemic. With regards to Emirates Airlines, how did you face these challenges and the decline in the company’s profits? And what are the company’s plans for a gradual return to achieve profits, especially since things are still unclear regarding limiting the spread of coronavirus?
The COVID-19 pandemic has led to a rolling series of lockdowns, border closures, and flight and travel restrictions around the world. That has hit us hard and we regret the impact on our customers, but Emirates fully supports the measures taken by Dubai and the UAE, and initiatives taken by other authorities around the world, to put people’s health and safety first.
Emirates continues to work closely with international and local authorities to responsibly and gradually resume passenger operations to meet travel demand, always putting as our top priority the health and safety of our customers, our crew and the communities we serve. Today, we serve 99 global destinations, with safe and convenient connections via our Dubai hub for customers travelling between the Americas, Europe, Africa, Middle East, and Asia Pacific. We are also operating our entire fleet of 151 Boeing 777s. The total number of destinations we are operating today represents around 70% of our pre-pandemic network. We are aiming to have our network fully restored by summer of 2021.
Emirates has put in a number of measures in place to ensure we bounce back on a stronger footing once travel restrictions lift, and demand returns. Our health and safety measures have been an assurance to customers that no detail has been spared when it comes to their health and wellbeing while travelling. As a result, we have seen encouraging demand across our network as travellers begin returning to the skies.
Emirates’ booking policies have also offered customers flexibility and confidence to plan their travel. Customers who purchase an Emirates ticket for travel enjoy generous rebooking terms and options, if they have to change their travel plans. Customers have options to change their travel dates or extend their ticket validity for 2 years.
We introduced the airlines industry’s first COVID-19 cover and more recently multi-risk travel insurance for our customers. This generous cover is offered by Emirates on all tickets purchased on or from 1 December 2020, at no cost to customers. In addition to COVID-19 medical cover, this latest offer also has provisions for personal accidents during travel, winter sports cover, loss of personal belongings, and trip disruptions due to unexpected air space closure, travel recommendations or advisories, similar to other multi-risk travel insurance products.
On the ground, we have also implemented world-first innovations such as the biometric path using facial and iris recognition at Dubai International Airport, which provides a frictionless experience for customers with virtually no interaction. We have accelerated these types of technologies with the health and safety of our customers in mind.
Since the beginning of this year, many airlines have suspended their flights and stations around the world for a long time, and some are still suspended from flying to some stations. How were the directions and strategy of Emirates Airlines in this matter and the procedures it took so that its customers would not be affected by these measures?
In March, we temporarily suspended all passenger flights as directed by our regulator the UAE GCAA. However, our cargo operations kept on moving, and we were able to scale up our cargo network very quickly. Emirates SkyCargo is now operating to 135 scheduled cargo destinations across the world using freighters, passenger aircraft, and Boeing 777 ‘mini freighters’ with modified passenger cabins that accommodate for additional cargo. From transporting urgently needed medical supplies and food, to materials required for manufacturing and other industries from origin to destination, Emirates SkyCargo continues to help reconnect cities to international trade lanes as manufacturing and other economic activities recommence.
Since March, Emirates has been safely and gradually restoring its network connectivity. We have already resumed operations to 99 global destinations and have increased frequencies and upgraded capacity where we have seen passenger demand. Emirates is closely coordinating with international and local authorities to restart network as more countries and airports reopen.
Emirates also actively engaged with embassies and consulates to support repatriation of stranded travellers and citizens. Over the last 7 months, the airline operated over 700 repatriation flights to nearly 40 online points on our network. This included special routes at the request of the various embassies.
During the past period, we have followed the reduction of airlines around the world for many of their employees due to the Corona pandemic, and some unfortunately dealt with this procedure in an unorganised manner and does not take into account the interest of the employees, as a major aviation organisation in the world How did Emirates Airlines deal with this issue? What are the company’s plans for the return of these employees after the improvement in the conditions in the aviation sector?
Like other airlines, our operations and income have been greatly reduced, due to the forced suspension of airline operations and restrictions on travel that have dampened demand. In addition, we have to honour booking cancellations, and pay out refunds. We expect a period of slowly rebuilding demand as travel restrictions gradually lift, and businesses and consumers gradually regain travel confidence.
While we’ve slowly restarted operations wherever it is safe and commercially viable, our operations footprint today is significantly smaller than before and it will take a while for us to recover to pre-pandemic levels. Like any responsible business, we had to right-size our workforce in line with our reduced operational requirements. Our people have always been a big contributing factor to our success, so this is not an action that we took lightly. We continue to take every possible action to reduce costs, restore revenue streams, and preserve jobs.
As we gradually scale up our operations further, and where there are requirements for resources to complement our network and fleet, we will recruit people within different areas, particularly in operations.
When do you expect the aviation sector to return to previous levels, and how can companies in general and Emirates Airlines in particular coexist and deal with these current and future developments?
We are already on a gradual and steady trajectory of growth, but given the interconnectedness of the world economy, there needs to be a complete reopening for a full recovery to happen.
We need to get the vaccine rolled out globally. Once it’s rolled out at speed and scale hopefully by middle of next year, we will see movement and demand increase. We are hoping that by the first quarter of 2022, we will see travel demand move up at pace across all segments, and that’s when there will be a substantive recovery.
What are the most prominent measures and steps taken by Emirates Airlines and Dubai Airport to reduce the impact of the pandemic on the company and also on the level of income and support that the company provides to the Dubai government?
The UAE recognises that aviation and tourism are vital economic sectors, and every effort has been taken to support the industry’s response to the pandemic and recovery strategies. Early on in the pandemic, the country set up a COVID-19 Command and Control Committee to co-ordinate the response of all stakeholders. Emirates, together with all public and private sector stakeholders, worked in partnership to enable the speedy and safe resumption of aviation and tourism activity. This resulted in Dubai being one of the first aviation hubs and cities to re-open for international transit passengers and tourist arrivals with enhanced bio-safety protocols in place.
Emirates has spared no effort in reviewing and redesigning every step of the customer journey, from check-in to disembarkation. Every measure implemented is an additional reduction in risk, and taken altogether, our aim is really to make flying as safe as possible.
Measures include the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers on the ground at check in. Protective barriers at each check-in desk and immigration counter have been installed to provide additional safety reassurance to passengers and employees during interaction over the counter.
All cabin crew on board are fully kitted out in PPEs. To uphold the highest standards of safety and hygiene, Emirates has added a cabin service assistant (CSA) to the crew complement on flights over 1.5 hours to ensure lavatories are cleaned at frequent intervals of every 45 minutes, amongst many other measures. All aircraft are deep cleaned in Dubai and go through an enhanced cleaning and disinfection process after every trip.
Emirates is also the first airline to provide free cover on COVID-19 related medical expenses should a customer be diagnosed with COVID-19 during their travel while being away from home, and more recently, we’ve taken it a step further with multi-risk travel insurance to provide a stress-free travel experience.
On the ground, we have also implemented world-first innovations such as the biometric path using facial and iris recognition at Dubai International Airport, which provides a frictionless experience for customers with virtually no interaction. We have accelerated these types of technologies with the health and safety of our customers in mind.
We are grateful that the Dubai government has supported Emirates with an equity injection during this unprecedented time for aviation and all global airlines. The government takes the view that they will do what it takes to support the airline given the intrinsic, vital nature of our sector and the industries that depend on it. The funds we have received were critical in putting us on a strong footing to support Dubai’s economy now and in a post-pandemic period.
At the present time, what are the most prominent stations and destinations that Emirates Airlines flies to? What are your plans for the coming period to increase new stations and return all flights to previous operational levels and operations?
Today, we serve 99 global destinations, with safe and convenient connections via our Dubai hub for customers travelling between the Americas, Europe, Africa, Middle East, and Asia Pacific. The total number of destinations we are operating today represents around 70% of our pre-pandemic network. We are aiming to have our network fully restored by summer of 2021, and are working closely with international and local authorities to responsibly and gradually resume passenger operations to meet travel demand.
Dubai has fully opened and is ready to receive visitors and tourists. We are greatly encouraged by the pace of Dubai’s recovery since the city opened its doors to international tourists five months ago. The steady influx of travellers to Dubai on Emirates flights indicates that we are on the right track, accelerating even further as the city reopens even more attractions, events and venues. Dubai has also made it easier for visitors from Oman to travel to the city with the option to take a complimentary COVID-19 PCR test on arrival, making it easier to start their winter getaway in Dubai straight away. Passengers coming from Oman do not need to take a test prior to departure.
What is the impact of postponing Expo 2020 on the company’s business? What are your plans for the success of this global event on the new date next year? And the most important facilities and services that the company will provide to the event guests?
The decision to postpone Expo 2020 Dubai was to ensure that the organisers safeguard the health and wellbeing of residents, visitors and international participants. As a principal partner for the event, we remain committed to Expo 2020 Dubai. We are working with the organisers, along with the other participants and partners to support and deliver a World Expo that is true to its time and holds firmly to its founding purpose.
The Sultanate has fraternal and historical ties with the Emirates. How does Emirates Airlines view the Sultanate’s station? And the most prominent services and facilities for travellers between the two countries? Also, please give us numerical statistics and indicators about the operations of the past period? And your expectations for the next stage to enhance operational operations?
The Sultanate of Oman and the UAE’s strong ties have always been founded on fraternal relations and shared values and interests. Oman is an important market for Emirates in this region.
We first started operating into Muscat in 1993, and since then, we have been able to successfully grow our operations to meet the demand of the travelling public, as well as serve the growing cargo demand in and out of the country. Pre-pandemic, we had 33 weekly flights to Oman, which included double daily A380 services, the shortest in the world. Our services were performing extremely well across all cabins.
We hope to resume to our pre-pandemic schedule of daily flights as passenger demand progressively continues to grow. Our objective right now is to maintain and grow load factors. In the longer term, we will continue to assess and carefully analyse the market, its performance and needs, which will show if there are more opportunities for us to further expand our presence.
There is great competition between airlines in the region and around the world. How do you view this competition? What are the company’s strategy and plans to continue to be the leader in the aviation sector?
We don’t comment on the activities of our competitors, however what I can say is that healthy competition in this industry will always be good for the customer – whether it’s providing more choice through connectivity options or a better experience in the air and on the ground. Today’s traveller, even in a post-pandemic world, will always be looking for the best money for value proposition. Competition also fosters airline investment across technology, spurs modern and innovative amenities and has helped make the airport experience better for travellers.
For Emirates, our focus at the moment is to fully restore our network operations, so that we can deliver on our mission of connecting people and economies, and regrow our business in a profitable manner. We will of course carry this out in a safe and sustainable manner.
Longer term, we will continue to invest back into our business through the latest products, services and technologies that make the travel experience better so that we are ahead of the game. We believe that the global desire and interest for travel will be reinvigorated. In spite of all that has happened throughout 2020, the bottom line is that there is a latent desire for people to travel. We will continue on our strategy of organic growth, collaborating with partners that enable us to provide more connectivity choices for our customers, and connecting more cities to and through Dubai while offering an outstanding value proposition to our customers.
What are your expectations for the coming years regarding the travel and aviation sector? What are your expectations regarding Emirates Airlines and the most prominent successes and achievements that you plan to achieve in the next phase?
Travel will rebound, and we are fairly optimistic that in the next 12-18 months once the various vaccines are rolled out globally, we will see a lot of passenger movements again, across all consumer segments. Emirates will benefit from this as we have been working hard to rebuild our network, ensure the safety and trust of our passengers, and we are continuing to invest in our business through product re-introductions and enhancements to ensure we bounce back quickly. In the coming months, we look forward to bringing our new Premium Economy product to market.
What is your last word to Emirates airline travellers from all over the world, and what do you promise them? Is there a special word for travelers from the Sultanate about the next stage?
Emirates promises travellers a better flying experience, this has been and continues to be our promise. As the world continues to open up, we hope to fly to more destinations and proudly serve more travellers in the coming months.
We also hope to be able to serve the Sultanate of Oman with more flights, so that travellers from Oman can take to the skies and discover the world again.
