Dubai Planning Massive Air Travel Expansion

by Lorys Charalambous, Tax-news.com, Cyprus

06 November 2001

Emirates' Airlines mega-order announced this week at the Dubai International Air Show is just a part of crown prince Sheikh Mohammed bin Rashid al Maktoum's larger plan to transform the sheikhdom into a hub linking Europe and North America with Asia, as well as a tourist center in its own right. The prince aims to multiply by five the number of tourists visiting Dubai by 2010, to 15 million.

Emirates, the fastest-growing airline in the Middle East, plans to buy 25 Boeing 777s and 33 planes from Boeing rival Airbus in a deal that could be worth as much as $15 billion. The purchases will increase Emirates total fleet from 36 to nearly 100 by 2010.

The Crown Prince, also the nation's defense minister, said the government-owned carrier was sending a message with the massive order. "The timing of this order — hard on the heels of recent events — is no coincidence. We are determined not to allow present difficulties to deflect our resolve."

Traffic on the Dubai-based airline grew by 20.4 percent last year to 5.7 million passengers, according to the International Air Transport Association. The growth suggests Emirates may become the region's No. 1 carrier as early as this year if it maintains that growth rate. Saudi Arabian Airlines' passenger traffic increased 3 percent last year.

The airline already serves Europe and the Far East and will introduce flights to New York and other points in North America beginning in 2003.

Echoing the prince's optimism was Noel Forgeard of Airbus, who told journalists at the show: "The psychosis that is developing is excessive; we are confident that the long term growth rate of 6% will resume after the recession. I know a CEO should never say never, but we do not consider layoffs. We are sitting on the bullish side, we have confidence that it will be better, certainly before 2004," he said.

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