The Emirates Group PDF
The Emirates Group PDF
Head office
The airline's head office is in the Emirates Group building in Al-Garhoud, Dubai.[4][6] The building is located on Airport Road,
across from the site of the Emirates Engineering Centre in 2007. A tunnel connects the building to Dubai International Airport.
Construction of the building cost AED 700 million (US$191 million).[7] Construction began in 2004[8] and was scheduled to end
in 2007.[7] Emirates self-financed the construction.[8] Over 6,000 employees work in the building.[6] Previously the airline's head
office was the Airline Centre along the clock tower Roundabout in Dubai.[9][10]
History
Origins
As the British pulled out of Dubai in the late 1950s, Sheikh Saeed bin Maktoum al Maktoum decreed an open seas, open skies,
and open trade policy, to develop the country. He also required all government agencies to make a profit. The country was aiming
to eliminate its dependence on its finite oil reserves within 50 years.
The Dubai National Air Transport Association (DNATA) was formed in 1959, and by the mid-1980s, it was employing 2,500
employees. It consisted of three business segments: Dnata Airport Operations, Dnata Cargo and Dnata Agencies. In addition to
providing support services at Dubai International Airport, the company served as sales agent for 26 airlines. Dubai had been used
as a stopover on routes between Europe and the Far East since the days of Imperial Airways, which landed its flying boats there
en route to Australia. The open skies policies kept its airport among the busiest in the Middle East.
During the mid-1980s, Gulf Air began to cut back it services to Dubai. As a result, Emirates was conceived in March 1985 with
backing from Dubai's royal family, whose Dubai Royal Air Wing provided two of the airline's first aircraft, used Boeing 727-
200/Advs. It was required to operate independently of government subsidies, apart from $10 million in start-up capital. It also
leased a new Boeing 737–300 from Pakistan International Airlines which was returned in 1987.[11] Maurice Flanagan was named
managing director of the new airline. Formerly of the Royal Air Force, British Airways, and Gulf Air, Flanagan had been
seconded to DNATA in 1978 on a two-year assignment as assistant general sales manager. Chairman was Sheikh Ahmed bin
Saeed Al Maktoum, nephew of the Ruler of Dubai, became chairman of Department of Civil Aviation and DNATA itself. Tim
Clark joined the management team.
The first flight of the airline was, Dubai-Karachi on 25 October 1985.[12] The
airline leased an Airbus 300B4-200, from Pakistan International Airlines.
Bombay and Delhi were the next destinations for the airline. Sheikh Mohammed
bin Rashid al Maktoum later gifted two Boeing 727-200s to the airline.
The Emirates Group became profitable within its first nine months. During its
first year, the airline carried about 260,000 passengers and 10,000 tons of freight.
By 1986, the airline was adding new destinations such as Colombo, Dhaka,
Boeing 777-300ER Amman, and Cairo to its route network.
In its second year the group posted a loss, but growth continued even as the region was experiencing a downturn a year later. The
Gulf War and the laying off of expatriate workers as the main factors. In its second year, competitors had accused Emirates of
starting a price war, something the airline's competitors still accuse Emirates of doing. On 3 July 1987, Emirates received its first
bought Airbus A310-304, from Tolouse. Within the first 38 months of operating, Emirates was serving 12 destinations.[13]
Emirates Sky Cargo, which operated as a separate entity, carried 25,000 tons of freight in fiscal 1989. Emirates expanded its route
network into the Far East in 1990, and expanded its European operations in the summer of 1992. In 1990, the airline purchased
three additional Airbus A310-300s from Airbus. The Group also launched Marhaba in December 1991 as a premium meet and
greet service for passengers travelling through Dubai International Airport.[14]
Growth
Emirates airline had become one of the world's fastest growing airlines by the early 1990s. Revenues increased by about
$100 million each year, approaching $500 million in 1993. It carried 68,000 tons of cargo and 1.6 million passengers in the same
year. The Gulf War had helped Emirates by keeping other airlines out of the area. Emirates was the only airline to continue flying
in the last ten days of the war. By the winter of 1991, the Emirates fleet was grounded for several days, as the liberation of
Kuwait begun. Operations resumed weeks later. The airline saw the arrival of another Airbus A300-600R, taking its fleet to nine,
Emirates ordered seven Boeing 777s, with an option for seven more, in a US$645.5 million deal in the same year. As the airline
celebrated its sixth anniversary, 25,000 passengers a week were being flown to 23 destinations. A year later, Emirates opened
their own US$2 million terminal at Dubai Airport.
A partnership agreement with US Airways entered in the fall of 1993 allowed Emirates to offer services around the world. It
previously had cooperation agreements with Cyprus Airways. By 1994, the airline was connecting 32 destinations with its 15
aircraft. At this time Emirates was the sixth largest airline in the Middle East.
Emirates took in revenues of $643.4 million in the year ending 30 March 1994.
The airline had 4,000 employees and carried two million passengers a year
between 34 destinations with a fleet of 18 Airbus aircraft. In spite of the large
capital expenditures, the Dubai government had laid out only $50 million since
the airline's inception. In October 1995, the Emirates Group launched Mercator
an IT solutions company.
A total of 92 air carriers were flying to Dubai Airport and Emirates faced intense
competition at its home base. It carried about three million passengers a year to Emirates SkyCargo A310
Dubai International Airport in the mid-1990s. Emirates continued to expand
during the late 1990s. The growing cargo business accounted for 16 percent of
the airline's total revenues. By 1995, it has a fleet flying to 34 locations in the Middle East, Far East and Europe. Emirates also
opened its own Flight Training Centre in 1995.
In 1997, Emirates was flying a dedicated freighter to Amsterdam, a point not on its network of passenger routes, in cooperation
with KLM. It carried about three million passengers during the year. The same year, Emirates made a $2 billion order for 16
Airbus A330-200s, and carried over three million passengers and 150,000 tonnes of cargo. The airline also took delivery of six
Boeing 777–200s, giving it new long-haul capabilities.
Emirates opened a, $65 million training center in January 1997. The airline was then able to provide simulator training for its
crew members and flight and maintenance personnel. A record group profit of AED 371 million was achieved in 1997–98.
Emirates executives planned a slowdown in the airline's growth in the late 1990s to stabilize its expansive route network.
In May 1998, Emirates paid the Government of Sri Lanka $70 million for a 40 percent stake in SriLankan Airlines (formerly
known as Air Lanka). As part of the deal, Emirates received a 10-year contract to manage SriLankan.[15] In January 2008,
Emirates announced that it would give back management of SriLankan Airlines to the Government of Sri Lanka, effective April
2008.[15][16] Emirates sold its stake in SriLankan Airlines to the Government of Sri Lanka during June 2010.[17][18]
In 1998, the airline opened a $540 million Terminal 2 at Dubai International Airport, and increased its capacity by 26 per cent as
passenger figures hit 3.7 million, while cargo levels went up to 200,000 tonnes. Galileo Emirates (now known as Emquest), was
established to consolidate the distribution of travel solutions, primarily the Galileo Reservation System, in the existing markets of
the UAE, Oman, Bahrain, Qatar, Pakistan and Sri Lanka.
In 1999, Emirates opened its own hotel – The Al Dossa Desert Resort. Emirates Group's workforce totaled 11,000 that year, and
Dnata entered the South East Asian airport services market with the launch of Dnata Philippines Inc. Emirates SkyCargo also
launched a new system called Skychain developed by Mercator, which provided access via the Internet and email to everyone
involved in moving a cargo consignment.[19]
Modern history
Emirates announced an order in April 2000 as the first launch customer for the Airbus A3XX (later named Airbus A380), the
largest civil aircraft ever built. The deal comprised five Airbus A380-800s and two Airbus A380-800F. The deal was confirmed
on 4 November 2001 and Emirates announced orders for 15 more A380-800s at the same time. Also announced was an order for
6 Boeing 777's. Emirates justified its order saying that purchasing the 481- to 656-passenger super jumbo to was to maximize its
use of scarce takeoff and landing slots at crowded airports like London Heathrow. In the same year the new Sheikh Rashid
Terminal opened, increasing the capacity at Dubai International to 22 million passengers a year. The loyalty program of Emirates,
Skywards was also launched. Sheikh Ahmed also announced that Dubai Government is to invest $500–600m in the new Terminal
3 – with a capacity for 20 million passengers a year.
Towards the end of 2000, Emirates Airline was planning to start ultra-long-haul
service to the East Coast and West Coast of the United States as well as nonstop
flights to Australia and Argentina. Traffic continued to grow at a rate of 20
percent in 1999–2000.
In early 2003, the Emirates flight catering was formed out of Emirates Abela Catering Company. Emirates flight catering
employed over 5,400 staff. In its first year, the catering company produced over 16 million meals with a daily average of 45,000
meals.[20] In the end of 2003, Emirates ordered 71 aircraft at a cost of $19 billion. In the financial year ending March 2003,
Emirates carried 8.5 million passengers, an increase of 26%, and the airline posted an increase in profits of 94 per cent to
Dhs907 million from Dhs468 million from the previous year. Dnata also launched its services in Kuwait.[21]
In 2004, Emirates ordered four Boeing 777-300ERs, with nine options, in a $2.96 billion deal. The SkyCargo fleet is increased
with three Airbus A310-300s added to its six Boeing 747s. Emirates also signed a £100 million deal with English Premiership
side Arsenal, which included the naming rights to its new stadium for 15 years and shirt sponsorship for eight years, starting from
the 2006/07 season. By the end of 2003, Dnata began operations in Kuwait.
In 2005 the Emirates Group workforce totaled 25,000, making it Dubai's largest employer. Passenger traffic also continued to rise
with 12.5 million recorded that year. Emirates ordered 42 Boeing 777s in a deal worth $9.7 billion, the largest Boeing 777 order
in history at the Dubai Airshow in 2005. In April 2005, Dnata started operations in Saudi Arabia.[22] In June, Dnata bought over
Changi International Airport Services, with Temasek Holdings retaining shareholding. In July, Emirates flight catering began
operations at its new food point facility – a 10,000 square metre facility capable of producing 30 million meals annually.[23]
In early 2006, Emirates flight catering began operations at its new $120 million catering facility dedicated to service the flights of
Emirates Airline. The facility had the capacity of producing over 115,00 meals daily. Also, in 2006, Emirates flight catering
opened its linecraft laundering plant. The facility has a total area of 10,500 m2, and a capacity to handle 50 tonnes of laundry and
dry cleaning output per day.[24] At the Farnborough Air Show in 2006, Emirates signed an agreement for 10 Boeing 747-8F in a
deal worth $3.3 billion, and in 2007 Emirates signs contracts for 120 Airbus A350s, 11 Airbus A380s and 12 Boeing 777-
300ERs, worth an estimated $34.9 billion, at the Dubai Air Show. The New Engineering Centre and Engine Test Cell are
officially opened and the Emirates Harbour Hotel & Residence and the Marina Hotel open their doors. In September, the group
also buys a 49% stake in UK based Alpha Group.[25] Also in 2007, Dnata signed a 15-year joint venture agreement with China
West Airport Group to provide airport ground handling services in Xi'an Xianyang International Airport. Dnata will also
participate in operations at 10 other airports managed by CWAG. Under the agreement signed, Dnata will hold a 45 per cent stake
in Xi'an Dnata Aviation Services Company Limited, with the remaining 55 per cent owned by CWAG. Also, at the end of 2007,
Dnata opened offices in Qatar.[26]
In 2008, the Emirates Group moved into its new headquarters in Dubai. Emirates SkyCargo also began operations out of Dubai
Cargo Village's new Mega Terminal, with a capacity to handle 1.2 million tonnes annually. In June, Dnata acquired a 19.99
percent stake in its partner Hogg Robinson Group, becoming the largest shareholder in the company.[27] In August Emirates took
delivery of three A380s and the first Emirates A380 touched down in New York in August. Emirates also received its 10,000th
cabin crew member. In September, Sabre Holdings signed a 10-year agreement with EmQuest tp distribute services in Africa. In
October the Emirates dedicated Terminal 3 opened with a capacity of over 27 million passengers, the terminal is the largest
terminal in the world.
In 2013, EmQuest signed an agreement with Contac Services Inc. to launch the mywurld platform in the Middle East and
Africa.[28]
Corporate management
The Emirates Group is a subsidiary of the Dubai government investment company, Investment Corporation of Dubai.[29][30][31]
The group has recorded a profit every year, except the second, and growth has never fallen below 20% a year. In its first 11 years,
it doubled in size every 3.5 years, and has every four years since.[32]
In 2008 Emirates paid dividends worth US$776 million to the Government of Dubai. The government has received Dhs3.1 billion
from Emirates since dividends started being paid in 1999 for having provided an initial start-up capital of US$10m and an
additional investment of circa US$80m at the time of the airline's inception.[33] The Dubai government is the sole owner of the
company. However, it does not put any new money into it, nor does it interfere with running the airline.[32]
Emirates airlines employed a total of 51,786 employees of which 10,324 were cabin crew, 2,141 were flight deck crew, 1,849
were in engineering, and 9,379 were listed as other[36] at the end of the fiscal year on 31 March 2009.
Subsidiaries
Air transport
Emirates Airline
Emirates is a subsidiary of The Emirates Group, and a major airline in the
Middle East. It is the national airline of Dubai, United Arab Emirates and
operates over 1,990 passenger flights per week,[37] from its hub at Dubai
International Airport, to over 101 destinations in 61 countries across 6
continents.[38] Emirates Airline was established in 1985 with one Boeing 737
and one Airbus A300. The Emirates fleet is now 10 Boeing 777-200LR, 3 Emirates Boeing 777
Boeing 777-300, 139 Boeing 777-300ER, and 104 Airbus A380 aircraft.[1]
In the financial year 2008–09 passenger numbers reached 22.7 million, representing an increase of 7.1% over the previous year.
[39]
The airline's profits however were down 72% for the 2008/09 fiscal year. Its profit of 1.49bn dirhams ($406m; £255m) for the
year to 31 March compared with a 5.3bn dirham profit for the previous year.[40][41]
Emirates SkyCargo
Emirates SkyCargo is a cargo carrier operating from Dubai International Airport.
The SkyCargo division operates 13 Boeing 777 Freighters. Emirates SkyCargo
also use the cargo capacity of the passenger fleet.
Dnata
Dnata is an aviation services company, comprising Dnata Airport Operations, the largest ground and passenger handling company
at Dubai International Airport, Dnata Cargo, responsible for dealing with much of the 1.3 million tonnes of cargo passing through
Dubai International Airport, and Dnata Agencies, a Dubai-based travel agency, acting on behalf of a number of major carries,
including Aeroflot, Aer Lingus, Airblue, British Airways, Swiss and United Airlines.[1]
The division can manage and implement all aspects of aircraft engineering
support, such as maintenance, safety and logistics. It also has an engine test cell
facility. It also occupies the Emirates Engineering Centre which opened in late
2006 on a 136-acre (0.55 km2) site at Dubai International Airport.
Its eleven fully air-conditioned hangars for heavy and light maintenance, Emirates Engineering aircraft
together with a paint hangar, cover an area equivalent to 17 football pitches and hangars
have the capacity to meet the service requirements of an Emirates fleet which is
growing at the rate one new aircraft every month. Each hangar has an entrance
gate 88 metres wide and every bay can accommodate any size of aircraft with an engine thrust of up to 150,000 pounds, including
the Airbus A380, which is 73 metres long with an 80-metre wingspan and a tail 24 metres high.
Flight catering
Emirates Flight Catering Company has over 11,000 employees and provides in-
flight catering and support services for airlines at Dubai International
Airport.[42] It provides the catering for all Emirates flights from Dubai, and also
for other airlines operating at the airport. In 2009, Emirates was voted by
Skytrax, the fourth best onboard catering in Business Class, and second best
catering in Economy Class.[43]
The catering facility servicing the airline's flights has a design capacity of
225,000 meal tray set-ups per day.[42] The company provided over 55 million
meals in 2017. The daily average meal uplift was 180,000.[44] Emirates flight catering at Dubai
International Airport
Alpha Flight Services Pty Ltd (Australia)
Alpha Flight Services is a leading onboard catering operator and has been supplying all Emirates airline flights departing
Australia since 2008.
Emirates Group has a 49 per cent interest in the company, which provides in-flight catering at nine airports in Australia, including
all major international gateways, serving 16 customer airlines with over seven million meals a year
IT
Mercator was the IT division of the Emirates Group. It was launched in 1995 to serve the business technology requirements of
Emirates and Dnata. Aviation technology and solutions were later on not only provided to the Emirates Group companies, but
also to other airlines and businesses.
2014 it was announced that the equity firm Warburg Pincus acquired a majority stake of Mercator and that Dnata would still hold
a minority stake.[46]
Mercator merged in 2017 with the Spanish aviation solutions company Accelya and will operate under the latter name. Previous
majority shareholder of Mercator, Warburg Pincus, is also the majority shareholder of the new company.[47]
Retail
Emirates High Street is an online store which stocks over 400 products, such as luxury goods, electronics, and holiday packages.
Customers use Skywards Miles, earned by members of Emirates airline's frequent flyer loyalty scheme, to buy products.
Emirates Leisure Retail's core business is establishing, managing and franchising restaurants, cafes, bars and leisure facilities in
the GCC.
Sirocco
Sirocco is a joint venture between Emirates and Heineken International which manages the sales and marketing of a range of
beverages in the Middle East. It handles brands such as Heineken, Amstel Light, Budweiser, Tiger, Carling and Sol, and –
following Heineken's acquisition of Scottish & Newcastle – Bulmers and Strongbow. With a market share of 60% in Dubai, it is
the leading operator in the UAE, as well as Oman, Bahrain and Qatar.
Emirates Group Security is an organization that is responsible for security measures throughout the Emirates network. It covers
all Dubai passengers and cargo terminal users, company facilities and staff accommodation. Emirates Group Security also
investigates theft, document fraud, misappropriation and all breaches of security against the interests of the company and its
customers.
Transguard Group
Transguard Group is a security services provider in the Middle East with an annual turnover exceeding AED600 million and
more than 38,000 full-time employees. It is also one of the region's largest operators in business support services, facilities
management, cash management, security technology, training, events management and airport services. Established in 2001 as a
support service provider to the numerous brands operating under the Emirates Group.
Its cash management business operates from the company's headquarters in Dubai's Airport Freezone which also houses the
largest cash processing facility in the region, while an additional facility was recently opened in Abu Dhabi.
The company is a subsidiary of Emirates providing administrative support, managing data, and coordinating third party suppliers
such as venues, catering, and accommodation. It deals with conferences and provides support to delegates, as well as providing
leisure and recreational activities for visiting delegates.[48]
CSI has hosted large events such as the Global Travel and Tourism Council, which around 1,300 delegates attended. It also hosted
on behalf of the World Economic Forum and the government of Dubai, a summit on the Global Agenda attended by 700 business,
government and academia representatives.
Gulf Ventures
Is another destination management company, that provides tourist operations in the United Arab Emirates and Oman.
Arabian Adventures
Arabian Adventures is a destination management company, providing services to the different tour operators, incentive houses,
meeting organisers, businesses and cruise lines.
Travel
Emirates Holidays
Emirates Holidays is the tour operating arm of Emirates.[49] Emirates Holidays top destinations are Dubai, Malaysia, Thailand,
the Maldives, Sri Lanka and Mauritius.
EmQuest
EmQuest provides electronic distribution products and services to different firms, connecting suppliers with resellers and giving
them a platform to exchange content and trade with one another.
It manages a large network of brands, content and services for tour operators, travel agents, car rental companies, hotels and
airlines throughout the Middle East and Africa.
Global Distribution Systems (GDS) are a key line of business and EmQuest works with Sabre Holdings to manage the
distribution, sales, service and support of Sabre GDS in the UAE, as well as five African markets, including South Africa, Kenya,
Tanzania, Uganda and Zambia. Prior to this, EmQuest was known as Galileo Emirates and distributed products in the UAE,
Pakistan, Afghanistan, Sri Lanka, Bahrain, Oman and Qatar.
Calogi
Calogi is a secure internet service portal that gives offers a range of air cargo businesses from around the world to negotiate and
sell products and services online. Its secure portal connects airlines, agents, freight forwarders and government authorities, to a
global network of firms.
Cargo Partners
Cargo Partners is the sales and services arm of Dnata Cargo and offers support to more than a quarter of all the airlines operating
out of Dubai International Airport.
It manages export sales and local operations on behalf of more than 30 carriers.
Freightworks
Freightworks uses the cargo data systems to offer tailor-made global logistics solutions to firms in the Middle East.
SDV-UAE LLC
SDV-UAE LLC is one of the largest transport and logistics providers in the Middle East with multinational contacts in the cargo
industry.
Loyalty programs
Emirates Loyalty Services is a consultancy subsidiary of Emirates' Skywards frequent flyer programme. It offers a comprehensive
range of CRM and loyalty solutions, covering every step from conception, creation and design to delivery, implementation,
management and support.
Emirates Skywards
Emirates Skywards is a four tier frequent flier program operated by Emirates. It is used by over 8.4 million customers.[50] The
three main tiers are Blue; Silver, which requires 25,000 tier miles for entry; and Gold, which requires 50,000 tier miles. There is a
fourth tier named Platinum and requires 150,000 tier miles. There is an additional membership known as Invitation Only or "IO"
where you must be invited to this small group of members.[51] The benefits provided are over and above the Platinum benefits.
Training
The Aviation University located in Al Garhoud, and in Academic City is an education and training facility for the airline industry.
The college opened in 1991, and was transitioned to a university in December 2010. The newer campus that is located in
Academic City opened in January 2015. It offers professional academic and vocational training programmes. More than 1700
aerospace engineers and technicians and 2000 air traffic controllers have graduated from the college, while the number of full-
time students has increased from 300 to 1100 between years 2004 and 2009.
ECFT, as the joint venture is known, is the first facility of its kind in the Middle East to be qualified to both Joint Aviation
Authorities (JAA) and Federal Aviation Administration (FAA) standards. The 14-bay centre houses 10 full-flight simulators: two
Airbus A320/ACJs, an Airbus A330/340, a Boeing 777, two Boeing 737 NG/BBJs, a Gulfstream IV and a Gulfstream V/550, a
Hawker 800/800XP and a Bell 412 helicopter simulator.
Key people
HH Sheikh Ahmed bin Saeed Al Maktoum – Chairman and Chief Executive
Tim Clark (airline executive/president)
Gary Chapman – President Group Services
Shareholdings
The Emirates Group holds a 68.7% stake in Dubai-based Maritime and Mercantile International, 34.4% equity stake in Oman
United Agencies and a 54.7% equity stake in Emirates Flight Catering. Emirates Flight Catering is the sole provider of airline and
airport catering services at Dubai International Airport.
Dnata owns 50% equity stakes in Dubai Express, Gerry's Dnata (Pvt.) Ltd. and Dnata Arabian Airport Services Co. Ltd, 49%
equity stake in Safiran Dnata Airport Services PJSC, 40% stake in Emirates Loyalty Company and a 20% stake in Guangzhou
Baiyun International Airport Ground Handling Services Co. Ltd.[1]
See also
Emirates (airline)
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