
There is a need for an LCC in the region” - and with those words from the UAE Prime Minister and Vice President, Sheikh Mohammed bin Rashid al-Maktoum, a new Dubai-based LCC was born. In a major development for the global aviation industry (where another high profile full service airline develops an in-house LCC), Emirates Executive VP Commercial Operations, Ghaith Al-Ghaith, has been appointed CEO of the new airline.
The unnamed Dubai LCC will be part of the Emirates Group, operating to destinations up to 4.5 hours flying time from its base. This includes the Middle East, all the key points in the India, Bangladesh, Sri Lanka and Northeast Africa (Nairobi, Dar es Salaam, Addis Ababa, Cairo) and as far as Greece in Southern Europe and Central Asia (where Emirates has no operations at present).
The new carrier plans to lease or buy single-aisle aircraft (B737s or A320s) and will begin operations within a year.
However, the Centre for Asia Pacific Aviation believes it is only a matter of time before A380 equipment is eventually deployed at the airline – a move that would strike fear into airline managements in Europe and Asia.
Emirates has 58 A380s on order, or 30% of the entire global A380 orderbook. The carrier has previously indicated it could operate low cost services with A380 equipment. In Nov-07, Emirates President, Tim Clark, stated that, had the stretch version of the A380 been available today, “probably two-thirds” of the A380s the Dubai-based carrier had on order (or some 38 aircraft) would be for that model.
He indicated that Emirates (or now the LCC subsidiary) would configure the proposed A380-900 with around 750 seats on a typical service, although some of the aircraft could be configured with 1,000 seats for routes to countries such as Thailand and Saudi Arabia.
The airline is currently officially planning a higher density medium-haul configuration with 604 seats, although the A380-800 model is licensed to handle 853 in an all-economy layout.
The practical recognition of the potential of the A380 as a mass transport, low cost vehicle is sure to stimulate wider interest in the aircraft. Until now, its sales have not been spectacular; they were not helped by successive delivery delays. But as Singapore Airlines' first A380 landed in London this week, the tide may be turning.
The Emirates LCC move follows the success of Air Arabia, based in the neighbouring emirate of Sharjah, which has reported outstanding profitability since its launch and has recently established cross-border JVs in Morocco and Nepal to target the North Africa/Europe and Asian markets, respectively. Kuwait-based LCC, Jazeera Airlines, has also established a base in Dubai.
Dubai Airport is expected to overtake Singapore Changi this year, handling in excess of 40 million passengers. The emirate is developing a new airport at Jebel Ali that will ultimately become the biggest in the world, with capacity for 120 million passenger p/a. The Emirates LCC will become a key ingredient in making the Dubai world gateway vision a reality.