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Global Economy
by tj on July 26, 2003
I have been watching the changes in the airline industry for some time. There have been some interesting developments recently. Low-cost airlines have become the major new buyers for Boeing and Airbus. The article gives some good insights on the growth strategies of some low-cost carriers, too.
Despite the suffering of some bigger airlines is the global uprising of new airlines especially in the Middle East .
One of the most stunningly performance has been showed by 'Emirates'. It has been in business only since 1985 and received awards for mostly any part of their business. Emirates just ordered 21 A380's. Revenues for the last accounting year have been EUR 2.2 billion, profits were at EUR 236 mio, capacity usage was at 70%. Additionally it is the airline with the best flying experience I ever had. Emirates has also announced plans to increase the traffic on European routes....Unfortunately the stock isn't publicly traded.
Despite the suffering of some bigger airlines is the global uprising of new airlines especially in the Middle East .
One of the most stunningly performance has been showed by 'Emirates'. It has been in business only since 1985 and received awards for mostly any part of their business. Emirates just ordered 21 A380's. Revenues for the last accounting year have been EUR 2.2 billion, profits were at EUR 236 mio, capacity usage was at 70%. Additionally it is the airline with the best flying experience I ever had. Emirates has also announced plans to increase the traffic on European routes....Unfortunately the stock isn't publicly traded.
Permalink: airline industry toughts
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Rating: 6.00 out of 2 vote(s) cast.
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Response from:
Raik Hoffmann
(07/29/03 5:40pm)
Response from:
TJ
(07/29/03 11:26pm)
Indeed it's much better to stay private in an initial growth period, but Emirates is now in business for 18 years. I could not research the invested amount, but the actual financial statement seems clear of any hidden investments, but sure you never know, what's going on. However I do hope they once decide for an IPO. :-)
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Developing a long term strategy rather than focusing on short-term ROI and profits? But, ok, I have heard that they also have a very well financial backing from the 'royal family' which is interested in developing some other business activities rather than just rely on oil. Their new hotels (e.g. the first 7-star hotel in the world!) and artifical islands are another example of this approach.