Emirates boss 'shocked' by Lufthansa-linked expansion obstacles

Emirates President Tim Clark has lashed out at Lufthansa as his own airline increases the number of flights between Vienna and Dubai.

The Austrian government coalition of Social Democrats (SPÖ) and the People’s Party (ÖVP) granted Emirates another daily flight from Vienna International Airport (VIA or VIE) to Dubai International Airport (DXB) some days ago. The carrier is now allowed to offer two daily flights to the capital of the United Arab Emirates (UAE) throughout this summer. Newspaper reports suggested that Lufthansa and its Austrian affiliate Austrian Airlines (AUA) tried to get the SPÖ-ÖVP to say no to their rival’s request.

Now Clark admitted he was "shocked about what happened last week". The British businessman, who became head of Emirates in 2003, said today (Fri): "We’ve always had an amicable relationship with the Austrian government. I wonder who’s behind (the recent developments)."

Speaking to the Kurier newspaper, Clark added: "Lufthansa is obviously deeply worried about our presence. (…) Lufthansa makes an annual profit of almost one billion Euros and hires 4,000 new employees. It orders new planes and is a member of Star Alliance, one of the strongest alliances in the world."

The aviation industry manager called on the German company to "document their complaints and give us a chance to react."

Clark explained: "We don’t think about how we can overpower, let’s say, (Hong Kong-based carrier) Cathay Pacific. We just want to do our job. We aim to offer an excellent product and match the interests of our customers."

The Emirates chief made clear his airline wants three daily flights between VIA and DXB "in the coming years".

When asked how he justifies certain competition advantages as there are no labour unions and lower taxes in the UAE, Clark said: "You live in a beautiful country. That’s not fair either. But why do you blame me for the taxation rate, I’m an airline manager. We don’t complain if taxes for the German industry are lowered."

Emirates was founded in 1985. The company is one of the fastest-growing airlines in the world. It has more than 36,000 staff.

Speaking about alleged lower labour expenditures his firm has compared to its competitors, Clark argued: "People in France work 35 hours a week, Germans work 37.5 hours. We do 42 weekly hours. Is it possible that Emirates has more productive staff than Lufthansa? May it be that our planes have a higher load factor and that we have the more efficient network? Is it possible that we simply work a bit harder?"

Clark dismissed speculations that Emirates approached outgoing Lufthansa manager Thierry Antinori. The Frenchman surprisingly announced earlier this week that he decided not to become new AUA boss. Antinori was set to take over at the firm – which was acquired by Lufthansa in 2009 – today.

"We didn’t make him an offer, but maybe we should have done so. (His departure) means a great loss to AUA. He was one of Lufthansa’s strongest assets," the Emirates president said about Antinori.

Meanwhile, FlyNiki chief Niki Lauda has branded Lufthansa’s alleged interference in talks between the Austrian government and Emirates as "one of the most unfair occurrences I have ever experienced."

Lauda previously said: "Austria is not a sheltered workshop. What is happening is breaching EU (European Union) laws and reminds me of occurrences in the deepest Eastern Bloc."

AUA co-chief Peter Malanik argued money would not play a role in the expansion of Emirates since it is owned by the state. "(This is) not a match of airline against airline – it’s a game between a state and AUA," he said.

Lauda, whose airline cooperates with Air Berlin and Emirates, said Malanik’s statements were "incredibly unqualified". He added: "Austria must allow free competition in the aviation industry."

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Federal demographic body forms Emiratisation panel for aviation sector

Abu Dhabi, 2 Apr 2011 (WAM) -- The Deputy Prime Minister, Interior Minister and Chairman of the Federal Council for Demographic Structure, Lt. General HH Sheikh Saif bin Zayed Al Nahyan, has affirmed that provision of job opportunities to UAE citizens is a national priority in line with instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and continuous follow up of Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.
''This should be done within an integrated, concerted government initiatives and policies seeking to build constructive partnerships with the public sector with the aim of stimulating the a knowledge-based national economy that generates proper jobs to qualified national professionals,'' Sheikh Saif said while chairing a meeting of the council.
Sheikh Saif paid gratitude to President His Highness Sheikh Khalifa bin Zayed Al Nahyan for his recent initiatives that included the doubling of the capital of the Khalifa Fund for Enterprise Development and expansion of its scope of services to all the country and for establishing the Khalifa Emiratisation Empowerment Fund.
During the meeting, which discussed a number of Emiratisation initiatives, decided to set up a higher committee for Emiratisation of the civil aviation sector under the chairmanship of Sultan Al Mansouri, Minister of Economy and Chairman of the General Civil Aviation Authority.
Sheikh Saif instructed the committee to immediately begin preparing a vision on mechanisms for increasing the Emirati staff in the sector.
The plan with a time line for implementation will be submitted to the federal cabinet for approval.
''The civil aviation sector is dynamic contributor to the national economy and can create jobs for national job-seekers in the long-run given its sustained growth and huge expansion,' Sheikh Saif said.
Projections show that the sector, which reports a 13 per cent growth per annum, will enjoy a maximum growth rate of 6 per cent up to 2020. Aircraft fleet is expected to increase by 16.2 per cent by 2014 while the number of aircrafts is projected to grow 6 per cent by 2012.
A taskforce was formulated to follow up implementation of initiatives launched by the council

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UAE’s non-oil trade up 14%

UAE's imports in 2010 with a total of Dh301.9 billion, or 62 per cent of imports.

On non-oil exports, India, Switzerland, Saudi Arabia, Brazil, Iran, Norway, Pakistan, Oman, Qatar, and Kuwait respectively topped the list of non-oil export destinations from the UAE with a total of Dh60.8 billion, accounting for 73 per cent of the UAE's exports.

Meanwhile, India, Iran, Iraq, Afghanistan, Bahrain, Saudi Arabia, Qatar, Hong Kong, Belgium and Kuwait topped the list of re-export destinations absorbing Dh134.2 billion or 72 per cent of the UAE's re-exports.

"The UAE has managed to be at the forefront of Middle East growth and development because of its continuous efforts to maintain strong business and trade relations with key emerging economies," said Shahul Hameed, Chief Executive Officer, My Events International which organises trade events. "The increased trade not only reflects a healthy business relationship with emerging countries in the Southeast Asian region but also shows its eagerness to explore key investment and financial opportunities inside and outside the Middle East."

FCA added that the total value of UAE-GCC non-oil trade hit Dh54.7 billion in 2010 — including Dh22.3 billion imports, Dh10 billion in exports and Dh22 billion re-exports.

Saudi Arabia maintained its position at the top of the list among the UAE's top GCC trading partners in 2010, with UAE-Saudi Arabia trade worth Dh21.1 billion while Bahrain came second with Dh9.1 billion, followed by Qatar at Dh8.6 billion, Oman at Dh8.5 billion and Kuwait at Dh7.4 billion.

The total foreign trade of the UAE with the Arab countries amounted to Dh106.1 billion in 2010, with 43.4 billion worth of imports, Dh16.8 billion worth of exports and Dh46 billion worth of re-exports.

Saudi Arabia topped the list of Arab states in terms of the value of non-oil trade with the UAE, followed by Sudan, Iraq, Libya, Oman, Bahrain, Kuwait, Egypt, Qatar, Yemen, Lebanon, Jordan, Morocco, Syria, Tunisia, Mauritania, Algeria, Djibouti, Palestine and the Comoros respectively, FCA added.

Gold took the lead among imported commodities with a value of Dh66.3 billion; followed by diamonds with Dh48.1 billion, cars (Dh26.9 billion); ornaments and jewellery (Dh22.6 billion); telephone sets (Dh10.4 billion); in addition to tractor spare parts and accessories, special purpose vehicles, passenger vehicles and freight vehicles (Dh6.7 billion).

Gold also topped the list of exported commodities in 2010, valued at Dh38.4 billion, followed by light vessels, fire floats, dredgers or ice class barges at Dh5.6 billion; waste and scrap of precious metals or ordinary metals at Dh3.8 billion; sugarcane or sugar beet at Dh2.4 billion and finally ethylene polymers in primary forms at Dh2 billion. On the level of re-exports, diamonds came on top of the commodities re-exported in 2010 with a total value of Dh55.8 billion, followed by ornaments, jewellery and parts thereof (Dh12.7 billion), motor vehicles (Dh11.9 billion) and telephone sets (Dh8.5 billion).

Malaysia-GCC trade hits $11b in 2010

Trade between the GCC and Malaysia reached $11 billion, according to a recent report coming from the Malaysia External Trade Development Corporation (Matrade). The UAE in particular has recorded over $6.418 billion (Dh23.5 billion) in trade with Malaysia, thereby affirming the latter's developing role as a cost-competitive location for investors intending to set up offshore operations for the manufacture of advanced technological products for regional and international markets.

Recent market reports have shown healthy growth in trade between the UAE and Malaysia. In 2010, exports from Malaysia to the UAE totalled $3.953 billion while goods from the UAE to Malaysia reached $2.465 billion. Malaysia's chief exports to the UAE include electrical and electronic products, machinery, appliances and parts, jewellery, and palm oil. In return, the country imports crude petroleum and refined petroleum products, and chemicals and chemical products from the UAE

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Air freight fees in Iraq a threat to recovery

Fees imposed by the government of Iraq on foreign air cargo operators are so high they restrict the flow of essential goods into the country, hindering the nation's long-awaited economic recovery, say cargo companies and aviation authorities.

Operators seeking permission to fly cargo into the country say the government directs them to give their business to Iraqi Airways and RUS Aviation, a small company based in Sharjah, or pay fees ranging from US$20,000 (Dh73,456) to $100,000 a flight to fly directly.

Such fees are many times higher than those charged by any other country in the region. For many companies they make flights economically unfeasible.

"The justification for taking these charges and fees is not clear," said Saif al Suwaidi, the director general of the UAE's General Civil Aviation Authority, which has asked Iraq to clarify the situation.

Some 40 per cent of the value of world trade is carried in the form of air cargo.

In Iraq, which suffers from poor road and sea connections, air cargo has played a crucial role in bringing in oil and gas equipment, foodstuffs, electronics and humanitarian aid to help drive the country's recovery.

Saleh al Aroud, the chairman of RUS Aviation, defended the fees, saying RUS was obliged to invest heavily in rebuilding Iraq's aviation infrastructure as part of an exclusive arrangement with Iraqi Airways.

RUS, based in the free zone at Sharjah International Airport, describes itself as a long-term partner to the Iraqi government. Due to the status of the UAE as a global transport centre, air cargo companies in the country have played important roles in rebuilding Iraq and the estimated $10 billion bilateral trade between Iraq and the Emirates.

RUS was the first cargo firm to operate in Iraq after the Second Gulf War. It flew almost 200 flights in two weeks to carry electoral materials for the first elections in 2005, and has been a service provider to the UN and the US government.

In exchange for its exclusive relationship with Iraqi Airways, which effectively gives it control over the broader cargo market, RUS said it agreed to provide services, equipment and even aircraft to its partner, valued at a total of more than $15 million.

This includes cargo handling equipment and machinery, paying for an estimated $10m aircraft landing system at Baghdad International Airport, financing the hire of outside consultants for the Iraqi carrier, providing extensive training, IT and management support, and handing over two cargo aircraft to Iraqi Airways.

The four-year contract began in 2009, and RUS has yet to deliver the landing system and the two aircraft, Mr al Aroud said.

At the time of the contract negotiations, "they were adding more and more conditions", he said. RUS officials now say they are unsure whether the risks they assumed in agreeing to the contract were worth taking.

The Iraqi government has earmarked $50bn to refurbish nine of the country's 14 airports, while another $28bn in investment is planned to build six airports.

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Emirates boss 'shocked' by Lufthansa-linked expansion obstacles

Emirates President Tim Clark has lashed out at Lufthansa as his own airline increases the number of flights between Vienna and Dubai.

The Austrian government coalition of Social Democrats (SPÖ) and the People’s Party (ÖVP) granted Emirates another daily flight from Vienna International Airport (VIA or VIE) to Dubai International Airport (DXB) some days ago. The carrier is now allowed to offer two daily flights to the capital of the United Arab Emirates (UAE) throughout this summer. Newspaper reports suggested that Lufthansa and its Austrian affiliate Austrian Airlines (AUA) tried to get the SPÖ-ÖVP to say no to their rival’s request.

Now Clark admitted he was "shocked about what happened last week". The British businessman, who became head of Emirates in 2003, said today (Fri): "We’ve always had an amicable relationship with the Austrian government. I wonder who’s behind (the recent developments)."

Speaking to the Kurier newspaper, Clark added: "Lufthansa is obviously deeply worried about our presence. (…) Lufthansa makes an annual profit of almost one billion Euros and hires 4,000 new employees. It orders new planes and is a member of Star Alliance, one of the strongest alliances in the world."

The aviation industry manager called on the German company to "document their complaints and give us a chance to react."

Clark explained: "We don’t think about how we can overpower, let’s say, (Hong Kong-based carrier) Cathay Pacific. We just want to do our job. We aim to offer an excellent product and match the interests of our customers."

The Emirates chief made clear his airline wants three daily flights between VIA and DXB "in the coming years".

When asked how he justifies certain competition advantages as there are no labour unions and lower taxes in the UAE, Clark said: "You live in a beautiful country. That’s not fair either. But why do you blame me for the taxation rate, I’m an airline manager. We don’t complain if taxes for the German industry are lowered."

Emirates was founded in 1985. The company is one of the fastest-growing airlines in the world. It has more than 36,000 staff.

Speaking about alleged lower labour expenditures his firm has compared to its competitors, Clark argued: "People in France work 35 hours a week, Germans work 37.5 hours. We do 42 weekly hours. Is it possible that Emirates has more productive staff than Lufthansa? May it be that our planes have a higher load factor and that we have the more efficient network? Is it possible that we simply work a bit harder?"

Clark dismissed speculations that Emirates approached outgoing Lufthansa manager Thierry Antinori. The Frenchman surprisingly announced earlier this week that he decided not to become new AUA boss. Antinori was set to take over at the firm – which was acquired by Lufthansa in 2009 – today.

"We didn’t make him an offer, but maybe we should have done so. (His departure) means a great loss to AUA. He was one of Lufthansa’s strongest assets," the Emirates president said about Antinori.

Meanwhile, FlyNiki chief Niki Lauda has branded Lufthansa’s alleged interference in talks between the Austrian government and Emirates as "one of the most unfair occurrences I have ever experienced."

Lauda previously said: "Austria is not a sheltered workshop. What is happening is breaching EU (European Union) laws and reminds me of occurrences in the deepest Eastern Bloc."

AUA co-chief Peter Malanik argued money would not play a role in the expansion of Emirates since it is owned by the state. "(This is) not a match of airline against airline – it’s a game between a state and AUA," he said.

Lauda, whose airline cooperates with Air Berlin and Emirates, said Malanik’s statements were "incredibly unqualified". He added: "Austria must allow free competition in the aviation industry."

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UAE seeks investments in aviation to meet demand

ABU DHABI — The UAE on Tuesday called for more investments in aircraft, airports and new aviation facilities to help cater the growing number of passengers in the region.

The call was made by Minister of Economy Sultan bin Saeed Al Mansouri at the first meeting of the Directors General of Civil Aviation in the Middle East hosted by the UAE General Civil Aviation Authority (GCAA), in cooperation with theInternational Civil Aviation Organisation (ICAO).

The minister pointed out that the current stage required a shift in focus to keep pace with the current changes and emerging challenges with demand for air transport is growing rapidly.

The ICAO estimates that the number of passengers will grow at a yearly rate of 4.6 per cent until 2030, which means that the number of passengers, currently 2.3 billion, could double to 5 billion, and it will definitely be higher by 2050.

“We need more investments in aircrafts, airports and new aviation facilities in order to cater to the hundreds of millions of additional passengers. This means that several hundred thousand of air aviation staff members need to be trained on managing and operating complex systems and technologies yet to be invented.

“This also requires close cooperation with other countries and other stakeholders in the industry, including passengers, to maintain an integrated global air transport system and facilitate its growth in order to meet the unprecedented growth in demand for air transport.”

The three-day meeting is attended by many directors general and officials of civil aviation authorities in the region.

Al Mansouri stressed that a united vision was essential for the effective implementation of the aviation safety and security system worldwide, and that inefficiency in any part of the system would threaten the whole 
global network.

“Therefore, countries are collectively responsible for the implementation and maintenance of an efficient safety and security system. Regional cooperation and coordination is necessary to ensure proper safety and security mechanisms are in place to enhance regional dialogue and sharing information in order to protect and develop aviation interests in the region,” he added.

The minister further emphasised the necessity to adopt open sky policy in the region saying that some countries are slow when it comes to adopting open sky policies despite all efforts made by the ICAO in encouraging all contracted countries to adopt the free policy, and that still some countries are committed to hold onto protective restrictions.

Raymond Benjamin, the Secretary General of ICAO, said in his speech the global air transport system is arguably as safe as it has ever been, and that ICAO has completed the development of a global safety information exchange mechanism and system.

He said that at the last ICOA assembly meeting, member states adopted a resolution which made ICAO the first United Nations agency to lead a sector in the establishment of a globally harmonised agreement for addressing its CO2 emissions.

“The Resolution includes a global goal of 2 per cent annual fuel efficiency improvement up the year 2050,” Benjamin added. Saif Mohammed Al Suwaidi, Director General, GCAA said: “The meeting discussed a number of topics and issues related to the development of the civil aviation sector. Points of view varied, but all aimed at achieving this goal in the light of the many changes in the region, which call for intensive efforts to reach an advanced level of bilateral and regional cooperation in all fields of interest to all stakeholders in line with the future outlook of the sector.” 

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Cadets complete training phase in UAE

Dubai: Graduates of the Emirates Airlines National Cadet Pilot Programme are spreading their wings after receiving their diplomas yesterday.

In a convocation ceremony at Emirates Group headquarters on Airport Road, two dozen young Emirati pilot graduates beamed as Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, honoured their achievements with trophies and certificates.

This graduation came roughly six months after 46 Emiratis graduated in September 2010.

Exponential growth

"With the ongoing support from His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the success of Emiratisation at Emirates, including the National Cadet Pilot Programme, has grown exponentially since it began in 1992," said Shaikh Ahmad in a statement.

"As a result, a quarter of Emirates senior management are UAE nationals and the number of UAE pilots is steadily increasing as well."

"We at Emirates believe that this new generation of cadet pilots reflects true dedication through their care and commitment to the programme itself and we are proud to have the graduates embark on exciting careers, joining the Emirates Group's ever-growing family," said Shaikh Ahmad. "These talented, professional Emiratis will help shape the future of Emirates through their role in our vast global network.

"These graduates will not only be assets to Emirates, but will serve as role models for future generations in the UAE."

Graduating cadets will now undergo a third phase of training over the next four months in intensive simulator sessions at Emirates' Training College followed by actual flights with their training captains.

When completed, graduates will helm large aircraft, joining the ranks of 174 certified Emirati pilots currently flying the Emirates fleet of 152 passenger jets.

Emirates employs about 2,500 pilots and prides itself on maintaining the highest standards of training for pilots assigned to fly one of the world's youngest and most modern aircraft fleets.

Abdullah A. Al Hammadi, manager of the Emirates National Cadet Pilot Programme, said Emirates has come a long way from its first efforts to recruit and train nationals in 1992 when four Emiratis were enrolled.

The airline spends more than Dh50 million a year on training Emirati cadets.

Requirements

According to Emirates, requirements for applicants interested in the National Cadet Pilot Programme are:

    * Aged 17-29
    * Grade 12 secondary school certificate
    * A good command of written and spoken English
    * A valid passport as well as Khulasat Al Qaid (family book).

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