We’re getting close to our annual Arabian Business Awards at the end of November. One of the perks of the job is you get to see a lot of huge success stories. For all the doom and gloom blowing from the West, I can assure everyone that there has been no shortage again of outstanding business performances across all sectors.
All will of course be revealed on the big night on Sunday, Nov 20, though I couldn’t help but notice two companies in the same sector that seem to defy all logic. Two companies, in the most challenging of conditions, that keep delivering.
I’m talking about Emirates Airline and Etihad Airways. Political instability, natural disasters and a host of other problems have made aviation one of the worst industries to be in. Yet in March, Emirates announced its net profit race up 52 percent to $1.5bn (for the year to 31 March), while passenger numbers rocketed 14.5 percent to 31.4 million. Revenues, up 25 percent, are now close to a staggering $15bn a year. No wonder the experts are suggesting Emirates could place orders for more than 30 new A380s and Boeing 777s at next month’s Dubai Airshow.
Can anyone hope to compete with that kind of performance? Well, apparently so. Etihad has just released its Q3 figures for 2011 and they show revenues rising 39 percent to $1.1 bn. Seat factors are now an incredible 80.7 percent. Etihad has only been around for eight years, but CEO James Hogan is confident that this will be the year of break even, with next year one of profit. And while Emirates now has 111 destinations, Etihad is not far behind with 86 destinations now on the books.
Dubai's Emirates airline and other Middle East carriers should be forced to freeze their expansion plans to routes in India and the country's Ministry of Civil Aviation should look at options for rollback of existing routes granted to foreign airlines, ...
Emirates, the largest international airlineoperating to/from India, holds around a 40% capacity share on India-UAEservices, 23% of capacity on Middle East-India services and an approximate 10% capacity (seats) share of total international air traffic...
We now end up with the two airlines bringing in $1.7bn of profit. Or rather, based on IATA projections, Emirates Airline and Etihad Airways will in 2012 account for 35 percent of all the profits made by every airline on the planet....
An Emirates AirlinesAirbus A330 passenger jet taxis on the tarmac at Dubai International Airport. Scott Deveau, Financial Post · Sept. 29, 2011 | Last Updated: Sept. 29, 2011 9:01 AM ET After years of having its expansion plans shunned by Ottawa, ...
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If you're planning on flying in the lead up to Christmas, don't fly Qantas.
That's the advice issued by the engineers' union today as it flagged plans to step up its campaign of industrial action.
The Australian Licensed Aircraft Engineers Association (ALAEA) cancelled its planned four-hour work stoppages at major airports today, but not in enough time for Qantas to reinstate 40 cancelled flights.
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ALAEA federal secretary Steve Purvinas said the union planned to re-schedule the four-hour stoppage on Friday.
"I would think that by October the 28th when the Qantas AGM takes place you're likely to see full-day stoppages," Mr Purvinas told reporters in Melbourne.
"If I was a person considering travel over the period up until Christmas I'd probably be looking at airlines other than Qantas.
"If I was a passenger I wouldn't be purchasing a ticket with them at this stage."
Qantas described the comments as outrageous and damaging, as well as counter-productive.
"Telling customers not to fly with Qantas for the next three months will make the jobs of our 1600 licensed engineers less secure and will not get the union any closer to an agreement," the airline said in a statement.
Passengers at the airport blamed both parties for their failure to settle negotiations that have gone unresolved for the past 12 months.
Anton Van Breda, 46, landed at Sydney Airport on Monday from Auckland but suffered a three and a half hour delay before flying on to Adelaide.
"If there's alternatives to Qantas, one would really look at those," Mr Van Breda told AAP.
Darwin to Sydney passenger Megan Chenoweth, 27, said work stoppages were not the solution.
"You shouldn't have to take time off to make your point," Ms Chenoweth told AAP.
The union had planned four-hour work stoppages at Sydney, Melbourne and Brisbane airports for Monday afternoon, at various times from 3pm (AEDT) but issued a media release at 12.30pm (AEDT) saying it had cancelled the industrial action.
Qantas scratched 40 flights on Monday and another 38 were delayed or moved forward, affecting about 11,000 passengers.
Eleven international flights were affected.
Qantas group executive Olivia Wirth said the union was well aware that cancelling the work stoppages was too little, too late.
"What this means is that they've done the disruption to the Qantas brand, they've done the disruption to the Qantas passengers, however, their workers have not been docked one cent," Ms Wirth told reporters at Sydney Airport.
In the lead-up to Monday, Qantas told engineers in a letter that under the Fair Work Act they would not be paid during work stoppages.
It also warned that anyone striking outside the hours specified by the union to Qantas could face another four hours' pay deduction.
Mr Purvinas said it would be a lengthy campaign and the union had said all along that the dispute would probably last for a year.
"Qantas have their plans on sending the airline up to Asia at the expense of thousands of Australian jobs and that's something that we find unacceptable," he said.
Strike action by a number of unions had affected about 50,000 passengers in the past six weeks, Qantas said.
On Thursday, the Transport Workers Union (TWU) called off work stoppages for baggage handlers and ground crew planned for the following afternoon at airports across the country.
Qantas said it would continue negotiations with the TWU and the pilots union this week, and urged the ALAEA to resume talks with the airline.
"Qantas have their plans on sending theairline up to Asia at the expense of thousands ofAustralian jobs and that's something that we find unacceptable," he said. Strike action by a number of unions had affected about 50000 passengers in the past six ...
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The two passengers who survived a plane crash near Lutselk'e, N.W.T., are in stable condition in an Edmonton hospital, while the names of the two people who died have not yet been released.
Air Tindi confirmed the survivors of Tuesday's crash are both getting treatment in an Edmonton hospital.
"Our spirits are buoyed by the news of their condition and we wish them a total and speedy recovery," said Air Tindi president Chuck Parker in a release.
Cathy Menard, chief coroner of the Northwest Territories, said the bodies of the two people who died are still at the crash site.
"We can't release names of people that have deceased as we haven't done identification … and we can't until they return to Yellowknife," said Menard.
Menard said she is expecting the bodies to arrive in Yellowknife late Wednesday afternoon or evening.
Air Tindi thanked those who helped following the crash, including the first responders, Great Slave Helicopters, the RCMP, the people of Lutselk'e and the entire northern aviation community.
"The clear-headed, decisive actions in the initial hours following yesterday's accident are worthy of much praise," Parker said.
The two survivors, Sheldon Catholique and Bernice Marlowe, were injured when the plane went down near Utsingi Point, N.W.T., which is about 40 kilometres from Lutselk'e. The plane crashed atop a cliff which stands about 600 feet tall.
The community of Lutselk'e is in shock following the tragedy.
Sheldon Yamkovy grew up with both survivors.
"Sheldon and Bernice are my relatives," he said. "All our minds are with them all … with safety always on our mind because we want our loved ones safe and around us all the time."
Brian Green is the manager of the Co-op in Lutselk'e. He said many in the community are on edge.
"Well right now everyone is a bit nervous and afraid of flying," he said. "You know, it is a way of life here and people will still fly, but right now there are a few people who are nervous, and I'm one of them."
Flags on all government buildings in Yellowknife and Lutselk'e are being flown at half-mast until sunset on Oct. 5 to honour the two people who died.
There is no word yet on when funerals will be held.
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Air Tindi thanked those who helped following the crash, including the first responders, Great Slave Helicopters, the RCMP, the people of Lutselk'e and the entire northernaviation community. "The clear-headed, decisive actions in the initial hours ...
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Qantas Airways says the latest version of Airbus's narrowbody workhorse will open up new routes and expand the airline's international network.
As part of the airline's ambitions in Asia, Qantas has ordered 110 Airbus A320 narrowbody aircraft, as well as an unspecified number of purchase rights beyond that.
The orders included 78 A320neos, or new engine option, aircraft which manufacturer Airbus launched in December last year.
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The A320neo provided an eight per cent improvement in costs over the existing A320 flying in the skies today, according to Airbus.
The A320neo would begin to arrive in 2015, Airbus said recently.
Qantas has earmarked 99 A320s for the Jetstar's operations in Australia, New Zealand, Singapore, Vietnam and the recently announced joint-venture in Japan.
Some 11 aircraft were for Qantas's proposed new premium airline to be based in a yet-to-be-confirmed Asian hub city, with Singapore or Kuala Lumpur the leading candidates.
Jetstar would be able to use the A320neo to fly to Bali from Sydney and Melbourne, giving the low-cost carrier the opportunity to increase frequencies into such leisure destinations.
And within Asia, the A320neo's extended range allowed the airline group to fly from Singapore to Shanghai or Beijing, which would allow Qantas to have a bigger presence in the growing Chinese market.
Jetstar chief executive Bruce Buchanan said the new premium airline would offer Qantas passengers more one-stop flights from Australia to Asia.
"This option will really throw up a competitive proposition for the corporate customers," Mr Buchanan said told reporters in Sydney on Wednesday.
Qantas chief executive Alan Joyce said the proposed new ventures were a sensible and measured approach towards growth in Asia markets.
Asked if the recent global economic jitters would prompt him to reconsider the timing of the new Asian businesses, Mr Joyce said the airline had always been very cautious about managing risk.
"I don't think there is enough signs for us today to say that the market has actually gone into a recession or decline," Mr Joyce said.
Airbus chief operating officer customers John Leahy said growth in the aviation industry was "flattening out" at the moment.
"The recovery after the last recession overshot," Mr Leahy said.
"We see it pretty flat end 2011, maybe beginning of 2012, but no double dip recession."
Meanwhile, Qantas said it would add extra flights to Dallas/Fort Worth.
Dallas/Fort Worth in North Texas is the biggest hub city of Qantas's oneworld alliance partner American Airlines.
The two airlines recently received approval from Australia's competition regulator to partner up on trans-Pacific flights
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