Middle Eastern airline Emirates has appointed Chemistry Communications to handle its direct marketing account. The agency replaces DDA and is tasked with developing customer management strategies, as well as other direct activities. Emirates has appointed VCCP and sales promotion agency Gasoline to its roster to work on as-yet unspecified projects. The appointment follows the Dubai airline’s decision to hire Grey London to create a global advertising campaign for its business-class service. Emirates will offer daily non-stop flights between Los Angeles and Dubai on September 1.
The new flight runs a distance of 8,339 miles, taking 16 hours and 35 minutes from Dubai to California; the duration of the return flight will be slightly shorter at just under 16 hours.
Emirates currently flies twice daily to New York and once daily to Houston. Emirates is to promote its new Dubai-Sao Paulo service through a digital campaign that will include the longest ad ever. The advert will also air on cable TV, allowing it to be recognised as the longest ever by Guinness World Records. Emirates has ended its management contract with Sri Lankan Airlines, fuelling speculation that it may sell its 43.6% stake in the Dubai-based carrier.
Emirates Airline, the government-owned Dubai carrier, has reported a 29% increase in year-on-year net profit to AED1.2 billion (£171.6 million) for the fiscal first half ended 30 September 2006. Passenger revenue rose 31% for the period, with the number of passengers increasing 20% to 8.39 million. Emirates announced that it has launched service to 10 cities since January 2006, with its total network now standing at 87 destinations.
Almost four months after its initial announcement that the new A380 superjumbo would suffer launch delays in June 2006, after which point several further postponements have been tabled, Airbus parent company EADS has issued a €4.8 billion profit warning, more than double that mooted when the first problems occurred. The figure works against EADS’ “baseline plan” for the period between 2006 and 2010, and will be recorded as a shortfall in operating profits.
Separately, the A380’s biggest advance order customer, Emirates, which has requested 45 of the total 159 ordered aircraft, has said that as a result of the latest delays, which put the A380’s release at no earlier than August 2008, it is “reviewing its options.”
On 25th October 1985, Emirates flew its first routes out of Dubai with just two aircraft—a leased Boeing 737 and Airbus 300 B4. Then as now, our goal was quality, not quantity, and in the years since taking those first small steps onto the regional travel scene, Emirates has evolved into a globally influential travel and tourism conglomerate known the world over for our commitment to the highest standards of quality in every aspect of our business.
Though wholly owned by the Government of Dubai, Emirates has grown in scale and stature not through protectionism but through competition—competition with the ever-growing number of international carriers that take advantage of Dubai’s open-skies policy. Not only do we support that policy, but we see it as vital to maintaining our identity and our competitiveness. After making its initial start-up investment, the Government of Dubai saw fit to treat Emirates as a wholly independent business entity, and today we are thriving because of it. Our growth has never been lower than 20 per cent annually, and the airline has recorded an annual profit in every year since its third in operation.
Continuing our explosive growth while continually striving to provide the best service in the industry is the secret of Emirates’ success. The Emirates Group announced record net profits of Dhs 3.5 billion (US$ 942 million) for the financial year ended 31st March 2007. The 28.8 per cent increase in profits versus the previous year speaks of a promising future of an airline we feel is greater than the sum of its many parts, which now include:
· An award winning international cargo division
· A full-fledged destination management and leisure division
· An international ground-handler
· An airline IT developer.
With a fleet of 113 aircraft, we currently fly to over 100 destinations in 62 countries around the world, and our network is expanding constantly. Nearly 800 Emirates flights depart Dubai each week on their way to destinations on six continents. In fact, Emirates’ flights account for nearly 40 per cent of all flight movements in and out of Dubai International Airport, and our aim is to increase this market-share to 70 per cent by 2010 without compromising our reputation for quality. Toward this end, Emirates has made numerous significant announcements regarding the future of its already state-of-the-art fleet.
In 2001, Emirates demonstrated its confidence in the industry’s future growth by announcing the largest order in aviation history, valued at US$15 billion. A staggering 58 new aircraft, a mix of Airbus and Boeing, were to join the rapidly expanding fleet. In 2005, Emirates announced the largest-ever order for the Boeing 777 family of aircraft – 42 in all – in a deal worth Dhs 35.7 billion (US$ 9.7 billion).
At the 2006 Farnborough Air Show, Emirates signed a Heads of Agreement for 10 of Boeing’s new 747-8F aircraft, to be powered by General Electric’s GEnx jet engines, in a deal worth US$ 3.3 billion. At the Dubai Airshow in November 2007, Emirates announced a historic civil aviation aircraft order when it signed contracts for a 120 Airbus A350s, 11 A380s, and 12 Boeing 777-300ERs, worth an estimated US$34.9 billion in list prices. The agreement with Airbus comprises firm orders for 50 A350-900s and 20 A350-1000s, plus 50 options for the A350-900s. The first A350 will be delivered to Emirates in 2014.
Emirates also firmed up orders on the eight A380s for which it had signed letters of intent earlier this year, and placed firm orders for an additional three of the double-decker aircraft, bringing its total firm order for the A380s to 58.
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