The Rise Of Emirates: A PIA Investment To Global Mega Airline

Summary

Emirates, founded in 1985, has rapidly become one of the world's largest airlines with an all-wide-body fleet of A380s and Boeing 777s. From its modest start with a $10 million investment, it has expanded to a global network, focusing on premium services and innovative amenities. The airline's strategic hub in Dubai and its independent approach have been key to its success, with a significant order of 150 Boeing 777X aircraft, showcasing its commitment to luxury travel and operational efficiency.

Takeaways

• 😀 Emirates is one of the largest and most well-connected airlines, known for its all-wide body fleet of A380s and Boeing 777s.
• 🌟 Founded in 1985, Emirates is a relatively young airline compared to carriers like British Airways and KLM.
• 💼 The airline was established by the Dubai royal family to fill the gap left by Gulf Air's reduced services in Dubai.
• 💹 With an initial investment of 10 million dollars, Emirates repaid its startup capital within a year and has since shown consistent growth.
• ✈️ Emirates' first flight was on October 25th, 1985, from Dubai to Karachi, and it quickly expanded to other regional destinations.
• 🌍 The airline expanded its network globally, focusing on luxury offerings and becoming a major player in premium long-haul travel.
• 🛫 In 1992, Emirates ordered seven Boeing 777-200s, which allowed it to launch long-haul routes to Australia and the United States.
• 🏆 Known for its high-quality service, Emirates won the Skytrax Airline of the Year award in 2016 and introduced innovative first-class products.
• 🔄 Emirates has been independent, choosing not to join any airline alliances and instead focusing on building its own global network.
• 🌐 The airline has a significant order for the Boeing 777X and has diversified its fleet with orders for the Airbus A350, showing adaptability in its fleet strategy.

Q & A

When was Emirates founded and how much startup capital did it receive from the Dubai government?

Emirates was founded in 1985 and received 10 million dollars in startup capital from the Dubai government.

Which two aircraft did Emirates lease from Pakistan International Airlines (PIA) at the beginning?

Emirates leased a Boeing 737-200 and an Airbus A300-200 from PIA at the beginning.

What was the first flight of Emirates and what was its route?

The first flight of Emirates took place on October 25th, 1985, and the route was from Dubai to Karachi.

Who was responsible for Emirates' regional and international route development in the early years?

Tim Clark, who was the head of airline planning, was responsible for Emirates' regional and international route development in the early years.

What was the first year's performance of Emirates in terms of passengers and profitability?

In its first year, Emirates carried 000 passengers and turned a profit, which was an impressive feat.

When did Emirates start its flights to Europe and what were the initial destinations?

Emirates started its flights to Europe in 1987 with London and Frankfurt as the initial destinations.

What significant aircraft order did Emirates make in 1992 and what impact did it have on the airline's operations?

Emirates ordered seven Boeing 777-200s in 1992, which added vast amounts of capacity to the airline's operations and allowed it to launch long-haul routes to places like Australia and the United States.

When did Emirates launch its premium cargo service and how did it initially operate?

Emirates launched its premium cargo service, Emirates SkyCargo, in 1998, initially operating aircraft under lease from Atlas Air.

What was the significance of Emirates' investment in Air Lanka and what changes did it bring?

Emirates bought a 40% stake in Air Lanka in 1998, which it managed for the next 10 years, taking control of ground handling and catering operations, redefining the airline's image and strategy, and expanding its fleet and route network.

How has Emirates positioned itself in the market and what is its focus?

Emirates has positioned itself as a premium airline, focusing on luxury offerings in premium classes and being one of the first airlines to install entertainment systems at every seat.

What is the current status of Emirates' fleet in terms of Airbus A380s and Boeing 777s as of 2020?

As of 2020, Emirates operates a fleet of 115 Airbus A380s and 151 Boeing 777s.

Outlines

00:00

🛫 Founding and Early Growth of Emirates

Emirates, established in 1985, is recognized as one of the largest and most connected airlines globally, known for its all-wide body fleet of A380s and Boeing 777s. Despite being a relatively young carrier compared to others like British Airways and KLM, it was the first major Middle Eastern hub airline. The airline's inception was prompted by the Dubai royal family's decision to create a new carrier after Gulf Air reduced its services from Dubai. Initial funding of $10 million was provided by the Dubai government, and the first aircraft were leased from Pakistan International Airlines (PIA), which also supplied technical expertise. Emirates' first flight was on October 25, 1985, from Dubai to Karachi, and the airline quickly expanded to other regional destinations. It achieved profitability in its first year, a significant feat, and began purchasing its own aircraft in 1987, expanding to Europe with flights to London and Frankfurt.

05:01

🌍 Expansion and Premium Services of Emirates

Emirates expanded its fleet and destinations throughout the 1990s and 2000s, focusing on premium services and luxury offerings in its premium classes. It was an early adopter of in-flight entertainment systems at every seat. The airline's growth was marked by significant aircraft orders, including the Boeing 777-200 in 1992, which allowed it to launch long-haul routes to Australia and the United States. Emirates also entered the cargo market with the launch of Emirates SkyCargo in 1998. In 1998, it bought a 40% stake in Air Lanka, rebranding it as SriLankan Airlines and managing it for a decade. By the end of the 1990s, Emirates had a fleet of 30 aircraft and operated to 28 destinations, which expanded significantly by the end of the 2000s. The airline placed large orders with both Boeing and Airbus, including over 120 A340s and A380s, and over a hundred Boeing 777s. It also launched its frequent flyer program, Skywards, in 2000.

10:02

🏆 Innovations and Future Outlook for Emirates

Emirates has been a leader in in-flight luxury, winning the Skytrax Airline of the Year award in 2016 and introducing innovative first-class products, including fully enclosed suites in 2017. The airline has operated a diverse fleet, with a significant order for the Boeing 777X in 2013, which was the largest ever order for new aircraft at the time. However, due to delays in the 777X development, Emirates diversified its fleet further by ordering 50 Airbus A350-900 aircraft in 2019. The airline has also faced challenges, including the impact of the 2020 global events on the aviation industry. Despite discussions about potential cancellations of more A380 orders, Emirates has indicated it will likely retain them, as other airlines retire theirs, making them a unique offering. Emirates' future strategy remains uncertain due to economic challenges but is expected to continue its legacy of premium long-haul travel with newer and more efficient aircraft.

Keywords

💡Emirates

Emirates refers to Emirates Airline, the main subject of the video. It is a prominent airline based in Dubai, known for its extensive global network and high-quality services. The video discusses the airline's founding in 1985, its rapid growth, and its status as one of the largest and most well-connected airlines, operating a fleet of A380s and Boeing 777s. The airline's success is attributed to its strategic location, premium offerings, and innovative approach to long-haul travel.

💡Wide-body fleet

A wide-body fleet refers to an airline's collection of aircraft with a wide fuselage, allowing them to carry more passengers and cargo. In the context of the video, Emirates is highlighted for its impressive all-wide body fleet of A380s and Boeing 777s, which enables it to offer more capacity and comfort on long-haul flights, contributing to its reputation as a luxury airline.

💡Hub and Spoke model

The hub and spoke model is a network design where flights from many origins converge on a central hub, and then diverge to various destinations. The video explains how Emirates has successfully utilized this model, with its hub in Dubai, to connect passengers from various parts of the world, leveraging its strategic location between the East and the West.

💡Aircraft Orders

Aircraft orders refer to the agreements made by airlines to purchase new planes from manufacturers. The video details how Emirates has placed significant orders with both Boeing and Airbus, particularly for the Boeing 777 and the Airbus A380, which have been crucial to its expansion and service offerings.

💡SkyCargo

SkyCargo is Emirates' cargo division, launched in 1998. It initially operated aircraft under lease but later developed its own dedicated freight schedules and routes. The video mentions SkyCargo as an example of Emirates' diversification and its ability to adapt to different market segments, including the transportation of goods and cargo.

💡Frequent Flyer Program

A frequent flyer program is a loyalty program offered by airlines to reward regular customers with benefits such as free flights and upgrades. The video discusses how Emirates launched its own program, Skywards, in 2000, allowing passengers to collect and use reward miles, enhancing customer loyalty and engagement.

💡In-flight Service

In-flight service refers to the amenities and assistance provided to passengers during a flight. The video emphasizes Emirates' focus on high-quality in-flight service, with premium offerings in its first, business, and economy classes, including entertainment systems at every seat and luxury first-class suites, setting a high standard in the industry.

💡Airline Alliance

An airline alliance is a partnership between multiple airlines to share resources, routes, and provide mutual benefits. The video notes that Emirates has chosen to remain independent and not join any alliance, focusing instead on building its own global network and connections.

💡Aircraft Delivery

Aircraft delivery refers to the process of an airline receiving new planes from manufacturers. The video highlights the delivery of the Airbus A380 to Emirates in 2008 and how it expanded its fleet and destinations, underscoring the airline's commitment to growth and innovation.

💡Ultra Long-Haul Flights

Ultra long-haul flights are those covering exceptionally long distances, often non-stop. The video discusses how Emirates has been a pioneer in this area, offering non-stop services from Dubai to destinations like Australia and the United States, leveraging the range and capacity of its aircraft like the Boeing 777 and Airbus A380.

💡A350

The A350 is a family of long-range, wide-body aircraft produced by Airbus. The video mentions Emirates' decision to acquire A350-900 aircraft, indicating the airline's strategy to diversify its fleet with newer, more efficient aircraft to meet changing market demands and operational efficiency.

Highlights

Emirates is one of the largest and most well-connected airlines, known for its all-wide body fleet of A380s and Boeing 777s.

Founded in 1985, Emirates has grown rapidly to become a major player in the aviation industry.

Emirates was the first major Middle Eastern hub airline, predating Qatar Airways and Etihad.

Gulf Air was the main connector in the Middle East before Emirates, serving as the flag carrier for four states.

The Dubai royal family's initiative to establish Emirates was prompted by Gulf Air's decision to reduce services from Dubai.

Emirates received initial funding and support from the Dubai royal family and Pakistan International Airlines (PIA).

The airline started with a modest startup capital of 10 million dollars, which it repaid within a year.

Emirates' first flight was on October 25, 1985, from Dubai to Karachi.

The airline carried 28,000 passengers in its first year and turned a profit, a remarkable achievement.

Emirates' early success was attributed to strong regional advertising and a focus on the Middle East and Indian subcontinent.

In 1987, Emirates purchased its first two aircraft, two Airbus A310s, expanding its fleet and services.

The airline began flights to Europe with London and Frankfurt as initial destinations in the same year as its first flight.

Emirates ordered seven Boeing 777-200s in 1992, significantly increasing its capacity and range.

The airline partnered with U.S. Airways in 1993, offering more destinations and round-the-world flights.

Emirates positioned itself as a premium airline, focusing on luxury offerings and in-flight entertainment.

In 1998, Emirates launched Emirates SkyCargo, building up dedicated freight schedules and routes.

Emirates took a 40% stake in Air Lanka in 1998, managing the airline and redefining its strategy.

By the end of the 2000s, Emirates had expanded its fleet and destinations significantly, with a major focus on Asia, Australasia, and the United States.

Emirates placed large orders for both Boeing and Airbus aircraft in the 2000s, showing a strong recovery from the aviation industry's decline.

The airline operates the largest fleet of A380s and has the most extensive network, challenging other airlines on lucrative routes.

Emirates decided to stay independent and not join an airline alliance, focusing on building its global network.

The airline introduced a premium economy product and diversified its fleet with orders for Boeing 777X and Airbus A350 aircraft.

Emirates' cancellation of some A380 orders in 2019 led to the end of production for the A380 by Airbus.

The airline has faced challenges due to the events of 2020 but continues to operate a large fleet of A380s and Boeing 777s.

Emirates has earned a reputation for its premium long-haul service and in-flight offerings, setting a high standard for the industry.

Transcripts

[Music]

emirates today is one of the largest and

most well-connected airlines around

standing out with its impressive

all-wide body fleet of a380s and triple

sevens

to reach this size it's grown incredibly

rapidly

having only been founded in 1985.

let's take a look back at the founding

development and rise of emirates

over the past 35 years

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emirates was first launched back in 1985

with carriers like british airways klm

and qantas recently celebrating 100 year

anniversaries

this makes emirates quite a young

carrier it was however the first of the

major middle eastern hub

airlines to be established as qatar

airways didn't start until

1993 and etihad in 2003

in the 1980s gulf air was the main

connector in the middle east

it was the flag carrier for four states

oman abu dhabi qatar and bahrain

but it was flying into dubai and it was

largely feeding passengers to other

airlines and realizing this

gold fair decided to pull services back

from dubai leaving the uae with fewer

connections

and it was this that spurred the dubai

royal family to propose a new airline

which

of course we know today as emirates

emirates came into existence with

funding from the dubai royal family

and pakistan international airways or

pia

the latter also provided emirates first

aircraft as well as technical expertise

and administrative assistance

the new carrier took a mere 10 million

dollars in startup capital from the

dubai government

and repaid this within a year the two

aircraft leased from pia were a boeing

737

200 and one airbus a300 200

these were painted in emirates livery

but were operated initially by pia

pilots and crew

they were eventually replaced once

emirates was able to recruit and train

its own team

emirates also operated two boeing

727-200 aircraft

on loan from the royal families to buy

air wing

these were upgraded advanced models with

increased range and more powerful

engines

the 727s would stay with the airline

until the mid 1990s

while the seoul 737 was returned to pia

in 1987. emirates first flight took

place on october 25th

1985. this was flight ek 600 from dubai

to karachi

and was a fitting first destination

given the strong involvement of pia

beyond karachi other first routes were

regional

including mumbai delhi colombo amman

dhaka and cairo as head of airline

planning in the early years

much of the regional and later

international route development

was at the hands of a young tim clark

even as emirates has grown today to

cover the globe

this strong regional base in the middle

east and indian subcontinent

remains key for the carrier

right from the start emirates

experienced success helped by strong

advertising in the region

the airline carried 000 passengers in

its first year

what's more impressive is that it turned

a profit

in the same year its main rival golf air

saw profits fall

by over 30 percent in july 1987

emirates officially purchased its first

two aircraft

two airbus a310s the airline would

eventually take on a total of 13

a310s and 7 a300s and use them to expand

services flights to europe began that

same year with london and frankfurt as

initial destinations

istanbul and male were also added later

in the year

route expansion continued in the 90s

flights to east and southeast asia began

in 1990

with manila and singapore as the first

destinations

in the following years hong kong paris

rome and zurich would also be

added with expansion came new aircraft

emirates ordered seven boeing triple

seven two hundreds in 1992.

the triple seven added vast amounts of

capacity to the airlines operations it

was a

modern comfortable fuel-efficient jets

and it could fly for miles so you know

really it allowed emirates to launch

huge routes into places like australia

and the united states

um and it is today the biggest operator

of the triple seven and looking forward

to its triple seven x of course

emirates also partnered with u.s airways

from 1993

allowing the offer of more destinations

and round-the-world flights

emirates marketed itself as a premium

airline and still

does to this day it focused on luxury

offerings in premium classes

and was one of the first airlines to

install entertainment systems at every

seat

the same marketing focus continued in

later years

with be good to yourself fly emirates as

the new slogan

in the late 90s the late 90s would also

see the launch of emirates sky

cargo in 1998 this initially operated

aircraft under lease from atlas air

but allowed emirates to build up

dedicated freight schedules and routes

the first of the airline's triple 7

orders in 1992

arrived four years later in 1996.

emirates quickly launched a triple seven

service to australia

with a stop in singapore this would go

on to become one of the airline's most

successful routes

emirates also added more airbus aircraft

taking 29

a330 200s starting in 1999

these would remain in the fleet until

2016.

in may 1998 emirates bought a 40 stake

for 17 million dollars in air lanka

as part of the investment emirates

managed the airline for the next 10

years taking control of ground handling

and catering operations at colombo

and redefining the airline's image and

strategy

the name was changed to sri lankan

airlines soon after emirates involvement

began

and its fleet and route network expanded

when the management contract ended in

2008

emirates pulled out selling its expanded

stake of 43.6

back to the sri lankan government

by the turn of the century emirates had

a fleet of 30 aircraft and operated to

28 destinations

by the end of the 2000s it would add

another 46 destinations to this

to meet expansion plans emirates placed

further aircraft orders with both boeing

and airbus the huge orders placed in

2003 and 2005

showed just how quickly it recovered

from the aviation industry's decline in

2001.

with boeing it significantly expanded

its fleet of triple sevens

from 2004 to 2011 it placed

six separate orders for triple sevens

collectively

the airline would sign for over a

hundred and twenty triple sevens

the majority of them being the dash 300

er

variant with airbus emirates ordered

both the a340

and the a380 from 2000 through to 2013

emirates would place six separate orders

for over 120 super jumbos

for the a340 emirates would buy 20

ordering 2-500 variants

and 18 longer-600s it would later cancel

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the first of the a380s was delivered in

2008

and as the fleet grew so did the

airline's list of destinations and

frequencies

the 2000s and early 2010s saw much more

expansion

particularly with routes to asia

australasia and the united states

emirates now began challenging other

airlines on lucrative asia to north

america routes

offering one-stop services via dubai

emirates dubai hub puts it in a unique

position you know some people do want to

go to dubai sure but

that market's always going to be quite

limited

but being midway between the east and

the west really allowed emirates to

shuttle people

right across the globe connecting in

dubai and the a380 allowed it to pack

planes full of passengers

going from major airports to its to buy

hub in order to connect onto their final

destination so

you know really the a380 gave it hub and

spoke on steroids

and it worked very well for the airline

in a period of increasing airline

alliance participation

emirates decided to stay independent and

not join an alliance

it would instead focus on its own

connections and building its global

network

the airline launched its own frequent

flyer program

skywards in 2000 building a network of

partner airlines

emirates frequent travelers can collect

and use reward miles and share limited

tier benefits

with other carriers

emirates has continued its growth in the

last decade taking delivery of more a380

aircraft

as of 2020 it operates a fleet of 115

a380s and 151 triple sevens

it has also continued its focus on high

quality service and corporate appeal

with its impressive premium cabins in

2016 it won the skytrax airline of the

year award for the first time

the airline has introduced some of the

best first class products in the air

as well in 2017 it was the first airline

to install a fully enclosed suite in

first

class this features just six private

suites

so far only on some triple seven

aircraft

other sevens and the a380 offer

semi-enclosed private suites

while the a380 features a large bar

lounge

and even showers looking forward

emirates is about to launch a new

premium economy product

a late comer to the idea it'll be the

first major middle eastern airline to

include this level of service

also in the coming years the airline

will operate a more diverse fleet as it

will eventually take delivery of some

new generation long-range twin jets

the first major new order was for the

boeing triple 7x in 2013.

its order for 150 aircraft was the

largest ever order for new aircraft

valued at 76 billion dollars or 83

billion dollars in 2020

it initially ordered 35 boeing triple 7

8 and 115 boeing triple seven nine

aircraft

but changed this in 2019 swapping 24

777x aircraft for 37879 dreamliners

it's thought this was due at least in

part to the delays with triple 7x

development

going further with fleet diversification

emirates also reached a decision to

acquire 50

a350 900 aircraft at the dubai air show

in 2019

emirates cancelled some a380 orders in

2019

these cancellations actually led to a

subsequent announcement from airbus that

it would completely end production

of the a380 so emirates was really the

only airline to ever fully embrace the

potential of the a380

and you know if the 251 ever ordered

half went to emirates and without their

support

the programme would have been a complete

failure but the world was changing

point to point was growing fuel prices

were going up

emirates no longer needed so many super

jumbos

so it was last year that they reached an

agreement with airbus

to cancel 39 of their outstanding order

and it ordered up a huge number of a350s

instead

so it was valentine's day last year with

no substantial backlog of a380s to build

airbus pulled the plug on the programme

the events of 2020 have hit all airlines

hard and emirates is no exception

despite some talk of cancelling more

a380 orders

it seems that the carrier will stick

with them in fact with other airlines

retiring them

sir tim clark has commented that they

could be even more popular

indeed they would become a rare mode of

transportation which some might go

out of their way to fly tim clark

explained the challenges his airline

faces in the near future

particularly around the future fleet we

are nowhere near confident enough that

the economics the cash flows the bottom

line will put us in a good position

to be able to guess if we'll buy a

hundred of this or a hundred of that

whatever direction emirates goes in the

future it has earned a reputation of

being a strong competitor in the market

of premium

long-haul air travel few airlines can

match its level of in-flight service

and its reach around the world it's

likely that the airline will continue

this legacy into the future

with newer and more efficient jets on

the horizon

nrx truly opened up the world you know

it pioneered hub and spoke operations it

led the way on ultra long-haul flying

but more than that it increased

passenger expectations

you know it really raised the bar for

other airlines in terms of service and

comfort on board

it disrupted the long-haul market and it

challenged those stagnant flag carrier

airlines to really up their game

and of course it did it all without ever

joining an alliance

have you had the opportunity to fly with

emirates over its 35-year history

share your experience with us by leaving

a comment

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