Jul 01 2011 |
more articles from
|
Emirates will cut airfare to boost occupancy
President Clark says no plan to cut routes, flights and aircraft orders
Emirates President Tim Clark told Bloomberg that the carrier has no plan to cut routes and flights and instead aims to lift occupancy with cheaper tickets. He, however, didn't reveal that when and how much the airline will cut airfares.
Clark said industry is comfortable with oil priced between $60 to $80 per barrel. Brent slipped in Asia more than $1 to below $112 a barrel on Friday.
Clark said cutting fares on A380 will push up occupancy level needed to break even because the impact of government spending cuts by European and Asian countries means that this strategy is more likely to succeed than raising fares and curbing capacity.
The biggest customer for the A380 superjumbo, Emirates surprised its peers by boosting its orders to 90 planes last June and said they were looking at ordering more.
Dubai's airline will stick with its rapid growth model based on making Dubai into a high-volume, inter-continental travel hub using 90 A380s with 45,000 seats, Clark told Bloomberg.
"We have no intention of cutting back our growth. But that doesn't stop us from redeploying assets if we think we can get a better return on a certain route," he added.
Emirates last month signed a letter of intent with General Electric to oversee design and construction of an estimated $120 million engine repair facility in Dubai. The facility will be constructed over a 90,000 square meter land and will complement an existing engine overhaul facility in Dubai, the airline said in a statement that was released from the Paris Air Show on Tuesday.
© Emirates 24|7 2011
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment