British Airways (BA) is looking to increase frequency on the Dubai route from the end of October, according to a senior executive.
The airline currently operates 14 weekly flights to London Heathrow from Dubai, and this will go up to 17 at the start of its winter schedule. It also operates daily flights between Abu Dhabi and London.
"We are investing in some additional frequencies on the Dubai route. From the end of October this year, we will add another three services per week on the Dubai route," said Paul Starrs, who has been recently appointed as British Airways's commercial manager for the Middle East and Pakistan.
"We looked very carefully as to where we could get profitable opportunities. And we think that there is worth in investing on the Dubai route," he said.
Besides other reasons, the British carrier has been in the news lately for being rumoured to have been bought over by Emirates.
When asked how far this was true, Starrs said: "I do not know where these rumours are originating from. I can only say right now that there are no plans in place for any such buyout." Sharing his outlook on the Dubai aviation market and the emerging competition from new players like Virgin Atlantic, Starrs said: "There is so much growth on the Dubai route.We have been flying here for many years and have got used to the competition. And it is really good to see some good competition on the route." But does he see Virgin eating into BA's market share? "I think the market is quite large. There is plenty of room in this market for both of us. And we are well able to compete with Virgin Atlantic," said Starrs.
He, however, did not divulge British Airways' current share in Dubai's airline market. "We cannot disclose any local figure," he said. "But we are not looking at any major changes in the next 12 months. The Middle East is a very important part of our global network." Like other airlines, fuel remains a wild card for British Airways. "Our fuel bill is a very big factor in our cost base. We estimate it would account for around 600 million (Dh3.84 billion) to 2.2bn (Dh8.07bn) this year," said Starrs.
"But we are constantly evaluating our fuel surcharge. We had our last increase about six months ago. And I cannot comment on whether there is one expected in the immediate future," he said.
Challenges in the Dubai market
Additional capacity is a big challenge for the aviation market in Dubai, according to Paul Starrs, British Airways's commercial manager for the Middle East and Pakistan.
"Specifically from Dubai, if you would notice, some of the Middle East carriers are looking to expand into the North American market.
"So for the next few years, we will see further expansion into that market. That is a market we are currently very strong in.
"We have fantastic network connections on to the North America route. However, that is going to be a real challenge for us," he said.
"Wherever there is additional capacity, it just makes it much more competitive. You have got to be on your toes and make sure you are doing everything possible to be able to compete," he added.
As a company, the challenge facing British Airways right now is the lack of aircraft orders.
"We do not have any aircraft on order at the moment. And that is something we are looking to rectify by the end of the year," added Starrs.
By Shweta Jain
© Emirates Today 2006
