Ready for Take Off: An aviation round-up
The skies is the limit as Etihad announces a 28 % increase in revenue in Q1, Dubai Duty Free says sales are up 14% and the IATA says Middle East aviation has "now fully recovered" from the recession.
April 4, 2012 2:55 by kippreport
And now, Kipp presents our weekly, erm… monthly, erm… random aviation report. It is been a good week for aviation, and the week isn’t even up yet. From Etihad’s spectacular first quarter results, Emirates new branding and Dubai Duty Free sales going through the roof—you can understand why the International Air Transport Association (IATA) after revealing revealed global airline figures for February claimed Middle East aviation had “now fully recovered” from the downturn.
To start off with, let’s talk about Etihad Airways. Yesterday the carrier announced a 28 percent increase in revenue—to the tune of Dh3.63 billion over the same period in 2011. Etihad, who broke even last year, also enjoyed an increase of passengers this quarter—from 500,000 to 2.4 million. “Despite the tough economic times we believe our business model of organic network growth combined with codeshare partnerships and strategic equity investments will enable us to continue to prosper and ensure sustainable profitability” said Etihad Airways president and CEO James Hogan. It is too early in the game to gauge the impact of Etihad’s investments in airberlin and Air Seychelles—but so far it is looking good.
And on to Etihad’s older brother, Emirates Airlines—the carrier has been in the news for its latest marketing campaign which see a departure from the old and much loved slogan of ‘Keep Discovering’ to “Hello, Tomorrow.” Doesn’t quite have a ring to it, does it? Kipp’s probably just being a sentimental old fool, then. Emirates Airlines says: the change aims to “inspir(e) people to greet tomorrow’s unlimited potential, now.” Created by Emirates communication partner Strawberry Frog, the campaign has been the center of much attention. Executive Vice Chairman of Emirates Airline Maurice Flanagan said: “Our new corporate image and global marketing campaign both underline the confidence we have in our existing products and services, and the vision we have for the future growth of the airline.”
Here in Dubai, sales were up 14 percent this quarter at Dubai Duty Free to a cool Dh1.42 billion. The increase has been credited to a rise in spending on alcohol, perfume and gold. Dubai Duty Free saw an 22 percent increase in perfume sales this quarter of Dh213 million and a 19 percent increase in electronics to Dh107 million.
And though things are going rather well for Gulf carriers, this isn’t the case over at Royal Jordanian Airlines—who’s CEO called a merger with a larger carrier “inevitable” and “a must”. Royal Jordanian CEO Hussein Dabbas said : “We are looking and reviewing options and talking to airlines to see when the time is right for us to do something,” Dabbas said yesterday. “With the pressure we are seeing from mega-carriers around the world, whether European or regional, to continue as we are is going to be a difficult game to follow.”