The CEO of Emirates does not think that his airline’s position would be hampered by its Saudi Arabian neighbors despite continual expansion.
According to Tim Clark, CEO of Emirates, the business of Emirates won’t be impacted by the growth and success of other Saudi Arabian airlines. His remarks were made during the Arabian Travel Market. In spite of increased competition, Clark claims that there is still enough demand in the region for Emirates to continue to grow. He thanked the other airlines for their contributions to the international air transportation sector during the conference and wished them luck.
threat evaluation
It goes without saying that when two airlines serve the same market, they are inexorably rivals. Due to its focus on long-distance international travel, Emirates, based in Dubai, has encountered some competition globally. But as more airlines have emerged in Saudi Arabia and have been growing their route networks, the threat is getting closer. These burgeoning airlines are all vying for a bigger piece of the market that Emirates blatantly dominates.
In particular, Saudia, which is expanding, Riyadh Air, which is emerging, and Neom have expressed interest in increasing their long-haul services.While the emphasis of the various airlines varies along with the routes they serve, a large portion of these airlines’ operations operate in markets that Emirates has long controlled. The three Saudi Arabian airlines that could pose a danger to Emirates operations, according to Zawya, are Saudia, Neom, and Riyadh Air.
These airlines would appear to represent a threat to Emirates from the outside, albeit a small one at the moment. Clark, though, reassured the press numerous times this morning that there is no such threat. “Does that affect us?” Clark asked. Not at all, in my opinion. People will use Emirates as long as it continues to do what it has done well in the past.This is going to be very intriguing to monitor in the case of the Saudi airlines, of which there will now be three: Riyadh, NEOM, and Saudia.
According to Clark, these airlines will support, not impede, Emirate’s business activities. According to him, there seems to be a substantial demand for air travel in the area, especially in the leisure sector, and these airlines will inject money into the regional travel economy, thereby helping Emirates’ operations. Then Clark continued,
If they’re going to invest that much money, it’s excellent for the community and the aviation sector. And best of luck to them.
It’s crucial to keep in mind that Emirates has faced competition in the past, most recently from Qatar Airways and Etihad Airways, another country’s flag carrier. The Dubai-based carrier has maintained strength despite significant growth and investments, and it hopes to achieve this feat once more.
threat from within
Clark claims that Emirates’ neighbors don’t really pose a threat to its business. Delays in aircraft deliveries, he pointed out, are a considerably bigger worry. Airbus A380s and Boeing 777s are currently in service with the airline. Many of its newest A380s were placed in storage during the pandemic. Now that demand for air travel is soaring, the airline is rushing to get all of its A380s back in the air. It is working hard to launch all of these giants, and it is looking forward to receiving its newest aircraft.
The airline has 165 planes on order, all of which will be essential to its fleet in the future. Airbus A350, Boeing 777-9, and Boeing 787 aircraft make up this upcoming fleet. By July 2025, it expects to get the first of the 777-9 aircraft. Unfortunately for the airline, there are a variety of reasons why this order has been repeatedly delayed. Despite the setbacks, Clark is confident that the airline will have a sufficient supply of aircraft to fly until the 777-9s arrive because he believes the A350s will be operational for Emirates by August 2024.
