The International and Open Government Affairs Journal of Emirates Issue 24 | May 2016 Sky 2 Unlikely partnerships: A global overview 3 The Emirates Group announces 28th consecutive year of profit How Emirates does it: Aircraft financing 4 Q&A with Copenhagen ’s CEO - Thomas Woldbye 5 Aviation taxes: Revenue raiser or damaging to growth? 6 hypocrisy - €1 billion in subsidies Myths vs facts: Dutch Government confirms Emirates caters for growing passenger demand 7 They said it best... 8 Emirates Engine Maintenance Centre installs solar panels Fast Facts

2015-16 Financial Highlights

$ $ $ $

PROFIT PAX CARRIED NO. OF AIRCRAFT NO. OF EMPLOYEES US$2.2 bn (+50%) 51.9 m 251 95,322 AV. AIRCRAFT AGE REVENUE US$ bn (-3%) CARGO CARRIED MONTHS 25.3 74 DESTINATIONS DIVIDENDS 2.5 m tonnes US$ m (-3%) 153 681 FUEL COSTS SEAT FACTOR

US$ 5.4 bn (-31%) 76.5% Unlikely airline partnerships: A global overview In recent years a handful of vocal in the United States and Europe have been on a mission to discredit and commercially harm Emirates and the other Gulf carriers. They have vilified state-ownership, broadly equated it with unfair competition, and called for protectionist government action to “ the playing field”.

However, in their own commercial as of last year, double voting rights. While and state-owned partners, South African relationships, the actions of the US and blasting the Gulf carriers, - Airways, Air China and Air India, all receive EU carriers speak much louder than KLM’s inconsistent attitude is illustrated by regular injections of state aid. their rhetoric. The airlines that complain participating in a joint venture with Alitalia, the loudest about “competing against an airline 49% owned by Etihad. Similarly, These commercial actions expose the governments” in the Gulf have warmly in November 2015, Lufthansa announced words of indignation for what they really embraced state-owned carriers elsewhere, a joint venture with state-owned Singapore are: anti-competitive rhetoric, not including making significant equity Airlines, and sits silently as principled positions. investments and rolling out the red carpet for them to join joint ventures and their Many alliance carriers are state-owned. alliance clubs.

Delta is a case in point. Last year, at the Ownership peak of its focus on state-owned Gulf carriers, Delta acquired a 3.55% stake in Air China Aeroflot Cathay Pacific state-owned and subsidised China Eastern Air India Aerolineas Argentinas Airlines for US$450 million. Given 75% of Air New Zealand Air France Malaysia Airlines Delta’s SkyTeam partners are state-owned, Croatia Airlines China Airlines Qatar Airways this disconnect between its advocacy and action reflects a pattern, not an aberration: EgyptAir China Eastern Airlines Royal Jordanian state-owned airlines are acceptable if they Ethiopian Airlines China Southern Airlines S7 Airlines are our partners but not acceptable if they LOT Polish Airlines CSA SriLankan Airlines are our competitors. Fully or partially SAS Garuda Indonesia TAM Airlines The same is true for American and state-owned Shenzhen Airlines Kenya Airways United, Delta’s partners in the anti-Open Singapore Airlines KLM Royal Dutch Airlines Skies alliance. American’s leadership has denounced fellow alliance South African Airways Middle East Airlines member Qatar Airways and code-share TAP Portugal Saudia partner Etihad as state-owned and Thai Airways TAROM subsidised competitors, praised them as valued commercial partners, and brushed Turkish Airlines Vietnam Airlines aside the suggestions these statements Xiamen Airlines are inconsistent. Fifty three percent of Adria Airways Aeromexico airberlin American’s oneworld partners are state- Air Europa Lineas Aereas American Airlines owned, while 50% of United’s Star Alliance partners are. Turkish Airlines, a Star member, Air Canada Alitalia is substantially Government owned by the All Nippon Airways Delta Air Lines Turkish Government, which is now building Asiana Airlines Korean Air Japan Airlines the world’s largest airport in Istanbul. United attacked the in the UAE and Qatar Avianca Qantas Airways Privately as “subsidies” for the Gulf carriers, but is Avianca Brazil owned conveniently silent on Turkey. The same disconnect between political Copa Airlines advocacy and commercial action is true for EVA Air Europe’s leading anti-Gulf carrier voices - Lufthansa Air France-KLM and Lufthansa. The French Government is a long-term shareholder in SWISS Air France with 17.6% of the stock and, United Airlines 2 The Emirates Group announces 28th consecutive year of profit 2015-16 Financial Highlights The Emirates Group recently announced its 28th consecutive year of profit and record $ $ $ $ 2015-16 financial year profits, reflecting its PROFIT PAX CARRIED NO. OF AIRCRAFT NO. OF EMPLOYEES strong market position despite global and operational challenges. US$2.2 bn (+50%) 51.9 m 251 95,322 REVENUE AV. AIRCRAFT AGE The Group posted an AED 8.2 billion US$ bn (-3%) CARGO CARRIED (US$2.2 billion) profit for the financial year 25.3 74 MONTHS DESTINATIONS ending 31 March 2016 (up 50% on last DIVIDENDS 2.5 m tonnes year). Revenue fell by 3% to AED 93 billion US$ m (-3%) 153 (US$25.3 billion) and the Group’s cash 681 balance increased strongly to AED 23.5 FUEL COSTS SEAT FACTOR billion (US$6.4 billion). . US$ 5.4 bn (-31%) 76.5%

The Chairman and Chief Executive of Emirates Airline and Group, Sheikh Ahmed bin Saeed Al Maktoum, said: “Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16. Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies. Our ongoing investments to develop our people and to enhance our business performance enable us to react with agility to the new challenges and opportunities that every year brings.”

How Emirates does it: Aircraft financing How does Emirates finance year-on-year growth in capacity? Emirates’ strong financial standing today, as evidenced by 28 successive years of profits and a cash balance of AED 20 billion (US$5.4 billion)*, is partly thanks to a long-term strategy of diversification and innovation in its portfolio for aircraft financing.

With a fleet size of 251 aircraft and another AED 3.4 billion (US$913 million) through 8% 2% 254 worth over AED 440.8 billion (US$120 Sukuk bonds, another form of Islamic billion) on order*, Emirates manages a financing, backed by UK Export Finance. significant pool of resources. Over the past 17% This was an award-winning transaction, with 10 years Emirates has raised over AED 164 the largest capital market offering supported billion (US$45 billion) to finance its aircraft, by an ECA guarantee in aviation history, and of which AED 26.9 billion (US$7.3 billion) was also the first of its kind. raised in Financial Year (FY) 2015-16 alone. Emirates does not receive any government 53% The funding for these aircraft comes from debt guarantees (either from the a diverse range of sources – both new 20% Government of Dubai or the Government of and traditional – such as commercial bank the UAE, directly or indirectly). The financing loans, commercial asset bonded debts, rates received by Emirates on ECAs have EU/US Export Credit Agencies (ECAs), Operating Lease Commercial Financing been labelled by some as a form of subsidy, Islamic financing and private equity from ECA Guaranteed Bonds however, these rates are calculated by the investors in a number of countries. This Financing Islamic Financing market on the basis of Emirates’ overall approach has worked for Emirates as it risk profile which takes into account factors maximises the availability of funds, spreads such as aircraft age, credit rating and overall However, aircraft funded through operating the associated financial risks and reduces strength of the balance sheet. leases involve comparatively less financial critical dependencies on a limited number liability as well as risk, but do not count as Emirates’ strong brand value, estimated of sources. owned assets. at AED 28.3 billion (US$7.7 billion) in Emirates capitalises on the benefits of both 2016**, as well as its long term financial Emirates has pioneered the funding of operating and financial leases of aircraft on strength and sustainability, have enabled aircraft from a diverse range of sources an opportunity basis, while maintaining a it to attract investments from a number of in a number of ways. In FY2015-16, the healthy balance overall. Owned aircraft incur international markets. Aircraft deliveries operating lease on one aircraft was financed greater liability to the extent of their total for the next financial year have already entirely through private placements with upfront cost, but allow for control over the received committed offers for financing, non-bank financial institutions in Korea. asset’s management in the long term. As and Emirates will continue to work on more From Japan, Emirates taps into funds such, Emirates carefully leverages market innovative ways to source funds over the through niche aircraft finance products dynamics, including bulk purchases, to long term. such as the Japanese Operating Lease and take advantage of favourable rates for both Japanese Operating Lease with Call Option. * as at 31 March 2016 purchase and re-sale of owned aircraft. . In FY2014-15, Emirates raised ** 2016 Brand Finance Global 500 Report 3 Q&A with Copenhagen Airport’s CEO - Thomas Woldbye

be doubled from four to eight million people, if the so-called “One-hour Model” for train operations between the largest cities in Denmark will be realised. The catchment area in the southern part of Sweden is another important focus area for us. If we can improve this, it will create an even better structural starting point for fulfilling Copenhagen Airport’s vision of growing from almost 27 million to 40 million passengers annually.

Q: There are significant airport infrastructure projects developing at a pace in other regions, for example in Turkey, China and also Dubai. Is airport capacity expansion outside of Europe a threat or an opportunity for Copenhagen?

A: There is no doubt that the international competition is very tough. On balance we see the competition as a good thing, as it increases capacity, and thereby passenger and cargo flows. It also means that we constantly have to develop the airport, so we continue to be attractive to the airlines. Copenhagen Airport must Q: The Danish Government is currently developing a national continue to be a competitive hub for our customers, and therefore aviation strategy focused on improving the air services to and we are in constant dialogue with airlines about their requirements from Denmark. What are your key issues for the Government and needs. It means, among other things, that we are currently to prioritise in this context? working to expand our capacity, and that we work very hard to maintain our position as one of Europe’s most efficient airports.

The geographic location of Copenhagen Airport gives us an A: Denmark must be linked better with the rest of the world. advantage as a gateway to the rest of Northern Europe, and at Good flight connections to and from Denmark support 150,000 the same time the good connections to mega hubs such as Dubai Danish jobs and contribute up to DKK 100 billion (€13.4 billion) makes the combined connectivity quite unique. to the Danish GDP. Whether you are a global company, a small or medium-sized Danish enterprise or a holiday-bound family,

good flight connections affect the daily life and the society we are Q: How do you see Emirates’ presence in Copenhagen part of. Therefore, it is my hope that the Danish aviation strategy playing a role in supporting economic growth and the creation may on the one hand help to tie Denmark better together with the of jobs? help of domestic air transport, and on the other hand strengthen Denmark’s international accessibility, so that Denmark will be tied even closer with the rest of the world. A key part in this is A: Copenhagen Airport has a plan to grow to 40 million that Copenhagen Airport must continue to be a hub for Northern passengers annually. At the moment, the number of passengers Europe and offer direct flights to the major destinations in the rest increases by 1 million each year. For every 1 million new of the world. passengers approximately 1,000 jobs are generated at the airport - and that’s just the direct jobs. In this context, Emirates plays a large role by bringing a steady flow of passengers each day, and Q: Emirates recently began deploying the two-class we hope this will continue and increase. Both economic growth A380 with 615 seats on a daily service between Dubai and and jobs are at stake at a time when air traffic growth is at record Copenhagen, due to steadily rising demand and the potential speeds across Europe. It is our goal that the citizens of our region of the Copenhagen catchment area. Seat factors on the should benefit as much as possible from this growth. route remain at 80% which is above industry average. How significant from an airport perspective are daily flights with an aircraft of such scale? Q: Your long-term goal is that Copenhagen handles 40 million passengers per year from around 27 million now. Therefore,

in your view, how big a threat are restrictive policies and A: It is extremely positive that Emirates’ A380s continuously fly so regulations at national and EU level in the context of reaching many passengers between Dubai and Copenhagen, and a seat this goal? factor of a staggering 80% is simply impressive. The air services Emirates offers opens Denmark up further as a tourist destination, which is important for the Danish economy, and it increases the A: I generally have a positive outlook with respect to policies accessibility of Denmark to the rest of the world to the benefit of and regulation at national and EU level and I do not expect that both businesses and tourists. they will obstruct our goal to reach the 40 million passengers. That said, it is important that regulation is effective and supports growth. At the national level the Danish Government has launched Q: To what extent do you foresee Europe failing to capitalise a major effort to develop a national aviation strategy to realise the on global air transport growth due to infrastructure great potential that lies in aviation in terms of growth and jobs. constraints on the ground and continued inefficiencies in I find this very positive, and I would like to acknowledge this. the air? At the same time, there is also focus on aviation within the EU framework with the Commission’s Aviation Strategy for Europe,

so I hope we are on the right track. However, if the strategies are A: In Europe we have to increase our catchment area and going to have significant and long lasting impacts, it is essential eliminate inefficiencies in the air, if we are to benefit from the that they focus on initiatives that create growth and that leave growth in global aviation to the fullest. Therefore, we strongly support the Single European Sky initiative to boost air traffic room for the stakeholders to find common solutions. efficiency. Furthermore, the catchment area of Copenhagen could .

4 Aviation taxes: Revenue raiser or damaging to growth? In 2016, airlines and their customers are forecast to generate US$118 billion in tax revenues. That’s the equivalent of 45% of the industry’s Gross Value Added paid to governments. Many in the aviation industry recognise that excessive taxation on international air transport has a negative impact on economic growth and job creation, but convincing governments of this fact is not always an easy task.

European industry association, Airlines for Europe (A4E), recently them, there are still those that see aviation as a convenient source called for the abolition of passenger taxes in order to boost of tax revenue that can shore up national budgets. Others collect economic growth and help to create more jobs. According to modest charges but earmark the revenue generated for aviation Thomas Reynaert, Managing Director of A4E: “By weakening an infrastructure and capacity creation. Dubai falls into that latter enabler of economic activity, governments are shooting themselves category as the government will introduce a passenger charge of in the foot: they only see the short-term budgetary gains but ignore AED 35 (US$9.50) to be charged on departing flights from July. the larger and long-term impact on economic activity. By removing passenger taxes governments would end up as net beneficiaries Aviation is a superb enabler of economic growth, especially when it due to the increased revenues from VAT and other taxes, as well as is not being used as a convenient source of tax revenue. Abolishing higher passenger numbers.” aviation taxes has in numerous cases provided a boost to passenger numbers and tourism activity, and hence pays for itself through the While some governments have recognised the damaging economic increased revenue generated by the additional growth – hopefully impacts of aviation taxes and have taken steps to reduce or abolish more governments will recognise this in the future.. Here is an overview of some of the aviation taxes currently in place, those being introduced, and those that have been abolished:

Italy Australia Ireland In January this year, the Italian In 1995, the Australian The Irish Government Government increased its Government introduced a introduced a departure departure tax by €2.50 per Passenger Movement Charge Air Tax of €10 per passenger. According to (PMC) to recover the costs passenger in 2009. The IATA, it is estimated that this tax increase associated with border processing Irish Government estimated that this will reduce the number of passengers and issuing short-term visas. Since tax would raise €130 million in revenue travelling to and from Italy by over then, there have been numerous rises per year. However a report by SEO 755,000 and GDP by €146 million per in the PMC and it is estimated to raise Aviation Economics found that the tax year, resulting in 2,300 less jobs a year. over AU$1 billion in revenue for had resulted in a reduction in passenger 2016-17, which is far in excess of the demand of between 500,000 and 1.2 costs incurred for border processing million over the first year. The Irish New Zealand and issuing visas. Government subsequently abolished the Earlier this year, the tax in 2014. New Zealand Government Norway introduced an arrival The Netherlands (NZ$16.00) and departure tax The Norwegian Government In 2008, the Dutch (NZ$6.00) for international travel, labelled plans to introduce an Air Government introduced an the Border Clearance Levy. Passenger Tax of €8.50 for departing passengers in Air Passenger Tax of €11 for mid-2016. According to IATA analysis, intra-EU flights and €45 for UK this tax could reduce overall demand for intercontinental flights, but a year later air transport in Norway by around 1.2 decided it would abandon it. While it had The UK Government million passengers per year. been expected to generate €350 million introduced Air Passenger per year in tax revenues, a study by SEO Duty (APD) in 1994 at a rate Aviation Economics found that the tax of £5 per person for short- Germany had in fact resulted in €1.2 to €1.3 billion haul flights, and £10 elsewhere. Over In 2010 the German loss of business for airlines, airports and the years successive governments have Government introduced tour operators. increased APD - it is now the highest an aviation departure tax. passenger tax in the world at ₤13 in Passengers flying within economy or ₤26 in premium classes for Denmark the EU from Germany pay €7.50 and short-haul flights, and ₤73 in economy passengers flying long-haul from Phased out its aviation tax or ₤146 in premium classes for long-haul Germany pay €42.18. According to in 2006-07. flights. Economic analysis carried out by analysis from IATA, removing the tax PwC in 2013 showed that removing APD would have immediate benefits to the would provide a boost of ₤18 billion to economy by increasing GDP by Belgium British GDP and create 60,000 new jobs €1.2 billion and creating an additional Abolished its aviation tax by 2020. 20,000 jobs. in 2008.

5 Lufthansa hypocrisy - €1 billion in subsidies A report from a German Government Agency, the Bavarian Court of Auditors, shows that Munich Airport provided Lufthansa with benefits amounting to more than €1 billion, according to one of Germany’s leading newspapers, the Munich based Süddeutsche Zeitung.

The previously unavailable report by the examiners - an economic advantage Bavarian Supreme Audit Office (Oberste of about €880 million. In addition to this, the ORH confirmed that the report and its Rechnungshof - ORH) was recently operating company of Terminal 2 will only be contents are authentic. In preparation disclosed to Süddeutsche Zeitung. allowed to charge Lufthansa market rents of the report, the ORH examined FMG’s from 2051 onwards. According to the ORH, financial years 2003 to 2011 and the FMG The auditors were critical that the airport this benefit will amount to another €180 shareholders’ agreement. The examination company Flughafen München (FMG) had million for Lufthansa, and the agreement of the report took four years to complete granted Lufthansa extensive, exclusive could violate EU subsidy rules. and due to ongoing discussions with the usage rights of Terminal 2, including its new Bavarian authorities the ORH is not able to satellite building, which came into operation Emirates has exclusive use of Terminal comment on the details of the report. in April 2016. 3 at Dubai International, but we do not benefit from preferential rates on landing Munich Airport is 51% owned by the federal According to the report, Lufthansa may use charges or rents. In fact, we pay the same state of Bavaria, 26% by the German Terminal 2 exclusively, including the satellite, fully published landing charges and rents Federal Government and 23% by the City for 20 more years than originally agreed. as other airlines, and have done since the of Munich. This results in – according to the ORH airport was built. . Myths vs facts: Dutch Government confirms Emirates caters for growing passenger demand (c) Süddeutsche Zeitung GmbH, München Süddeutsche Zeitung, München, 01.04.2016 With more than 58 million passenger movements in 2015, Amsterdam Airport Schiphol is one ofDeutscher the Bundestaglargest - Pressedokumentation airports in Europe, serving one of the world’s most densely populated areas.

Emirates started operating to Amsterdam In its report, SEO concluded that there with a daily Boeing 777 flight in May 2010, is no evidence to suggest that Emirates not least because of a convincing market is harming KLM through alleged price analysis by Schiphol, which showed that dumping, or negatively affecting the market. Emirates could significantly contribute to Although, it found that KLM’s profitability on an already superior level of Dutch aviation the Dubai route may have fallen somewhat connectivity by linking it to underserved as a result of competition – this is not an connection points in Africa, Australia, the unusual result when other airlines enter a Middle East, the Far East and the Indian market. It also found that, in 2009, before subcontinent. The Netherlands historically Emirates began serving Amsterdam, KLM’s has championed a policy of liberalisation, Dubai-Amsterdam route was more profitable enabling air links with virtually every country than any of its other intercontinental routes. around the globe. government and parliament to stop Emirates using a bigger aircraft. KLM alleged price In December 2015, Dijksma gave permission Due to steadily growing customer demand, dumping and that the extra capacity would for the A380 aircraft upgauge. In her the daily B777 flight was upgauged to an seriously erode Schiphol’s network quality – explanatory statement to parliament she Airbus A380 in 2012. Seat factors remained incidentally a public interest – but also that wrote that after Emirates’ entry into the constant despite the increase in capacity, an upgrade would put 30,000 jobs at risk. market, it was proven that supply was which is a clear signal that demand was Despite this purely emotional plea, a knee- aligned with demand and that KLM has not outstripping supply. Hence Emirates jerk reaction of some members of parliament been unreasonably affected. A third, crucial introduced a second daily service with a called for the newly appointed State element – as noted above – was that the B777 in 2013, after which demand has Secretary for Infrastructure, Sharon Dijksma, Netherlands-UAE ASA does not contain any continued to grow. In mid-2015, Emirates to reject Emirates’ aircraft upgauge. restrictions in terms of frequencies, capacity informed the Dutch Authority or type of aircraft. In short, there were no of the intent to upgauge to another A380 Dijksma, very much aware of the valid reasons to block an aircraft upgauge. and requested permission to go ahead – a contribution of KLM to Dutch connectivity, formality under the Air Services Agreement but at the same time also recognising the In the end, established facts formed the (ASA) between the UAE and the Netherlands wider economic interest of competition, basis of this decision – a best practice which places no restrictions on frequencies indicated she wanted to decide the matter example for others in regulatory decision- or capacity. However, the permission did based on facts and not on emotions. She making. Emirates launched the second daily not materialise. asked the renowned independent economic A380 service in February 2016 and so far, research institute, SEO Aviation Economics, just like on previous occasions, passenger So what would normally be a formality, all to measure the effects of Emirates’ (and demand has risen to meet the relatively of a sudden became a politically sensitive Etihad’s) entry into the market on passenger small increase in seat capacity. issue. Emirates’ request was contested by volumes between the Netherlands and the home carrier KLM, which called upon the UAE, and the network quality of Schiphol. . 6 They said it best...

Open Sky brings you the best quotes from the aviation industry.

“We believe our airlines need to be protected, and the way they can be protected is through open competition.” – Cecilia Alvarez-Correa Glen, Colombia’s Minister of Commerce, Industry and Tourism (previously served as the nation’s Transport Minister)

Carolyn McCall “Airlines are reinvesting in the travel experience in ways previously impossible. New EasyJet CEO planes. More Wi-Fi. New apps. New routes. Airlines hired 10,000 people last year alone. They are improving the services that drive customer satisfaction. In short, this “When you look at short-haul industry is working in a way it never has.” – Nicholas E. Calio, President and CEO Europe, we’re winning, and we of (A4A) will continue to take share from legacy carriers who are flailing, “We believe the real motive for the legacy carriers’ attack on the Middle East restructuring, trying to find the Three has been largely about protecting their significant share of the US market, right model for themselves… together with their European joint venture partners, by limiting new entrants and new They can never have the competition that is clearly winning over customers in the marketplace.” low-cost culture, the low-cost – Robin Hayes, President and CEO of JetBlue Airways mentality, and they can never have the same kind of cost efficiency.” “Geography is the biggest cause of an unlevel playing field, but egulatorsr can’t intervene there.” – Olivier Jankovec, Director General of ACI Europe

“And, you know, it’s a question of choice, of preference for the general public and for consumers, it’s a question of great service and of competitive routes, and one of the biggest issues facing the industry right now is making sure that those Open Skies agreements are in no way, shape or form threatened.” – Geoff Ballotti, Global President and CEO of US-based Wyndham Group

“As in other industries, when one is winning in aviation, it is because one has the best product. When you are losing, it is due to unfair foreign competitors. We cannot let Open Skies become a victim of the current disagreement between our US Michael O’Leary alliance carriers and the Gulf State carriers.” – Keith W. Meurlin, President of the CEO Washington Airports Task Force “Easy Jet and IAG are positive towards the Gulf carriers’ arrival “The cargo industry would be adversely affected by any dialing back of Open Skies. and they say the best way to The greater concern is that there will be a sense from our trading partners that the compete is to compete. The US is not committed to Open Skies. This could cause other countries to either water German and the French at the down their agreements with the US or could impair negotiations for new Open Skies moment want political assistance agreements.” – Rush O’Keefe, SVP and General Counsel of FedEx to block them so they can keep their long haul airfares high.” “Opponents are using the opportunity of Norwegian’s application as a means to block competition and deny choice to consumers in transatlantic .” – Andrew Card, Norman Mineta and Mary Peters, former US Secretaries of Transportation

“The interests of EU long haul airlines, and the cause of EU connectivity, would be served by the creation of a more level playing field. This does not mean raising protectionist barriers, which serve no one in the long run (certainly not the consumer or wider national economies), rather the adoption of more supportive aviation policies by the EU and its member states.” – CAPA Centre for Aviation

Simone Menne “If Open Skies was a bridge that, as soon as they’ve crossed the Atlantic, [the Lufthansa CFO US major carriers] they now want burned, that seems to be their game plan. I do believe that now the US carriers have secured their antitrust immunities they “We must lower the unit costs are demonstrating behaviors that are quite anti-competitive.” – Kevin Mitchell, at our hub airlines. This is and Chairman of Business Travel Coalition remains the key to maintain our competitiveness.” “We now focus on the mainline [carriers] because we think that our first duty is to solve the problems of the [group’s] mainlines, mainly by improving their competitiveness problem.” – Alexandre de Juniac, CEO of Air France-KLM

7 Emirates Engine Maintenance Centre installs solar panels Dubai’s plentiful sunshine will be helping to power the new Emirates Engine Maintenance Centre, while reducing carbon emissions from electricity consumption.

Emirates, in partnership with the Dubai Electricity and Water Authority (DEWA), installed a one megawatt array of solar photovoltaic panels on the car park shades at its state-of-the-art Engine Maintenance Centre. The 2,990 panels are expected to generate in excess of 1,884 megawatt-hours of electricity every year, saving around 800 tonnes of carbon dioxide annually.

The project is linked to DEWA’s Shams Dubai initiative, part of a series of ‘smart grid’ initiatives to develop the clean energy infrastructure of Dubai (‘shams’ means ‘sun’ in Arabic). The Shams Dubai Distributed Renewable Resource Generation Programme was established to enable building owners and households to install solar photovoltaic panels for their own consumption, and also to feed back into the electricity grid.

The programme is aligned with the Government’s Dubai Plan 2021, which aims to make Dubai a smart and sustainable city, and is part of the Dubai Clean Energy Strategy. This strategy aims to provide 7% of Dubai’s energy from clean energy sources by 2020, increasing to 25% by 2030 and 75% by 2050.

“At Emirates, we are committed to building a sustainable future. We are proud to support this national initiative and work with DEWA on the Shams Dubai project.” said Adel Al Redha, Executive Vice President and Chief Operations Officer at Emirates..

Aircraft in fleet 249 Financial Auditor PwC Fast Number of destinations 154 Financials (Airline)* Revenue US$23.2bn, profit US$1.9bn Passengers* 51.9 million Fuel Costs (Airline)* US$5.4bn Facts Cargo* 2.5 million tonnes First flight 25 October 1985 Passenger Seat Factor* 76.5% A380 fleet 78 (on order 64) Employees - Airline* 61,205 Boeing fleet 158 (on order 185) *2015-16 Average daily flights 520 Passenger routes (2016) Cebu-Clark, Yinchuan-Zhengzhou, Yangon and Hanoi

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