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’ EmiratesBy Capt. Scott Stratton (FedEx Express), Master Executive Council ChairmanGrowing Hold on Air Cargo he explosive passenger growth as Saudi Arabia and Qatar. As a result, of Emirates and the other Dubai’s leaders for decades have used Persian Gulf carriers regularly the Emirates’ policies and pocketbook to hits the headlines, but less well drive economic diversification in trade, known is that these airlines financial services, and tourism. are also carrying more weight In describing the vision for Dubai in cargo. The new Dubai World Central (DWC), Dubai’s plan for a World Central–Al Maktoum global center for logistics, tourism, and International Airport states that commerce, the emirate’s leaders see by the mid-2020s it will have the it as a gateway—some say a “new Silk capacity to handle a staggering Road”—to emerging markets in Africa, 12 million tons of cargo annu- ally. To serve as perspective, the Airports Council International reports n Tthat Memphis International, FedEx’s The new Dubai World Central-Al Maktoum main hub, currently the world’s busiest cargo airport, handled 3.91 million tons International Airport states that by the mid- of cargo in 2011. Dubai’s ambitious plan for Emirates Airline and its potential to move the 2020s it will have the capacity to handle a world’s cargo reflect a commitment from all corners of the emirate. A survey of the state-of-play shows the resounding staggering 12 million tons of cargo annually. support that the aviation sector enjoys in Dubai—and across the United Arab Australasia, Europe, and the Middle East. airport says is an aviation record for the Emirates—and the direction in which “From the creation of Port Rashid to the fastest A380-enabled, 4.5-kilometer CAT the region is headed when it comes to Dubai Metro, the Emirate has a tradition III runway construction. While myriad air cargo. of investing in its future and developing factors influence runway construction, “Today, oil makes up just 5 percent of the infrastructure necessary to spark the project’s rapid time line is a notewor- Dubai’s gross domestic product, while future growth and further diversification thy demonstration of the Emirates’ con- aviation makes up 28 percent or $22 of its economy. Dubai World Central is a centration on aviation. Eventually, DWC billion, as well as directly and indirectly continuation of this legacy,” declares the will have a 92-meter air traffic control supporting more than 250,000 jobs,” Dubai World Central website. tower and a total of five parallel runways, Tim Clark, president of Emirates Airline, Dubai’s commitment to this vision is each 4.5 km long. told the International Aviation Club borne out in the investment numbers. In 2008, DWC opened its cargo mega- of Washington, D.C., in September Costs for the entire DWC project, of terminal, which was built at a cost 2012. “This is a direct result of Dubai’s which Al Maktoum International Airport of more than US$200 million, to link pro-aviation policy and vision of the is an integral part, have been estimated airlines, customs, and freight-forwarding leadership.” by the emirate to exceed US$32 billion. agencies and to create more than 1.2 Examples abound of Dubai’s commit- million additional tons in cargo capacity. Investing in air cargo ment to turning its pro-aviation policy infrastructure into airplanes and pavement. Emirates’ fleet One of the seven states that make up the For example, in 2007, DWC reported The Dubai government–owned Emirates United Arab Emirates, Dubai has fewer that it completed the first runway at Al Airline has a total fleet of 186 widebody oil reserves than other nearby states Maktoum International Airport on time airplanes that serve 126 destinations such as Abu Dhabi and countries such and in the projected 600 days, which the in 74 countries. While the airline flies 28 Air Line Pilot December 2012 ’ EmiratesBy Capt. Scott Stratton (FedEx Express), Master Executive Council ChairmanGrowing Hold on Air Cargo WIKIPEDIA COMMONS trade lanes, this has been a landmark capacity per week out of the U.S. We belly cargo in its passenger airliners, its year for Emirates SkyCargo in the U.S. carry auto parts from JFK, apples and fleet also includes eight freighters: one Our operation has grown significantly in cherries from Seattle, and oil and gas B-747-400F, two B-747-400ERFs, and five the eight years since we launched our equipment from Houston. Our new ser- B-777Fs. Emirates Airline reports it is the JFK passenger service, and 2012 marks vice to Dulles opens up vast new options first to provide nonstop freight service to the start of an exciting new chapter for U.S. passengers and exporters. Not six continents. Emirates says it operates in our partnership,” said Ram Menen, only will we introduce competition into more B-777s and more Airbus A380s Emirates’ divisional senior vice president the nonstop market to Dubai, but we will than any other airline. Through the end of cargo, in a statement released on Oct. be highly competitive for connections to of the decade, Emirates says it will re- 2, 2012, during the International Air points beyond.” ceive an average of one new airplane per Cargo Association’s Air Cargo Forum in month, including adding more B-777Fs Atlanta. Pro­cargo aviation policy— to its SkyCargo fleet. Given Dubai’s geographic location an unfair playing field In 2012, Emirates SkyCargo began at the crossroads—or flight paths in While it may appear that Emirates is operations at Dallas/Fort Worth, Seattle, this case—of Africa, Asia, and Europe, simply engaging in free enterprise, and Washington, D.C., and now has a Emirates’ leaders estimate the airline has capitalism, and the free market system, total of seven trade lanes in the United the ability to reach 1.5 billion customers in fact the airline and others like it are States, which also include Houston, Los within an eight-hour period. To capitalize not doing business on a fair playing Angeles, New York, and San Francisco. on this advantage, the Gulf carrier has field, which puts U.S. all-cargo airlines, “With the creation of these three new custom-designed its special handling including FedEx, at a severe competitive capabilities for a wide range of cargo disadvantage. needs. Emirates’ website says the airline Sheikh Ahmed Bin Saeed Al Maktoum, looks to enhance its services in the areas a member of the ruling family of Dubai of transporting live animals, tempera- and Dubai Airports chairman, attributes ture-sensitive consignments, high-value the emirate’s success in aviation to a goods, priority items, and door-to-door “model that features a liberal regulatory delivery. climate, a tax-free business environ- In his comments before the Interna- ment, and a consumer-centric focus TOP: Emirates SkyCargo B­747F. tional Aviation Club of Washington, that provides value for money and close It also operates two B­747­400ERFs Clark elaborated on Emirates’ air cargo coordination and collaboration within and five B­777Fs. ABOVE: The cargo strategy. “In America, we provide critical the sector.” As evidence of the emirate’s mega­terminal opened at Al Maktoum uplift to a host of firms across many pro-aviation governance, the chairman International Airport in 2008. industries—totaling nearly 800 tons of also serves as president of the Dubai December 2012 Air Line Pilot 29 Civil Aviation Authority, Dubai’s version service to three North American destina- airlines in that region experiencing an of the FAA. tions—Atlanta, Houston, and Toronto. 11.3 percent increase in air freight traffic In addition to doing business in a Based in Qatar’s capital of Doha, Qatar compared to a year ago. country that levies no corporate taxes, Airways currently flies dedicated freight- Long-term industry forecasts set air Emirates Airline has benefited from ers to Chicago in North America. It has a cargo to expand. In its recent Air Cargo U.S. Export–Import Bank financing fleet of three Airbus A300-600Fs and two World Forecast, Boeing predicts that for its airplanes at below-market rates B-777Fs. the global air cargo market will expand unavailable to U.S. and many European “With the recent completion of our 35 an average of 5.2 percent per year over airlines. Since 2007, when the bank percent stake in Cargolux, Europe’s larg- the next 20 years. The U.S. airplane gave Emirates its first loan guarantee est cargo airline, we have increased our manufacturer expects trade to increase for seven GE airplane engines used to focus on freighter operations, which ties based on liberalization of markets, more power B-777 extended-range airplanes, seamlessly into the airline’s strategy to efficient airplanes, and infrastructure U.S. Ex–Im Bank financing has helped have as many connecting points across improvements that will reduce the cost to provide Emirates with more capacity the globe from our Doha hub,” said Qatar of air cargo. for cargo and passengers. In May 2012, Airways Group Chief Executive Officer Gaining hold on air cargo Given Emirates and other Middle Eastern n airlines’ long-term vision, their govern- For our country to maintain a world- ment leaders’ commitment to collabora- tion in advancing their aviation and air class airline industry, our government cargo sector, and the state investment in airports and cargo infrastructure, these airlines have become significant air cargo needs to start competing— competing with competitors and will continue to be so based on their growth plans. The real question is whether foreign- its foreign counterparts, just as our cargo government backing of their airlines with billions of dollars and pro-aviation and passenger airlines do.

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