data monitor emirates group

The Emirates Group

Company Profile

Publication Date: 30 Oct 2009

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The Emirates Group

TABLE OF CONTENTS

Company Overview..............................................................................................4

Key Facts...............................................................................................................4

Business Description...........................................................................................5

History...................................................................................................................7

Key Employees.....................................................................................................9

Key Employee Biographies................................................................................10

Major Products and Services............................................................................11

Revenue Analysis...............................................................................................12

SWOT Analysis...................................................................................................13

Top Competitors.................................................................................................18

Company View.....................................................................................................19

Locations and Subsidiaries...............................................................................22


The Emirates GroupTABLE OF CONTENTS

COMPANY OVERVIEW

The Emirates Group is a conglomerate which operates through Emirates Airline, an internationalairline, and Dnata, a travel organization operating in the Middle East. The group is wholly owned bythe United Arab Emirates (UAE) government. It provides scheduled passenger and cargo servicesto more than 100 destinations. The company has operations across Middle East, Europe andAmericas, Far East and Australia, West Asia and Indian Ocean, and Africa. It is headquartered inDubai, the United Arab Emirates and employs 28,037 people.

The group recorded revenues of AED42,674.3 million ($11,621.5 million) during the financial yearended March 2009 (FY2009), an increase of 17.1% over FY2008. The operating profit of the groupwas AED2,573.3 million ($700.8 million) in FY2009, a decrease of 42.2% compared to FY2008. Itsnet profit was AED981.7 million ($267.3 million) in FY2009, a decrease of 80.4% compared toFY2008.

KEY FACTS

The Emirates GroupHead OfficeNear Clock TowerDubaiARE

9714 708 1111Phone

9714 286 4066Fax

http://www.ekgroup.comWeb Address

42,674.3Revenue / turnover(AED Mn)

MarchFinancial Year End

28,037Employees


The Emirates GroupCompany Overview

BUSINESS DESCRIPTION

The Emirates Group, through its subsidiaries, provides commercial air transportation services in theUnited Arab Emirates and internationally.The group operates through Emirates Airline, an internationalairline; and Dnata, a travel organization operating in the Middle East.

The group operates through three business segments which include: airline related, consumer goodsand others.

The airline related business segment comprised of passenger and cargo transport services. Emiratesairlines is one of the major airlines in the Middle East mainly involved in the provision of commercialair transportation services. It provides scheduled passenger and cargo services to more than 100destinations in over 60 countries. It operates through the passenger fleet of 124 aircraft whichcomprised of Boeing and Airbus models, including the Boeing B777 and the Airbus A330. Emiratesoperates through code share agreements with Air India, Air Malta, Air Mauritius, Continental Airlines,Japan Airlines, Jet Airways, Korean Airlines, Oman Air, Philippine Airlines, Royal Air Maroc, SouthAfrican Airways and Thai Airways.

Dnata is the UAE Government's wholly owned subsidiary. It is a travel management services companywhich provides air travel services in the Middle East. It is mainly involved in providing aircraft handlingand engineering services, handling services for export and import cargo, information technologyservices, representing airlines as their general sales agent, travel agency and other travel relatedservices, and in-flight and institutional catering. Dnata’s operations are comprised of Dnata AirportOperations, Dnata Cargo, Dnata Agencies and other.

Dnata Airport's operations provide passenger baggage, cargo, ramp and technical support servicesto airlines at Dubai International Airport. Dnata Cargo offers a range of services that includes cargomanagement, marketing and handling. Dnata Agencies is engaged in meeting the current and futuretravel demands of the public and the travel trade with retail and wholesale products distributed inDubai and, through partner travel agencies, in countries in the Middle East and West Asia.

Mercator is engaged in providing IT solutions to the global air travel industry. It provides businesstechnology solutions, delivering business transformation, process improvement and return oninvestment to more than 150 customers in five continents.

The group has various other activities including resorts and a conference-organizing business inDubai. These include Emirates Holidays, Emirates Sky Cargo, Skywards, Arabian Adventures,Emirates Hotels and Resorts, and Congress Solutions International. Emirates Holidays offersspecialized operations in package holidays. Emirates SkyCargo is an air freight division of the groupand it offers cargo solutions service.The express service assures on-time delivery around the world,and the delivery of a wide range of goods.


The Emirates GroupBusiness Description

Arabian Adventures is the official destination management company for important corporate travelorganizations and produces brochures in 10 languages. It provides services to tour operators,incentive houses, meeting organizers, businesses and cruise lines. Emirates Hotels and Resorts isone of the divisions of the Emirates Group which operates Al Maha Desert Resort and Spa set withina 25-square kilometer desert conservation reserve.

Skyward is the frequent flyer program for regular Emirates customers and offers range of rewardbenefits, including free travel and upgrades. The Congress Solutions International is a full fledgedProfessional Congress Organisers (PCO) with wide range of service offerings. It is engaged inmanaging different types of local, regional, and international events.

Emirates Engineering offers engineering and maintenance services to other airlines, as well astending to its own aircraft. In addition to Emirates and Dnata are also involved in hotels; in-flightcatering; laundry; upmarket gourmet and quick-service restaurants; airport ground handling; freightand removal services; security; flight training and educational establishments; marine services andIT software production.


The Emirates GroupBusiness Description

HISTORY

The group traces its history back to 1959, when the Dubai Government established Dnata to provideground-handling services at Dubai International Airport.

The Emirates Group was incorporated, with limited liability, by an Emiri Decree issued by H.H. SheikhMohammed bin Rashid Al-Maktoum in 1985 as the national airline for the emirate of Dubai. In thefollowing year, the group acquired traffic rights into Amman, Colombo, Cairo and Dhaka.

Dnata Airport Operations began in 1993. Dnata Airport Services entered the South East Asian AirportService market through an equity investment in Wings Aviation Systems in 1999.

Emirates signed an online partnership agreement with the Intercontinental Hotels Group, to offeronline customers guaranteed internet hotel rates, in 2005. In the same year, Emirates AirlineFoundation signed a contract with Friendship, a registered non-governmental organization (NGO),for the management of the new Emirates Friendship Hospital ship in Bangladesh.

In 2006, Emirates Airline selected Messier Services, member company of the SAFRAN group, toprovide landing gear exchange, overhaul and support services for its fleet of 37 A330-200 andA340-300 aircraft. Further in the same year, Emirates SkyCargo launched SkyChain, a comprehensiveend-to-end IT cargo management system at the Air Cargo Forum. In addition, the company tied upwith lastminute.com, the UK's largest hotel intermediary which will provide customers access to over100,000 three- to five-star hotels in 59 countries through the airline's website.

In 2007, Swiss WorldCargo has signed up for SkyChain, the end to end cargo reservation andbusiness management solution offered by Mercator, the airline IT solutions provider of the EmiratesGroup. In the same year, Emirates Group entered into an agreement with GE Commercial AviationService (GECAS) to lease five Boeing 777-300ER aircraft. Also in 2007, Emirates signed a contractwith CAE of Montreal for the purchase and installation of a CAE 7000 Series Boeing 777-300ERfull-flight simulator (FFS) to support the airline's flight training requirements for its fleet of Boeing777-300ER aircraft.

Later in the same year, Emirates acquired 49% interest in Alpha Flight Services Australia, a providerof in-flight catering services in Australia. Also in the same year, Dnata, through its wholly ownedsubsidiary Dnata Gmbh, acquired 100% of the shares in Jet Aviation Handling, subsequentlyrebranded as Dnata Switzerland.

The group signed a Memorandum of Understanding (MoU) with Dubai Customs to reduce paperworkand expedite the movement of goods in the air cargo supply chain in January 2008. In the samemonth, Emirates Airline partnered with London Heathrow, Dubai International and Hong KongInternational airports, to trial the latest RFID (radio-frequency identification) technology in baggagehandling.


The Emirates GroupHistory

In May 2008, the group signed a MoU with Western Australian Police (WAPOL) for co-operation inareas of investigative practices and to carry out research into security operations. In November2008, Dnata acquired 90% of the shares in Al Hidaya Travel.

Emirates, through its wholly owned subsidiary Emirates Leisure Retail acquired 100% of the businessof Hudsons Coffee, a company engaged in retail sales of food and beverage products in Australia,in March 2009. The group and Virgin Blue Group’s new international airline, V Australia entered intoa code share partnership on the trans-Tasman route, in September 2009.


The Emirates GroupHistory

KEY EMPLOYEES

BoardJob TitleName

Executive BoardChairman and CEOSheikh Ahmed bin SaeedAl-Maktoum

Executive BoardExecutive Vice ChairmanMaurice Flanagan

Senior ManagementPresident, Emirates AirlineTim Clark

Senior ManagementPresident, Group Services and DnataGary Chapman

Senior ManagementExecutive Vice President, Engineering andOperations

Adel Ahmad Al Redha

Senior ManagementExecutive Vice President, Human ResourcesAbdulaziz Al Ali

Senior ManagementExecutive Vice President, DnataIsmail Ali Albanna

Senior ManagementExecutive Vice President, Service DepartmentsNigel Hopkins

Senior ManagementExecutive Vice President, Facilities/ProjectsManagement

Ali Mubarak Al Soori


The Emirates GroupKey Employees

KEY EMPLOYEE BIOGRAPHIES

Sheikh Ahmed bin Saeed Al-Maktoum

Board: Executive BoardJob Title: Chairman and CEO

Mr. Al-Maktoum serves as the Chairman and CEO at Emirates. He is the Member of the Board ofthe Dubai Council for Economic Affairs; Vice Chairman of the Dubai World Trade Centre; and BoardMember of the Dubai Corporation for Government Investment. Mr. Al-Maktoum is also the Chairmanof Dubai Airport Free Zone Authority, Dubai Air Wing, Alliance Insurance, Le Meridien Dubai, DubaiInternational Marine Club, Dubai Golf Club, British University in Dubai, Dubai Power & EnergyCommittee and the UAE National Olympic Committee.

Gary Chapman

Board: Senior ManagementJob Title: President, Group Services and Dnata

Mr. Chapman serves as the President, Group Services and Dnata at Emirates. He joined the groupin 1989. Mr. Chapman is the Chairman of Maritime and Mercantile International and ChangiInternational Airport Services, and is a member of the Board of Directors for Emirates Flight Catering,Emirates CAE Flight Training and Premier Travel Inn Gulf.

Adel Ahmad Al Redha

Board: Senior ManagementJob Title: Executive Vice President, Engineering and Operations

Mr. Al Redha serves as the Executive Vice President, Engineering and Operations at Emirates. Priorto that, he was a Director of Engineering since 2002 and Head of Engineering since 2000. Mr. AlRedha joined Emirates in 1988 after starting his career two years earlier as a trainee aircraft engineer.


The Emirates GroupKey Employee Biographies

MAJOR PRODUCTS AND SERVICES

The Emirates Group is an air travel organization. The group provides the following key services:

Aircraft engineeringAircraft maintenanceHolidaysCargo servicesCargo managementDuty freeGround servicesGlobal logisticsIT solutions to airlinesPassenger flightsTechnical supportTravel solutionsVisa servicesFrequent flyer programEvent ManagementOverland explorer program


The Emirates GroupMajor Products and Services

REVENUE ANALYSIS

The Emirates Group recorded revenues of AED42,674.3 million ($11,621.5 million) during FY2009,an increase of 17.1% over FY2008. In FY2009, Europe and Americas, the group's largest geographicmarket, accounted for 36.5% of the total revenues.

The group generates revenues through three business segments: airline related (97.3% of the totalrevenues in FY2009), consumer goods (1.7%) and others (1%).

Revenues by Segment

In FY2009, the airline related segment recorded revenues of AED42,520.5 million ($11,579.6 million),an increase of 12.1% over FY2008.

The consumer goods segment recorded revenues of AED731.5 million ($199.2 million) in FY2009,an increase of 31.7% over FY2008.

The others segment recorded revenues of AED442.9 million ($120.6 million) in FY2009, an increaseof 34.2% over FY2008.

Revenues by Geography

Europe and Americas accounted for 36.5% of the total revenues in FY2009. Revenues from Europeand Americas reached AED15,932.8 million ($4,339 million) in FY2009, an increase of 17.4% overFY2008.

Far East and Australia accounted for 28.1% of the total revenues in FY2009. Revenues from FarEast and Australia reached AED1,2281.4 million ($3,344.6 million) in FY2009, an increase of 11.6%over FY2008.

Middle East accounted for 13.3% of the total revenues in FY2009. Revenues from Middle Eastreached AED5,824.1 million ($1,586.1 million) in FY2009, a decrease of 7.7% over FY2008.

West Asia and Indian Ocean accounted for 11.3% of the total revenues in the FY2009. Revenuesfrom West Asia and Indian Ocean reached AED4,948.3 million ($1,347.6 million) in FY2009, anincrease of 24.8% over FY2008.

Africa accounted for 10.8% of the total revenues in FY2009. Revenues from Africa reachedAED4,708.2 million ($1,282.2 million) in FY2009, an increase of 18.8% over 2008.


The Emirates GroupRevenue Analysis

SWOT ANALYSIS

The Emirates Group is a conglomerate operating through Emirates Airline, an international airline;and Dnata, a travel organization operating in the Middle East. The group is wholly owned by theUnited Arab Emirates (UAE) government.The group’s strong market position in major airline marketsgives it a significant edge over its peers/competitors. However, recession in global economy mayharm the group’s business by adversely affecting its revenues, results of operations, cash flows andfinancial condition.

WeaknessesStrengths

High debt burdenStrong market positionDeclining operating efficiencyDiversified geographical spread

High employee productivity

ThreatsOpportunities

Global economic downturnModerate growth in global air freight sectorIncreasing competition from low cost airlinesGrowth in global passenger airline industryConsolidation in airline industryGrowing Dubai tourism industry

Strengths

Strong market position

The Emirates Group is one of the largest airlines in the world. The group carried 22.7 millionpassengers in FY2009 followed by Cathay Pacific (16.7 million). In addition, the group was the tenthlargest airline in terms of scheduled international freight ton-kilometers flown in FY2009. The groupcarried 1.4 million tons of cargo during FY2009.

Further, the group is the largest airline in the Middle East in terms of revenue, fleet size, andpassengers carried. The airline operates over 2,350 passenger flights per week to 100 destinationsin 60 countries all over the world. It operates through its passenger fleet of 124 aircraft whichcomprises of Boeing and Airbus models, including the Boeing B777 and the Airbus A330, as ofMarch 2009. The group’s online sales through emirates.com, which grew by 73% over FY2008,accounted to AED4.42 billion ($1.2 billion) in FY2009. In addition, Emirates flights account for nearly40% of all flight movements in and out of Dubai International Airport. The group’s strong marketposition in major airline markets gives it a significant edge over its peers/competitors.

Diversified geographical spread


The Emirates GroupSWOT Analysis

Emirates Airline has a global presence serving more than 100 destinations, and its subsidiary Dnataprovides ground handling services at 17 airports in seven countries.The group has operations acrossEurope and Americas, Far East and Australia, the Middle East, West Asia and Indian Ocean, andAfrica. The revenues of the group are diversified across all the geographic regions it operates in.

In FY2009, Europe and Americas, the largest geographic segment of the group, accounted for 36.5%of the total revenues. This was followed by Far East and Australia (28.1% of the total revenues), theMiddle East (13.3%), West Asia and Indian Ocean (11.3%) while Africa region accounted for theremaining 10.6% of overall revenues. The diversified presence and evenly spread revenue baseensures that the group does not rely on any one market for a majority of its revenues, and this inturn, substantially reduces its business risk in a highly volatile aviation industry.

High employee productivity

The group posted strong revenues in proportion to the total number of employees. In FY2009, thegroup recorded revenues of AED42,674 million ($11,621.5 million), with a total number of 28,037employees. The group’s revenue per employee stood at $414,505.2, significantly higher than thatof its close competitors such as Cathay Pacific, China Airlines and Singapore Airlines.

For fiscal year December 2008, the revenue per employee of Cathay Pacific stood at $410,303.1million, lower compared to Emirates. Similarly, the revenue per employee of China Airlines stood at$409,619.7 and Singapore Airlines stood at $349,768.9 during the same period.The strong revenueper employee of the group, as compared to its competitors, indicates its strong productivity andoperational efficiency.

Weaknesses

High debt burden

The group’s holds a substantial amount of debt. As of March 31, 2009, its long term debt stood atAED15,140 million ($4,123 million), as compared to AED12,301 million ($3,350 million) in FY2008.At the same time, the group’s share holder’s equity stood at AED16,410 million ($4,469 million),representing a debt equity ratio of 92%.The debt equity ratio of the group was also higher comparedits competitor Singapore Airlines during FY2009. The debt equity ratio of Singapore Airlines stoodat 12%. The group’s substantial debt may limit its ability to obtain additional financing to fund futureworking capital, capital expenditures, acquisitions and other general corporate requirements, whichis a clear disadvantage for the group.

Declining operating efficiency

Emirates recorded declining efficiency in terms of profits and margins. The group's operating profitwas AED2,573.3 million ($700.8 million) in FY2009, a decrease of 42.2% compared to FY2008. Itsnet profit reached AED981.7 million ($267.3 million) in FY2009, a decrease of 80.4% compared to



FY2008. Similarly, the operating profit margin declined from 12.2% in FY2008 to 6% FY2009; andnet profit margin decreased from 13.8% in FY2008 to 2.3% in FY2009. The group’s operating andnet profit margins also declined from 14.9% and 13.7% respectively during FY2005, to 6% and 2.3%respectively, during FY2009. The declining operating efficiency of Emirates is a result of higher fueland oil costs, and foreign exchange losses. Continuation of this trend could reduce availability ofresources to pursue growth plans.

In addition, the group’s returns have declined significantly in recent years. Its return on assets (RoA),return on equity (RoE) and return on capital employed (RoCE) decreased from 11.9%, 33.8% and14.3% respectively, in FY2008 to 2.1%, 5.9% and 7.7% respectively, in FY2009. Continued weakreturns may adversely affect investor confidence.

Opportunities

Moderate growth in global air freight sector

The global air freight and logistics sector has witnessed moderate growth in recent years.The globalair freight sector generated total revenues of $100 billion in 2008, representing a CAGR of 5.6% for2004–08. The sector volumes increased with a CAGR of 3.8% during 2004–08, to reach a total of133.3 billion freight tons kilometers (FTK) in 2008.The performance of the market is forecast to drivethe sector to a value of $119.5 billion by the end of 2013. The group provides cargo and postalcarriage services along with passenger transport to approximately 100 destinations worldwide. Themoderate growth in global air freight sector provides an opportunity for the group to capitalize onthis market and expand its revenues.

Growth in global passenger airline industry

The global airline industry primarily comprising of passenger transportation witnessed significantgrowth in recent past. The global airline market generated total revenues of $429.9 billion in 2007,representing a CAGR of 11.2% for 2003–07. This market is forecast to reach a value of $711 billionby the end of 2012. The domestic flight passenger segment was the most lucrative for the globalpassenger airline industry which carried 1.4 billion passengers in 2007, and is forecast to reach avolume of 2.4 billion passengers in 2012. Emirates generated nearly 80.5% of the total revenues inFY2009 from passenger transportation. It is forecast that there will be a marginal growth of 1.2% inthe number of passengers traveling to the Middle East in 2010.The growing global passenger airlineindustry provides significant opportunity for the group to further strengthen its network and gaincompetitive advantage over its peers.

Growing Dubai tourism industry

The Dubai tourism industry recorded strong revenues in 2008 and the city has delivered on severalkey projects in the last year, and more are nearing completion. Metro, the first highly-automated,driverless trains, which provides residents and tourists with fast and reliable connections, was opened



in September 2009. It provides stops at Emirates Terminal 3 and Dubai International airport. Metrois planned to operate a total of 47 stations, 29 on the Red Line (four underground and 25 elevated),and 18 on the Green Line (six underground and 12 elevated) and plans to carry three millionpassengers in the first year. Dubai’s hotels recorded 7 million guests and posted revenues ofAED15.25 billion in 2008, an increase of 15% over 2007, according to the Dubai Naturalization andResidency Department (DNRD).The UAE was recently ranked first for regional tourism in the WorldEconomic Forum’s Travel and Tourism Competitiveness Index. Dnata Agencies, the company’ssubsidiary, is engaged in meeting the current and future travel demands of the public and the traveltrade with retail and wholesale products distributed in Dubai and, through partner travel agencies,in countries in the Middle East and West Asia. The launch of several key projects like the Metro andthe focus towards tourism in Dubai will boost the number of tourists visiting the country and providessignificant opportunity for the company to continue its top line growth.

Threats

Global economic downturn

The airline industry has been severely affected by the economic crisis. According to the IMF WorldEconomy Outlook July 2009, the global GDP growth rate is forecasted to decline from 3.1% in 2008to -1.4% in 2009. An economic downturn poses challenges for Emirates. The financial turmoil andcredit tightening has led both leisure and business passengers to look for the cheapest fares andto travel less frequently. The group provides scheduled passenger and cargo services to more than100 destinations across Europe and Americas, Far East and Australia, Middle East, West Asia andIndian Ocean, and Africa.

Healthy economic growth is necessary for the positive growth rate of the business.Therefore, furtherrecession in global economy may harm the group’s business by adversely affecting its revenues,results of operations, cash flows and financial condition.

Increasing competition from low cost airlines

The emergence of low cost carriers such as China Airlines, Hong Kong Flights, Japan Flights, JetstarAsia, Air Asia in the East Asian region, has intensified competition. The low fare charged by thesebudget airlines makes the group’s airline operations less competitive. In the long-haul market, thegroup is confronted with competition from local operators in most geographical areas like the MiddleEast, China and India. In the medium-haul market, low-cost carriers established strong marketpositions and continue to grow. The growing number of low cost, and low fare airlines may impactthe group’s market share across all its geographic regions.

Consolidation in airline industry

The airline industry has recently gone through a period of consolidation and transition, consequentlythe group has fewer potential partners. Since 1978, the airline industry has undergone substantial



consolidation, and it may in the future undergo additional consolidation. For instance, in 2008, Deltaand Northwest completed a merger. Other developments include the domestic code-share alliancebetween United and US Airways, and the merger of America West and US Airways. Furtherconsolidation could limit the number of potential partners with whom the group may enter intocode-share relationships. The group operates through code share agreements with Air India, AirMalta, Air Mauritius, Continental Airlines, Japan Airlines, Jet Airways, Korean Airlines, Oman Air,Philippine Airlines, Royal Air Maroc, South African Airways and Thai Airways for airline services.Although none of the group’s contracts with its partners allow termination or are amendable in theevent of consolidation. Any additional consolidation within the airline industry may adversely affectthe group’s relationship with its partners.



TOP COMPETITORS

The following companies are the major competitors of The Emirates Group

British Airways PlcNorthwest Airlines CorporationVirgin Atlantic AirwaysMexicana AirlinesChina AirlinesMalaysia Airline System BerhadSouth African AirwaysUAL CorporationCathay Pacific Airways Limited


The Emirates GroupTop Competitors

COMPANY VIEW

A statement by Ahmed bin Saeed Al-Maktoum, Chairman and CEO of the board of Emirates Groupis given below. The statement has been taken from the group’s 2009 annual report

No one could have predicted the global recession which is now impacting every country on earth.As I have often indicated, airlines are particularly susceptible to the socio-economic conditionsprevailing in the world and this is no ordinary situation.

I agree with my colleague, Giovanni Bisignani, the Director General and CEO of the InternationalAir Transport Association (IATA) who said, “The state of the airline industry today is grim and wepredict a worldwide loss of US$4.7 billion (AED 17.3 billion), adding to an industry debt of US$170billion (AED 624 billion) reflecting the rapid deterioration of global economic conditions.”

In fact, as we move into the new financial year, the outlook is not improving.

Although fuel prices are dropping, demand is slowing down and revenues plummeting.

For Emirates, the past year saw the first six months posting record fuel prices with oil rising to US$147(AED 540) a barrel and then the decrease in demand was followed by declining yields with thestrengthening US dollar against major currencies, causing significant losses. The GBP dropped 28per cent in value, AUD went down 25 per cent and the EUR fell 16 per cent.

Despite the global meltdown and the doom and gloom associated with this real crisis, and withouttrying to minimise the devastating effect it is having on so many countries, businesses and families,I still believe that 2009/10 will be a year of satisfactory growth for the Emirates Group.

In the financial year 2008/09, the group met these awesome challenges with determination, improvedefficiency and fresh, market-leading initiatives.

We returned a net profit of AED1.49 billion (US$406 million), a 72 per cent decrease on the previousyear’s all-time record profit, but under the circumstances a satisfactory result.

Emirates net profit was AED982 million (US$268 million) and Dnata earned AED 507 million (US$138million).

It has been forecast that in the Middle East in 2009/10 there will be a slight increase in passengergrowth of 1.2 per cent, though this will be accompanied by an overall increase in capacity of 3.8 percent.

We expect continuing fierce competition as we defend our market share in all regions, often facing“suicidal” air fares from some of the competing airlines. This is a situation which puts pressure on


The Emirates GroupCompany View

all carriers but we will continue to maintain our high service standards as the fares hit levels whichare unprofitable.

Already, we have tried to respond by introducing new features such as Business Rewards to helpsmall to medium enterprises benefit from Skywards Miles.

We have not reduced the quality of our award-winning service. Unlike other travel relatedorganizations, we have not reduced staff numbers. In fact, as usual we have not responded withknee-jerk reactions as we face an unsettled future.

We know we must remain flexible. We have to make changes to adapt to the new world travel orderand address our costs without affecting the travel convenience and enjoyment of our customers.

We will maintain our commitment to the protection of the environment. We will meet the highexpectations of our passenger and cargo clients. We will ensure the job security of our staff.

In the financial year, there were two major events which involved Emirates and Dnata – the deliveryof Emirates’ first A380 superjumbo and the opening of the new Emirates Terminal 3 at DubaiInternational airport. Emirates earned worldwide headlines in both cases but we recognized Dnata’simportant role behind the scenes, in opening the state-of-the-art baggage handling system.

One of the highlights of my year was attending the A380 Reveal Ceremony in Hamburg.

Airbus’ entire workforce in Germany turned out on the tarmac to give us an unforgettable send-off.

We had a plane full of journalists on the A380 flight from Hamburg to Dubai with myself and mysenior colleagues showing them the unique features of this double-decker aviation mammoth,including the onboard Lounge and the Shower Spa.

I was delighted, too, with the phased launch of our Terminal 3 with the Emirates Group and DubaiInternational airport working together to avoid the problems which plagued Heathrow’s Terminal 5.

It was my privilege to lead Emirates’ delegations to various parts of the network, including visits toAustralia, Germany, UK and the USA.

I attended the inaugural celebrations in San Francisco, our fifth gateway in North America, with thechart-topping Sheryl Crow and Oscar winning Hilary Swank helping to lead the festivities.

We had opened Los Angeles two months earlier with similar glitter and razzmatazz to herald ourarrival on the US West Coast where we had a wonderful Californian welcome.

The five finalists for the Emirates Chairman’s Award for Sales Excellence revealed the extraordinarypeople we have and the international nature of our team.



Japanese Yuri Sunahata based in Dubai won the award for her outstanding ability while the excellentrunners up were UAE national, Mohammed Abdulaziz based in Sanaa, American JJ Catanzavitafrom San Francisco, Iranian Shafag Khavendi from Tehran and Arthur Hongchen Zhang fromShanghai.

In its 50th year, Dnata continued to expand internationally, investing in a contact center companywith operations in Spain, Australia and South Africa, while Dnata Cargo remained at the forefrontof freight handlers with the launch of Calogi, the cargo services portal.

It was a personal pleasure for me to attend the graduation of 36 UAE cadet pilots who had completedtheir ab-initio training in Adelaide, Australia and are now undergoing simulator courses at EmiratesAviation College before joining their 2,226 international colleagues on the flight deck.

In Emirates, we now have 172 captains and first officers who are UAE nationals, less than one tenthof the pilot workforce but an incredible achievement for the country considering its relatively smallpopulation. These young persons represent the crème-de-la-crème of our university graduates.

Another highlight for me was the retrofitting of the Boeing 777s and A340-300s to bring the interiorsin line with the rest of the fleet.

All the work is being carried out in-house at the Emirates Engineering Centre, underlining the diversityof the group’s activities.

In addition to Emirates and Dnata, the group’s subsidiary companies are involved in hotels; in-flightcatering; laundry; upmarket gourmet and quick-service restaurants; airport ground handling; freightand removal services; security; flight training and educational establishments; marine services andIT software production.

The group and subsidiaries staff count stood at 48,246.

Finally, I can confirm we have no plans to slow down our development plans and will forge aheadin the future to build the airline, Dnata and the many subsidiary companies.We will shape our servicesto meet the ever-changing demands of our many clients around the globe.

I would like to pay a sincere tribute to my staff whose hard work and enthusiasm convinces me thatdespite the current downturn, we will emerge stronger, fitter and in fine shape for more profitableyears ahead.



LOCATIONS AND SUBSIDIARIESHead Office

The Emirates GroupNear Clock TowerDubaiAREP:9714 708 1111F:9714 286 4066http://www.ekgroup.com

Other Locations and Subsidiaries

Emirates TorontoEmirates Johannesburg90 Sheppard Avenue EastSandton Office TowerSuite 1015 Floor Sandton CityTorontoC/O 5th Avenue & Rivonia RoadOntarioJohannesburgM2N 6K9ZAFCAN

Emirates SydneyEmirates BangkokLevel 10B.B. Building 2nd Floor1 York Street54 Asoke RoadSydneySukhumvit 21New South Wales 2000Khet WattanaAUSBangkok 10110

THA

Emirates LondonEmirates MoscowFirst Floor5th FloorGloucester ParkPaveletskaya Tower Block 395 Cromwell RoadMoscow 115054London SW7 4DLRUSGBR

MercatorDnata CargoDubaiDubaiAREARE


The Emirates GroupLocations and Subsidiaries

data monitor emirates group

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