A delegation of officials from the United Arab Emirates returned from
Shanghai last month confident that it had progressed talks with Chinese counterparts over an ADS agreement.
The UAE is keen to strike an ADS agreement with China in support of new daily services introduced on the Dubai-Shanghai route by Emirates airline.
There is massive potential growth for us in China, said Richard Vaughan, Emirates senior vice president, commercial operations for East Asia and Australasia.
Emirates has air rights to Shanghai, Hong Kong,
Dalian and a fourth destination in China which is yet to be announced.
Vaughan said the business ex-Shanghai was mainly corporate but the inbound into China is very good.
Emirates is expanding its services into Australia following a recent air services agreement which will allow double daily flights from Sydney and Melbourne from March 2005.
Emirates is currently operating daily non-stop Dubai-Sydney return services using a long-range Airbus A340-500.
From July 1, it will fly Dubai-Melbourne non-stop and then on to Christchurch in New Zealand three times a week. Later, the Christchurch sector will be extended to six times a week.
Emirates made record profits of US$476 million in the 2003-2004 financial year. Profits were up 67 percent over the previous year, based on total revenues of US$3.8 billion, up 35.5 percent.
Vaughan said that competition for Emirates will always be there and he had no fears about new airlines emerging in the Middle East.
Our view is that we don't look over our shoulder ¨C as long as we get our product right our business will grow.
He said that the arrival of low-cost carriers in the region would broaden the market.
Today's low-cost passenger is tomorrow's Emirates passenger. I genuinely believe that once passengers get a taste for travelling, like all things in life, they will want to upgrade.
The Dubai business model ¨C which broadly speaking puts product and service ahead of demand ¨C is encouraging competitors in the region to pursue similar policies.
Qatar has announced that it will oversee a US$15 billion-plus tourism investment programme. The Arab country has targeted one million tourists by 2010, up from an expected 400,000 in 2004.
We are a small country but we want to open our doors, said Akbar Al Baker, chairman of Qatar Tourism Authority and chief executive of Qatar Airways.
Akbar said it was planned for Qatar Airways to serve 70 destinations by the end of 2005 when it would start the year with a fleet of 33 aircraft. The carrier will launch flights to Osaka in December.
We are in negotiations with both aircraft manufacturers (Boeing and Airbus) on the new generation, latest technology aircraft and will announce a new purchase order soon, said Akbar.
Expansion of the airline in terms of new aircraft purchases and network will help us to fill new rooms in the hotels that are coming in, said Akbar.
Among its current orders, Qatar Airways has two Airbus A380 mega jumbos in the pipeline.
The Qatar government says it will fund most of the new development although regulations are being changed to allowed 100 percent foreign investment in tourism projects. We encourage foreign equity participation and there are clearly earmarked areas for any foreign investors to put their money for a 100 percent ownership, said Akbar.
Together with a fast-expanding Qatar Airways, other airlines are beginning to make their mark in the region.
Etihad Airways, wholly-owned by the Abu Dhabi government, launched direct services linking Abu Dhabi and Bangkok at the beginning of April, while Air Arabia is taking the low-cost flight path.
Air Arabia is currently flying to destinations in the Middle East and the Indian subcontinent.
