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EMIRATES AIRLINE FORCED TO CANCEL A QUARTER OF ITS FLIGHTS DUE TO RUNWAY
MAINTENANCE IN DUBAI

Dominic Dudley
Former Contributor
Opinions expressed by Forbes Contributors are their own.
I write about business and politics in the Middle East and beyond
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Jan 14, 2019,12:55pm EST

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Emirates Airline, the world’s largest international carrier, is to suspend 25%
of its flights for a 45-day period in April and May, affecting passengers around
the world who travel via the Gulf hub.

The airline has had to take the drastic step because of the planned closure of
Dubai International Airport’s southern runway for maintenance work between April
16 and May 30. That will reduce the airport to a single runway.



“A significant number of scheduled Emirates flights will be impacted by the
closure” of the runway, the airline said in a statement. “Many Emirates flights
will be cancelled, re-timed or have the operating aircraft changed.”



Emirates planes seen at Dubai International Airport on September 14, 2017.
(Photo: GIUSEPPE... [+] CACACE/AFP/Getty Images)

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An Emirates spokesperson did not say which routes would be affected. A previous
report from industry specialist Routes Online had pointed to close to 500
flights being lost from Emirates’ weekly schedule, across 111 routes. That list
of affected services included a number of routes that were expected to be
cancelled entirely during the 45-day period, including the daily direct flight
between Dubai and Newark. However, the airline spokesperson now says “there are
no routes which are being suspended entirely over the runway closure period.”



The reduced frequency on many routes means that fewer seats will be available,
which could push up ticket prices. However, the impact will be reduced by
Emirates’ decision to replace the Boeing 777 with larger Airbus A380 aircraft on
some services.

The spokesperson declined to say what impact the closures will have on the
airline’s financial results for the year, saying “We are not releasing details
on the financial impact of the runway closure at this time.”

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However, relatively recent experience suggests it could be considerable. In
2014, Dubai International Airport operated with just one runway for 80 days to
allow for maintenance work on the airfield. Emirates had to ground 19 aircraft
during that period and cut its overall capacity by 9%, with services to 41
destinations affected. The disruption cost it an estimated $467m in lost
revenues.

At the time, Emirates had 231 aircraft in its fleet and carried 49 million
passengers that year. It has since grown and now has 268 aircraft. Last year it
carried more than 58 million passengers. The airline says that up to 48 of its
aircraft will be grounded during the April-May runway closure.

While revenues will be affected, some industry observers suggest that the
airline will at least have a chance to focus on the profitability of the routes
it continues to operate during the runway shutdown.

“Emirates’ growth strategy has previously been focused on building share and
presence in markets. Now that it has built scale worldwide, boosting utilization
and profitability appear to be the priorities,” said Michael Stanat, director of
global operations at SIS International Research.

Analysts say that the disruption to Emirates’ services is all but unavoidable,
given the need for runway maintenance to take place. Unlike some other major
international airports, flights land and take off at Dubai International around
the clock, so there is no regular downtime in which to schedule maintenance
work.

Dubai does have a second airport, but the logistics of moving some flights to
Dubai World Central (DWC) may have proved too difficult for the airline,
particularly as so many of its passengers only fly into Dubai in order to
immediately connect with other onward flights.

“We did evaluate the feasibility of moving some flights to DWC, however the
decision was made not to do so,” said the spokesperson. “Our business model
remains focused on our hub at DXB that offers efficient international
connectivity.”

However, the airline has deliberately picked a relatively quiet time of the
year, to reduce the impact. The April-May period falls outside the main travel
seasons in the northern and southern hemispheres and also coincides with
Ramadan, which is typically a time of lower demand for flights in the Middle
East region.

“They’ve picked a time when there’s a bit of a lull for business and leisure
travel, so that should have a reduced impact,” says John Strickland, founder of
aviation consultancy firm JLS Consulting. “It’s unavoidable and they’re doing
everything they can to minimize the impact.”

Once the runway maintenance work is out of the way, there are further changes in
the pipeline for the airline and its route network.

Emirates says it is launching additional flights to a number of African
destinations from June onwards, including the Moroccan commercial hub
Casablanca, and four West African capitals: Abuja in Nigeria; Accra in Ghana;
Conakry in Guinea and Dakar in Senegal. There will also be additional flights to
a number of European cities during the summer, while capacity will be increased
on flights to Boston, Massachusetts and the Scottish city of Glasgow with the
deployment of the Airbus A380 on those routes. However, Emirates is scaling back
on its services to the Chilean capital Santiago as well as Sydney and Perth in
Australia.

All this may presage a tougher future for Emirates, which saw profits slump
badly in 2016/17, before recovering somewhat the following year.

“There are other suggestions that the Dubai airline market may be over-saturated
as Virgin Atlantic recently cut flights to Dubai due to declining profitability
on those routes,” said Stanat. “There are several threats on the horizon such as
geopolitical instability, oil price fluctuations, currency fluctuations,
volatility in capital markets and concerns about a recession.”

Follow me on Twitter or LinkedIn. Check out my website. 
Dominic Dudley



Dominic Dudley is a freelance journalist with more than two decades of
experience in reporting on business, economic and political stories in the
Middle East, Africa,

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