Knowledge and Insight without the hard work

Thursday, April 26, 2007

Emirates again speculates on "Pack'em In" Long Haul LCC

Vice Chairman the very nice Mr Maurice Flanagan again today speculated on Emirates launching a low cost low fare derivative of Emirates. Tentatively titled Emirate Express by insiders - the new LCC carrier would be based around the A380 on a packed double decker bus.

With capacity of up to 800 people its easy to see how such a program could be a huge winner for EK. With Emirates formal brand focussing on the sharp end of the aircraft these days and offering full services at the back - they now face a host of imatators in the region. But the idea is not new. EK for several years has been running the "Curry Express" from Birmingham to Dubai for VFR and worker based traffic for the large expat community in the Midlands. It is now up to 2 flights a day - no first class but some J. There are even new airlines LCCs being mooted for direct BHX or LBA flights to the Indian subcontinent.

With some diversion of revenue already occuring with more direct flights between the UK and the Indian sub-continent EK needs to offer a price competitive product and continue to funnel the traffic through DXB.

Why not now?

No A380s and the new terminal at DXB is not quite ready. But rest assured when Jebel Ali International starts operating in a few years time - you can be sure to see A380s pulling up to a specialized terminal packed to the gunwales with bargain hunters and VFR traffic.

Imagine just that - STN/BHX/LBA - Jebel Ali. 3X a day - 2 X would go to India and 1 would go on to Australia and New Zealand. Putting an additional flight on to JNB would relieve some of the near term artifiical capacity constraints on the lucrative ZA to UK market.

Not my cup of tea but definitely something Mr O'Leary would be considering if he wasnt so wedded to Boeing.

Cheers

Timothy

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