Saturday 21 March 2009

Cold realities at Dubai’s Terminal 3

Waiting for a flight in the glitzy environs of Dubai’s Terminal 3 a few days back, my mind wandered away from the delights of duty free to the realities of the airline business. T3’s savage air-conditioning system makes it an appropriate place for cold, hard assessment.

It is the proud boast of Emirates Airlines, which has exclusive use of the terminal, that it has been profitable in every year since its launch in 1985, and that growth has never fallen below 20 per cent in any of those years. That remarkable track record has made the Dubai flag-carrier the Middle East’s favourite airline and the world’s fastest growing aviation business. Both will be tested in the coming weeks.

As Emirates nears its 2008-09 year end, it is becoming clear that the past 12 months have been unlike anything it has ever experienced before. The global financial crisis has deterred people from travelling by air, and those who have continued to do so have opted for cheap no-frills airlines, rather than the majors. In addition, business and first-class travel has taken a battering. Now, an increasing number of travellers turn right on boarding, into the depths of economy class, rather than left into the bliss of business or the fantasyland of first.

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