Dubai’s airlines run risk of overcapacity

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Airlines – in particular Emirates – are synonymous with Dubai. From the rebadging of Arsenal’s Highbury football stadium in London to high-profile purchases of giant Airbus A380 aircraft, Dubai has used its flag carrier as a pillar of a decades-long marketing effort to project an image of dynamism and club-class luxury.

Emirates has enjoyed a number of advantages over its competitors. Its base at Dubai airport, along with others in the Gulf, is a 24-hour operation, which means aircraft time is not wasted on stand overnight. The emirate also levies little or no corporation tax on profits.

Emirates “has managed to find its niche as this long-haul, low-cost carrier which is almost the holy grail of the airline industry. If you can operate long-haul at low-cost then you are likely to be very profitable”, says David Kaminski of Flight International, a trade publication.