Emirates and flydubai are working fast to ratchet up a bigger slice of the regional aviation market as competition intensifies.
Since the two Dubai-based airlines revealed their tie-up in July, they have launched codeshare routes to 45 destinations as part of plans to build a joint network of 240 destinations by 2022.
On Tuesday, the carriers added 16 destinations; among them, markets termed as “exotic” by Emirates, including Zanzibar, Kathmandu and Kilimanjaro. Others included Chittagong, Bratislava, Djibouti and Istanbul Sabiha Gokcen – which are either key destinations serving the UAE’s large expat workforce, or important trading and tourism hubs for the emirates.
Emirates president Tim Clark said nearly 14,000 sectors or legs of a route had been ticketed during the first week of operation, “surpassing our expectations” and demonstrating strong demand.
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Certainly, the expanded codeshare agreement gives Emirates and flydubai customers greater choice, as the airlines secure wider reach and a competitive edge in an increasingly fierce market.
Under the deal, the carriers said they would offer increased schedule alignment, fleet and network sharing, as well as alignment of frequent flyer programmes. The news was welcome after shaky financial announcements by both airlines in the preceding 12 months, attributed to currency volatility and competition.
Emirates, for example, reported a 70 per cent year-on-year profit drop for the financial year ending March 31, while flydubai widened its losses of Dh142.5 million in the first six months to the end of June from losses of Dh89.9m for the same period in 2016.
Both airlines have insisted they will continue to operate independently, but changes clearly had to be made. Under the expanded codeshare deal, the carriers have the opportunity to reduce any network duplication while making sure they have the right aircraft size according to demand.
For instance, Emirates can dispense with the need to buy narrow-body aircraft to serve short-haul destinations, while flyDubai can offer flights on Emirates' network, without having to buy wide-body planes for long-haul flights.
The two carriers can capture greater market share by offering an end-to-end service on routes without losing any gains from higher load factors. This will, of course, make life harder for their direct rivals, and, ultimately, strengthen Dubai's overall aviation footprint.
It remains to be seen whether the Emirates-Flydubai tie-up is deepened in any more formal way in the future, but any collaboration is a win-win move.
WISH
Directors: Chris Buck, Fawn Veerasunthorn
Stars: Ariana DeBose, Chris Pine, Alan Tudyk
Rating: 3.5/5
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
Company profile
Name:+Dukkantek
Started:+January 2021
Founders:+Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based:+UAE
Number of employees:+140
Sector:+B2B Vertical SaaS(software as a service)
Investment:+$5.2 million
Funding stage:+Seed round
Investors:+Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
The lowdown
Badla
Rating: 2.5/5
Produced by: Red Chillies, Azure Entertainment
Director: Sujoy Ghosh
Cast: Amitabh Bachchan, Taapsee Pannu, Amrita Singh, Tony Luke
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
8 UAE companies helping families reduce their carbon footprint
Greenheart Organic Farms
This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.
www.greenheartuae.com
Modibodi
Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.
www.modibodi.ae
The Good Karma Co
From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes.
www.instagram.com/thegoodkarmaco
Re:told
One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.
www.shopretold.com
Lush
Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store.
www.mena.lush.com
Bubble Bro
Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.
www.bubble-bro.com
Coethical
This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.
www.instagram.com/coethical
Eggs & Soldiers
This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.
www.eggsnsoldiers.com
Mohammed bin Zayed Majlis
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