Arabian Gulf carriers are competing fiercely over creating new concepts of luxury travel, which includes flying bedrooms similar to those found in a yacht or a hotel.
Only weeks after Etihad Airways announced its premium travel experience – which features private suites, apartments and business studios on its aircraft – Emirates Airline said it would match that by introducing a "bedroom concept".
“It’s all about privacy. That’s very much in our current first class private suites product, and our new bedroom concept will take it to the next level,” said Tim Clark, the president of Emirates.
“We’re talking fully enclosed rooms, with all the touches and amenities that you’d expect in hotel or a private bedroom on a luxury yacht, room service and so on. It will be on our A380s, and on our new 777s.”
Emirates said that it is in “advanced stages” of developing its bedroom concept. While it did not disclose the cost of a bedroom, it said that its current first class suite costs US$500,000 apiece, and with the 1,500 seats in its current fleet, that is a total investment of $750 million.
Emirates, the world's biggest customer of the Airbus A380 superjumbo, made headlines at the Dubai Airshow in November when it ordered $99 billion worth of aircraft – including 150 Boeing 777X and 50 A380s from Airbus.
The International Air Transport Association (Iata) said in a note yesterday that premium travel in the Middle East has outperformed other markets globally.
In March, global premium travel rose 1.9 per cent year-on-year, slower than the 4.1 per cent in February.
“Middle East premium travel performed solidly in March, particularly routes to Africa, from Europe, and to the Far East,” said Hussein Dabbas, Iata’s regional vice president for Africa-Middle East.
“The Gulf in particular is enjoying an acceleration in economic growth and tourism. It shows once again that this region is one of the strongest aviation markets in the world.”
Analysts said that a key to the success of Emirates new product will be the pricing. Etihad Residence Suite on the upper deck of its A380 costs $20,000 one way on its Abu Dhabi-London route.
“If its high like Etihad’s Residence Suite, then perhaps it may stifle demand leading to discounting. And with high prices, Emirates will not want to discount so early on with a new cabin product,” said Saj Ahmad, the chief analyst at StrategicAero Research.
Other analysts think that airlines need to revisit their business case of having premium travel products, which may not sell as well as business class seats.
“Premium travel is still in important segment in the Gulf market but more so business class than first class. First class is only supported on certain routes and many airlines globally have withdrawn it or offer it selectively,” said John Strickland, the director of London-based JLS Consulting.
“Airlines have to evaluate the cost of investment versus the likelihood of regularly selling the seats and the opportunity cost of having more seats in business class, which on many routes are more saleable.”
selgazzar@thenational.ae
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Company%20profile
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COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
Company%20Profile
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
First Person
Richard Flanagan
Chatto & Windus
COMPANY%20PROFILE%20
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So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Company%20Profile
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ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
COMPANY%20PROFILE%20
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KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
Four%20scenarios%20for%20Ukraine%20war
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COMPANY%20PROFILE
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SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now