Budget carriers a landslide in waiting for legacy carriers

BTN News
Saturday, 11 March 2017

Emirates Airline president Tim Clark says he expects low-cost airlines to grow until they dilute revenues on the long-haul inter-continental routes that are a large part of his and other airlines' business.

New aircraft types that fly long-haul cheaply will encourage startups to the extent that Emirates may need to establish a short-haul fleet to serve Mideast nations, he said.

“For a long time people thought low-cost long-haul wasn’t economic,” Clark said at the Bloomberg Berlin Forum. 

But: “Aircraft makers today are producing aircraft that can go for far longer quite cheaply, and it’s up to us to recognise that, and look at how we adapt.”

Emirates has transformed Dubai into a hub for flights from the Americas and Europe to the Asia-Pacific, Middle East and Africa using the A380 and B777.

But once deliveries of more-efficient planes ramp up, he suggested competition will be fierce. “You ain’t seen nothing yet," Clark said. 

Europe's budget carrier Norwegian alone has orders for 42 B787s through 2020 and has options for 10 more.

Clark also said the situation is complicated by established network carriers such as British Airways owner IAG, which plans lower-cost flights using A330 wide-body jets out of Barcelona, and Lufthansa’s Eurowings arm, which is expanding into long haul.

Budget carriers a landslide in waiting for legacy carriers

BTN News
Saturday, 11 March 2017

Emirates Airline president Tim Clark says he expects low-cost airlines to grow until they dilute revenues on the long-haul inter-continental routes that are a large part of his and other airlines' business.

New aircraft types that fly long-haul cheaply will encourage startups to the extent that Emirates may need to establish a short-haul fleet to serve Mideast nations, he said.

“For a long time people thought low-cost long-haul wasn’t economic,” Clark said at the Bloomberg Berlin Forum. 

But: “Aircraft makers today are producing aircraft that can go for far longer quite cheaply, and it’s up to us to recognise that, and look at how we adapt.”

Emirates has transformed Dubai into a hub for flights from the Americas and Europe to the Asia-Pacific, Middle East and Africa using the A380 and B777.

But once deliveries of more-efficient planes ramp up, he suggested competition will be fierce. “You ain’t seen nothing yet," Clark said. 

Europe's budget carrier Norwegian alone has orders for 42 B787s through 2020 and has options for 10 more.

Clark also said the situation is complicated by established network carriers such as British Airways owner IAG, which plans lower-cost flights using A330 wide-body jets out of Barcelona, and Lufthansa’s Eurowings arm, which is expanding into long haul.