It is now Emirates’ turn to announce flights to Washington

Emirates (EK) today announced the starting of daily flights between Dubai (DXB) and Washington’s Dulles International Airport (IAD). The new service to be operated using Boeing 777-300 ER will start on September 12, 2012, just in time for the busy travel season. The flight will feature eight private suites in First Class, 42 lie-flat beds in Business Class and 304 seats in Coach class, according to the press release from Emirates.

It is interesting to note that just in February, Etihad (EY) announced the starting of service between Abu Dhabi (AUH) and Washington Dulles from March 13, 2013.

Greater Washington DC area is the second largest market for travel from the United States to Middle Eastern countries, just behind New York. So, it is not a surprise to see the three major Gulf Carriers (Emirates, Qatar Airways and Etihad) try to get a piece of the market share. Qatar has been flying this route for more than five years.

The announcement of flights to Washington from Emirates was expected for a while. United (UA) already flies the Washington-Dubai route. This would make Washington Dulles the only North American airport to have flights to Dubai operated by two airlines. It would be interesting to see how United would respond to this announcement. I think, there is enough market share for both players to maintain their services. Each would play to its respective strengths. Emirates, known for its legendary service and huge hub in Dubai, can connect passengers from Asia,Indian Subcontinent,  Middle East and Africa to Washington. Emirates will focus on passengers ending travel in Washington as it has minimal onward connections from Dulles (through JetBlue, Virgin America and American). United, with its hub in Washington Dulles, can connect passengers from throughout North America to Dubai. So, United will have better onward connections from Washington to throughout North America.

Passengers traveling to Indian subcontinent will have more options now, as Emirates connects to 17 destinations from its Dubai hub, with multiple daily flights to big markets like Mumbai (BOM), Delhi (DEL), Chennai (MAA), Kolkatta (CCU), Bengaluru (BLR) and Hyderabad (HYD).

Some thoughts on the World Airports Traffic Data

The Airports Council International released its preliminary results of world airports traffic data for 2010. ACI reports the traffic data under three categories: passenger traffic, cargo and aircraft movements.

As usual, Atlanta (ATL) retained the top spot on passenger traffic. But, Beijing (PEK) dislodged London Heathrow (LHR) to become number two. Beijing grew 13% to take the clear number two spot. Heathrow slipped to number four.

Hong Kong (HKG) overtook Memphis (MEM) as the top cargo airport, which is not a surprise.

US airports continue to dominate in the aircraft movements category, reflecting the fact that smaller regional aircrafts make up a significant part of the carriers fleets.

Do these numbers show any clear trend?

Yes, they do.

  • The passenger and cargo traffic are definitely growing to reach the pre-recession levels.
  • Asia, especially China, will set the trends in future with North America and Europe slowing down.
  • London Heathrow is slowly losing its position as the largest international airport. Dubai (DXB) already claims this title. The other super hubs of Europe, Paris (CDG), Frankfurt (FRA) and Amsterdam (AMS) too will grow slower.
  • China’s export machine will propel continued cargo growth at Hong Kong and Shanghai (PVG).
  • The US airline industry uses a disproportionate number of smaller aircrafts to transport passengers, making it difficult to drive up efficiency. One example is Charlotte (CLT). The airports ranks number 25 in total passengers, but lands at number 7 in aircraft movements.

Some interesting questions

How would the on going crisis in the Middle East affect Dubai’s astonishing growth curve?

Would the soaring oil price slow down the world economy, especially the US economy, resulting in difficult periods for the US airline industry?

What would be the trend lines in another 10 years? Most airlines would have B787 and A350 type aircrafts in their fleets. Would the Hub-and-Spoke system survive, especially in Europe?

Let’s wait and see!