Growth in UAE and EK in particular starts to worry some.

Today (June 27th) the world’s newest airport opens. Dubai World Central-Al Maktoum International. Last week Dubai World had its first test flight. An Emirates 777 Freighter conducted the first flight of a commercial type operation into the new facility.

The statistics are staggering:

Phase 1 of the airport will feature one A380 capable runway, 64 remote stands, one cargo terminal with annual capacity for 250,000 tonnes of cargo and a passenger terminal building designed to accommodate five million passengers per year.

When completed, Dubai World Central-Al Maktoum International will be the largest airport in the world with five runways, four terminal buildings and capacity for 160 million passengers and 12 million tonnes of cargo.

In the short term Dubai World Central-Al Maktoum International will increase the airport capacity of Dubai to accommodate the 48% increase in cargo volumes from 1.9 million to the 3 million tonnes anticipated by 2015.

In the long term it will serve as a multi-modal logistics hub for 12 million tonnes of freight and a global gateway for the 150 million passengers per annum that are expected to pass through Dubai by 2030.

So now you know how EK is going to support the ground portion of that nice fat order of planes becomes obvious.

But don’t expect things to be smooth sailing. A number of airlines are getting restless and so too are their governments. If EK starts to capture significant traffic then we can expect governments to also get involved. Already we are hearing noises from the French. The new UK government should be paying a lot of attention to their actions. With the 3rd runway cancelled at LHR, the 2nd runways at LGW and STN non-starters for a long while, that just means the UK’s loss will be Dubai’s gain.

Cheers

Dubai - Reset

The headline this morning may seem quite dramatic. Here is the coverage from ATWonline:

Emirates fiscal-year profit soars to $1.1 billion

Emirates Group reported net income of AED4.2 billion ($1.14 billion) for its fiscal year ended March 31, a substantial increase over a AED1.49 billion profit in 2008-09, marking its 22nd consecutive profitable year despite what it described as "a year fraught with worldwide market instability and economic uncertainty."

So this morning there are a lot of happy people in Dubai and smiles all round in that nice new building that is their HQ.

I was in Dubai for the Annual Arabian Travel Mart last week and I spent some time speaking to many people from the business, who live in the region and Dubai itself. While ATM was - shall we say a bit quiet - I don't have the numbers but as a seasoned show goer - it was quieter than I expected.

There has been a significant downsizing. Perhaps not of the total economy but definitely of people's expectations. The two ex-pat communities are both notably chastened by the bursting of the bubble. There is still a correction on-going. There are wonderful anecdotal tales of people whose job it is to move the tower crane so it looks like the building is still being built. What is not anecdotal are the canceled and delayed projects. Even the closely controlled newspapers are full or projects where the boosters are denying that they have been canceled. But suffice to say the boom curve is a lot flatter and a lot further out. Next month will see another mini-exodus of expats at the end of the school year. Some broken dreams will be realized.

Out at "The World" the essence of extravagance - there is but one lone property occupied. It looks a little forlorn but I am sure its owner is very happy.

For the travel marketplace - this will take some time to smooth out. There is an excessive amount of inventory that needs to catch up to the travellers. Strangely enough Dubai and Las Vegas share a lot more of issues than they might think.

However overall I am impressed with the way they have dealt with the bust. The taxi drivers sound a little happier (always a good sign). And the flagship of what the airline means to the rest of the world is giving them pride again. The price was heavy and will continue to be so. How much and exactly what form is unknown to all but a few.

Cheers