Frankly Speaking: Emirates Airline chief Tim Clark expects return to ‘full capacity’ by summer of 2022

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Updated 04 July 2021
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Frankly Speaking: Emirates Airline chief Tim Clark expects return to ‘full capacity’ by summer of 2022

  • Once the pandemic is over, there will be a tsunami of demand from people wanting to travel, Clark told Arab News
  • Appearing on Frankly Speaking, he also offered advice on Saudi plans for launching a second international airline

 

DUBAI: Emirates will be back to full capacity by next summer as the pandemic-stricken aviation industry enjoys an “exceptional surge” in passenger numbers, Sir Tim Clark, the airline’s president, told Arab News.

“Taking the short-term view, I think we’ve got another six months of difficulty. If you ask me about the summer of 2022, I’m fairly confident that next year we’ll see a completely different picture, and that certainly airlines like Emirates will have restored themselves to full capacity, albeit possibly six months later than we originally thought,” he said.

“Once the pandemic is over, there will be a tsunami of demand from people wanting to travel — whether it be friends and relatives, second homes, business, leisure — the multiple segments all of which have been suppressed over the last 15 or 16 months,” Clark added.

He gave his confident forecast during an interview on Frankly Speaking, the series of video interviews with influential policy-makers and business people.

In the course of a wide-ranging discussion about the Dubai-based carrier and the global aviation industry, Clark spoke of the improving financial situation at Emirates, which lost $5.5 billion last year, as well as the possibility of a merger with rival Abu Dhabi airline Etihad.




Emirates has suffered financially during the pandemic lockdown, which grounded its fleet entirely for two months before a selective reopening from last summer. (AFP/File Photo)

He also discussed the future of the A380 aircraft, which has not taken to the air since the pandemic struck last year, and offered some expert advice to Saudi Arabia as the Kingdom plans to launch a second international airline.

He was adamant that the Emirates business model — providing global connectivity around the Dubai hub for an ever-increasing air travel market — would be effective “in perpetuity.”

“Are you suggesting that people won’t travel, that they won’t want to do all the things that they did prior to the pandemic? Are you suggesting that, as many do, that you and I talking on these video conferencing platforms is going to kill the need to travel on business? Are people not going to travel for holidays, for leisure, for visiting friends and relatives for the multiplicity of reasons that people travel across the planet,” he asked.

“Dubai will reassert itself as a global super hub. It’ll strengthen that. The airport will strengthen, and we’ll have more cities on the network within the next three to five years. So just watch this space.”

Dubai was right to reopen its economy and its airline last year even as the pandemic raged around the world and new variants of the virus emerged, Clark insisted.

“They were first movers, remember, in establishing lockdown in April and May last year. They were early movers in the acceptance that vaccines are going to sort the problem out eventually. So, did they make the right decision? Yes, they did. The airline adapted fairly quickly as it has done to the downturn as a result of new variants coming out, but again the town, the city (Dubai), will adapt. It’s known for its adaptability,” he said.




During a Frankly Speaking interview, Clark spoke of the improving financial situation at Emirates, which lost $5.5 billion last year, as well as the possibility of a merger with rival Abu Dhabi airline Etihad. (AN Photo)

The US air travel market would be the first to show a significant increase, he said, followed in “fits and starts” by Europe and the rest of the world, as vaccines are rolled out globally and medical treatment for the infection improves. But Clark was uncertain as to when the important UK air routes with the UAE would reopen without quarantine and other restrictions that have kept that market depressed.

“My own view has been expressed fairly forcefully to the UK government and I know the UAE foreign ministry has been fairly assertive on this. There is no reason why the UAE should be on the red list at all in my view, particularly as the country is so well on top of the problem,” he said.

The UK has said it will fully reopen its economy later this month, on July 19, but was unsure whether this would mean full reopening of flights with the UAE.

“They’ve got to accept of course that if their citizens have been vaccinated and go anywhere, the reciprocal has got to be in place. I think with all that, the evidence will suggest that probably by August, September they will be more relaxed about entry and travel,” he said.

Clark also hopes that by the autumn Saudi Arabia would reopen the lucrative routes between Dubai and business centers in the Kingdom, which have been closed because of pandemic precautions.

He offered advice to the Kingdom’s policymakers as they plan the launch of a second international airline alongside Saudia.




An Emirates Airbus A380-842 grounded at Dubai international Airport after Emirates suspended all passenger operations amid the COVID-19 coronavirus pandemic, on March 24, 2020. (AFP/File Photo)

“With anything like this, you’ve got to have the right people who know what they’re doing. They obviously need a large amount of cash to get things going, which I’m sure they have in Saudi Arabia. If they believe that an additional airline, perhaps operating a slightly different business model, will be necessary, I’m sure they’ll just get on with it,” he said.

Emirates has suffered financially during the pandemic lockdown, which grounded its fleet entirely for two months before a selective reopening from last summer. But Clark foresees an end to losses “probably within the next year or two”, although it is still unclear whether the airline will need more support from the Dubai government on top of the $3.1 billion it has already received.

“It’s anybody’s guess. Much will depend on what happens over the next six and nine months. The cash burn has slowed, and we are not in a cash critical situation at the moment. I am 100 percent convinced that the Dubai government will do what it takes to ensure that Emirates is financially secure,” he said.

He expected the Expo 2020 world exhibition that begins in Dubai in October to provide a “fillip” to the airline’s business.

The financial damage from the pandemic has again raised the issue of a merger between Emirates and Etihad, but Clark said this matter was “well above my pay grade.” He believes there will be more operational and backroom collaboration between the two airlines, but that did not imply a full-blown merger, which would require a deal between the governments of Dubai and Abu Dhabi.




Clark is adamant that the Emirates business model — providing global connectivity around the Dubai hub for an ever-increasing air travel market — would be effective “in perpetuity.” (AFP/File Photo)

The Airbus A380 wide-bodied plane was critical to Emirates’ expansion and profitability before the pandemic struck, but more than 100 of the planes have been parked since last year. There are plans to return some to service this summer, and Clark was confident about the aircraft.

Emirates has just taken delivery of two new A380s, and three more are being delivered in November, although the European manufacturer has said it will not build any more of the aircraft. “So, in the fullness of time of course it will have to go, but, in the meantime, we will work this aircraft, we will spend money on it, to refurbish it, to improve the product, make it even more attractive,” he said.

Clark, who has been with Emirates for three and a half decades, was due to retire last year, but agreed to stay on to deal with the pandemic. He declined to say whether a new departure date had been set.

“I’ve got a great bunch of guys I work with, and they’ve been working with me for the last 20 years. So, goodness me, the shareholder has got plenty of opportunity to select or do what they want to do with regard to the business. It’s not really relevant in the scheme of things whether I’m here or not,” he said.

He added that he hopes to stay on with the airline in an advisory capacity after he steps down from the presidency, and would like to focus on charitable activities like the Emirates Airline Foundation. But he did not rule out another big job in global aviation.

“I’m not saying I wouldn’t do it if I was asked, but I would prefer to get involved in things other than the commercial world,” Clark said.

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Twitter: @FrankKaneDubai


Saudi energy minister, EU official discuss cooperation on clean energy

Updated 11 sec ago
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Saudi energy minister, EU official discuss cooperation on clean energy

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday held talks with EU Energy Commissioner Kadri Simson to discuss prospects for cooperation in the field of clean energy.

The top officials met on the sidelines of the World Economic Forum in the Saudi capital, the Saudi Press Agency reported. They discussed ways to strengthen bilateral ties, boost cooperation for the promotion of green energy and advance the goals of the Paris Agreement and ensure the implementation of the outcomes of the COP28 held in Dubai last year.

The Paris Agreement is an international treaty on climate change that was adopted back in 2015. It was negotiated by 196 parties at COP21 in France and covers climate change mitigation, adaptation, and finance.

They reaffirmed the common goals of Saudi Arabia and the EU and the determination of both parties to accelerate private investment in the renewable energy sector, cooperate on electricity interconnection and the integration of renewables into the electricity grid.

The officials stressed the need to strength the electricity supply infrastructure through demand side management smart grid. They also discussed carbon capture, utilization and storage technology and opportunities for industrial partnerships in those sectors.

They also shared their view on building on the UNFCCC, the Paris Agreement and COP28 outcomes. The officials also discussed a Saudi-EU memorandum of understanding to boost cooperation in the energy sector.

According to SPA report, they were of the view that such an MoU should provide a solid and mutually beneficial basis for orienting and anchoring investment decisions in the energy and clean tech sectors, involve and mobilize stakeholders from the public, private and financial sectors, and lay the foundation for a more sustainable and secure energy future.

The European Commission and Saudi Arabia aim to conclude the MoU in the next few months.

 


Saudi Arabia to host 28th World Investment Conference in Riyadh

Updated 28 April 2024
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Saudi Arabia to host 28th World Investment Conference in Riyadh

RIYADH: Saudi Arabia is on track to host the 28th World Association of Investment Promotion Agencies’ World Investment Conference from Nov. 25 to 27 in Riyadh.

The forum themed “Future-ready IPAs: Navigating digital disruption and sustainable growth,” will bring together leaders from investment promotion agencies, corporates, multilateral institutions, and other stakeholders to discuss global financial trends and opportunities, according to a statement. 

The Kingdom’s selection as a host underscores its position as an international funding hub, according to Saudi Investment Minister Khalid Al-Falih. 

“We are honored to be welcoming the global investment community to Saudi Arabia. Our strategic location at the crossroads of three continents, coupled with our world-class investment ecosystem and long-term political and economic stability, has seen the Kingdom develop into a global investment hub,” Al-Falih said.

“The World Investment Conference will serve as a platform to showcase our nation’s potential and forge partnerships that will shape the global investment landscape for years to come,” the minister added. 

On WAIPA’s behalf, Executive Director and CEO Ismail Ersahin said: “WAIPA is honored that the 28th WAIPA World Investment Conference will be held in Riyadh, a city with a rich history and culture.”

Ersahin added: “With each edition, the WIC reaffirms its status as a guiding force for sustainable and inclusive development.” 

He went on to stress how the conference is poised to be an impactful gathering aimed at the future readiness of IPAs. 

Since 1995, the annual gathering has provided a forum for stakeholders to exchange insights and best practices and forge partnerships that drive economic development globally.  


Saudi Green Building Forum set to obtain UNCCD’s permanent observer status 

Updated 28 April 2024
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Saudi Green Building Forum set to obtain UNCCD’s permanent observer status 

RIYADH: The Saudi Green Building Forum is set to obtain permanent observer status following the submission of a formal request to the UN Convention to Combat Desertification. 

Pending a final decision during the 16th session of the Conference of the Parties to be held from Dec. 2-13 in Riyadh, this move underscores the forum’s efforts to enhance its role in sustainable development and combat desertification. 

The forum, which has already been temporarily accredited, is involved in the proceedings based on the provisions of paragraph seven of article 22 of the convention and articles six and seven of the internal regulations of the COP, according to a press release. 

This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management. 

Commenting on the development, Faisal Al-Fadl, secretary-general of the Saudi Green Building Forum, said: “We are pleased with the official notification from the UN Secretariat of the receipt of the required documents after a thorough review of the documents submitted for the accreditation of the forum as the first Saudi institution specialized in preparation for obtaining observer status for the Conference of the Parties to the UN Convention to Combat Desertification,” he stated. 

“The efforts of local communities play a significant role in enhancing the sustainable development goals for people, plants, and prosperity through advocating for human experiences based on scientific rules and community health and well-being for healthy, fair, and resilient communities and cities, sufficient consumption and production, climate action in removing harmful carbon, and reducing the temperature to 1.5 degrees Celsius, addressing desertification, and managing natural resources and water,” he added. 

The UN Secretariat confirmed the receipt of all necessary documents for the forum’s accreditation as an observer, encouraging further participation in the convention’s activities. 

“After a thorough review of the documents submitted by your institution, we encourage you to continue participating in the implementation of the UN Convention to Combat Desertification and keep the secretariat informed of the activities,” the letter stated. 

The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification, leveraging cooperation between developed and developing nations, particularly in sustainable land management and environmental restoration. 


‘Two-state solution,’ investing in crisis resilience hold key to Mideast future, says Saudi minister

Updated 28 April 2024
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‘Two-state solution,’ investing in crisis resilience hold key to Mideast future, says Saudi minister

  • Vision of regional development, prosperity ‘complicated by tensions,’ Adel Al-Jubeir tells WEF special meeting

RIYADH: The key to getting the Middle East region back on track toward development and prosperity is ending the Gaza conflict, the Saudi minister of state for foreign affairs said on Sunday.

Adel Al-Jubeir, who was speaking at the World Economic Forum Special Meeting being held in Riyadh, said the Israel-Hamas conflict raging in the enclave only served to “undercut” any attempts to integrate the region and “unleash its potential.”

He added that, considering its young population, abundant natural resources and strategic geographical location, the Middle East had all the ingredients to be a successful region.

The goal of policymakers in Saudi Arabia and beyond was to ensure these elements benefitted everyone and better linked the Middle East region with the rest of the world, Al-Jubeir said.

Adel Al-Jubeir was speaking at the World Economic Forum Special Meeting being held in Riyadh. (Screenshot/WEF)

However, he said that this vision was “complicated by tensions” affecting the Middle East, and it was important to put an end to these in order to “focus on the things that matter” to developing its prosperity.

“(With the situation in Gaza), our number one priority is to stop the fighting,” he said. “Our second priority is to ensure enough humanitarian assistance goes into the Gaza Strip so that we avoid starvation, disease, and we take care of the people there,” he added.

“In the long term, we need to find a way to end this conflict (for good), and the only way we end it is by having a two-state solution, so we need to chart a clear, time-bound irreversible path to a Palestinian state.

“Saudi Arabia has said in terms of normalization (with Israel), this would be a part of that. The Arab world has had a position with regard to the Arab Peace Initiative, the US and the rest of the world supports this, so we need to make sure we stop the fighting, increase assistance and come up with a pathway to that Palestinian state,” he added.

When pressed by the panel moderator, CNN’s Becky Anderson, on whether a two-state solution would be possible with Benjamin Netanyahu and his right-wing government in charge in Israel, Al-Jubeir said it was in “everyone’s interest” to end the conflict.

“I’m not a mind reader or a psychiatrist; it’s not what I was educated in or my profession,” he said. “But what I can tell you is the interests of everybody in the region requires putting an end to this conflict, the potential that can be unleashed is tremendous, with good will, seriousness and foresight we should be able to get the ball over the goal line,” he added.

Mohamad Al-Ississ, Jordanian finance minister, also said the region had lurched from crisis to crisis over several decades, and told the WEF panel: “The one certain thing anybody can be certain of is that uncertainty is here to stay.”

Mohamad Al-Ississ, Jordanian finance minister. (Screenshot/WEF)

He said the role of policymakers in the Middle East should be investing and developing sectors that allowed the region’s economies to absorb and ride out the shock and impact that crises can have.

“The top priority is (determining) how to invest in enhancing your buffers, so that you can increase your resilience for when ‘black swan’ events, which have become the norm, unfold,” he said.

Ahmed Galal Ismail, CEO of UAE’s Majid Al-Futtaim Holding, agreed. He said that while peace and stability were “obviously indispensable to economic growth,” if the region just waited for it to happen, it could be “waiting for a long time.”

Ahmed Galal Ismail, CEO of UAE’s Majid Al-Futtaim Holding. (Screenshot/WEF)

He cited an example of intra-Arab trading being at its highest-ever level, but added it was “anaemic” compared with other global blocs.

“We need to act. From a private sector perspective, we see opportunities independent from geopolitics and from the cruelty we see in parts of the region, so it is very important the actors in the sector are pragmatic, take the lead, and start what is needed to drive that economic integration.”


Closing Bell: Saudi benchmark index edged down to close at 12,381

Updated 28 April 2024
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Closing Bell: Saudi benchmark index edged down to close at 12,381

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 102.46 points, or 0.82 percent, to close at 12,381.95.

The total trading turnover of the benchmark index was SR3.64 billion ($972 million), as 29 of the stocks advanced while 201 retreated.  

Nomu, the Kingdom’s parallel market, also dropped 414.9 points, or 1.55 percent, to close at 26,277.06. This comes as 11 of the stocks advanced while as many as 50 retreated.

Meanwhile, the MSCI Tadawul Index slipped 9.52 points, or 0.61 percent, to close at 1,553.88. 

The best-performing stock of the day on the main index was Al-Baha Investment and Development Co. The company’s share price surged 7.69 percent. 

Other top performers included Saudi Cable Co. as well as Fawaz Abdulaziz Alhokair Co.

The worst performer was ACWA Power Co., whose share price dropped by 5.76 percent to SR425.

Saudi Ground Services Co. as well as Al-Babtain Power and Telecommunication Co. also did not perform well.

On the announcements front, Saudi Tadawul Group approved the distribution of dividends worth SR276 million to shareholders for the fiscal year ending Dec.31, 2023, with SR2.3 per share and 23 percent share par value. 

Moreover, Dr. Sulaiman Al-Habib Medical Services Group announced its interim financial results for the period ending March 31. 

According to a Tadawul statement, the company’s net profit hits SR550 million in the first quarter of 2024, reflecting a 12.6 percent surge compared to the same quarter last year. 

The increase was mainly driven by revenue growth due to the jump in the number of patients.

Saudi Arabian Amiantit Co. also announced its interim financial results for the first three months of 2024. 

A bourse filing revealed that the firm’s net profit reached SR474 million in the first quarter of the year, up 23,672 percent from the corresponding quarter in 2023. 

This climb is mainly attributed to the company’s accounting profits which amounted to SR639 million in the current quarter. 

Additionally, Arab National Bank announced its interim financial results for the first quarter of the year. 

According to a Tadawul statement, the firm’s net profits rose 15.73 percent against the same quarter of the prior year to hit SR1.23. 

The increase is primarily linked to net special commission income, net fees and commission income, and dividend income, among other reasons. 

Saudi Steel Pipe Co. also announced its interim financial results for the period ending March 31. 

A bourse filing revealed that the company’s net profit reached SR76 million in the first quarter of 2024, a 1,166 percent jump from the corresponding quarter in 2023. 

This rise is due to an increase in gross profit coupled with a decrease in selling, marketing, and distribution expenses and a drop in trade receivable bad debt provision. 

Meanwhile, Savola Group Co. announced the submission of an application to increase its capital by offering rights issues to the Capital Market Authority.