Doug Cameron/Dubai
Emirates has turned down an offer to join the Star Alliance, the Dubai-based flag carrier opting instead to develop its own global network following an order for up to 12 ultra long haul aircraft.
A decision between the Airbus Industrie A340-500 and Boeing 777-200X - for six firm orders and six options - is due in July, with airline sources suggesting that Airbus is the front runner.
The carrier signed a memorandum of understanding with Airbus late last year, but Boeing has been battling hard to overturn the agreement ever since.
Managing director Maurice Flanagan says the new long haul equipment would be used to launch direct services to New York and Sydney in 2003, with Los Angeles, Brisbane and Perth also under consideration.
The airline also plans to order an extra A330-200, as well as a further two 777-300s, in addition to four options already exercised. That would take its total commitment for the types to 14 and 17, respectively.
The aircraft are due to be delivered next year and will be used to add capacity to existing routes - particularly those to Pakistan, following the signing of a new open skies deal.
Flanagan confirms that the carrier was approached by Lufthansa about joining the eight-member Star grouping, but is opting for a go it alone strategy, plus a series of bilateral alliances.
The expansion was revealed as Emirates unveiled a near doubling in group net profits to Dh371 million ($100 million) for the 1997/8 financial year. The business of its parent, Emirates Airlines, also saw profits double as passenger numbers climbed by 23%, to 3.7 million, and load factor hitting 70%.
Emirates suffered from the slowdown in Asia at the start of this year, but is optimistic about the outlook. However, economic growth in Dubai is expected to drop from 10% to just 1.5% this year as oil prices continue to fall.
Flanagan rejects claims that its deal to buy 40% of Air Lanka could collapse. Sri Lanka's main opposition party, now fighting a general election, has said it will refuse to ratify the deal if it comes to power, but Flanagan claims the contract is legally watertight.
Source: Flight International
