Sheikh Ahmed bin Saeed Al Maktoum looks every millimetre the Arabian prince that he is. A member of the ruling family of Dubai, the vibrant desert state at the heart of the United Arab Emirates (UAE), he could have been forgiven for using his birthright to jet around the world enjoying a playboy lifestyle. Instead, Ahmed has devoted his time to Emirates and the development of the civil aviation industry in his country.
Ahmed was born in 1959 as the youngest son of Sheikh Saeed, then ruler of Dubai. However, Saeed died in the year his last son was born and the young Ahmed was brought up by Sheikh Rashid, his half-brother. Rashid in turn is the father of the current ruler of Dubai, Sheikh Maktoum. Educated in the UK and the USA, Ahmed is also now closely aligned with another member of the Maktoum clan, his older nephew Sheikh Mohammed, who, as crown prince of Dubai and UAE defence minister, is seen as a dynamic force in the region.
Ahmed was the main driver behind the launch of Emirates in 1985, when Dubai pulled out of the Gulf Air agreement to give the state its own airline. Within a couple of months, his nephew asked him to become president of the civil aviation authority.
A fellow of the Royal Aeronautical Society, Ahmed is now well settled into his dual roles of chairman of Emirates and president of the Department of Civil Aviation, responsibilities which put him at the heart of the country's aviation industry.
The phenomenal growth of both the airline and Dubai's aviation industry - in figures as well as reputation - is a tribute to the way national ambition can enhance a country's airline, airports and infrastructure. "It is something we have worked hard for," Ahmed says. "We want to be the best in everything we do."
Dubbed "Mr Aviation" by his compatriots, Ahmed has brought Emirates up from a carrier with two leased aircraft serving three regional airports to an airline with an international reputation for class and style. To date it operates a fleet of 29 aircraft serving 49 destinations in the Gulf and Middle East, Europe, Asia, Australia, the CIS, the Indian Ocean and Africa.
Outside Ahmed's office building in the Royal Pavilion at the new purpose-built exhibition centre at Dubai International Airport, work is progressing on a second passenger terminal.
More than $1 billion will have been spent by the time the airport plans reach fruition. As well as the new exhibition centre and terminal building, surrounding roads, administration buildings - including the control tower - have all been replaced. The reward is a steady increase in passenger numbers and international airlines using the airport as their Arabian Gulf hub.
"I am confident that we will have 10 million passengers passing through Dubai when Terminal 2 opens in March next year," says Ahmed. This traffic is three times greater than that of any other airport in the region, and it will continue to grow.
"We believe we will grow to 40 million passengers annually in 20 years' time," he says. "We plan to build a third terminal and then extend Terminal 2 to meet the demand. The airport has apron space for 28 aircraft, but the new developments will take this to 68.
In 2018, the plan is to open a new international airport at Jebel Ali, the duty-free port 45km (28 miles) north of Dubai City. That will give us space to grow again," Ahmed says.
Dubai operates a full open skies policy. "We always encourage liberalisation," says Ahmed. "I would hope to see the Middle East following the example of the European Union, but I know there are many who will disagree with me."
The development of the airport and its surrounding infrastructure has the full support of all government departments and the people of Dubai.
Promoting Dubai
"What is good for the airport and for the airline is good for the country," says Ahmed. The Dubai Government provides significant sponsorship for events such as the World Cup horse race, the Desert Classic golf tournament, the Dubai air show and top-level professional sports competitions in tennis, powerboat racing and snooker. It has also promoted quality tourism, which has seen more than 3 million visitors a year come to the Emirates.
"When we have a major event, the airlines are full coming into Dubai, the hotels are full, the taxi drivers are busy, the car hire firms rent all of their cars. The shops are busy," says Ahmed. "Suddenly, the economy is booming."
Emirates alone accounts for about 45% of traffic flying in and out of Dubai and is booming. Net profits of more than $100 million were recorded last year and Ahmed is confident they will remain at the same level this year, despite the industry-wide problem of high fuel costs. He also continues to look for growth.
Emirates had planned to restrict its fleet to two types - the Airbus 330 and the Boeing 777. It revised this plan last year by ordering six longer range Airbus A340-500s. This has opened new markets to Emirates. The airline plans non-stop flights to New York, a route served only by Malaysia Airlines and, soon, Delta. It also has its sights on the US West Coast - probably Los Angeles, served over the Pole.
The carrier has secured a new route to Sydney, via Singapore, and will make it a non-stop journey when the first of the A340-500s is delivered at the end of 2002, or early the following year.
The airline was the Middle East launch customer for the 777-300 and has ordered its fourth aircraft of this type - all of them on lease. The carrier has also secured a new route to Entebbe in Uganda, East Africa. "I see no reason why we cannot extend that to West Africa," says Ahmed.
Then there is the more politically sensitive new routing to Bahrain - after what Ahmed describes, with a smile, as "15 years of negotiations". He shrugs off suggestions that this will damage the performance of Bahrain-based Gulf Air. "I believe our entry to this route will bring in new customers and grow the business," he says.
But this addition to the profitable regional routing creates another problem. "Because of our intention to have just two types in the fleet, it means the smallest we have is the A330. That policy is clearly impossible now."
At the Dubai air show in November, he announced the airline's intention to add smaller aircraft to its fleet, although, nothing under 120 seats is being considered. "We will meet Boeing and Airbus to consider the 737 and the A320 or A319," he says. Anything other than on-time delivery is not an option with the Sheikh, who expects the aircraft to be flying in Emirates' new livery within 18 months.
Alliance scepticism
But, with all the airline's globalisation plans in place, there is an issue that needs urgent attention - that of alliances. It is no secret that Emirates has been courted by all the major alliance players. All have been met with traditional courteous hospitality and then politely sent on their way.
"We are still not convinced that alliances are a good idea," says Ahmed. "It means that, on certain routes, some airlines are enjoying monopolies and that is not good news for passengers. It can lead to government intervention. Also, we have no idea of how long alliances will last. Will they just fall down and disappear? We have been carrying out a comprehensive study into the different options available to us.
"One barrier against us joining an alliance is that we haven't had any frequent flier or customer loyalty schemes in place. However, we have been working on that and launch our own loyalty scheme in April. We will decide about which alliance - if any - before then."
"Super" airline
The Middle East has always been an area of intrigue and rumour, and the airline business is no exception. For some time there has been talk of the Gulf states - Kuwait, Bahrain, UAE, Qatar and Oman - pooling resources to create one "super" Gulf airline.
Ahmed believes this is unlikely. While not ruling it out, he sends a clear message to his relations and policy-forming colleagues: "If something like this is created for political reasons, it would be a failure. If it were created for good commercial reasons, then it would work. But it would be a hard job for the chief executive or chairman to meet all the commercial and political requirements - I hope it doesn't happen in my time."
At 40, Ahmed is one of the youngest chairmen in the industry, but one of the most experienced. Like all of the Maktoum family, he is committed to putting Dubai firmly on the global map as a nation that offers quality, safety and value to compare with any other country. He has achieved this with the airline and the civil aviation infrastructure.
"We will continue to grow," he says. "We must. Our open skies policy shows the way. Look at KLM, look at Singapore Airlines - they both carry more passengers than their total population. We will continue to develop."
Integration is the key. DNATA, the civil aviation department's airport services and travel management arm, is working in the Philippines, Lebanon and Pakistan and is to manage the airport at Basra once UN sanctions against Iraq are dropped. Emirates has taken a 40% stake in Sri Lankan, with a 10-year management contract to raise the standards of the Sri Lankan carrier to that of Emirates.
Competitive contracts
Meanwhile, service providers in the group such as its information technology arm, Mercator, are winning competitive contracts from other airlines. The Dubai Government recognises the value that a strong airline brings to the economy and it is providing the foundation that Ahmed needs - but not at any cost.
"We have come a long way," says Ahmed. "In the beginning, we had to overcome many objections to setting up Emirates, both regionally and internationally. I have always loved aeroplanes. I think most people do - it is hard not to appreciate the speed and beauty of them, and the glamour of the industry.
"The objective of having Emirates was not just to have our own airline, but to use it to promote Dubai and tourism, and to create jobs. It was also decided that, unlike other airlines in the region, which have a history of either losing money or being subsidised, Emirates would have to stand up on its own.
"Most airlines operate the same, or similar, aircraft of the same size, speed and passenger capacity. To have an airline that stays competitive and still makes money, you have to differentiate it from others. This has to be done by providing a consistently good service and by employing the best staff and quality professionals - and that is what I believe we have with the Emirates team.
"I have tried to keep Emirates in a commercial world rather than a political one. It is important for an airline to have bilateral agreements. You cannot work in isolation. An airline that cuts its costs to the barest minimum to attract customers cannot survive. Like all other airlines, we have cut costs but not where that affects quality or, above all, safety."
Despite receiving widespread recognition from the world travel and aviation industry, Ahmed directs credit to where he feels it is due. "In running any organisation, the most important thing is to choose the right people to do the job," he says. "Having done that, the credit for what they do is theirs, not mine."
Emirates Base: Dubai Operations Started: 1985 Ownership: Government of Dubai Employees: 5652 Fleet: 29 Main types: Airbus A300, A310, Boeing 777
Source: Airline Business
