Emirates and flydubai Go Beyond Codeshare

Doug Mendoza
July 17, 2017

Emirates suffered a 70 percent drop in profit in the year ended March 31 as the low price of crude clipped growth in oil-based Persian Gulf economies, terrorist attacks hurt demand for travel and the company faced US -imposed travel restrictions.

Emirates and low-priced carrier Flydubai have agreed a new partnership created to help both airlines to "accelerate growth" and open new routes from Dubai.

"The partnership will strengthen the position of both airlines and allow them to optimize use of their respective fleets with a greater ability to adjust aircraft capacity size according to route demand", said John Strickland, aviation industry consultant at JLS Consulting.

While continuing to be managed independently, the airlines will leverage each other's network to scale up operations and accelerate growth.

Both Emirates and flydubai are owned by the Investment Corporation of Dubai.

Emirates cited fierce competition and a "relentless rise" in the USA dollar as the main factor in falling revenues.

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FlyDubai also saw its profit drop 69% in 2016 and cited a "challenging socioeconomic environment".

The low-priced carrier's CEO Ghaith Al Ghaith said at the time he expected 2017 to be another "challenging year" and said the airline would remain "prudent".

The tie-up will include co-ordinated scheduling and integrated collaboration to ensure a beneficial combination of the networks of each carrier, with increased feed and the possibility of opening new routes. "For Emirates' customers, it opens up flydubai's robust regional network".

The partnership is due to start before the end of this year and the two airlines plan to align their "systems and operations" at Dubai International Airport, the world's busiest for international traffic.

"Both airlines have grown independently and successfully over the years and this new partnership will unlock the huge value that the complementary models of both companies can bring to consumers, each airline and to Dubai".

Emirates operates a long-haul fleet of 259 aircraft spanning a network of 157 destinations, while Flydubai has 58 single-aisle aircraft - all Boeing 737s - and serves 95 destinations. It will be rolled out from the fourth quarter starting with enhanced code-sharing arrangements.

Other reports by GizPress

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