Airlines Can Be Profitable
According to a press release from Emirates, it has achieved its 20th consecutive year of net profit, in spite of soaring fuel costs and challenging business conditions. For the full release click here.
• Group net profits increased 54.1 percent to $1.45 billion for the financial year ending March 31, 2008, on revenues of $11.2 billion compared to the previous year’s $8.5 billion.
• The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.
• Emirates will pay a dividend of $272.5 million to its owner, the Government of Dubai.
• In 2007-08, the Group estimates a direct contribution of $6 billion, and another $6.8 billion in indirect contribution to the UAE economy.
It claims its success is based on ongoing investments in the latest technology, products, and customer service while keeping a tight rein on costs.
And it doesn’t plan on resting on its laurels but plans on continuing to provide its customers with the high quality experience that they have come to expect.
It’s the same with AMT. Thanks for reading.
Barb Zuehlke
Unfortunately, in many cases, it seems as if the technology ship has already sailed. Many IT projects (including those related to MRO) require lengthy implementations and migrations, and may not see an acceptable ROI for years. Now that airlines have sliced to the bone so to speak, it may become more difficult to justify IT spend in the short term budgets.
Airlines, just like any other business, should be raising their fares enough to offset increased fuel prices. Why is it that USA airlines are making such dreadful losses, yet those in the Gulf are making profits? It cannot be due to maintenance costs, which are significantly higher in the Gulf region. Could it be bloated salaries and top-heavy management? Perish the thought.
Bloated salaries, top-heavy management, union contracts that pay more than what they are worth but mostly,,,,lack of leadership at all levels. I had the opportunity to meet many of the upper level managers in the industry over a couple of years and found that they had no idea how or what leadership was. Pencil necks all of em. That included a lot of maintenance leadership.
Back in the late 80’s I was working in Jeddah, Saudi Arabia for an American company for Saudia Airlines. I was told that Saudia was paying seriously discounted prices for fuel. Amazingly low, it that how Emirates may be posting a profit when others are paying full retail for fuel?