The chairman and CEO of Emirates explains why one of the world’s biggest airlines has such a substantial presence in Australia.
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The Emirates aviation brand has been a major success story. The airline started flying to Australia 14 years ago and now its name adorns arenas and sports jerseys across the nation, while the group has built a new hotel and owns restaurants. HH Sheikh Ahmed bin Saeed al-Maktoum, chairman and chief executive, explains why investing in a country so far from home makes sense.
“Australia is an ideal location for investment. Over the years, the Emirates Group has forged a strong relationship with various levels of government in Australia, and we have been fortunate to receive bi-partisan support at both the state and federal levels.
Australians have embraced the airline from the very beginning, allowing us to grow from seven flights per week in 1996 to 70 flights per week currently. We also have 28 flights per week between Australia and New Zealand. Since 1996, Emirates has carried over 9.6 million people on its Australian flights. The Emirates Group currently has rights to operate up to 84 flights per week out of Australia to Dubai. Dubai is perfectly situated, geographically, to connect most countries in the world with just one stop through our hub, and this efficient connectivity is particularly beneficial for cargo and passenger traffic into and out of Australia. Emirates airline also recently partnered with Tourism Australia on a major venture, with AU$3.6 million invested to encourage more British leisure travellers to visit Australia in 2010.
Emirates investment in Australia is not limited to aviation. The Emirates Group business in Australia encompasses not only the airline but also the Emirates Hotels & Resorts Division, SkyCargo, Emirates Leisure Retail, Toll Dnata Airport Services, Alpha Flight Services and Mindpearl. Our AU$125 million investment in opening the Wolgan Valley Resort & Spa in 2009 represents our largest tourism investment outside of Dubai. The resort has been well received by Australian business leaders and the government, particularly once they understood our desire to build a conservation-based resort which uses only 2 percent of the 1600 hectares (4000 acres), with the remainder of the land restored to its former beauty. The resort has also been certified as carbon-neutral, further confirming our commitment to Australia and its environment.
The Emirates Group has invested over AU$1.2 billion dollars in the Australian economy since 1996. AU$41.2 million has also been invested in promoting destination Australia since 1996, across the global Emirates network while AU$112 million has been invested in Australian sponsorships, in-market advertising and promotions. Through our sponsorship properties, which include the Emirates Melbourne Cup, the Sydney, Melbourne and West Australian Symphony Orchestras, (Rugby team) Emirates Western Force and (Australian Football League team) Collingwood we have been able to show Australians that we are committed to investing in Australia long term.
More than 1500 Australians are employed by Emirates Group. Toll Dnata Airport Services (TDAS) which is a 50/50 partnership between Toll Holdings. Dnata (a member of the Emirates Group) employs 1069 people. Alpha Flight Services, in which Emirates Group is a 49 percent shareholder, is a leading inflight catering service operating out of nine Australian airports and employs 626 people. Mindpearl’s contact centre in Brisbane, in which Emirates Group is a 49 percent shareholder, employs 244 people.
Australia’s most important attributes, as far as I am concerned, are the stability of the Australian economy, a diverse, skilled workforce and the openness of the Australian Government for international airlines and investors. I love working with Australians who have individually and collectively proven themselves to be hard working, friendly and consistent, with no task too big or too small.
The Emirates Group has a long-term vision when it comes to all of its investments and activities, including in Australia. The Australian government and the Emirates Group have an ongoing relationship and I know the Australian Government is very supportive of our investment into the Australian economy over the last decade or so. Over the next few years we hope to continue the mutually beneficial relationship we have with key stakeholders by serving all the gateway cities in Australia, further promoting our first Australian resort – Wolgan Valley – and maximising any new commercial opportunities that come along.”
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