Clark is credited with guiding Emirates from a small player in the mid-1980s into the global behemoth it is today. After decades of expansion servicing long-haul customers Emirates now maintains the largest fleet of the popular Airbus A380s.
Following years of delays in Boeing and Airbus’ production capacity, Emirates is in the process of upgrading 200 planes including its popular 116 strong fleet of A380s.
“That is a strategy which speaks to the uncertainty of what the manufacturers will do for us in the future over the next 10 or 15 years,” he said.
Loading
US-based Boeing has been beset by a string of quality control issues, industrial action, regulatory scrutiny and supply change difficulties since the COVID-19 pandemic triggered industry-wide parts shortages. In October, Boeing produced just 14 planes.
Clark spoke in Melbourne where he had attended the Emirates-sponsored Australian Open. He predicts that Emirates’s competition from Qatar Airways will be good for Australians when the Doha-based rival begins 28 weekly services from Sydney, Melbourne, Brisbane and Perth.
“There is nothing wrong with competition” which “is good for the consumer”.
Qatar and Virgin have already begun offering return fares to Europe for less than $2000, ahead of approval of the deal subject to final approval by regulators.
Clark played down suggestions Emirates, which has an extensive code-share agreement with Qantas, had much to lose from Qatar’s plan to acquire 25 per cent of Virgin.
“Since we came to the market and done what we’ve done, and then Etihad and Qatar Airways after that … the market has grown with us.”
The move by regulators to open the market has increased travel capacity for Australians.
Australian airlines held 32.8 per cent of the Australian international passenger market, with Qantas (and Jetstar) accounting for 26.1 per cent, according the Aviation White Paper, released in August. Virgin Australia had 6.7 per cent.
In the current environment there is no shortage of demand for the kind of long-haul flights Emirates and Qatar offer, Clark said, noting however that final approval had not been granted by the Australian Competition and Consumer Commission (ACCC).
Loading
He said, “there’s a little bit of risk” in pre-sold tickets if the deal is not given final approval, which will make “life difficult” for those people who have booked.
Even as domestic fare growth has “moderated”, according to investment bank UBS this month, demand for international flight in Australia is “strong with fares sustaining positive year-on-year growth”.
The pent-up demand for travel can be seen in Emirates’ ticket sales, Clark said, flattening what had once been seasonal peaks and troughs.
“We’ve seen an in-fill of the troughs,” Clark said. “So there has been movement outside the traditional periods.”
Last November, for example, was the “most robust” for ticket sales in Emirates history, he said.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
