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Thu 5 Mar 2015 01:53 PM

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Emirates president describes Asia market as 'blood bath'

Tim Clark says he expects consolidation in the low-cost aviation sector in Asia amid intense price war

Emirates president describes Asia market as 'blood bath'

Emirates airline expects consolidation in the low-cost sector in Asia, the Dubai-based carrier's president has said.

"I think there will be consolidation of low-cost in Asia, it's a blood bath over there at the moment," Tim Clark said at an event in Berlin on Wednesday.

Intense price competition in southeast Asia has made life tough for carriers, with Malaysia's AirAsia X Bhd saying last week it would cut costs and might defer plane deliveries.

Clark also repeated calls for manufacturer Airbus to revamp its A380 aircraft with new engines, saying Emirates, the largest customer with 140 ordered, could order between 100 and 200 if Airbus did bring out a new version.

He said if Airbus did upgrade the plane, it would likely only come to market in 2020 or 2021, at which point Emirates would be looking to replace its old fleet, plus it would need more on top to grow its business.

"There's nothing else that touches it," he said, saying its load factors on the jet were above 90 percent, and that growing demand for travel, coupled with low oil prices could encourage other airlines to look more seriously at it.

Airbus has said it will only upgrade the plane if it makes economic sense.

Clark also repeated requests for the three largest U.S. carriers to publish a report alleging that the Gulf carriers benefit from trade-distorting subsidies and give Emirates Airline the right to reply.

Clark added he was looking forward to a boost to business from the much-debated 2022 World Cup to be held in Qatar and that he expected the Qataris to put on a spectacular show.

"For us, it will be great, the halo effect of the World Cup in the Middle East," he said.

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procan 5 years ago

Your growing days are coming to a end, in at least in Western Markets. A-380s days are numbered at any rate. The free ride is over, time to adhere to western market standards and Western Law. You want to fly in the West..... western rules apply. With Respect.

Dilbert 5 years ago

@ procan: tut tut tut i wish i could predict the future like you, i would be a millionaire! Your ignorance is no different than the Western Airlines. The trouble is that they make lives difficult for themselves, just look at the red tape and bureaucracy involved in the western airlines. From time to time they should take a good look at the mirror, perhaps they will learn a thing or two. Emirates is now a massive threat to the western airlines hence the old repetitive subsidy drama and this is just the start of the fat kid crying. Admission is the first step to recovery, therefore i say to the western airlines, cut the nuisance and work together in making mobility and aviation accessible to all.

Indian 5 years ago

@procan Before commenting like a cowboy, i would advise you to travel once by an EK flight, you will know the difference between perfume and manure. A major share of EK travellers do not even visit Dubai city but use it as a stop over between their otherwise 15 hour long tiresome flights. The convenience of the stop and the amazing customer service is what lead to its growth.