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Natural Tie-Up For Emirates And Flydubai

Natural Tie-Up For Emirates And Flydubai

Dubai based carrier Emirates is entering a broad partnership with low-priced operator Flydubai, which will include a codeshare and optimisation of the airlines' networks.

"The Emirates and flydubai teams are working together on a number of initiatives spanning commercial, network planning, airport operations, customer journey, and frequent flyer programs alignment".

"This new partnership will unlock the enormous value that the complementary models of both companies can bring to consumers, each airline, and to Dubai", says Emirates Group chief Sheikh Ahmed bin Saeed Al Maktoum - who is also the chairman of Flydubai.

The partnership will be rolled out over the coming months, with the first enhanced code-sharing arrangements to come into effect during the final quarter of 2017.

The current joint fleet size is 317 with a combined network of 216 unique destinations.

During a briefing at the Paris Air Show, Emirates' President, Tim Clark, stated "We are minded to accelerate a greater joining of the hip, of what we do, there's a lot of work going on there to extract value for the shareholder".

China second-quarter GDP growth likely to cool
Retail sales meanwhile rose 11.0 percent in June from a year ago, better than Reuters' forecast of 10.6 percent. Chinese Premier Li Keqiang said last month that the country could reach this year's economic growth targets.

They are expected to reach 240 destinations and 380 aircraft by 2022, according to the announcement.

Emirates Group reported a 70 per cent drop in profit in its fiscal year that ended in March and flydubai reported a 69 per cent decline in its earnings in 2016 because of the challenging operating environment.

"Over the past years FlyDubai has gradually encroached on Emirates' market, both in terms of serving overlapping routes and upgrading its product by moving away from the strict low cost model", Pistik said.

"Frankly I'm surprised this tie-up hasn't happened sooner", said Saj Ahmad, chief analyst for London-based Strategic Aero Research.

Emirates described the partnership as going "beyond code-sharing" and is aimed at simplifying the feeding of passenger traffic between the two airlines at Dubai International. Or a passenger from Hyderabad can take flydubai to Dubai and then fly Emirates to mainland Europe, America, Africa or South America. "I believe both will remain independent operations, but they will develop a closer bond - of that there is little doubt". "I don't think they [government of Dubai] would do that".


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