Dubai Expo 2020 to give $33 bn boost to UAE economy: study

A computer-generated image shows architect Santiago Calatrava’s design for the UAE Pavilion for Dubai World Expo 2020 which was selected following a seven-month design competition. (WAM/AFP)
Updated 15 April 2019
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Dubai Expo 2020 to give $33 bn boost to UAE economy: study

DUBAI: Dubai’s Expo 2020 global trade fair is expected to give the United Arab Emirates an economic boost of over $33 billion, consultants Ernst and Young said in a study released Monday.
Next year’s mega-event would add 1.5 percent to UAE’s gross domestic product per year over the period that started in 2013 and runs until 2031, said EY partner Matthew Benson.
Major new construction projects and other impacts of the six-months extravaganza would create some 50,000 jobs yearly over the same period, he told a press conference.
The city-state of Dubai, one of the UAE’s seven emirates, has long become a favorite tourist attraction, valued for its safety and known for its luxury resorts and opulent shopping malls, one of which boasts an indoor ski slope.
Dubai assumes that Expo 2020 — which runs from October 20 next year to April 20, 2021 — will attract some 25 million visits, Benson said.
The economic impact includes “direct, indirect and induced effects” of the first Expo to be organized in the Middle East and Africa, he said.
The Expo 2010 in Shanghai drew 93 million visitors, and Expo 2015 in Milan attracted over 22 million.
Dubai’s government has already spent over $40 billion on major infrastructure projects related to Expo including a $2.9 billion new Metro line and an $8 billion expansion of Al-Maktoum International Airport, next to the Expo site.
The Metro line links the $13.4 billion Dubai South Villages and Dubai Exhibition Center, projects currently underway.
Al-Maktoum Airport, when complete, will have the capacity to handle 160 million travelers per year.
The 4.4 square kilometer (1.7 square mile) Expo site south of Dubai is due to be redeveloped into a full-fledged city after the Expo, the so-called District 2020, home to a mega exhibition center and scores of companies, organizers said.


Lufthansa announces overhaul of budget carrier Eurowings

Updated 24 June 2019
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Lufthansa announces overhaul of budget carrier Eurowings

  • Lufthansa cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16
  • Eurowings’ long-haul business would be managed by Lufthansa in the future

BERLIN: Lufthansa on Monday announced a turnaround plan for Eurowings in which the budget carrier will focus on short-haul flights and seek a 15 percent cut in costs by 2022 in the hope of returning to profit.
The German airline cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16. Eurowings’ revenue was also forecast to fall sharply in the second quarter.
Lufthansa said its Eurowings fleet would be standardized on the Airbus A320 family and it would seek to boost productivity at Eurowings by limiting itself in Germany to one air operator’s certificate.
Brussels Airlines — the Belgian national flag carrier which Lufthansa took control of in 2016 — would not be integrated into Eurowings, Lufthansa said. A turnaround plan for Brussels Airlines will be announced in the third quarter.
Lufthansa also said it would start pegging its dividend payout ratio to net profit in the future to give the group more flexibility. It would pay out a regular dividend of 20 percent-40 percent of net profit, adjusted for one-off gains and losses.
Lufthansa said Eurowings’ long-haul business would be managed by Lufthansa in the future.
Carsten Spohr, Chief Executive Officer of Lufthansa, said Monday’s announcements sent “a clear signal that this company cares about its shareholders and tries to create value for them.”
Lufthansa said its Network Airlines — made up of Lufthansa, Swiss and Austrian Airlines — would aim to use innovations in sales and distribution to make a contribution to increasing unit revenues by 3 percent by 2022.
Network Airlines will aim to reduce unit costs continuously by 1 to 2 percent annually, the airline said.