Emirates partnership with easyJet set to strengthen company’s European network

Emirates has around 130 non-stop flights from Britain to Dubai per week. (Shutterstock)
Updated 02 December 2018

Emirates partnership with easyJet set to strengthen company’s European network

  • Emirates has long eschewed the formal alliances favored by the likes of British Airways
  • The easyJet tie-up, although initially restricted to flights in and out of London Gatwick, could bring significant benefits

Emirates’ fledgling partnership with low-cost carrier easyJet will strengthen the Dubai-based company’s European network, industry experts predict, enabling it to indirectly serve destinations that would otherwise be beyond logistical reach.
Emirates has long eschewed the formal alliances favored by the likes of British Airways, instead agreeing codeshare partnerships with 21 airlines, including several budget carriers such as US-based JetBlue Airways and Australia’s Jetstar Airways.
Last year, it began a complex partnership with FlyDubai, which is also wholly owned by Dubai’s government, in which the duo will codeshare, integrate their networks and deliver “fleet synergies.”
The easyJet tie-up, although initially restricted to flights in and out of London Gatwick, could bring significant benefits; easyJet customers can now make a single booking for its flights to Britain’s No. 2 airport that includes a connecting Emirates flight to Dubai. The same is available in reverse.
The agreement will be expanded to other destinations, the companies said in a joint statement — easyJet’s fleet of 308 aircraft flies to 159 airports in 34 countries. Emirates, meanwhile, flies to 150 destinations worldwide and has about 130 non-stop flights from Britain to Dubai per week, including three daily from Gatwick.
“Emirates gets to leverage the strength of easyJet’s broad European network — particularly to those cities that Emirates itself either doesn’t serve or has no plans to serve due to various restrictions on access, airplane size or slot availability,” said Saj Ahmad, chief analyst at StrategicAero Research.
“It’s really a win-win situation from a connectivity standpoint, as well as offering the chance to accrue Skywards miles that could also be used on FlyDubai flights too.”
EasyJet has similar agreements with the likes of Virgin Atlantic, Norwegian, WestJet and Singapore Airlines, which typically include a minimum 2.5-hour connection time between flights to ensure passengers make their connecting flights. These tie-ups are in response to the growing trend of “self-connecting,” whereby passengers make bookings with multiple airlines to reach particular destinations at the lowest price, even though this requires collecting baggage and checking in again.
“It’s an extra opportunity because easyJet knows some people will self-connect anyway, so by facilitating that through agreements with other airlines it can generate extra revenue,” said John Strickland, a director at London’s JLS Consulting.
“Although this is relatively incremental in the case of easyJet because it’s flying about 95 percent full on most routes, so can’t squeeze on that many more people.”
EasyJet’s partnerships span 11 European airports, including Amsterdam, Barcelona, Paris, Milan and Berlin, and the disparity between an Emirates flight and flying budget should do little to deter travelers.
“It’s really not any different to traveling economy on any other conventional airline and making a connection,” said Strickland.
“The service experience is no different. If you fly BA short-haul, there are buy-on-board products for food and drink. Seat space in economy is about the same. It would be different for Emirates business-class travelers, but the vast majority of passengers doing self-connections will be flying economy.”
He believes easyJet would want to link with Emirates at all airports where the pair overlap, such as Paris Charles de Gaulle, Milan Malpensa, Geneva, Lyon, and Nice.
“There are quite a lot of places around Europe where they could do it, providing the necessary facilities were in place,” said Strickland.
StrategicAero’s Ahmad was more cautious, predicting that Emirates — which in May reported an annual profit of 2.80 billion dirhams ($763 million), up 124 percent year-on-year — would wait to assess the impact on its Gatwick-Dubai service before expanding the easyJet partnership.
Emirates is ranked the fourth most valuable airline brand worldwide, according to Brand Finance, behind US trio American Airlines, Delta Airlines and United Airlines, which are also the only airlines to rank higher in terms of passenger miles flown. The Dubai carrier’s various codeshare agreements support its brand, analysts said.
“Emirates’ brand is immense globally. Arguably, it’s the most recognized airline anywhere in the world,” said Ahmad.
“Given that Emirates is not choked by the reins of an alliance, it is free to supplement its organic expansion with industry peers that also want to enjoy that growth.
“This flexibility bolsters Emirates’ branding and partnerships with other carriers — and passengers will ultimately like what they see when Emirates provides them with a platform that covers the entire planet.”
In September, Emirates and Abu Dhabi-owned Etihad both denied a Bloomberg story that the Dubai company would buy the main airline business of its loss-making rival.


Rich Chinese outnumber wealthy Americans for first time

Updated 35 min 36 sec ago

Rich Chinese outnumber wealthy Americans for first time

ZURICH: The number of rich Chinese has surpassed the count of wealthy Americans for the first time as both countries keep churning out millionaires, a study by Credit Suisse showed.
The Swiss bank’s annual wealth survey released on Monday found 100 million Chinese ranked in the global top 10% as of the middle of this year versus 99 million in the United States.
“Despite the trade tension between the United States and China over the past 12 months, both countries have fared strongly in wealth creation, contributing $3.8 trillion and $1.9 trillion respectively,” said Nannette Hechler-Fayd’herbe, global head of economics and research at Credit Suisse.
The ranks of the world’s millionaires have risen by 1.1 million to an estimated 46.8 million, collectively owning $158.3 trillion in net assets, 44% of the global total, the study found.
The United States added more than half of this number –675,000 new millionaires – to its sizeable stock.
A decline in average wealth in Australia — largely due to exchange rates — resulted in 124,000 fewer millionaires there, while Britain lost 27,000 and Turkey 24,000.
The report estimates that 55,920 adults are worth at least $100 million and 4,830 have net assets above $500 million.
It forecast global wealth — which increased 2.6% over the past year — would rise by 27% over the next five years to $459 trillion by 2024. The number of millionaires would also grow over this period to almost 63 million.
The share of the world’s bottom 90% accounts for 18% of global wealth, compared to 11% in the 2000.
“While it is too early to say wealth inequality is now in a downward phase, the prevailing evidence suggests that 2016 may have been the peak for the near future,” it said.