A note on the network performance of Dubai and Emirates. Dr Guillaume Burghouwt
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1 A note on the network performance of Dubai and Emirates Dr Guillaume Burghouwt
2 Outline NetScan: measuring the competitive position of airline networks Direct network of Dubai Dubai as a hub and the role of Emirates Hub competition
3 What is NetScan? Measures and quantifies the performance of air transport networks, using OAG flight schedules Direct connections and indirect connections (via hub) Takes into account number of travel options, elapsed time and connecting time via the hub Results in a single indicator: Connectivity Unit (CNU)
4 Connectivity Direct Connectivity Hub-Connectivity Dubai Destination X
5 origin hub destination alliance average quality index frequency per week CNU/week Amsterdam -- Cincinatti SkyTeam 1,00 7 7,0 Amsterdam Atlanta Cincinatti SkyTeam 0, ,9 Boston SkyTeam 0,49 7 3,4 Paris CDG SkyTeam 0, ,6 Detroit SkyTeam 0, ,7 New York Newark SkyTeam 0, ,2 Rome FCO SkyTeam 0,38 7 2,6 Frankfurt SkyTeam 0,47 7 3,3 Washington Dulles SkyTeam 0, ,4 Houston SkyTeam 0,35 7 2,4 New York JFK SkyTeam 0, ,5 Memphis SkyTeam 0,19 7 1,4 Minneapolis SkyTeam 0, ,1 Chicago O Hare SkyTeam 0, ,4 Star 0,31 7 2,2 Philadelphia Star 0,30 6 1,8 Montreal Dorval SkyTeam 0,58 7 4,1 Toronto SkyTeam 0,41 6 2,5 TOTAL 0,37 361,00 134,50
6 Outline NetScan: measuring the competitive position of airline networks Direct network of Dubai Dubai as a hub and the role of Emirates Hub competition
7 # direct cnx from DXB to rest of the world, September # CNU NW Europe S&E Europe North America Far East Africa Arabia Levant Gulf EMIRATES ONEWORLD SKY TEAM STAR OTHER
8 Outline NetScan: measuring the competitive position of airline networks Direct network of Dubai Dubai as a hub and the role of Emirates Hub competition
9 The role of Emirates at DXB 50% 3% 4% 2% EMIRATES ONEWORLD SKY TEAM STAR OTHER 41% Share (%) airlines/alliances in total direct CNU from DXB
10 Emirates hub at Dubai: connectivity per week # airpt. pairs via DXB Frequencies via DXB Avg. Quality index # CNU s via DXB , % Emirates in CNU s 99,6% Size of selected hubs in # CNU
11 # CNU via Dubai by feeder airport (spokes)
12 # CNU by connecting market via Dubai 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Far East Far East Far East Europe Other Europe Africa Gulf region Gulf region Other
13 EK at DXB: a night-hour hub
14 (I) (II) (III) (IV)
15 KLM at AMS: short-haul frequency versus long-haul capacity # Departures per week Average seat capacity 0 0 NUMBER OF OPERATIONS Avg size
16 Emirates at DXB: focus on capacity, even on short-haul # Departures/week LHR DOH KHI AKL BKK LGW BOM SIN IKA KWI BAH BHX FRA JNB MAN MCT MEL MUC NBO SYD CMB CDG HKG BEY AMM CGK MNL DAC CAI HYD KUL MLE BNE CHC CMN DAM DAR DEL DME DUS EBB FCO GLA HBE ICN IST JFK KIX PER PVG VIE ZRH ACC ATH LOS COK DMM ISB JED KRT LCA RUH SAH SEZ LHE MAA MRU MXP MLA NCE TIP PEW Avg. aircraft size NUMBER OF OPERATIONS Avg size
17 Fleet distribution Emirates 60% 50% 40% 30% 20% 10% 0% A310 A A A ER
18 Outline NetScan: measuring the competitive position of airline networks Direct network of Dubai Dubai as a hub and the role of Emirates Hub competition
19 ZRH-SYD ZRH-SIN ZRH-KHI ZRH-HKG ZRH-CMB ZRH-BKK MXP-SYD MXP-SIN MXP-KHI MXP-HKG MXP-CMB MXP-BKK LHR-SYD LHR-SIN LHR-KHI LHR-HKG LHR-CMB LHR-BKK LGW-SYD LGW-SIN LGW-KHI LGW-HKG LGW-CMB LGW-BKK FRA-SYD FRA-SIN FRA-KHI FRA-HKG FRA-CMB FRA-BKK FCO-SYD FCO-SIN FCO-KHI FCO-HKG FCO-CMB FCO-BKK CDG-SYD CDG-SIN CDG-KHI CDG-HKG CDG-CMB CDG-BKK Competitive position of Emirates between prim EU hubs-prim Asia limited ONEWORLD ONLINE NON-ALLIANCE CARRIERS SKY TEAM STAR Emirates #CNU
20 NCE-SYD NCE-SIN NCE-KHI NCE-HKG NCE-CMB NCE-BKK MAN-SYD MAN-SIN MAN-KHI MAN-HKG MAN-CMB MAN-BKK GLA-SYD GLA-SIN GLA-KHI GLA-HKG GLA-CMB GLA-BKK DUS-SYD DUS-SIN DUS-KHI DUS-HKG DUS-CMB DUS-BKK BHX-SYD BHX-SIN BHX-KHI BHX-HKG BHX-CMB BHX-BKK Competitive position of Emirates between sec EU apts-prim Asia limited ONEWORLD ONLINE NON-ALLIANCE CARRIERS SKY TEAM STAR Emirates #CNU
21 Conclusions and remarks Hub operation is still underdeveloped in terms of number of waves, frequencies and destinations served Position in connecting markets still limited Well-placed with respect to success factors hubs: Airport capacity and plans Excellent geographical location of hub Strong hub-carrier Corporate style of governance/ functional synergies But: Not part of global airline alliance Small catchment area
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