Emirates is Rethinking its Global Route Networks

Faced with slow economic growth and the loss of the A380 superjumbo, Emirates has revealed that it is reconfiguring its route network.

The Dubai carrier has been quietly making changes over the past nine months, according to Bloomberg, and is now nearing completion of its efforts.

President Tim Clark revealed this effort Monday at the 2019 Arabian Travel Market convention.

The airline, which put Dubai on the map as a top hub for flights crossing the globe, is now having a hard time finding lucrative new routes, Bloomberg reported.

“We haven’t been growing at the pace we used to because of geopolitical issues in the region and elsewhere,” Clark said. “But that’s given us time to take stock of what the network is going to look like in five to ten years, and what the fleet fit in that network and the type of aircraft is going to be.”

Adding to the airline’s challenges, it was unable to convince Airbus SEE to upgrade the A380. As a result, Emirates has been forced to buy smaller jets, which has impacted its super-hub model. The airline has dropped the A380 from its long-term plans and instead decided in February to purchase 70 A330neo and A350 wide-bodies, while cutting its A380 order to 14 planes from 53.

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The A330neo and the A350 are two-engine jets that offer cost savings on fuel, but carry fewer people, which poses a problem for its hub operating model.

While Bloomberg reports that all Emirates routes are now being reviewed, the airline could opt to operate what are known as “fifth freedom” routes to the United States. These routes originate in Dubai and pick up passengers in a third country before ending in the U.S, said Clark.

Also being looked at is a daily A380 service between Milan to New York and a Boeing 777 route between Athens and Newark, New Jersey. Clark said both routes are doing well, tempting the airline to do more.

The routes have inspired anger among some U.S. competitors and even politicians who argue that Emirates and other Gulf carriers benefit from illegal aid. Emirates has denied this claim.

India will continue to remain a key market for Emirates amid all the reshuffling.