After the conflict between the three largest airlines in the United States and the fast-growing Gulf hub carriers spread to Europe last month, United Arab Emirates (UAE) national carrier Emirates Airline has countered with the release of a socio-economic impact study completed on its behalf by Frontier Economics to measure the airline’s contribution to the European economy.
American Airlines, Delta Air Lines and United Airlines representatives had met with officials from the European Union last month to discuss what they claim are unfair government subsidies that are providing airlines from Qatar and the UAE with an unfair advantage.
This latest meeting further escalates the efforts of the US carriers to attempt to block the development of the likes of Emirates Airline, Etihad Airways and Qatar Airways in their home market through the submission of a 55-page document the Obama administration, urging a review of US open skies air treaties with both Qatar and the United Arab Emirates (UAE).
News of the submission to US Secretary of Transportation, Anthony Foxx, was first revealed at this year’s Routes Americas forum in Denver last month, when former US deputy assistant secretary of state, John Byerly, outlined details of the meeting between airline and government representatives you can read our report here ‘US Airlines Make Call to Restrict Gulf Carrier Growth in US Market’.
This study from Frontier Economics estimates that Emirates’ significant operations into Europe, including the catalytic impact of the 220 unique connections it offers, supported 85,100 jobs across the European Union in 2013/14, equivalent to €6.8 billion GDP. In addition, Emirates’ Airbus A380 deliveries for the same period supported 41,000 jobs, equivalent to €3.4 billion GDP.
Make your own observations from the Frontier Economics report. View the full document here.
"Emirates is fully committed to the European market. The relationship goes back to 1987 when we first started flying from Dubai to London Gatwick. Since then, we have witnessed growth based on demand and now operate over 350 passenger flights a week from Europe, providing global connectivity via our hub in Dubai," said Sir Tim Clark, president, Emirates Airline following the publishing of the report.
"Emirates’ economic impact is significant; based on Frontier’s report, we supported over one hundred thousand jobs across Europe through our operations and our aircraft purchases from Airbus. By stimulating demand for travel and cargo, especially in markets underserved by other airlines, Emirates contributes to the economies of the communities we serve," he added.
The study by Frontier demonstrates that Emirates’ presence in 28 European cities significantly contributes to regional development, especially in non-hub markets that have traditionally been overlooked by other carriers.
"Some of Emirates’ competitors have in the past accused the airline of having a negative impact on Europe, but the Frontier analysis paints a different picture. Our research shows that the direct, indirect and induced impact of Emirates’ operations and the development of connectivity to secondary cities in particular, makes a substantial contribution to EU GDP", said Dan Elliott, founder and director of Frontier Economics. "The economic value this connectivity brings to the EU is at times underappreciated, and something that merits attention."
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Traditionally, international travel from Europe involved flying from or often backtracking to one of the big European hubs. This contributed to a connectivity gap for other major European cities, restricting their ability to develop trade and Foreign Direct Investments (FDI) opportunities. Since launching services to Europe in 1987, Emirates has helped bridge this gap, by gradually and on the basis of demand, increasing services to major and secondary cities across Europe.
The Frontier analysis, which covered 28 cities served by Emirates in 16 EU Member States, identified a total of 220 routes from Europe that are unique to Emirates. 21 of these are non-stop connections from European cities to Dubai, and the remaining 199 routes are unique one-stop connections, via Dubai.
"The connectivity Emirates provides through these 220 unique routes positively impacts FDI and trade and supports the development of regional centres. It also increases tourism, provides choice for the consumer and supports air cargo shipments to and from regional centres", said Dan Elliott.
"We estimate that an additional 3,000 jobs are facilitated through the catalytic impact of the 220 unique connections, equivalent to €215m of GDP, taking Emirates’ total contribution to €6.8 billion."
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