Straight From The Shoulder
Right From The Heart

     We are relaxed in the confines of Maurice Flanagan’s office, headquarters to the Group Chairman and co-founder of Emirates Airline.
     The table is decorated with tea and cakes. It is morning and the sun is running up the sky; it is a clear and cooler than normal day in the desert.
     This is a jackets-open session for Mr. Flanagan and his aide-de-camp and airline chief corporate spokesman Mike Simon.
     Newspapers in town have been running stories of the launch by Virgin Atlantic of thrice weekly service from London into Dubai.
     At this point, speculation abounds on the “gee-whiz” trick Virgin public relations is cooking up for Richard.
     It is no secret that VS, anxious to get a toe-hold anywhere as the hot breath of Singapore Airlines (49% owner) is keenly felt, has dumped fares and millions across the route at start up.
     At 78 years old, Flanagan looks great and will apparently work for as long as he wants to. He looks to his old friend Mike for a moment and levels his gaze.
     “Another airline?
     “Airlines are good for Dubai and business here. We are completely in support of open skies.
     “Anybody can fly into DXB and the government encourages it.
     “As far as schedules go, I think service three times a week to any location is a half measure,” he adds.
     “‘Daily’ is the way to go if you want to build a service.”
     Emirates knows something about building.
     With annual numbers about to be published, the airline that turned twenty last year and reached a 100 aircraft fleet last month has single handedly turned the world of commercial aviation upside down with style and class and a program that has the company en-route to doubling itself every three years.
     SkyCargo is a first-class example, a worldwide sensation that is presently at the doorstep of becoming a one billion dollar business.
     Emirates has become the 21st century innovator, changing long haul passenger and cargo traffic the way Southwest Airlines changed budget airlines.
     Other carriers have been in the game a bit longer. Singapore, Qantas and KLM come to mind when thinking of originators of the form.
     KLM started up more than 80 years ago, flying tiny Fokker aircraft from AMS to a little place called Batavia (Indonesia).
     Though a tip of the wing is deserved for all the past and present contenders, Emirates is fresh where others feel tired.
     The great Duke Ellington once said this about music:
     “If it sounds good, it is good.”
     Trophies, plaques and other awards line the halls of Emirates HQ, reminders from almost every magazine, newspaper and organization that the carrier is doing a fantastic job.
     But as the success mounts, so does the volume of dissent, mostly from competitors and others who feel the earth moving beneath their feet.
     EK operates in an open and transparent manner, and yet has a rap for smoke and mirrors financials and some kind of creative voodoo economics.
     Despite some rather vicious and so far baseless carping from other legacy carriers (Air France comes to mind), Emirates is not only making money, but at this point through it’s 2004 reporting period ranks among the most profitable airlines in the world.
     We wonder, as this late March day slips into a cool evening, if Emirates 2005 numbers will continue the profit trend, and we think Flanagan twinkles a bit, albeit straight faced.
     “No subsidies, ten million at start-up, hundreds of millions back to Dubai and a culture for the airline business admired around the world.
     “No voodoo economics here,” he says.
     “Emirates is a solid company that, like many others wishing to grow, is out in the financial markets mining resources for its aircraft and other needs based on a sound business plan and continued positive, audited results.
     “We have to be market-driven to survive, winning passengers and cargo customers the old-fashioned way . . . one at a time,” he says.
     "Sure, as we go to markets for capital, the Maktoum connection is a definite plus.
     But let me tell you, without a solid business plan and positive bottom line, the airline would not be carried by anyone in Dubai.
     “Emirates is run on the principle that customers are smart and recognize and reward better service. They are willing to pay for good value-for-money.”
     “We do not have the oil of Abu Dhabi (Etihad) or the natural gas of Doha (Qatar) or anything like a government bail out here.
     “What has happened during the past two decades is the measured and continued build up of Emirates into a solid transportation enterprise. We are deep into innovation, employee training and achievable marketing objectives.
     “Gradually the world is coming around to the idea that what may be best for the airlines is to allow carriers to fly anywhere they wish.”
     Mr. Flanagan’s words seem in line with IATA Secretary General Bisignani’s recent comments about national flags on the tails of aircraft inhibiting a more sensible approach to the realities of market dynamics.
     “Dubai is a completely open market.
     “Anybody can serve the gateway.”
     Through his 20 plus years of stewardship at EK Mr. Flanagan has built a reputation throughout the airline industry as a fierce supporter of unprotected competition, offering Emirates’ success as an example of its benefits.
     “Open-skies policies in Dubai offer airlines service to destinations worldwide, in unhindered and fair competition.
     “Countries that protect their gateways for flag carriers actually hinder their own national growth.
     “Protection against competition makes absolutely no sense at all.
     “For example, our success in developing and serving several cities in Australia is growing as there is a growing demand for both passenger and cargo service.
     “The Australia-Dubai sector had almost no traffic before we began adding routes.
     “Now we are daily with excellent load factors to several cities.
     “This year we are at work in another underserved part of the world, building schedules from Dubai to destinations in Africa.
     “What can be wrong in creating a business where none existed?
     “It seems to us that governments should open up their skies and allow the market to dictate the winners in the airline business.”
     We wonder about the recent Dubai World Ports (DWP) flap in the USA, and if the aftermath has dampened Emirates zeal for further development of the North American market?
     Undoubtedly, Maurice Flanagan has some thoughts on the subject.
     Like many others in Dubai, he has moved on while accentuating the positive.
     “We have rights to 30 cities in the USA and are quite encouraged to add service.
     “Dubai non-stop from New York City has gone double-daily in less than one year, and continues to grow.
     “The New York City route is another example of creating an airline where none existed.
     “The ultimate judge in these matters is the public, and they can’t seem to get enough, so we continue to plan while weighing all options.
     “Emirates will grow in the American market and along with that, hope for better understanding between our countries.”
     If Maurice Flanagan shows any sign of slowing down, it is not apparent this day.
     But he does sometimes think about how he arrived at this point, the high plateau in his life, as he talks about the top boss of the airline, Sheikh Ahmed Bin Saeed Al Maktoum.
     “Emirates would not be where it is without him.
     “Eventually, when the story is told, his true greatness will gain even wider understanding.
     “Here in Dubai he is ‘Mr. Aviation’, the one person involved in almost every aspect of development from the ground up.
     “In the beginning, when Emirates went into business with two leased aircraft from PIA and Mr. Aviation was only about 25 years old, he often stopped by my office.
     “Immediately I’d stand to give him my seat out of respect, but always he would wave the gesture away and sit somewhere on the other side of the desk, asking questions.
     “I offered various reports and studies and away he went, to return a few days later with more questions. He was always unassuming, engaging and approachable.
     “Today I believe he is among the handful of great aviation minds in the world.”
     Looking at Maurice Flanagan I can’t help the words from coming:
     “Maybe part of your legacy is being a mentor?”
     Flanagan looks quizzical for an instant and I think maybe he didn’t understand the question.
     Then he laughs and says:
     “Maybe,” adding quickly, “We have a big job ahead of us before the results of our efforts can be assured, including the successful integrations of 45 Airbus A380’s (the largest order by any carrier) and a multibillion dollar purchase of advanced Boeing B777s.
     “We will just leave what happened here for others to decide.
     “For now, let’s get on with building our airline.”
(Geoffrey Arend)

Simply Simon

"If you pitch yourself as an innovative airline that always offers state-of-the-art, then this is a challenge that keeps you on your toes.
     “We are that airline and our targets are always located at new unexplored horizons.”
Mike Simon, Divisional Senior Vice President, Corporate Communications Emirates is a marketing whiz who seventeen years ago decided that living in Sweden where its cold did not compare to living in the desert where it is warm.
     Label that—‘some like it hot.’
     In any case this is one well-rounded advertising and marketing executive, who was a critical addition, in the right place, at the right time.
     He has been at it ever since, building a worldwide image for Emirates for almost as long as the carrier has been in business.
     For people who pay attention to these things, Mike Simon is an almost mythical presence.
    Not since the days when William Van Dusen, the first great transport marketing genius. promoted the Pan American World Airways meatball logo into the second most recognized American brand (after Coca Cola) and brought PAA onto the world stage, has such a ramp up of an airline brand taken place.
     Emirates identifies itself at once with a unique and inviting logo in Arabic type that says simply “Emirates,” repeated again below horizontally in English.
     The image appears on everything from airplane engine cowlings, to all manner of printed matter, to sports stadiums and of course in commercials.
     “Emirates “ is both compelling and unforgettable.
     Far beyond the best-known logo for an Arab business in the world, Emirates is well on its way to challenging every other airline when it comes to instant recognition.

     "Emirates places marketing to the forefront, even in these times of cost-cutting in the industry.
     “We do not take the easy way out by slashing corporate communications budgets.
     “We have built an in-house corporate communications team comprised of nearly 100 professionals.”
     Mike Simon also oversees a global network of advertising, media buying and public relations agencies, whose role it is to support and implement Emirates marketing activities globally.
     "Our brand positioning is that of a leading, international and quality airline serving the global community."
     "When we launch a new route we don't just go there with an advertising blitz to promote our products and services.
     “We put together a comprehensive campaign that builds our credentials as a corporate citizen and truly promotes local social, cultural and community events.”
     Emirates has a sponsorship arrangement with the English Arsenal Football Club that is reportedly the biggest deal in English football history.
     Emirates Stadium is the name for a new 700 million dollar venue for the team.
     "Today, air travel is affordable and accessible, and for Emirates, the whole world is our oyster.”
(Geoffrey Arend)