Emirates airlines will not have the ability to gauge the financial implications in the wake of the US ban of laptops on Middle East flights. However, the rollout of this policy was still smooth and Emirates president, Tim Clark, told the business Insider that he cannot tell of the long-term effects because it is still early.
Emirates is among the flights affected by this ban and counts on a direct flight to the US, which generates for them a revenue of about eleven percent. This policy prohibits electronic gadgets in the cabins larger than a cell phone on direct flights from the middle east.
This ban started on 25th March, and the president says that a few operational issues arose, but almost everything went well. The financial effects of this prohibition will be seen by mid-May when optional passengers like the ones going on summer vacations will start booking their tickets. When these passengers start becoming flaky, the airline will make a decision on the next move. The president, however, hopes that things will settle down and business will be back to normal.
In January, Emirates felt an immediate effect when Trump administration enacted the immigration ban. This ban, which prohibited seven Muslim countries from immigration, which the court blocked, had direct effects on the airline’s booking.
The booking rate started flattening and going south. After stabilizing, a second executive order has come out, and now everybody is watching. Clark thinks that the airline will feel the effect of this ban which is under the court order by May. The Emirates have expanded business to the US for some years, and now direct flights from Dubai goes to eleven different cities.
The operations in the US are becoming progressive and vital. It involves about 12% of the whole operations at the Emirates, and it will be growing to 15% with 18 daily flights to eleven destinations.
The business is as big as Europe, Australia, and the UK but it is growing steadily. The US is vital to the company because of the number of points open and attractive to client bases.
Emirates encountered a few speed bumps during the weekend. A few hiccups are there, but TSA is helping with the laptop and baggage procedures. It was challenging for the destination airports, but the preparation was right on the Emirates side. Clark confirms that baggage delivery in several airports has become the norm on arriving flights.
The checking procedure was not coordinated well as all bags underwent scanning and others delayed on the baggage belts. As days move, the services will get better, and everybody knows the implications of speeding laptops and bags to the halls of arriving passengers.
This ban has come under criticism from intelligence experts and airline industry, who claim do not understand its rationale. The Homeland Security Department says that intelligence is showing that terror groups are using commercial airliners to smuggle explosives using laptops and other devices.
Both UK and US know that there is a threat and they have to deal with it. Emirates has to comply with these rules or abort flights to these destinations. The main aim of the company is securing operations safety.
Several analysts say that speculations that these regulations could have come from the dispute between airlines in the US and their rivals in the middle east. These rules are working well because people packed laptops in suitcases. This ban is still young, and the situation will remain fluid. Stay put to see the outcome.