Relations between the Canadian government and Emirates Airline are beginning to thaw now that the company has touched down in Seattle with a daily, non-stop flight to Dubai.
“Whenever you link two cities together, business expands at a tremendous rate,” said Nigel Page, Emirates’ senior vice-president of commercial operations for the Americas. “It means businessmen are immediately encouraged with non-stop service to explore what is there and the opportunities are enormous in the U.A.E.”
Bilateral talks to expand Emirates’ thrice-weekly Toronto-to-Dubai service and launch a Vancouver-to-Dubai route crashed in 2010 after opposition from Air Canada. The United Arab Emirates (U.A.E.) retaliated by ordering the Canadian Forces to vacate Camp Mirage near Dubai and slapping visa restrictions on Canadian visitors.
Canadian exports to the U.A.E. were worth $1.138 billion in 2010 and, according to Emirates’ Canadian manager Don McWilliam, relations between the two countries are improving. Following a short conversation January 18 with Conservative foreign minister John Baird, McWilliam said he’s hopeful new open skies talks may be on the horizon.
The 2010 breakdown in talks disappointed the Vancouver International Airport Authority and the British Columbia government after hosting Emirates executives at the 2010 Winter Olympic Games. According to YVR figures, new international long-haul flights mean $5 million to $8 million annually in wages and add between $8 million and $15 million to B.C.’s GDP.
“That negotiation went badly; the wheels came off it early on,” YVR CEO Larry Berg said in November 2010. “Both sides ended up in positions they seemed to be able to walk away from. The ultimatums that were exchanged really prevented any meaningful agreement.”
Emirates, which launched in 1985, serves 119 destinations in 70 countries and flies more scheduled kilometres internationally than any other airline. It began Toronto-to-Dubai service in 2007.
“I can’t think of another industry that restricts where you operate and where you sell,” said Page. “If I was selling soap powder to Canada, I don’t think you’d tell me I could sell it only three times a week.”
Without landing rights at YVR, Emirates is launching a daily non-stop route from Seattle to Dubai on March 1. (See Canada-U.A.E. relations thawing – BIV issue 1161; January 24-30.) The Boeing 777-3R service will include eight first-class individual cabins, 42 business-class seats and 304 in economy. Round-trip fares start at US$1,148.
Page said the Seattle service will appeal to British Columbians seeking passage to India because Emirates flies from Dubai to 10 destinations on the subcontinent, a total of 185 services weekly.
“It’s early days yet, so it’s hard to say what the real impact will be; we don’t anticipate any benefit for YVR,” said Tony Gugliotta, YVR’s senior vice-president of marketing and business development.
“On the contrary, we think local Vancouver residents may drive to Seattle to take advantage of this new service to Dubai.”
Last September, Emirates inked an interline agreement with WestJet and earlier this month forged a frequent flyer partnership with Seattle-based Alaska Airlines with a reciprocal March-through-May double miles promotion.
Emirates promoted the upcoming route with a glitzy January 20 trade event at the CenturyLink Field Event Centre’s WaMu Theatre. Two busloads of travel agents and the entertainment, Famous Players Band, were brought to Seattle from Vancouver.
On January 27, Emirates introduced its first Western Canadian sales manager, Savio Pires, at a Vancouver news conference.
YVR hasn’t stood still since the Emirates impasse. China Southern Airlines began thrice-weekly Vancouver-to-Guangzhou service last June and Sichuan Airlines is seeking Transport Canada approval to fly from Chengdu and Shenyang to Vancouver. Virgin Atlantic will launch seasonal, four flights-a-week Vancouver-to-London service on May 24. •
