KEY POINTS:
The hidden agenda of Dubai Aerospace Enterprise's (DAE) bid for Auckland International Airport (AIA) may be to establish a secondary hub for airline Emirates.
Merger documents show DAE has pledged to use "reasonable endeavours" to create new routes and services to Auckland for Emirates.
DAE doesn't have a
shareholding in Dubai-based Emirates, which flies four times daily to Auckland, but it is chaired by Sheikh Ahmed bin Saeed al Maktoum, who also chairs Emirates.
In seeking to win AIA, DAE has made much of the value created by the strategic aspect of $2.6 billion plan to control 60 per cent of AIA.
Kjeld Binger, DAE's chief executive of the airports division, said DAE would overcome the airport's present weak point in route development.
As well as expanding the airport, it would enhance traffic into the gateway "through working proactively with airlines to promote the airport", Mr Binger said.
Emirates meanwhile has a long-term plan to establish Auckland as a secondary hub, from where it will launch operations into the west coast of North America and possibly Central and South America. It might also look to complete a round-the-world link between Dubai, South Africa and Auckland.
DAE sees Auckland as the first in a portfolio of airports the company plans to own and build up around the world, but particular in emerging markets in China, India and the Middle East, Mr Binger said.
Auckland will be the South Pacific hub because of Australian laws forbidding foreign control of major airports.
Three years ago, New Zealander Gary Chapman, head of Emirates' ground services company Dnata, told NZPA Emirates wanted to use New Zealand as its base to fly into the West Coast of the United States as part of its plan to become a truly global airline.
"We see things happening in New Zealand," said Mr Chapman, who sits two steps below the group president. He has been a major force in pushing Emirates to extend its Australian operations to New Zealand and to get the airline to back Emirates' sponsorship of New Zealand's America's Cup yachting challenge.
Emirates, which had just two aircraft in 1985, today is the world's eighth-largest international air passenger carrier, operating a fleet of 102 aircraft and has another 106 on order, including 43 of Airbus's A380 superjumbo. It carries over 20 million passengers annually.
The government-owned airline plans to expand its fleet to 157 and double the number of its destinations to about 170 during the next five years, adding cities in the United States, Africa and India.
"You will see in the future we have plans to serve New Zealand from Far East points in our longer term plans," Mr Chapman said in an interview.
"That will happen. There is always the possibility of going beyond, going east, beyond New Zealand to the Americas.
"Effectively with our flights from Dubai to New York and in time, from Dubai to Los Angeles or San Francisco, you could easily see an opportunity for going around the world."
He said a lot of people did not believe Emirates was serious about New Zealand, just as they had been sceptical of the airline's expansion in other areas.
"There has been a certain amount of incredulity. A lot of people thought we couldn't be serious about this," Mr Chapman said.
"We are. We see New Zealand as an important market.
DAE was set up last year by the Dubai government with funds of US$15 billion ($19 billion) and among other things wants to build up a portfolio of airport companies particularly in emerging economies, primarily in the Middle East, India and China.
- NZPA
