Emirates reignites market with fare cuts

By John Oyuke

Dubai-based international carrier Emirates Airline has announced a revision of fares for its key Nairobi-Dubai route.

A return economy class airfare to Dubai now starts at as low as $595 (Sh47,600), an 18 per cent discount.

The new fare is available for all bookings made in Kenya and will be valid until June 15, 2011.

Emirates Regional Manager for East Africa, Essa Sulaiman Ahmad noted that Dubai is popular destination with Kenyan business and leisure travellers, adding, "The new fare will not only stimulate travel but also allow passengers to plan their journey in the months ahead."

Furthermore, he said this initiative reinforces the airline’s commitment to the Kenyan market.

He said whether customers are travelling on business or for leisure, these offers would enable them to experience Emirates’ world-class service and extensive global network for even a better value.

"We believe it is the right time to revise our fares and pass on the benefit of lower fuel prices to our passengers. We promised our customers from the outset that we would eliminate the surcharge as soon as it was commercially viable and this has now been done," he said in a statement.

"The removal of this surcharge reflects our long-standing commitment to our customers. We’ll, however, continue to closely monitor the situation," Ahmad pointed out.

At the same time, Emirates is offering its First and Business passengers from Nairobi, a 50 per cent discount on sale of the second ticket. The companion fare offer is valid for two passengers travelling together for the entire journey in First or Business Class, confirmed on the same booking.

The offer is available to Business Class passengers travelling from Nairobi to any of the Emirates’ over 111 destinations across the globe.

However, the offer is only available to First Class passenger ending their journeys in Dubai.

"At Emirates, we are always seeking opportunities to enhance the experiences of our customers and the companion offer is one such initiative. We always receive an overwhelming response for our offers and this encourages us to introduce more initiatives," he added.

Ahmad said that the special companion fare provided a great opportunity for Emirates’ business and leisure customers to experience the world-renowned luxury of Emirates First and Business Class, adding that all kinds of Emirates facilities would be made available to them.

"We will offer our First and Business Class customers chauffeur-driven service to the airport; a dedicated priority check-in desk, extra baggage allowance and access to our executive airport lounges. Their Skywards account will also be credited with the full amount of miles," he said.

Meanwhile, the airline’s groundbreaking attempt to allow investors in its planned dollar bond to seize assets if it cannot repay could be undermined by conflicting laws in the country.

Emirates, which is wholly owned by the Dubai government’s investment arm, has exempted investors from a decree that blocks the seizure of its assets in a default, according to its bond prospectus.

The move, unusual for Dubai government-linked firms, may have been aimed at easing investors’ concerns about Dubai, whose 2009 debt crisis brought the emirate to its knees.

But the Arab world’s largest carrier warned there were "uncertainties" on whether the exemption would stand given another Dubai law that gives the government and linked firms immunity.

Emirates chairman Sheikh Ahmed bin Rashid al-Maktoum, uncle of the ruler of Dubai, made the exemption on Feb. 28 at a time when the carrier was first testing the market for a potential bond issue.

Emirates, one of the region’s most recognised brands globally, postponed that plan after uprisings in North Africa made rates more expensive.

Written decision

The prospectus noted a 1985 decree that founded Emirates, has provisions that prohibit the seizure of its assets to meet obligations owed by the carrier.

"However, the chairman of Emirates has ... issued an irrevocable written decision, dated 28 February 2011, which exempts the noteholders from these provisions," the prospectus said.

"Notwithstanding this, there are some uncertainties under the laws of Dubai as to the effectiveness of the exemption afforded by the decision ... as a result of Dubai Law No. 3 of 1996 on Government Lawsuits.

"The Dubai Lawsuit Law grants the Government of Dubai immunity in respect of its assets."