Emirates clears the air on commitment to staying here

Emirates says it is committed to the New Zealand market.

Emirates airline has hit back at Air New Zealand claims that it may not be in the market for the long haul, pointing to its big local investments in staff, assets and sponsorship.

Air NZ chief executive Rob Fyfe last week accused Emirates of dumping capacity and driving down fares to unsustainable levels.

Emirates has often been in the position of defending itself from older, more established carriers.

Australia, where Qantas has Government protection from competition on some routes, has been a particularly bitter battleground.

Emirates' Middle Eastern hub is within easy flying distance of African, Middle Eastern and European destinations and there is no personal income tax for its largely expat employees.

Fyfe said Emirates could well go the way of US carriers who used to fly here, and pull out when it realised it could not sustain profit margins.

The airline dismisses that, pointing to a $2 million investment in a new lounge at Auckland International Airport - the first of such upgrades worldwide.

"Emirates is committed to the New Zealand market and is here for the long haul," said an airline spokesman.

"This is clearly evident in the fact that we serve New Zealand with four flights daily - three from Auckland and one from Christchurch."

Emirates had invested heavily in its New Zealand operation, employing 75 local staff. About 200 New Zealanders work for the airline at its Dubai headquarters.

Since it began flying here in August 2003, Emirates had carried more than 230,000 passengers between Dubai and New Zealand, the spokesman said.

This had meant new, convenient connections to cities in the Middle East, Europe and Africa.

"Our services have catalysed the local markets and we have carried more than 11,000 tonnes of cargo between New Zealand and Dubai and onwards to cities in Europe, Africa and the Middle East."

Emirates Holidays, the tour operating arm of the airline, had also promoted New Zealand continually.

"We have invested in the interests of New Zealand and the local community, and fly the country's flag internationally at premier sporting events watched by millions worldwide."

Emirates' sponsorship of the Team New Zealand America's Cup syndicate and the New Zealand Open golf tournament ensured that the country "continues to play a vital role on the global sporting map".

What Air New Zealand Says

* Emirates - the airline - is just an instrument of the city state of Dubai.

* Blocked from flying between Australia and the United States, Emirates will start flying through NZ. US passengers wanting to get to the Middle East or Asia will be here for only a couple of hours before flying on to their destinations.

* Emirates is all about getting people and freight through Dubai, with no thought for the interests of New Zealand.

* It "dumps capacity" and drops ticket prices too low. "The bellies of these aircraft will be full of cargo en route to and from Dubai, not New Zealand," says Air NZ chief executive Rob Fyfe.

What Emirates says

* It receives no Government subsidies (Air NZ has received $1 billion of taxpayer money since 2001).

* It allows any of the world's airlines to fly to and from Dubai - unlike many other countries.

* If it was here for the short term, why would it sponsor the America's Cup team and the NZ Open?

* It has spent about $2 million on a new airport lounge in Auckland.

* Its bigger planes allow New Zealand exporters better access to new markets. Tourism will benefit from more seats on the route as well as the cheaper fares.

* New Zealand is being promoted to a growing Middle Eastern tourist market.