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  • 7/31/2019 Dubai Airports Brochure_front FINAL

    1/191 SP 2020

    Connecting the world today & tomorrow

    Strategic Plan 2020

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    2 SP 2020

    Foreword 2

    History 4

    Dubai Airports: the story so ar 5

    Dubai Duty Free 10

    A world class model 12

    Sector value 16

    Future growth 18

    Emirates expansion 19

    ydubai growth 20

    Industry leading growth 22

    Strategic Plan 2020 24

    Conclusion 28

    1

    2

    3

    Dubai International Terminal 3 Arrivals

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    3

    Dubais aviation sector is more than the sum o its parts, together the key players

    Dubai Airports, Dubai Duty Free, Emirates and ydubai have combined to create

    a global aviation phenomenon.

    The emergence o Dubai as a leading global aviation centre is the result o a careully

    constructed and well-executed model that eectively harnesses the emirates geocentric

    location and entrepreneurial spirit. It is a model that eatures a liberal regulatory

    climate, a tax-ree business environment, a customer-centric ocus that provides

    value or money, and close coordination and collaboration within the sector.

    The results have been nothing short o i mpressive. Dubais aviation sector has seen

    tremendous growth in a short time rame. Over the past fve years alone, passenger

    numbers at Dubai International have virtually doubled rom 24.8 million in

    2005 to 47.2 million in 2010. The airport now ranks ourth globally or international

    passenger and cargo trafc. Emirates passenger numbers have increased six-old overthe course o a decade, making it the largest airline in the world in terms o international

    revenue passenger kilometres. Dubai Duty Free has become the biggest single airport

    retail operation in the world, with revenues o US$1.27 billion (AED4.6bn) in 2010.

    And ydubai is the worlds astest growing start- up airline, emerging as a orce to

    be reckoned with among low-cost carriers in the region.

    However, while we can reect on past accomplishments with pride, it is clear that our

    uture holds even greater promise. The combination o rallying tourism, Dubais proximity

    to the emerging economies o India and China, and the emirates established role as

    a trading hub linking economies in the Far East, Europe, Arica and North America, is

    together expected to drive growth and urther elevate Dubais status as a global centre

    or trade, tourism and commerce.

    In act, projections or growth are staggering. By 2020 some 98.5 million passengers and

    over our million tonnes o air reight will pass through our airports. The eets and networks

    o Emirates and ydubai will grow considerably to accommodate trafc and capture market

    share. Similarly, our inrastructure must expand to enable this growth and acilitate the

    trade, tourism and commerce that in turn will support the prosperity o Dubai. This is what

    our Strategic Plan 2020 sets out to achieve.

    HH Sheikh Ahmed Bin Saeed Al Maktoum

    President o Dubai Civil Aviation Authority

    and Chairman o Dubai Airports

    1Foreword

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    Much like the city that i t calls home, Dubais aviation industry has a proud

    past characterised by stunning innovation and breathtaking growth. Vision

    and entrepreneurial spirit have propelled Dubais development rom a small

    oasis in the desert to a thriving metropolis with a cosmopolitan population

    and a reputation or innovation and quality. Equally impressive has been the

    development o the emirates thriving aviation industry and its airport,

    which has evolved rom a small airstrip mainly serving as a reuelling stop

    or a ew airlines in 1960 to a global gateway or 150 airlines that is ranked

    among the worlds top hubs.

    The history o aviation in Dubai dates back to 1937 when the frst Imperial

    Airways ying boat landed on the Dubai Creek. In the early years Dubai

    served as a transit point between Europe and Asia. Some 22 years later

    the spark that ignited 50 years o growth occurred when the then visionary

    ruler o Dubai, the late Sheikh Rashid Bin Saeed Al Maktoum, ordered theconstruction o Dubai International, which comprised an 1800-metre airstrip

    o compacted sand, an apron, a fre station and a small terminal building.

    From conception to completion, the construction o the airport was

    ast-moving. Ater a groundbreaking ceremony in 1959, the airport was

    ofcially inaugurated, heralding in a new era or aviation in Dubai.

    Starting with annual trafc o a ew thousand passengers during its frst

    year o operation, Dubai International reached one million passengers in

    1974, with the fve million passenger mark achieved 16 years later in 1990.

    Passenger trafc surpassed 10 million in 1999, largely enabled by a series

    o expansion and reurbishment projects including the construction o

    a second terminal (Terminal 2), two asphalted runways, a new air trafc

    control tower, an extended terminal building and major equipment upgrade,

    all o which were carried out to accommodate the robust trafc growth.

    Operating at ull capacity and experiencing unrelenting growth, Dubai

    International welcomed the turn o the century with a major addition to

    its inrastructure in the orm o Sheikh Rashid Terminal, also known as

    Concourse 1 in April 2000. This more than doubled the airports annual

    capacity rom 10 million to 23 milli on passengers. Continued growth,

    spurred on by Dubais economic boom and the network expansion o

    Emirates, soon caught up with capacity when the airpor t surpassed 20

    million passengers in 2004. A mere three years later that total balloonedby another 14 million to top 34 million passengers. To accommodate the

    rapid expansion, on October 14th 2008, Dubai Airports turned heads

    globally with the awless opening o the worlds single largest terminal

    building, Dubai International Emirates Terminal 3. Built or the exclusive

    use o Dubais agship carrier Emirates, Terminal 3 boosted the airports

    capacity to 60 million passengers.

    Dubai Airports:The story so ar

    2HistoryThe story so ar

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    1937

    1960

    1970

    1983

    1984

    1998

    2000

    2007

    2008

    2009

    2010

    Aviation introduced with the frst Imperial Airways ying boat, using the

    Dubai Creek

    Dubai Airport opened and was capable o handling aircrat up to the size o

    a DC-3

    The 70s witnessed many developments, starting with a new three-storey

    terminal building, control tower, additional taxiways and lengthening o

    the runway

    Dubai Duty Free begins operations at Dubai International with a turnover o

    US$20 million (AED73.4m) in its inaugural year

    The second runway opens

    Terminal 2 opens boosting capacity by two million passengers per year

    Sheikh Rashid Terminal, also known as Terminal 1, opens increasing the

    airports capacity rom 10 million to 23 million passengers

    Department o Civil Aviation is restr uctured leading to the ormation o

    Dubai Airports responsible or the development and management o

    Dubais airports and Dubai Civil Aviation Authority the local aviation

    policy entity

    The worlds largest terminal - Emirates Terminal 3 opens awlessly.

    It expands Dubai Internationals capacity to 60 million passengers

    Dubai International becomes the worlds astest growing airport among the

    top 50 major hubs. Work begins on Concourse 3 and Terminal 2 undergoes

    major reurbishment or the launch o ydubai

    Dubai Airports opens the frst phase o Dubai World Central or cargooperations on June 27

    ^1937

    ^1983

    ^2010

    Looking back

    Despite signifcant events impacting the global industry, Dubai has retained

    exceptional growth in the aviation sector

    2010 47.2m passengers2000 12.3m passengers1990 5.0m passengers1980 2.8m passengers1970 0.5m passengers1961 0.04m passengers

    1960Dubai Internationalopens

    1983Emirateslaunch

    19842nd Runwayopens

    19901st Gul

    War

    2001Sept11th

    1998Terminal 2

    opens

    2009

    ydubai launch

    2008Terminal 3 opensFirst Emirates A380

    50 years o incredible growth

    In the hal-century since its opening, Dubai International has welcomed

    over 402 million passengers and has sustained an impressive average annual

    growth rate o 15.5%. During the same period the airport has handled over

    3.87 million aircrat movements at an average annual growth rate o 12.4%.

    The rapid expansion o airreight trafc has been equally remarkable, with

    total reight volumes moved between 1977 and August 2010 exceeding 17.9

    million tonnes at an annual average growth rate o 14.3%.

    Sector perormance to date: trafc development

    Annualpassengers(millions)

    Year

    Aviation is undamental to the ongoing prosperity andeconomic expansion o Dubai. My job is to make surethat the airport inrastructure grows to ensure there areno constraints. Were proactively continuing to expandat Dubai International and Dubai World Central to ensurewe can accommodate the massive inux o aircrat andtrafc expected to inundate both airports over the next

    10 to 20 years.Paul GrifthsCEO Dubai Airports

    0

    10

    15

    20

    25

    30

    35

    40

    45

    5

    1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

    2000Concourse 1

    opens

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    Total

    passe

    ngers

    rom1960

    uptoAu

    gust30

    ,2010:402,289,7

    21

    Avera

    geannualgro

    wthi

    npass

    engertr

    afcover50

    years

    :15.5%

    To

    talaircrat

    movem

    ents:

    3,873,132

    Avera

    geannualgro

    wthi

    nairc

    ratm

    ovem

    ents:

    12.4%

    To

    talcargo

    rom1977

    toJuly3

    12010:17

    ,906

    ,199

    Avera

    geannualgro

    wthi

    ncarg

    osinc

    e1977:14

    .3%

    Dubai International:50 years o growth

    Dubai Airports:Today

    3,400total

    emplo

    yees

    47.2m

    annual

    passe

    ngers

    2.27m

    tonnescarg

    o

    329,000m

    ovem

    ents

    220sc

    heduled

    destinations

    150air

    lines

    19cargoa

    irlines

    4,200

    moveme

    nts/year

    Dubai

    Intern

    ational

    DubaiW

    orldC

    entral

    Source: Dubai Airports 2010 actual fgures (DWC fgures 2011 orecast)

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    Dubai Duty Free Dubai Duty Frees meteoric rise on t he global aviation stage parallels thato its home base Dubai International. Since its creation in 1983, Dubai

    Duty Free has established itsel as the biggest single airport retail operation

    in the world in terms o turnover, with sales o US$1.27 billion (AED4.6bn)

    and 14% growth in 2010.

    Furthermore, 2010 saw an increase in consumer spending across all

    categories, with December setting a new monthly sales record with

    turnover reaching US$136 million (A ED499.5m) 13% higher than the

    previous monthly record set in December 2009. Dubai Duty Free, as a

    single operator, now accounts or 3.3% o global duty ree and travel

    retail sales (which includes airports, airlines, erries and other shops) and

    5.5% o the airport duty ree business.

    Dubai Duty Free sells to around 50% o all passengers, while the average

    spend per departing customer is around US$46 (AED169). Some 20.5 million

    sales transactions were recorded at Dubai Duty Free in 2010 an 11%

    increase year-on-year. Increases were seen across all Dubai Dut y Free retail

    areas, with Terminal 3 sales increasing by 20% overall, including an 11%

    increase in arrivals sales. Terminal 2 sales also rose by an impressive 24%; arevamp o the retail operation in Terminal 2 is planned or 2012.

    Terminal 3, which opened in October 2008, accounts or almost 60% o

    Dubai Duty Frees total sales. The average value per transaction is also

    43% higher in Terminal 3 than in Terminal 1 and the aim is to increase

    penetration in both departures and arrivals.

    Once passenger operations commence at Dubai World Central, Dubai

    Duty Frees retail oer in the passenger terminal will be on par with the

    acilities at Dubai International with a ull range o merchandise presented

    in an extremely attracti ve and convenient shopping environment. In total,

    Dubai Duty Frees retail area will cover 2,250 sqm and be supported by a

    urther 1,150 sqm o support acilities. At present, Dubai Duty Free operates

    15,000 sqm o retail space at Dubai International across the three terminals

    and, with the opening in 2012 o Concourse 3, it will have a urther

    8,000 sqm. Dubai Duty Free is set to capitalise on additional terminal

    expansion and reconfguration laid out in Dubai Airports ten-year

    strategic plan.

    Dubai Duty Frees strategy is to increase both sales volume and spend per

    departing and arriving passenger. The penetration level or departing

    passengers, which currently stands at around 50%, is set to rise by oering

    the latest products and ensuring those products are visible, accessible andsold with a high level o service by competent and motivated sta. These

    measures, combined with passenger trafc growth and expanded acilities,

    are sure to drive urther record-setting revenues.

    US$1.27 billion2010 revenueup 4% over 2009

    60,000transactions per day

    19,100 sqmo retail space

    36,000 sqmdistribution centre

    197,000products

    3,872sta rom 44dierent nations

    Dubai Duty Free TodayLooking back

    1983

    1995

    1998

    2000

    2002

    2008

    2009

    Founded with 91 sta. Turnover o US$20 million (AED73.4m)

    Built own tennis stadium or ATP

    Retail area opened at Terminal 2

    New retail area at Concourse 1

    Turnover o AED1 billion (US$272m)5th largest duty ree operation

    Retail area opened at Concourse 2

    Becomes largest duty ree retailer in the worldwith revenues o over US$1 billion (AED3.7bn)

    Colm McLoughlinDubai Duty Free Managing Director

    We are continuing to improve the quality and eectivenesso our existing operation while keeping an eye frmly on thegrowth plans ahead. I think that with the size o operation inthe uture, the prospect o us remaining the single largestairport retailer in the world is very good.

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    A World class model

    Dubai has a wealth o assets and conditions that combine to make it a

    world-class tourist and business destination. These include political and

    economic stability, an extensive oreign trade network, state o the art

    telecommunications, a tax-ree environment and top-notch inrastructure.

    It is no wonder then that aviation is at the heart o Dubais economic

    strategy. The government o Dubai clearly recognises that aviation is not

    only an important driver o growth in it s own right, but that it underpins

    growth in other key sectors. A liberalised aviation policy, supportive

    government and a coordinated approach means that Dubai Airports is able

    to react quickly to the marketplace and make swit decisions on major

    inrastructure investment that take ull advantage o its geocentric location.

    Aviation has benefted rom a clear economic strategy that recognises

    the importance o the connectivity it brings. Decision-making is typically

    collaborative and decisions can be made quickly because o constructive

    relationships among senior individuals throughout the aviation sector,related commercial enterprises and government departments, all ostered

    by requent contact. As a result, Dubais aviation sector has benefted rom

    a collaborative approach to investment that has helped Dubai Airports and

    Emirates expand efciently together, supporting each others growth.

    Dubais aviation sector also benefts rom it s liberal open skies policy and

    the emirates strategic location within eight hours ying time o most major

    destinations and two-thirds o the worlds population. These actors, along

    with the provision o top- ight inrastructure, have attracted over 150

    airlines that provide service to 220 destinations around the world, and

    that directly connect Dubai to 55 cities o more than 10 million i nhabitants.

    As a result, according to IATA, the UAE is the most connected country in

    the world, in no small part due to Dubais thriving aviation sector.

    A world class model

    Political and economic stability

    Extensive oreign trade network

    State o the art telecommunication

    World-class tourist and business destination

    Tax-ree environment

    Open Skies policy

    Close coordination among stakeholders

    Dubai has a model that recognises aviations strategic

    importance and promotes growth in the sector. It startswith an open skies policy, competitive rates and a tax-reeenvironment that together has attracted over 150 airlines toDubai and extends to strategic investments in top-ight aviationinrastructure that promote high service standards and sustainrapid growth. This combined with our geocentric location,which can eectively connect any two major cities in the world,will drive urther expansion and continued benefts toconsumers across the globe.

    HH Sheikh Ahmed Bin Saeed Al MaktoumPresident o Dubai Civil Aviation Authority, Chairman o Dubai Airport sand Chairman and Chie Executive o Emirates Airline and Group

    Dubai clearlyrecognises thataviation is notonly an import-ant driver ogrowth in itsown right, but

    that it underpinsgrowth in otherkey sectors

    150 Airlines

    220 Destinations

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    Dubai

    4hrs

    8hrs

    Over 2/3 o the worlds populationlives within 8 hours ight rom Dubai

    1/3 lives within 4 hours

    The emergence o a global hub

    The hub network centred at Dubainow provides aster connections betweena constantly growing number o citiesworldwide, creating more convenient andaordable links to a growing percentage othe worlds population

    Paul GrifthsCEO Dubai Airports

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    As a direct result o Dubais aviation model, the sector already makes

    a substantial contribution to the emirates economy, according to an

    exhaustive study conducted by leading global research frm Oxord

    Economics. The research calculates Dubais aviation sector supports

    125,000 jobs in the emirate including 58,000 direct jobs that contribute

    US$6.2 billion (AED22.7bn) to Dubais GDP, 43,000 indirect jobs that

    generate US$3.5 billion (AED12.8bn) through its purchases o goods and

    services rom local businesses and a ur ther 23,900 jobs that contribute

    US$2.0 billion (AED7.3bn) through the spending o those directly and

    indirectly employed in the sector.

    The study also quantifes the wider catalytic benefts. As the overwhelming

    majority o oreign visitors who travel to Dubai arrive by air, Oxord

    calculates their spending supports nearly 134,000 jobs and contributes

    US$7.9 billion (AED29bn) to Dubais GDP. Other businesse s, such as

    logistics, fnancial services and proessional services which derive signifcant

    beneft rom the connections created between cities and markets,

    contribute an additional US$2.5 billion (AED9.2bn) to Dubais GDP.

    In total aviation supports over 250,000 jobs and contributes over US$22

    billion (AED80.8bn) which represents around 19% o total employment in

    Dubai, and 28% o Dubais GDP, according to the report.

    Not only is the success o Dubais aviation sector good or Dubais economy,

    it also benefts the global economy. It promotes global tourism. It creates

    connections between cities and countries. These connections represent an

    important inrastructure asset that benefts passengers and businesses rom

    many countries. It promotes strong competition, ensuring passenger

    efcient, high quality air services. Further, spending by air travellers ying

    with Emirates makes an important contribution to many economies. For

    example, tourism benefts contribute over US$1.0 billion ( AED3.7bn) to GDP

    or both Australia and India while connectivity benefts total US$1.4 billion

    (AED5.1bn) or China and US$800 million (AED2.9bn) each or the UK and

    the US.

    Aviations importance to Dubai is expected to continue to grow over

    the next decade. On t he basis o these strengths and the orecasts or

    passenger growth rom Boeing and Airbus, Oxord Economics expects the

    economic contribution o Dubais aviation sector to rise to 32% o DubaisGDP and about 22% o its employment by 2020.

    Sector Value

    Source: Dubai Statistical Centre Source: Oxord Economics Report, May 2010

    Contribution to GDP (US$ billion) 2010

    Total Contribution to GDP 22.1 (28%)

    Comprised o (1) Economic Footprint 11.7

    (1a) Direct 6.2

    (1b) Indirect 3.5

    (1c) Induced 2.0

    (2) Catalytic Beneft 10.4

    (2a) Tourism 7.9

    (2b) Connectivity 2.5

    Contribution to employment (000s)

    Total Employment Contribution 259.0 (19%)

    Comprised o (1) Economic Footprint 125.1

    (1a) Direct 58.2

    (1b) Indirect 43.0

    (1c) Induced 23.9

    (2) Catalytic Beneft 133.9

    (2a) Tourism 133.9

    Sector contribution to GDP

    GDP(BillionAED)

    Transport

    Trade & tourism

    Banking & fnance

    Property

    Extraction

    Aviation will play an increasingly signifcant role in Dubais success

    By 2020 aviation will support 373,000 jobs in Dubai

    It will contribute US$45 billion (AED165bn at 2010 prices)

    Equivalent to 32% GDP

    Catalytic benefts will increase by over 60%

    1995

    0

    50

    100

    150

    200

    250

    300

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009

    250,000 jobs

    19%o Dubais employment

    US$22 billionannual contribution

    28%o Dubais GDP

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    3Futuregrowth

    Double-digit growth has been the norm at Dubai International. Over the

    past 50 years, passenger trafc has increased at an average annual growth

    rate o 15.5%. More recently during the economic downturn in 2009, while

    other airports saw trafc decline, Dubai Airports saw international

    passenger numbers increase by 9.1% demonstrating the resilience

    o Dubais aviation sector in challenging market conditions.

    Market projections and macro-economic conditions strongly suggest that

    this huge growth will continue or the oreseeable uture. Passenger and

    cargo trafc growth is set to continue at an impressive rate driven by

    continued market liberalisation and dramatic GDP growth in emerging

    markets, which will lead to increasing wealth and mobility through most o

    Dubais immediate catchment area. This supports the expectation that local

    trafc growth will continue to outstrip the industry-wide projections o

    organisations such as Boeing, Airbus and IATA.

    According to Airbus 2009-2029 Global Market Forecast, air trafc will

    double in the next 15 years. Further, the report calculates emerging markets

    are set to generate the lions share o t hat growth. China, India, the Middle

    East, Asia, Arica, CIS, Eastern Europe and Latin America are projected tosee annual revenue passenger kilometre (RPK) growth o 6.1% per annum

    or the next 20 years. More mature markets in North America, Europe,

    Australasia and Japan are projected to see 3.7% average annual RPK

    expansion. That in turn has and will continue to precipitate aircrat orders

    to serve the growing demand.

    In the Middle East, governments supportive approach to aviation as a

    key driver o economic diversifcation and social development has led to

    signifcant investment in long range aircrat and inrastructure to exploit

    the Middle Easts geocentric location to t ap into emerging markets.

    New low cost airlines have created more aordable travel or an increasingly

    mobile population.

    Fleet Growth

    In response to these leading indicators Airbus estimates aircrat demand

    will average 1,300 per year globally. Dubais two largest airlines, Emirates

    and ydubai, have already placed signifcant aircrat orders to meet the

    expected demand.

    Emirates expansion

    Operating with a eet o 153 modern, wide-bodied aircrat, and with200 aircrat on order Emirates is a catalyst or uture growth.

    Emirates strategy is to continue to progressively grow as a high quality and

    proftable global carrier connecting six continents through its e fcient hub

    in Dubai, while maintaining a young, eco-efcient and modern eet.

    Emirates enjoys a close and highly eective relationship with Dubai Air ports,

    aided signifcantly by Emirates Chairman and Chie Executive Sheikh Ahmed

    bin Saeed Al Maktoum who is also the Chairman o Dubai Airports.

    Accordingly, inrastructure expansion plans are t he result o close stakeholder

    collaboration. Terminal 3 is a recent example o the benefts o that

    relationship.

    Emirates has a very specifc long-term strategic plan to grow and expand

    its business. With many major airports worldwide operating at maximum

    capacity due to constraints on expansion, the A380 is key to Emirates

    Future growth

    98.5 millionpassengers

    4.1 milliontonnes cargo by 2020

    Emirates eet153 aircrat in eet200 on order

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    plans to meet increasing passenger demand. With a total o 90 A380

    aircrat ordered, it is set to become the worlds largest A380 operator.

    The Boeing 777, o which Emirates is the largest operator worldwide,

    also orms the backbone o its eet, and have been confgured to provide

    maximum exibility or eective route deployment.

    Emirates is known or entering markets not previously served by large

    international carriers. That, combined with Dubais growing attractiveness

    as a tourism and business destination in it s own right, is sure to support

    the continued growth o one o the worlds most proftable airlines.

    ydubai growthydubai is yet another growth engine. It was set up by the Government

    o Dubai in March 2008, with operations beginning on 1 June 2009.

    ydubai quickly established itsel as Dubais second largest airline.

    ydubai oers a value-or-money product at an ext remely competitive price.

    It has aimed to expand both its eet and network as quickly as possible tooer more choice and attract more passengers, and is the worlds astest

    growing start-up airline. It now serves 36 destinations across the GCC,

    Middle East, Arica, Subcontinent, ormer CIS nations and the ringes o

    Europe. Throughout 2010, ydubai added 17 new destinations to its

    network. It currently operates a eet o 16 Boeing 737-800 NG aircrat

    and this number is set to grow in the months and years ahead with 34

    more on order.

    Other airlines

    The Open Skies policy in Dubai stimulates demand and promotes the

    opportunity or other airlines to beneft rom and contribute to the citys

    growth and success.

    Over 150 other airlines serving 220 destinations currently operate to Dubai

    accounting or approximately 50% o the movements and 35% o the

    passengers. Growth over recent years has comortably exceeded global

    averages, and this trend is expected to continue. The markets orecasted or

    the greatest growth over the next 10 years are the Americas averaging 17%

    annual growth, and Europe, Middle East and Arica with an expected 9%

    annual growth.

    Future growth

    ydubai eet16 aircrat in eet34 on order

    17% annualgrowthAmericas

    9% annualgrowthEurope, Middle East and Arica

    Total passenger orecast Industry projection

    Total passenger demand

    Annualpassengers(millio

    ns)

    Year

    Compound annual growth rate (CAGR) or Dubai vs industry projected

    growth rates rom Boeing and Airbus

    Due to strong growth o Emirates and ydubai, demand in Dubai

    signifcantly exceeds industry wide projections.

    2010

    47.2

    2011

    7.2%

    CAGR Dubai Paxgrowth

    CAGR Worldwide Paxgrowth (Boeing)

    CAGR Worldwide Paxgrowth (Airbus)

    4.9% 5.2%

    50.9

    2012

    56.5

    2013

    62.0

    2014

    68.0

    2015

    75.3

    2016

    79.6

    2017

    84.2

    2018

    88.4

    2019

    93.1

    2020

    98.5

    Source: Dubai Airports

    Source: Dubai Airports, Industry websites

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    23

    Together with expected expansion o services operated by the 150 airlines

    that y into Dubai, Dubai Airport s orecasts a cumulative annual growth

    rate o 7.2%. This is a much stronger rate than the industry average orecast

    o around 5% rom sources such as Boeing and Airbus. Furthermore, based

    on the past 25 years o data, Dubai Airports ully expects those additional

    seats to be flled and orecasts passenger numbers to more than double

    rom the 47.2 million that passed through Dubai International in 2010 to

    98.5 million by the end o the decade. Similarly, bolstered by expanded

    trade and commerce, airreight volumes will almost double rom the 2.2

    million tonnes recorded in 2010 to 4.1 million tonnes in 2020 based on a

    6.7% annual growth rate. Whilst much o the growth is driven by additional

    hold capacity in the passenger eet, t he orecast also suggests a signifcant

    increase in reighter capacity.

    Inrastructure ExpansionAccordingly, the worlds most signifcant airline and airport expansion

    programme is currently taking place in Dubai. Inrastructure enhancement

    is underway to increase capacity rom 60 million to 75 million with theopening o Concourse 3 at the end o 2012. In addition, Phase 1 o Dubai

    World Central (DWC) opened in June 2010 or cargo operations. Although

    DWC is the long-term solution to Dubais aviation needs, adequate capacity

    to house Emirates considerable operation is not expected to be in place

    until at least the mid-point o the next decade. Accordingly, and until such

    time that DWC is adequately developed, Dubai International must expand to

    accommodate eet expansion and trafc growth and retain the network

    efciency established by its main hub carriers.

    The past 50 years have been nothing short o remarkableand the uture holds even greater promise as we build ourinrastructure to support the impressive expansion o Emirates,ydubai and other airlines and ascend the ranks o globalaviation hubs.

    Paul GrifthsCEO Dubai Airports

    Industry leading growth

    7.2%annual growth rate outstrippingindustry orecast growth rate oBoeing and Airbus

    75 millionConcourse 3 opens at the end o 2012 toincrease capacity rom 60m to 75m

    Dubai World Central

    Dubai International Airport Concourse 3

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    24 SP 2020 25

    Strategic Plan 2020

    (SP2020)

    SP 2020, Dubai Airports ten-year masterplan, outlines aggressive

    expansion plans or airspace, airfeld, stands and terminal areas at

    Dubai International. The plan takes into account the need to minimise

    constraints on growth by delivering timely capacity, while improving

    service levels and generating strong cash ow to maximise capital

    investment. Further, it eectively balances the need or acility

    development, process improvement and demand management to

    ensure optimal utilisation o acilities and maximum return on investment.

    It is also designed to reinorce Dubais hub status and ensure a smooth

    transition to Dubai World Central in the long term.

    Expansion in the air

    Dubai Airports aims to identiy and deliver the additional runway and

    airspace capacity required to acilitate airline growth plans. Airspace

    optimisation plans centre around the alignment o ground based and

    airborne strategies, using movement orecasts developed by Dubai

    Airports to better balance demand and capacity. Through the use o

    internationally recognised modelling tools that simulate gate, taxiway,runway and terminal airspace activity, Dubai Airports has been able to

    refne capacity orecasts in order to build a roadmap or development

    and the deployment o technology and procedural enhancements to

    meet these orecasts.

    Within the local airpor t environment, the ocus is on optimising runway

    capacity, increasing consistency and predictability, and implementing

    efcient systems and processes in order to accommodate and manage

    growth. Beyond the vicinity o the airport itsel, Dubai Airport s is engaging

    national and regional civil aviation authorities and air navigation service

    providers to ensure that air routes are decongested, bottlenecks are reduced

    and latent airspace capacity is unlocked. Next generation technology such

    as perormance based navigation and dynamic airspace management will

    be deployed over the coming years to harness the capabilities o modern

    eets such as Emirates and ydubai and increase airspace capacity.

    Development o a per ormance based, predictable and cohesively managed,

    regional and local airspace network strategy that will promote cross-border

    cooperation and integrate the eorts o civil aviation authorities and air

    navigation service providers across the Middle East is key to the expansion

    o capacity in the airspace surrounding both Dubai International and Dubai

    World Central.

    Aggressiveexpansiono airspace,airfeld, standsand terminalarea at DubaiInternational

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    7

    Proposed Airfield Developments

    Existing Building

    Proposed Building

    Proposed Apron Developments

    Proposed Stand Developments

    Proposed Runway CrossingAccess/Egress and Taxiway

    Dubai Airport Freezone Area (DAFZA)

    Automated People Mover

    Landside Access Improvement

    Phase 1: Immediate Infrastructure

    Phase 2: Facility Development

    Phase 3: New Infrastructure

    Dubai International phased expansion

    27

    18

    90

    Concourse - 3Landside AccessImprovement

    AirshowExpo Stands

    AirshowRelocate

    RemoteBaggageFactory

    BaggageBackbone

    AdditionalFuel Storage

    Pre C3Stands

    T1 - C4APM

    Emirates FlightCateringExpansion

    Concourse - 4

    Cargo MegaTerminalExpansion C1 BHS

    Wide-BodyStand Upgrades

    FG1Auto

    T3EBS

    C1 - C2BaggageLink

    West SideRemoteStands

    Terminal 2 Expansion

    Echo MARSing Phase 1-2 Echo MARSing Phase 3-4

    East SideStands

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    28 SP 2020

    Long term development

    During 20182023, with construction completed at Dubai I nternational,

    the additional aeronautical and non-aeronautical revenue generated by

    the higher trafc ows will be used to und urther airport development

    at Dubai World Central. Construction o Phase 2 o DWC will escalate

    during this period with the initial iteration allowing or 80 million passengers

    per year to acilitate the eventual relocation o the Emirates hub. DWC

    will eature a modular design that can be expanded incrementally to

    accommodate growth or both Emirates and other airlines. Once ully

    completed, Dubai World Central will be the worlds largest airport with

    fve runways and capacity or 160 million passengers and 12 million tonnes

    o cargo annually.

    Conclusion

    Since the frst ying boat set down on the Dubai Creek over 60 years

    ago, aviation has evolved as a vital component o Dubais economy.

    The rapid emergence o Dubai as a l eading global centre o aviation is

    no coincidence. It parallels the emirates equally impressive history oinnovation, quality and growth and is the direct by-product o a supportive

    model that eatures liberal policies, a tax-ree business environment and

    well-timed investment. It urther utilises Dubais geocentric location, one

    that with todays advanced aircrat technology can eecti vely connect any

    two points in the world and is ideally positioned on the doorstep o the

    two largest emerging economies.

    The results to date are impressive. Following 50 years o double digit

    passenger trafc growth, Dubai is now home to the worlds largest single

    airport retailer, one o the largest and most proftable airlines on the planet

    and the worlds ourth busiest airpor t or international passenger and

    cargo trafc.

    It is a vibrant sector whose already signifcant contributions to the local and

    surrounding economies are set to expand as the incredible growth continues.

    SP2020 is designed to capture, augment and deliver those benefts to

    consumers, airlines and the broader economy.

    SP2020 isdesignedto capture,augment anddeliver thosebenefts toconsumers,airlines andthe broadereconomy

    Strategic Plan 2020

    (SP2020)

    Open or

    Dubai International phased expansion plan

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