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Record profits for Emirates Group
 
Sea Worlds

Record profits for Emirates Group

The Emirates Group, facing up to the past year’s challenge of volatile world markets and increasing costs, has achieved a tremendous 24.1 percent increase in net profits to Dhs531 million (US$145 million).

The financial results of the Group, which comprises Emirates Airline and Dnata, were declared at a press conference recently at its Dubai hub by group chairman, HH Sheikh Ahmed bin Saeed Al-Maktoum.

In the company’s Annual Report, Sheikh Ahmed commented, “I had forecast another successful year for the Group, but the airline and travel industries are notoriously unpredictable and we had to make a number of major changes to our strategy and tactics to achieve what, in the end, was again a record year.”

Total group revenue increased by 24 percent to Dhs6.9 billion (US$1.9 billion) in the year ending 31st March 2001.

Of the net income of Dhs531 million (US$145 million), Emirates’ profits rose 40.2 percent form Dhs301 million (US$82 million) to Dhs422 million (US$115 million), with Dnata returning a net income of Dhs109 million (US$30 million) compared with Dhs127 million (US$35 million) the previous year.

Looking forward to a year of relative consolidation, events proved otherwise, as Sheikh Ahmed pointed out, “We were also hoping for a seamless, stable and positive financial scene across our network but the world market became bearish, several of our destinations faced inflationary pressures and jet fuel prices continued to rise and still remain buoyant.”

Although overall yield fell by 6.2% as a result of the strength of the dollar against major trading currencies, this was offset by the group’s continued strategy of cost cutting, to drive down unit costs by 4.6%.

Group managing director, Maurice Flanagan said, “All in all, it was not an easy time as other airlines’ financial results will confirm, but the Emirates Group managed to changed a lackluster year from gloom to boom. It was a rare combination of creative cost cutting without affecting the service to our clients, a round-the-clock sustained sales and marketing drive by world-class players, classy service by our frontline staff in the air and on the ground, and unstinting work of high quality from all the people behind the scenes.”

As a result, Emirates saw an increase in passenger volumes by 19.8 percent to 5.7 million, with 335,194 tonnes of cargo carried, an increase of 24.2 percent.

Dnata rose to the challenge of increased traffic through the new Sheikh Rashid Terminal, handling 12.8 million passengers and 573,000 tonnes of cargo - increases of 14.3 percent and 15 percent respectively.

Mercator, the group’s information technology division, played its part in contributing to group revenue by winning competitive tenders in all five continents, to become a truly global IT business.

Sheikh Ahmed commended, “The high-class performances we have seen from the group during this year are the result of sustained quality standards from hardworking and loyal staff and management. They also underline the creative and lateral thinking which helps to make us market leaders.”

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Beneath the ice

During the depths of winter, sea ice in the Northern Hemisphere covers almost six million square miles, or approximately twice the size of the continental United States. The average maximum ice cover for February envelopes the region, which is frozen over, with tentacles of ice extending as far south as Hudson Bay and the Labrador Sea.

700 foot long icebreaker cleaning springtime path to Admiralty Inlet

Flying over this region will show that it is not a pure unbroken sheet of ice, but rather resembles a pane of broken glass; the ice flows continuously jostled by wind, currents and tides.

By late September, the end of summer, the ice has melted to half its size. In the newly exposed waters and throughout the North Atlantic Ocean, plankton growth is prodigious. Sunlight sets off a chain reaction of photosynthesis, and pastures of algae and other phytoplankton burst with life. Some of the richest fishing grounds in the world, such as the Grand Banks off Newfoundland and the coastal waters of Iceland, flourish in these cold but fertile seas.

The life-giver of the Arctic, the sun, ignites a string of events that by the end of summer will have filled the waters with swarms of tiny plants and animals. They are the first strands in a food web that extends from algae to whales, polar bears to humans.

Flock of king and common eiders, diving ducks which winter in Greenland and Labrador

During the dark, winter months, icebound algae make up only 10% of the plant growth in these waters. But they supply almost the entire food supply until the ice breaks in the spring.

As the sunlight increases, the phytoplankton layer thickens, and those tiny marine animals called zooplankton rise in the water to eat and be eaten. Tiny crustaceans called copepods, about the size of a grain of rice, feed, and then become the primary source of food for the bowhead whales.

Also joining the feeding frenzy are the arrowworms, jellyfish, shrimps and winged snails. Ringed seals, cod and seabirds feed on these tiny animals, except the jellyfish.

But the key link in the long polar chain is the Arctic cod. In its dual roles as predator and prey, it transfers energy from the lower level to the higher level of marine animals. The top link of the food chain in this region belongs to the polar bears and the Inuit Indian people who are indigenous to this world of ice and cold.

Orange starfish and sea anemone in clear waters off coast of Baffin Island

Once the ceiling of ice melts or splits apart and direct sunlight comes streaming in, the water becomes charged with life and energy. Nudibranches, tiny half inch long mollusks called sea slugs forage among the kelp for hydroids.

Beneath the ice near the shore of Admiralty Inlet off the coast of Greenland, hidden gardens of colour and movement reveal tropical sights such as soft coral growing next to sea urchins. Water temperature is not necessarily a limiting factor in the growth of some corals. In fact the icy waters of the Arctic Ocean harbour an extensive growth of corals which manage to survive.

In the intense, light filled days from May through July, the Lancaster Sound area, that inlet of arctic water between Baffin Island and Devon Island comes alive with wildlife, especially along the floe edge where the ice meets the open sea.

That same plankton rich environment what supports the coral and starfish, also sustains a food chain that makes possible the spectacular processions of migrating whales and birds.

Under the water, on the ice, and in the air, creatures again bring a sense of abundance to one of the world’s harshest abodes. But no barren wasteland here. Come the springtime season of light and its life-giving energy, the Arctic thaws into a true land of plenty.

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