Recommendations

-Emirates SkyCargo delivered strong results, contributing to 14% of the airline’s total transport
revenue. Specific SkyCargo revenue topped at US$3.6 billion – an increase of 5% compared to
previous years.2.7 million tonnes of freight were transported across the SkyCargo network using the
airline’s 12 Boeing 777 Freighter aircraft.

-The majority of mainland China’s 1.3 billion citizens, for example would remain out of reachunless
the Chinese government opened its airspace beyond the three major airports Emirates
alreadyserved. Obtaining regulatory approval and trafficrights to countries with restrictive aviation
policies would be critical if Emirates wanted to meetpassenger demand in new destinations.

-In 2010, years of negotiations with the Canadian government to add additional service between
Canada and the UAE broke down in dramatic fashion.The Canadian government had not granted
rights to the UAE beyond a 1999 ASA that permitted Emirates to operate three flights per week to
the entire Canadian market. The Canadian government was worried about the impact of additional
Emirates and Etihad flights on its flagship carrier, Air Canada, and broke off negotiations and
withheld further access to its Toronto, Calgary and Vancouver markets. The disagreement, part of
other bilateral issues under dispute, intensified when

-the UAE government retaliated by imposing visa fees, ended an agreement for Canadian troops
touse its military base, and publicly refused to support Canada’s UN Security Council bid.

-For example, Emirates’ initial entry into the Pakistani market fared well, as mostPakistani cities at
the time were primarily served by the flag carrier, Pakistan International Airlines (PIA). Passengers
traveling from these cities faced high fares and multiple layovers given PIA’s tendency to funnel most
flights through Karachi. New carriers that introduced competition and offered service with only one
stopover were welcomed.Entering underserved markets in certain instances also gave Emirates a
first-mover advantage.Cities such as Colombo, Sri Lanka, often had relatively fixed demand for
international travel, so

preempting competitors enabled Emirates to lock up the market and capture ensuing growth.