In 1974, three years after independence, the rulers of the United Arab Emirates decided to establish a joint flag carrier which was called Gulf Air. However, a tense relationship between the airline and the Dubai government existed ever since its creation. Dubai government refused Gulf Air’s request to abandon its open-skies policy. In reaction, Gulf Air reduced frequencies and capacities to and from Dubai by more than two thirds between 1984 and 1985 without prior advance.
Since foreign carriers were unable or unwilling to fill the gap, Sheik Mohammed bin Rashid Al-Maktoum, Dubai’s ruler, convened a team of experts – headed by Maurice Flanagan and later joined by Tim Clark and the ruler’s then 26- year old son, Sheik Ahmed bin Saeed Al-Maktoum – to devise an emergency plan. The group’s recommendation to set up a home carrier for Dubai was quickly accepted by the ruler, but he imposed two conditions: The new airline should meet the highest quality standards and there would be no additional capital injections from the government other than the agreed USD 10 million start-up capital. On October 25th, 1985, Emirates’ first flight departed to Karachi, using an A300, wet-leased from Pakistan International Airlines. The rest is history: in 1987, Emirates began to serve it first two European destinations – London Gatwick and Frankfurt –, from 1995, it has operated an all widebody fleet, and in 2001, 2003 and 2005 Emirates placed some of the largest aircraft orders ever. As of October 2007, Emirates’ route