Interview with Cédric Renard (EDHEC Master 1997), CEO of Emirates France

After more than 15 years workind for Air France (Air France-KLM), Cédric Renard (EDHEC Master 1997) is now CEO Emirates France.  In this interview, Cédric explains Emirates' strategy, focused on the customer experience, shares his vision of the industry’s challenges in the face of climate change and describes the management of an airline company in the midst of a global pandemic.

What’s your role at Emirates?

I have the privilege of being Managing Director France at Emirates, and my role is to ensure that everything is done to make the Emirates experience as successful as possible for all our passengers both to and from France. That includes both passenger and cargo activities, as well as commercial roles, financial responsibility, communication, human resources and operations, with air traffic safety as a priority, in collaboration with experienced teams in Paris, Lyon, Nice and our head office in Dubai.

How was the link first established between the airline Emirates and the city of Dubai? 

Emirates was founded in 1985 so it’s a young company. Its vision has always been to offer an exceptional customer experience at every stage of our interaction with customers. It is now the world’s biggest international airline. 

If you compare Dubai in 1985 with the city it is today, it’s just incredible. It took real vision to see that it was possible to create a destination in its own right – Dubai is now the 4^th most visited city in the world – and a hub for an airline with an ideal geographic location. Our market is of course highly competitive, but there is no city in the Gulf region that has managed to develop a destination with such appeal, which of course is what drives visitor numbers. 

Is it also Emirates that has driven that attractiveness and the rise of Dubai?

Emirates wouldn’t be Emirates without Dubai, and Dubai wouldn’t be Dubai without Emirates. There has been a consistent logic behind this since the beginning: developing Dubai as an economic, financial and tourist destination and at the same time extending the airline’s network . 

Dubai enables Emirates both to benefit from point-to-point traffic between other countries and the city, which is essential for the economy of an airline, but also to serve global international routes due to its unique geographic location between Asia and Europe, between Africa and the Americas, etc. Specifically, one-third of the world’s population lives less than 4 hours from the Middle East, two-thirds less than 8 hours away, and almost 90% live just one direct flight away from the hub of Dubai, the world’s premier international airport. Emirates has made the most of this geographic location and its proximity to many emerging countries.

What attracted you to Emirates after your previous position with Air France - KLM?

What fascinated me, and continues to fascinate me, is its focus on the customer experience. When you look at our planes, there’s always something particular about them. It’s that constant search for comfort and well-being like the interior features of our A380s with a bar that all passengers appreciate. This experience is not only reflected in our aeroplanes but also in our local relationship with customers. We look at the minutiae of all our commercial initiatives and communication as part of the customer experience strategy of Emirates. 

Is there demand among consumers for an experience rather than a purely functional service? 

From the outset, Emirates endeavoured to offer the best value for money, convinced that the experience of the journey begins as soon as you board one of our planes. Our customers also benefit from more modern aircraft, all large carriers and therefore more spacious – the Emirates fleet is entirely made up of long-haul planes, with 118 Airbus A380s and 157 Boeing 777s – and of course superior interior features (bar in our A380s, Wi-Fi in all passenger cabins, limousine service for Business clients, Spa shower in First class), with multicultural crews who take extra good care of all passengers.

Nowadays, despite or perhaps thanks to the crisis, we believe that people want more than ever to see each other and have unique experiences. Despite the crisis, the appetite for travelling has not fallen and that desire to “travel well” is probably even stronger among our leisure clientele.

How do you manage an airline in the height of a global health crisis?

Last year was apocalyptic and full of doom and gloom for all airlines, no-one was spared. When the world is shut down, there isn’t much an airline can do, so they have to reinvent themselves. In the early days of the crisis, Emirates very quickly redeployed a network with full cargo planes and by refitting passenger aircraft. In just 100 days, we were able to offer 100 cargo destinations. We transported millions of PPE items and put dedicated infrastructure in place which allowed us for example to transport more than 100 million vaccine doses around the world.

 Furthermore, Dubai is one of the few long-haul destinations that was very quick to open up again, as early as July 2020, which was practically a unique opportunity for Emirates. (Our network gradually reopened and we are now operating more than 120 passenger destinations – more than 80% of pre-pandemic levels – and 130 cargo destinations).  We are relaunching operations in a way that is sequenced and structured, to reflect both public health conditions and demand. 

The world is gradually opening up again, and it’s stimulating: Thailand, Phuket in particular, Mauritius beginning in October, etc. Health restrictions are being lifted, especially for people who have been vaccinated, which is a clear step forward. At the same time, to and from France, we are increasing both our capacity and travel frequency: since the beginning of July, we have been running two Airbus A380s between Paris and Dubai. We also have a presence in French regions with 3 to 4 weekly rotations leaving from Lyon and Nice. 

An airline is well positioned to have that global vision of the world. It’s a good barometer for demand based on several indicators: discussions, baggage holds filling up, with what items, what we’re transporting as imports and exports, what works, which destinations are driving traffic. 

How do you create an optimal customer experience in such troubled times?

We are currently rethinking the way people travel, first of all by reassuring travellers about all public health concerns ... but at the same time staying loyal to our DNA: always been a pioneer. Just because we’re going through a crisis doesn’t mean there can’t be any innovation. At the moment our customers need to be reassured, we were the first to include a Covid insurance policy with all of our tickets, which then became comprehensive insurance included free of charge in our rates. When you reserve a flight with Emirates, you can cancel or postpone over a 24-month period. That was our priority, and our brand signature has evolved: initially our slogan was Fly Better, and temporarily we changed it to Fly Safer to take account of realities on the ground. 

We are also working on the fluidity of our customer experience in partnership with public authorities and airports, investing in digital and new biometric technologies. Using your telephone, at Dubai airport for example, you can complete your passenger journey and go through all the different interaction points digitally.

As for our products, in the new A380s we’re launching a new cabin – Premium Economy – where comfort levels are optimised for both leisure and business travellers looking to spoil themselves and move up a level. We are convinced that these experience-based products will be a response to the demand of the future. 

Has the dialogue with airports changed, particularly when it comes to their services?

Airports truly are businesses, keen to please their customers. The relationship between airlines and airports has significantly changed: we discuss the customer experience, digitalisation, waiting times, layout, comfort, development projects and infrastructure, etc. These discussions are constructive: we generate customer traffic. And enhancing a city’s reputation necessarily involves air-traffic connections, which Emirates offers in Paris but also in Lyon and Nice. 

What is the relationship like between Emirates and France? 

Its links with France are very strong, for example 50% of orders for A380s (Airbus) are placed by Emirates. 85% of the wines served on board Emirates aircraft are French, with 7 million bottles stored in Burgundy. Much of the equipment used by Emirates stems from French expertise: from the Michelin tyres fitted on our aircraft to the on-board entertainment facilities (Thales), not to mention all the service providers/suppliers who contribute to our operations.

Investment in sports sponsorship is also considerable and an integral part of our brand strategy. We partner major events in France like the French Open. Contracts are negotiated for a period of several years, as in the case of Olympique Lyonnais, which signed for 5 years after PSG, for which we were the main sponsor for 14 years. We sponsor the Rolex Paris Masters in Bercy and many other flagship events like the upcoming Rugby World Cup which will be held in France in 2023. 

In other words, the link between Emirates and France is underpinned by an appreciation for fine things. France is a destination in itself. There is a strong attraction for travellers from the Gulf region … and vice versa.

How does sports sponsorship contribute to the continuity of the “Emirates experience”? 

We communicate a lot and in a tactical way, which allows us to have this brand image enhanced by the quality of products. Sport is universal, and Emirates is a global player: our customers identify with our communication and the things we sponsor. That is an integral part of our brand-building efforts and earns us loyalty.

Furthermore, through the sports events we sponsor, we meet with many of our customers and partners, at the same time developing commercial relationships: we maximize the visibility of Emirates and offer a glimpse into the customer experience “on the ground”. 

Our loyal customers, Skywards, can use their air miles to take part in our events. We enjoy sharing Flying Better Moments. These are experiences “money can’t buy”. At the French Open, for example, the Emirates box has a front row position on central court, the players put their towels down 50 cm away, it’s a unique thrill, you don’t see the match in the same way. For the Emirates Formula 1 Grand Prix, the Emirates space is above the stands, you couldn’t get much closer to the teams in competition. There is continuity between what you experience on board our aircraft and what you experience at these major sporting events. Once again the focus is on the experience. 

Is environmental awareness having an influence on the changes in the airline sector? 

Global warming is a significant problem, no question about it. Our customers are sensitive to this issue, especially younger passengers, who really take the initiative. Environmental issues should not be made into a simply commercial argument; nonetheless it is a question that needs to be addressed responsibly. 

Before going into the detail of the steps Emirates have taken, I would like to point out that aeroplanes represent just 2.7% of global CO₂ emissions. Of course, that doesn’t mean nothing needs to be done, although a lot has already been done. 

The first measure taken was to ensure our fleet was made up of recent aircraft to reduce CO₂ emissions – with each new generation, there’s a 15% to 20% fall in CO₂ emissions. The Emirates fleet is made up of aircraft with an average age of 7, and we continue to invest for different reasons: environmental of course, but also for the comfort of our customers and for operational reasons: it’s a virtuous circle. 

But the real shift will be when we have access to biodegradable fuel at reasonable costs, and when real supply chains have been put in place. Today the consumption of biofuel is infinitesimal because there is no supply chain, the price is unreasonable and if we used that fuel, ticket prices would rocket. And so for now we are focused on offsetting emissions until 2030–2035. 

And then, will there be a technological gap? Will there be planes running on hydrogen? Or electricity? Or hybrid planes? I think we can have faith in progress; the airline industry has probably seen some of the most astonishing technological revolutions, so there’s no reason to believe that will come to an end.

For the World Expo in Dubai, which will run from 1 October 2021 to 31 March 2022, the chosen theme is “Connecting minds, constructing the future” and the sub-themes to be addressed by the pavilions are Opportunity, Sustainability and Mobility. Emirates, which partners the Expo, has a magnificent pavilion in which we will invite visitors to imagine the aeroplane of the future and in particular its propulsion systems. 

What does EDHEC mean to you today? 

Years of wonderful memories. For me what matters is the quality of its teaching and its influence internationally. It is a school whose curriculum has a strong professional focus. I had first-hand experience of that again recently when I was invited 6 months ago to take part in a working group run by René Rohrbeck and addressing the theme “Fit to fly”. Students were asked to think about the aviation of the future in relation to all of our current problems. And both in terms of substance and style, they managed the challenge like a real project, with real content, real deliverables and really relevant feedback. I am also contacted by EDHEC students with questions about their career choices and job searches, and I’m always delighted to talk to them. 

What was missing from your education at EDHEC that might have better allowed you to tackle your career? 

The curriculum is very broad, it prepares you for all kinds of situations. If I had to add something, it would be crisis management. We have been in the throes of a crisis for 14 to 15 months now: we have faced situations of unprecedented complexity, with very reduced visibility. It continues to be tough, but experiencing something like that at school would help you later to read situations correctly and give you the right reflexes. A kind of practical lesson.