Internal Audit is an integral part of the organisation but remains independent of any department, reporting direct to the Group Managing Director. Its main role is to continually evaluate the effectiveness of internal controls and corporate governance processes. The Emirates Group’s Internal Audit Charter, which established the department’s independence, authority and responsibility, is cited as a “best practice” document by peers within the industry.

In January 2002, The Institute of Internal Auditors, USA, nominated the Group’s Chief Internal Auditor to its board of directors, a landmark recognition of the department’s achievements and contribution to the development of internal auditing. In the Gulf, the Emirates Award for the best UAE-based candidate in the Certified Information Systems Auditor examination continues to generate interest among information systems audit professionals.

During the year, the Airport Unit, which is involved in detecting forged and counterfeit travel documents, saved Dhs 24.1 million in terms of penalties and fines which would have otherwise been imposed on Emirates by immigration authorities in other countries for transporting inadmissible passengers out of Dubai.

This Airport Unit team also provides the same services of intercepting passengers with forged, counterfeit and technically faulty documents to other airlines operating at Dubai International Airport thus generating revenue for the company.

The main training effort of the Aviation Security Training Unit was concentrated on aircrew, with a particular emphasis on “Disruptive Passenger Handling”. In total 3,053 Cabin Crew and 452 Flight Crew were given training on Safety Emergency Procedures. Additional Advanced Security training was also given to Senior Cabin Crew members.

The Cargo Security Unit provided security services to other international airlines, external agencies and departments within the Group during the year showing approximately 41% growth in revenue compared to that of 2000.

The Cargo Security Unit was already providing services to Malaysian Airlines, Air India, British Airways and Dnata Mishandled Baggage section. New contracts have been signed with Singapore Airlines and Atlas Air.

Transguard (which provides transportation services for valuable cargo) has shown an improvement in revenue by 19%. New and prestigious clients have now been contracted including the National Bank of Dubai, Dubai Islamic Bank, Commercial Bank of Dubai, Standard Chartered Bank, Etisalat, Sawan Exchange and Thomas Cook.

SriLankan Airlines Limited is 43.6% owned by Emirates.

It has come through a period of extremely difficult trading and operating conditions, especially following the major security incident at Bandaranaike International Airport on July 24, 2001 which resulted in the total loss of four aircraft. These aircraft were fully insured and all obligations to third parties have been discharged in full.

Since that time there has been a steady improvement in the security and political climate on the island and this has been reflected in much improved trading conditions for the airline in recent months.