...Dynamics in Emirates Airlines Quest for Global Expansion Paul Mugendi MBA 604 Embry Riddle Aeronautical University May 2014 Executive Summary In an industry beset by unpredictable geo-political factors and cyclical crises, only one international carrier has consistently managed to increase revenue and report a profit for the last 25 years. This carrier is Emirates airline (Riva, 2013). Emirates has managed to achieve in less than three decades what giant and well established global carriers like British and Lufthansa managed in about five decades, and that is to serve all five continents without any alliances or partnerships. The objective of this term paper is to analyze some of the competitive dynamics that Emirates, legacy airlines and regional rivals have had to contend with and how Emirates has managed to come out on top especially in some business-hostile territories like North America and Europe. The history and origins of the Emirates airlines are highlighted as this paper outlines the business strategy that has propelled the carrier to international stardom. Also articulated from the research is the ambitious expansion that has European rivals worried and in some cases like Canada, the government stepping in to protect local carriers. The paper concludes by examining the viability of the carrier maintaining the growth and profitability curve and the expected rebound from regional carriers who seem to be currently languishing in losses as Emirates takes over their...
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...Emirate Airlines – Case study Introduction Airlines in today's global marketplace are faced with increased competition and shrinking profit margins. It is very important to attract and retain customers which can significantly increase EK share of the market and expand business opportunities. By doing this, the airline should understand consumer behavior, which is to understand the consumers’ mind and discover the challenges and to figure out the potential customers to maintain/develop the relationship and reinforce a consistent service provided. Marslow’s Hierarchy of the travel needs Maslow's hierarchy is to explain the needs of customers, it represents by the shape of a pyramid with the largest, most fundamental levels of needs at the bottom and the need for self-actualization at the top. Physiological: Consumers have needs and wants. Consumer needs to travel because they want to relax and gain an enjoyable experience. If they travel because only they need, they will not consider selecting the different carriers, class of travel etc. such as Cathay Pacific, Air France, business class or economy class. Safety : Once the needs/wants are identified, consumer will concern the safety for flying with the aeroplanes and afraid they will lose their life for this business trip/leisure trip. They will select the carrier based on the age of fleet, accidents record, corporate image of the carrier etc. If consumer fear of travelling because of safety, it is hard to move on the...
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...Airbus A3XX: Developing the World’s Largest Commercial Jet Estamos al 23 de junio del 2000, la pregunta es ¿se debe lanzar el Airbus A3XX? A) Analiza detenidamente el caso y haz un resumen de los principales datos. En Junio 23 del 2000, Airbus Industrie’s Supervisory Board aprobó a Airbus el ofrecimiento de A3XX, lo que se espera que sea un jet de tamaño jumbo con asientos disponibles desde 550-990 pasajeros. Algunas compañías mostraron interés tales como Air France, Emirates Airlines, etc. El precio asciende a $216M con un costo de desarrollo de $13B. Existe una duda sobre el beneficio de dicho lanzamiento. Airbus argumenta que tener un mayor cupo para pasajeros será beneficioso para la empresa, sin embargo a lo largo del caso se contraponen varias ideas: • Se debe de considerar el tamaño del avión con el tamaño de los aeropuertos ya existentes, • Considerar las rutas de larga distancia (no pueden ofrecer solamente el destino a una ciudad grande sin considerar el tiempo de transportación a las demás ciudades pequeñas, ya que eso es un punto de consideración para los pasajeros) • Tener en cuenta los horarios de los vuelos ya que incrementar el número nomás por tener más vuelos no significa que vayan a tener mayor audiencia • Boeing anteriormente había hecho un lanzamiento de un avión 747 con capacidad de hasta 550 pasajeros y el resultado no fue lo que esperaba, llevando a la empresa al punto de la quiebra Airbus podría considerar que al recibir la demanda inicial...
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...some excellent elements of independent thinking. A critical appraisal of up to date literature. The report is well written. Students please note that this assignment was graded in the range 70% and above. Students: Please note there is no need to place the basic strategy models in the appendices e.g. Porter’s (1985) Five Forces, SWOT analysis, etc.. It would be more beneficial to apply the models directly to the organisation and place them in the appendices and discuss the main identified issues in the main text. 2 Corporate Strategy: Emirates Airline By Student How has Emirate airline managed to remain competitive in such a saturated industry? Emirates Airline “An exceptional journey from start to finish” (Emirates, 2010). 3 Introduction: ............................................................................................................................... 4 Background to Emirates Airline: ............................................................................................... 4 Competitive Advantage: ............................................................................................................ 5 Porter’s five forces: .................................................................................................................... 5 Competitive Rivalry: .............................................................................................................. 6 Threat of new entrants:...
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...CPSP379B Dr. Wellman 5/10/13 Global Immersion Experience: The United Arab Emirates 1) a. It is hard to imagine that less than fifty years ago Dubai was still a desert. The growth of this emirate has been expedited to such an outrageous extent due to the implementation of Dubai’s economic development strategy. The strategy is facilitated by the emergence of four clusters: the Construction Cluster, the Financial Cluster, the Logistics Cluster, and the Tourism Cluster. All four have helped service this fast paced, strategic development that is Dubai. The Construction Cluster can be broken down into three main sectors: infrastructure, commercial properties, and residential properties. “The first two segments contain projects that require significant scale and expertise from both developers and construction companies” (Ketels). Because of this, global competitors vie for contacts. The residential sector is composed of smaller projects that tend to be taken on by local companies, but are still subject to a high degree of competitiveness, especially with the building of developments. In “Clusters and Dubai’s Competitiveness” Dr. Christian Ketels gives an overview of the international competition in regards to construction services. The sector is dominated by European countries, and is followed closely by the United States and Asia. Real estate developers have reached considerable sizes, and delve in foreign operations. The second zone to compliment Dubai’s success is...
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...Brand Audit for Emirates By Team Pineapple Pilots Members: 1 Table of Content Table of Content ..................................................................................................................................... 2 Table of Figures ...................................................................................................................................... 2 1. Brand Inventory ........................................................................................................................ 3 1.1. 1.2. Target Market ................................................................................................................... 3 1.3. Brand Identity Inventory .................................................................................................. 5 1.4. Brand Marketing Inventory.............................................................................................. 5 1.5. Competition ....................................................................................................................... 7 1.6. 2. History and Facts about Emirates.................................................................................. 3 Brand Performance.......................................................................................................... 8 Brand Meaning Audit ............................................................................................................. 10 ...
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...Case of Emirates Airline Student Name: Name of Professor: Name of the Institution: Faculty: Date: Strategic management: The vision and mission of Emirates Airline Introduction Emirates; a constituent of Emirate group UAE has its headquarters in Dubai. Emirates was founded on October 25th 1985 whereby it concentrated in regional flights. Currently, Emirates is one of the most influential, quality adhering travel and tourism conglomerate. The airline company has managed to be a determining factor of UAE economy and gas spearheaded the expansion of the aviation industry. Emirates has also created the largest network in the employment line with about 84000 plus employees from different nationalities. (Emirates, n.d.) The Mission and Vision of Emirates Airline Emirates is consumed in providing quality services despite the related shortcomings associated with the voluminous of crafts fleet. The airline motto, “Committed to the highest standards in everything we do”, speaks it out all that the company is committed to provide first class experience to all its customers. Emirates is envisioned to attain a safe and leading civil aviation standards and also to create a civilized world void of poverty. To see the Giant airline attain its vision, it has embarked on foundations sponsorship mission like the “St. Leonard’s Orphanage, Sri Lanka” which aims at providing food supplies and a range of charities, ("The Emirates Airline Foundation", nd) The company, Emirates, also follows...
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...Table of content Content | Pages | 1.0 Introduction | | 2.0 Content 2.1 Tangible 2.2 Service reliability 2.3 Responsiveness 2.4 Assurance 2.5 Empathy | | 3.0 Conclusion | | 4.0 Reference | | 1.0 Introduction There are many definition of the quality. One of the definitions of quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the customers or the buyers. In simpler words, one can say that a product or service has good quality when it complies with the requirements specified by the client. Different people have different perspective and way to evaluate about the quality of the product. Besides product quality there is also service quality Service quality also has different definition and also more difficult to define then product quality. It is because, services have more diverse quality attribute then product and customer involvement is also high. To define service quality, it all started from customers, as quality is all that it implies for consumer and their perception about the service quality provided. In fact, service quality is achieved if customer expectations are satisfied, or exceeded. Service quality is undoubtedly a significant element of service product design process, as it influences the volume of demand for a given service product...
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...characterizes a cognizant endeavor by the supply chain companies to build up and run supply chains in the most effective & efficient ways possible. Like any other organization, supply chain also plays a very important role in the airline industry. Currently in the airline industry, various links in the supply chain are in tension leading to minimized profits, heavy losses and in some cases even shutting down of airlines. Various issues like maintenance and repair of aircrafts, on time performance of airlines, having adequate spare parts at the right time, sales of ticket to customers, vigorous airline cost-cutting, etc are putting the commercial aviation supply chain under immense pressure (C. Adams, 2009). But a world renowned airline that is Emirates Airline in its 28 years of...
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...The Emirates Story Just over twenty years ago, Emirates was born as the official international airline of the United Arab Emirates On 25th October 1985, Emirates flew its first routes out of Dubai with just two aircraft—a leased Boeing 737 and Airbus 300 B4. Then as now, the goal was quality, not quantity, and in the years since taking those first small steps onto the regional travel scene, Emirates has evolved into a globally influential travel and tourism conglomerate known the world over for commitment to the highest standards of quality in every aspect of the business. Though wholly owned by the Government of Dubai, Emirates has grown in scale and stature not through protectionism but through competition—competition with the ever-growing number of international carriers that take advantage of Dubai’s open-skies policy. Not only does it support that policy, but also see it as vital to maintaining their identity and competitiveness. After making its initial start-up investment, the Government of Dubai saw fit to treat Emirates as a wholly independent business entity. Growth has never been lower than 20 per cent annually, and the airline has recorded an annual profit in every year since its third in operation. Continuing the explosive growth, while continually striving to provide the best service in the industry is the secret of Emirates’ success. The airline’s business includes: An award winning international cargo division A full-fledged destination management...
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...9 -7 1 4 -4 3 2 JANUARY 29, 2014 JUAN ALCÁCER JOHN CLAYTON Emirates Airline: Connecting the Unconnected Introduction Late afternoon was fading to dusk as Tim Clark, President of Emirates Airline, gazed out at the large crowds mingling outside at the 2013 Dubai Airshow. Front and center at the event was the official program launch of the Boeing 777X, a massive new hit thanks to Emirates’ record order of 150 new planes. Valued at $76 billion at list prices, this was the largest airplane deal ever inked. Letting his thoughts drift, he noted, he imagined with pride these planes joining the collection of widebodied Emirates planes assembled on the tarmac of Dubai International Airport, ready to ferry passengers from Europe, Asia, Africa, the Americas and the Gulf to their respective destinations. This is the face of the global economy, he thought to himself, as he marveled at his company’s success. Emirates was indeed a global success story. In just twenty-five years the airline had grown to become the third-largest airline globally by capacity and the largest by number of international passengers.1 (See Exhibit 1). Twenty-three new routes were added in 2012 and 2013,2 and capacity growth was expected to increase by 18.4% in 2013 thanks to deliveries of new aircraft, including the new A380s deployed to over 20 destinations.3 Emirates anticipated that its meteoric growth would continue and was building its fleet accordingly: with 41 A380s integrated into its fleet thus far...
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...Name Instructor Course Date Emirates Airlines In the Middle East, Emirates Airlines is one of the market leaders in the air transport industry. It operates about 2,200 flights in a week across the whole world with its main hub in Dubai, UAE (Shaw 67). The company engages in offering commercial air transport services both in the UAE and internationally. This includes cargo, postal and passenger carriage services. Moreover, the company engages in offering retail and wholesale consumer goods, institutional and in-flight catering and hotel operations. Its headquarters is in Dubai where the coordination of all operations including flight takes place. The company was founded following the collapse of the Gulf Air in 1985 (Doganis, The Airline Business in the Twenty-first Century 56). It serves approximately 134 destinations in about 60 countries with a fleet size of 218. The mission of the airline mission is to deliver the best in-flight experience in the world. The values and visions of the company involve a stable and strong leadership team. The company believes in business ethics as the foundation of its success. It cares for both stakeholders and employees, the environment and the society it servers (Doganis, Flying Off Course: The Economics of International Airlines 75). The company plays a major role in shaping the future of the air transport industry. Given the associated dangers of terrorism in the Middle East, the airline airport surveillance and security is high...
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...Course Project Proposal GM591- Leadership and Organizational Behavior I. Overview of Organization and My Role in it The Emirates Airlines is the organization that will be the topic of discussion in my final project. “Emirates Airlines is the Emirates Group’s rapidly expanding and award winning international Airline. Emirates started in Dubai and flew out with only two aircrafts in 1985 on 25th October which involved just a leased Boeing 737 and an airbus 300 B4. Today the Airline has orders worth over US$ 68 billion for 200 more of the latest aircraft, with plans to operate in many more destinations in the months and years ahead. Emirates global network now sees it flying to over 110 destinations across 6 continents, operating a modern fleet of over 150 wide-bodied aircraft. Emirates airlines accounts to about 40% of the total movements of flights and aiming for at least 70% total flights coming in and going out of Dubai International Airport.” (http://www.emirates247.com/look-back-2010-onto-2011/the-most-popular-stories-of-2010) I am an accountant for Emirates Airlines and in charge of creating a project aiming to increase the company’s market share and gain more profit without sacrificing the company’s quality of services and reputation. I just recently began my employment in the company and now facing the big challenge of creating this project and attaining the goal of making it huge in international...
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...in the world, the Emirates Group is a dynamic travel and tourism operation with a global reputation for excellence spanning every aspect of the industry. Emirates would like to extend the same warm welcome that our cabin crew are famous for as you explore their Company and learn about the Vision & Values which make Our Brands the best in the business. Question 1 Nowadays, Emirate is a major player in the globalairline industry. Emirate always focuses on quality rather than quantity. Emirate always take the first step to develop the new technology so Emirate have a leased boeing 737 and airbus 300B4, Emirate has never less than 20% annual growth. That information shows that Emirate is a successful company in the market. Emirate are using differnet marketing strategy has been successful in creating a positive brand image with current and potential customers. In the following, we explain how Emirate can to do that. Emirates use different media method to introduce thir products,routes and air craft to the consumers. Those media method can reduce the search time by the costomers.For example Emirates use commercial and print advertisements which is their major media hightlight to introduce the products. ,Besides Emirates develop the mass communication technologies such as internet and smartphones to target the various audiences.It is a greater channel .this media can attract many potential consumers who interest for the Emirates products. Besides, Emirates build a sponsorsship...
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...Analysis on the Financial Statements Of Emirates Airlines for the Year 2010-2011 Emirates Airline is an airline based in the Emirate of Dubai. It is a part of the Emirates Group along with Dnata. Dnata is the largest travel management services company based in the U.A.E. This analysis is restricted to Emirates Airlines only. Emirates Airline is an international carrier based in Dubai International Airport. Emirates started its first operations in March 1985 with the backing of Dubai’s Royal family. It is headed by Sheikh Ahmed bin Saeed Al Maktoum the CEO and Chairman.Its subsidiaries include Arabian Adventures, Congress solutions who provide administrative services, Emirates Holidays and Emirates Tours. Except the second year the Aircraft has recorded a profit every year, even through the turbulent 2008-2009 fiscal. Emirates SkyCargo is the air freight division of the airline, they have been ion operation since October 1985, since then they have been the main freight provider in the Middle East. The financial year of Emirates Group is from 1s April to 31st March. All figures are in AED. The exchange rate of Dirham to USD dollar is fixed at 3.67. The audit has been done by Price Water House Coopers. The Auditor has given an Unqualified Report. As per their report, Emirates has consolidated their financial statements as of 31st march, 2011. It is fair in all material respects. The financial performance and its cash flows for this year ended in accordance with international...
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