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Emirates Airline: Connecting the unconnected Case Solution & Answer

Emirates Airline: Connecting the unconnected Case Solution

Executive Summary:

Emirates Airline is one of the leading and fastest growing organization and the third largest airline around the world, based on the number of international passengers and capacity. The passenger base of Emirates at global level hailed from around 148 countries, who spoke more than 50 languages The focus of Emirates on long-haul services began in the year 2003 when the new technological approach of aircraft allowed the organization’s direct and non-stop (non-transitional flights) service to New York and Sydney. There has been a rapid increase in tourism in Dubai, which leads towards the development of Dubai as a logistic and travel hub. In 2013, Emirates reported a significant reduction in the fuel consumption i.e. around 3800 tons under the Flex Tracks Program, which led towards a reduction in the emission of carbon dioxide by not less than 12000 tons in a year. However, the entire Gulf region was dominated by three players: Emirates, Qatar Airways and Etihad. The expansion of the network service by such competitors was mainly based on airline alliance i.e. one world alliance, SkyTeam Alliance, and Star Alliance, making up to 84 percent of the global aviation traffic.Similarly, the entrance of Emirates in the new markets was supported by the UAE government, through the negotiation of bilateral aviation agreements in the foreign regions.The strategic business approach of Emirates has been considered to be the cause of the rapid success. The elements of the business strategy included objective/vision, values, technology, expansion, and diversification. Considering the fact that the design and capabilities of an aircraft are not cheap; there is a requirement to make heavy investment in order to bring an improvement in the integration of new technological approaches and development of additional amenities.

Introduction:

One of the leading and fastest growing organization – Emirates Airline, was founded in the year 1985. Over the period of twenty five years; it has become the third largest airline around the world, based on the number of international passengers and capacity. The business operations of Emirates were primarily out of a single global mega-hub at DXB – Dubai Airport. The growth of Emirates at global level is considered to be a success story, globally.Followed by the addition of twenty-three new routes; the growth and capacity were expected to increase by 18.4 percent in the year 2013, for the delivery of new aircraft like A380 deployed to around 20 destinations.

Despite the international foothold and continuous meteoric growth of the organization;there are a number of trends that have threatened the growth of the airline. Due to this reason, the key concerns for Emirates, mainly include the deployment of A380s and 777Xs among the existing fleets and the new routes. Similarly, the analysis of whether the investment of Emirates i.e. around $117 billion in the expansion of fleet is a smart strategic approach or a costly mistake because of the presence of a high competitiveness in the aviation market. The entrance of Emirates in new markets and competing with the carriers of legacy,were based on the protectionist policies of aviation in particular countries, like: Canada and to some extent Germany as well.

Thus, the reaction of other governments would be the same on the entrance of Emirates in the new market. Additionally, it has been quite difficult for Emirates to lead the global expansion particularly in the untapped market. However, Emirates was the largest airline based on the revenue-passenger miles, serving 138 destinations at global level in 2013. The focus of Emirates on long-haul services began in the year 2003 when the new technological approach of aircraft allowed the organization’s direct and non-stop (non-transitional flights) service to New York and Sydney.

Around 40 percent of the Emirate’s passengers either started or ended their flights in Dubai. Thus, the case is primarily based on the identification of the ways of implementing the technological factors in an attempt to increase the size of equipment, revitalizing the management of business operations and identification of new ways regarding the management of the brand innovation and marketing approach. (Juan Alcacer, 2014)

1. Please analyze the airline industry in the following steps

Environmental Analysis

Political

The government of Dubai made strategic investments and got associated with the high-profile projects,followed by a close collaboration with the hospitality industry. This was based on providing an assistance to lead the creation of strong pull, in order to attract both leisure tourists and business. Similarly, there was a strict maintenance of arms-length financial relationship with the airline by the organization – Investment Corporation of Dubai.

Environmental

The initiatives to bring reduction in the airline flight path was primarily to avoid the emission ofCO2 i.e. around 13,200 tons each year. In 2013, Emirates reported a significant reduction in the fuel consumption i.e. around 3800 tons under the Flex Tracks Program, which led towards a reduction in the emission of carbon dioxide by not less than 12000 tons in a year.

Social

There has been a rapid increase in tourism in Dubai, which leads towards the development of Dubai as a logistic and travel hub. This is primarily through the elimination of majority requirements of visa and launch of marketing campaigns. The social and cultural diversity are considered to be the crucial factors to effectively cater the diversification of the passenger base. Due to this reason, there are employees who have the ability to speak different languages. This did not lead to the over representation of one particular culture.

Legal

To enter in the new markets; there is a requirement of regulatory approval. For this reason, the aviation market at global level was primarily governed by the bilateral Air Service Agreement, which was according to the 1944 Convention between different nations. Similarly, states like the United Arab Emirates, the United States and Netherlands tend to have open skies agreements with other states to provide permission over the restricted access to the markets through any foreign carrier for the regulation of access. No rights were provided by the Canadian government to the United Arab Emirates beyond 1999 ASA.

Technological

New technological approaches have been adopted by each player in the market in order to shorten the paths of airline flights. This was done to allow the planes to align their flight with the fastest possible route between two different pairs of cities, on the basis of prevailing conditions of weather. Considering the fact that the design and capabilities of an aircraft are not cheap;there is a requirement to make heavy investment in order to bring an improvement in the integration of new technological approaches and development of additional amenities………………………..

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