Professional Documents
Culture Documents
History of Emirates Airlines
History of Emirates Airlines
This report has been developed primarily for Emirates Airlines. The idea
being put forward is for Emirates to widen their market grip into low farebudget airlines as well. Emirates have been a market leader in the aviation
industry for over 2 decades. But in order to cut short the completion and also
increase their market share; Emirates need to dive into the budget airlines
sector. If Emirates implement the plan perfectly, emirates can gain up to
30% of the entire budget aircraft market share in under 3 years. The plan is
for emirates to initially start short distance international flights to and fro 20
countries with Dubai being the international hub for these planes. This plan
will be executed with the planes being supplied by Airbus. These aircrafts will
be specially designed for Emirates new low budget carrier;
EmiratesMadyaf.
Emirates Airlines commenced operations in the year 1985. Emirates now
operate and fly to over 140 destinations around the globe. Their approximate
valuation (if gone public) is estimated at up to $40 billion. Emirates is a
subsidiary of The Emirates Group which is an aviation company holding
which is a government-owned corporation.
The main objective of this paper is to analyze and evaluate the pros and cons
of introducing a new carrier into the Emirates Airline family.
launch an airlines with a capital of dollar 10 billion, they had a clear vision of
their goals. By leasing their first jets from Pakistan, Emirates had their first
launch. Later, in 2005 they ordered 42 Boeing-777, which was one of the
largest orders ever placed; then on Emirates has grown rapidly and was
taken to new heights. Even though the Dubai government owns Emirates, it
has been treated as a separate business entity, which has helped in its
tremendous growth through their unique style and through competition. Over
the years the airline business has expanded to over 140 destinations, which
gives the customers the benefit of direct flights. Besides that, the airlines
business has expanded to award-winning cargo division, leisure division and
an airline IT developer. The tremendous feedback from the pleased
customers has only raised the rank of Emirates among all its competitive
flights. Accentuating its growth, Emirates airlines is one of the largest
operators of Airbus A380 and Boeing 777. Moreover, it has grown in its
financial status immensely, which can be seen from the survey as of
2013/2014 which shows it carried 44.5 million passengers and 2.2 million
tons of cargo marking its at the summit among other airlines.
SWOT analysis
Strengths:
Weaknesses:
world.
Emirates lie in the UAE where the
travelers
The increase in competition has
limited the market growth, and has
flights.
The decrease in tourism can affect
it unswervingly as it mainly
Opportunities:
Threats:
threat to airlines.
With flights like Qatar airways, and
in the market
Low cost airlines like Air Arabia,
countries so as to provide
PESTLE analysis
Economic: Emirates airline grew and was developed in Dubai, which has a
relatively strong economy and a high GDP per capita. Dubai also demands
high tourism and this flight is the number one choice for most. All these
points lead to considerable revenue for the company. After the Great
Recession of 2008, there had been a downturn in the aviation industry as the
cost of labour, fuel, raw material costs all increased, but emirates combated
this by reducing rates to their popular destinations such as India and
Pakistan. Now more and more people look to saving their money on
travelling, therefore this will benefit our budget airlines.
Technological: Every company tries to gain the first mover advantage for
becoming highly popular and successful. Emirates has won numerous awards
for their brilliant technology. Emirates relies on Boeing 777 and Airbus A380,
both of which lead to remarkable fuel saving and CO2 per passenger.
Emirates have adopted the best flight planning system, Flextracks, that will
allow them to use flexible air traffic routes leading time to save time and
fuel. Looking at a sample of 592 flights, Emirates managed to save 628 tons
or fuel and reduced overall trip time by 57 hours. Every minute reduces CO2
emission by 160 kilograms. With this much being saved per minute, the fuel
requirement also lowers, making it more profitable for the budget airline.
Political & Legal: Airline industries have been greatly affected by the tragedy
of the 9/11 attack. Due to this, the security all over the world has increased.
Airports have to pertain to strict regulations that are set up by the various
government authorities around the world as they operate in an environment
where passengers safety is of top priority.
Consumer Analysis
ones and strengthen family bonds and friendships. Hence, the social
aspect is achieved.
2) Esteem needs and Self-Actualization The satisfaction one receives
from esteem needs is a result of being accepted and valued by the
society. By travelling, people not only visit important monuments and
museums but they also explore the temples and shrines which lead to
them experiencing the different cultures and traditions. Different
places have different ways of affecting a persons way of thinking that
can lead them to live life in a positive way through self enhancement.
Once the esteem needs phase is achieved, self-actualization becomes
easier to reach.
Competitor Analysis
Emirates, one of the leading airline companies in the world, amongst the
other high flying carriers such as Qatar Airways, Etihad Airways, and
Lufthansa etc. compete for slot dominance which has become a glaring
reality. The integration of EmiratesMadyaf has also been open to prevailing
competition from several low-cost carriers including:
Fly Dubai
Launched in 2008, operates in from a modernized and sophisticated Terminal
2 functioning in the Dubai International Airport and currently has a massive
fleet of 45 Boeing 737-800 NG flying to over 96 destinations including Middle
East, Russia, Africa, and Eastern Europe. The airlines are designed to offer
only certain respective services such as optional purchase of checked-in
baggage, weightage of max. 32 kilos and pre-booked food services (Robeel
Haq, 2010).
Air Arabia
Air Arabia was nominated as Middle Easts Best Low Cost Airline at the Skytrax
World Airline Awards 2013 (Skytrax, 2013). Serving around 59+ destinations from two
INDIRECT COMPETITION
Other low-cost airlines that are not in direct antagonism but may still pose a
threat to EmiratesMadyaf are as follows:
Ryanair Headquarters in Dublin, Ireland; Ryanair poses a significant threat
to EmiratesMadyaf position due to its old dominance and consistent
performance over the years. With total revenue of 1.24bn and an average
passenger count of 63.8m along with flying to several destinations,
competition is definitely fierce with Ryanair around.
EasyJet - Biggest low cost airline in Britain established in 1995, EasyJet gives
competition to all the no-frill airlines with its whooping designed aircrafts and
high maintenance quality standards. Currently, their revenue stands at
1.19bn with a passenger fleet of 83m per year. Moreover, EasyJet competes
drastically for the epitome in budget airlines against EmiratesMadyaf as its
sheer dedicated cabin crew and high flying reputation speak for itself.
STP PROCESS
SEGMENTATION
TARGETING
PRODUCT POSITIONING
Segmentation is likely to be
Targeting is likely to be
Emirates airlines are likely to
demographically distributed undifferentiated; however more
be considerate with
with emphasis on
distinct focus on the untappedEmiratesMadyaf in terms of
concentrating on those with
market segments; targeting positioning strategies adopting
both high and medium
those in need.
highlighting the user, benefit
lifestyles.
and price differentiation
aspects distinctly.
Product
Product
Pricing
Price is an important element in the overall marketing plan and an apt
pricing strategy needs to be set for EmiratesMadyaf. Many factors affecting
the appropriate pricing strategy including:
Passengers carried per year and responsiveness of target market The size
of the passenger fleet will determine the pricing tactic and the aggregate
price to be charged into the market. Moreover, their willingness and attitude
to pay for elastic prices is a factor.
The cost structure Traditionally, low-cost airlines aims to offer low fares via
online booking systems, concealment of free in-flight catering and the
attainment of homogenous flights (Cassia et al., 2006). With the containment
of costs being an essential factor in the successes of low-cost carriers,
Air Arabia
Pay less, Fly more is Air Arabias
Place
Emirates airlines currently fly to 164 destinations spread over 78 countries in
six continents. Emirates have a dense presence in the South East Asian
countries as a majority of UAEs population are citizens of those countries. As
our budget airline is still fairly new, we plan on offering flights to 54
destinations in 20 countries listed below. We also offer
1.
2. Afghanistan
3. Bahrain
4. Bangladesh
5. China
6. Egypt
7. India
8. Oman
9. Pakistan
10.
Philippines
11.
Qatar
12.
Kuwait
13.
Saudi Arabia
14.
Sri Lanka
15.
Nepal
16. Yemen
17. Jordan
18. Lebanon
19. Iran
20. Iraq
21.
22.
24.
25.
26.
PROMOTION
27. Emirates airlines are a strong believer of promoting their product, their
budget for promotion almost reached a billion dirhams. Promotion is the best
way to communicate the product to the end users. For our budget airline, the
promotion mixes that will be used are as follows:
28.
especially the internet and mobile portion has become an exclusive way of
communicating and receiving feedback from the customers. Social media
advertisement leads to improved sales and great exposure. Print media
refers to newspaper and magazines, for those who dont have enough time
to surf the web; this would be the most appropriate. TV and radio
advertisements are likely to make the product more appealing to the
people; they are also moderately cheaper per target reached and
communicate to a mass audience. Outdoor media that will be used are the
32. The other methods in promotion mix are Personal Selling and Sales
Promotion. Personal selling would not be feasible (in time and money) for the
organization as it would involve face-to-face conversation. Sales promotion
provides incentives in order to make quick sales, Emirates is a reputed airline
and doesnt require making quick sales as they already have a large following. If
anything, these will be used during a recession to attract people.
33.
34.
35.
36.
37.
different cultures from around the world and through that we plan to
45.
Conclusion
46.
and services that have been given recognition by its loyal customer
base. The inclusion of EmiratesMadyaf to Emirates airlines will give it
the opportunity to cater to new clients by altering the experience
according to their needs. Not only will this new low-cost airline function
in an environmentally friendly manner but it also helps to increase
tourism.
47.
48.
49.
50.
51.
52.
53.
54.