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Study on Emirates A380s









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Table of Contents
Answer 1: ...................................................................................................................................................... 3
Answer 2: ...................................................................................................................................................... 5
Answer 3: ...................................................................................................................................................... 7
Answer 4: ...................................................................................................................................................... 9
References .................................................................................................................................................. 11





















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Answer 1:
The aviation industry in Dubai is one of the most attractive and helpful areas through which we
get benefits in the field of economy. The topic throws light to the benefits and the success factors
and the disadvantages and the strengths of the aviation sectors. The economic impact arises by
the productivity of the aviation industry. The success factors is totally dependent on the strengths
and the opportunities which are the outcome of the decisions taken by strategy and the Dubai
government has taken the steps in the aviation sector by taking decisions in terms of partnership
and investments. Dubais aviation sector is tremendously increased in the past five years due to
the change in the technology and good innovation leading to the growth of the industry. The
facilities of the cargo are also there in this sector. The fleet of workers is very agile and efficient
in Dubais aviation sector and modern facilities are available to the customers. The passengers
are increasing day by day in this sector. The location of Dubai make it connected with all around
the world make it easy for the passengers to travel from any place. The market conditions are
improved in Dubai for the aviation sector and the competition among the other markets have
been reduced due to the leading growth of the aviation industry. The aviation sector provides
employment to many people who still are jobless round about 250 thousand jobs have been
rendered to the unemployed as it reduces poverty and growth of the sector will be increased. The
small markets have also increased their growth as due to the growth of the aviation sector more
and more people come to Dubai and the smaller markets my reach to a new height. The economy
has also boosted to a record figure of about 45.6 billion dollar A consumer oriented approach put
a significant effect on the aviation industry as in the airport the passengers can relax and they do
not have to look for the things they want as they the needs are easily solved and the security is
really good. The government is also taking some efficient decisions and these decisions are quite
handful for the growth of economy in the aviation sector as they take partnership investment aid.
Dubais aviation sector gained importance from the travelers of Asia and Africa so they invest a
lot for them. The threat to the aviation sector of Dubai is the growing people in Dubai making it
congested and hampers the growth of the sector. Due to the heavy load in the airport the flights
have been delayed due to the traffic congestion which is another threat to this industry. The
SWOT analysis includes the strengths, weakness, opportunities and threats. The internal
environments comprise strength and weakness, external environment includes the threats and
opportunities.
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Strength- The emirates get a financial help from the Dubai government which help them
to grow rapidly. Dubai is in perfect location where it is rich in oil, has a strong hub in
Dubai, the customers are really happy with the service provided by Emirates, Emirates
has great employee strength of about 50,000 employees and Emirates has a wide range
covering up to 72 countries in 6 continents.

Weakness- Emirates rely heavily on the international moving traffic, Emirates have many
competitors which indulge in high quality services and high cost of maintenance.

Opportunities- The new brand of fleet can be deployed so that the customer confidence
can be increased while travelling. People used to travel more as a result they can know
about more destinations which increases the customer attraction.

Threats- Emirates has increased at a rapid pace so the competitors can increase in the
market. The fuel costs are very high so it is hard to afford by Emirates and the policies
and the decisions can be changed by the government at any time causing a failure in this
industry. The major competitors are Etihad airways, Qatar airways, jet airways and the
Air India.

PESTLE analysis- This analysis is important for the marketing strategies and the analysis
of any industry or organization. It gives us a scene of good growth in any industry and
explains the industry planning and development. The pestle analysis includes political,
economical, social, technical, legal and environmental factors.

Political- These factors include the laws and the government policies and trade
licenses in Dubais aviation sector.
Economic factors- It includes the interest rates, economic growth rates, inflation
rate and the exchange rates etc.
Social- It includes the demographic characteristics like the increase in population,
more people get educated and more tourists are coming to Dubai.
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Technological factors- The use of teleconferencing makes the people not to take
business meetings as the deal is finalized over telephone and the e-booking
system makes the reservation process much easier thus reducing the printed
tickets.
Legal- It comprises laws like the Consumer Protection laws and the Anti-trust
laws.
Environmental-It includes the climate, weather which affects the operations of
this industry.

Answer 2:
The Emirates has introduced the 140 new orders of super jumbo jet A380. The main motive
behind this massive expansion plan is to take forward the operations intensively in profitable
routes where the passenger demand is high. Commercial Operation of Airlines is a highly capital
intensive business. It also requires a high degree of expertise to maintain the day to day
operations.
Michael Porters five forces model are used to analyze the competitive environment for Emirates
and similarly the scale of the threat from other Gulf airlines, to the rest of the world. In order to
analyze the environment, the analysis is divided into five parts namely: (a) threat of entry, (b)
power of suppliers, (c) power of buyers, (d) threats of substitutes, (e) competitive rivalry.
THEREAT OF NEW ENTRANT: Today with the increasing number of passenger opting for
the airline for travelling there is a sudden increase in passengers in the last decade. Moreover
with the globalization there is also increase in cross border travel around all the major cities of
the world. So, with the increase in opportunity, a large number of corporate houses has taken a
key interest in the commercial aviation sector. Thus with the increase in the operations it is
expected that the new players is expected to take the market share of the existing players in the
planned routes.
Though there is a real threat from the new entrant, it is a matter of fact that the panned existing
routes are mostly long distance and it requires high expertise for its operations. Moreover taking
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the licenses for key international routes are very difficult and to get permission. So it can be
estimated that Emirates will have very negligible effect on the threat from the new entrant in the
aviation sector.
Power of Suppliers: The airlines industry has a very few suppliers for its product. It is only
Boeing and Airbus who are the major suppliers of the products. The jumbo jets are highly
specialized aircraft and require huge capital to build an aircraft company. So, it is a matter of fact
due to high degree of specialization involved in the manufacturing of products there is a huge
power of suppliers. But with the increase in demand there is also fierce competition between
these two companies which result in price wars. It is mainly due to this factor of price war, the
airlines company such as Emirates do get an advantage over the price while purchasing the
aircraft.
Emirates has a huge and vast experience in airline operation. They have successfully negotiated
with the buyers over the years and have a reputable credentials with the aircraft manufacturer.
Moreover it is a matter of fact that Boeing has to maintain the spare parts of the aircraft. So it
was essential for Boeing to give a good rate to Emirates as it was huge order of 140 fleets worth
billions of dollars. So it was absolutely clear that in this deal of 140 A380, Emirates has an
advantage over the Airbus in the deal because of its commercial interest with Emirates.

Power of Buyers:
Buyers play a key role in the success of the organization. Since the aviation sector is basically a
service sector, it is very important that the buyers are given appropriate level of service.
Otherwise if the airlines fail to provide the necessary excellent service, the sales are bound to be
hit definitely.
The presence of Emirates in the aviation sector of Dubai and the Gulf region is for many years.
All over the past decades they have provided the customers with extraordinary services and they
are known worldwide for that. Moreover Emirates as a company they have a huge branding and
appropriate positioning in the minds of the buyers of the service and it is very difficult for other
players to eat away the Emirates loyal customers.
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Competitive Rivalry: Airline industry in Dubai and the Gulf Region has seen a huge surge in the
competition. So there is always a high possibility that the competitors can take away a significant
portion of the market share. Price wars may start to attract customers and thus to take the chunk
of market share.
Emirates have a wide experience and they have upgraded themselves from time to time
according to the changing preferences of the industry. So it is very difficult to beat them by the
other players and the new players.
Threat of Substitute:
Airline has a very few substitute. Though there is introduction of high speed monorail and bullet
trains for intercity travel but still now airline lead the travel for international travelling.
Emirates have a wide expertise in international fleet and they have a huge reputation for that. It is
very difficult beat them.




Answer 3:
Emirates Aviation service has been there for almost 29 years now and is still continuing with its
stepping stone, this has gained a lot popularity over years and all of that happened because of its
best and world class services they provide during their flights. The first flight they flew was on
25
th
October 1985 out of Dubai with its just two Aircraft- a leased Boeing 737 and an Airbus 300
B4. Then as now their one n only goal was Quality not quantity and in the years taking those
first small steps onto the regional travel scene Emirates has evolved into a globally influential
travel and tourism service known the world over for their commitment to the highest standards of
quality in every aspect of their service and business. Though wholly owned by the Government
of Dubai, Emirates has grown in scale and stature not through protectionism but through
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competition, competing with since growing number of international carriers that take advantage
of Dubais open skies policy. But they see it as vital to maintaining their identity and
competitiveness. Although this whole aviation business was started and undertaken by
government as fist but after its explosive growth the government of Dubai saw it fit to be a
wholly independent business entity. The airline has recorded an annual profit in every year since
its third in operation. Keeping history apart, currently Emirates aviation is having a fleet of 200
aircraft and carrying its passengers to more than 140 destinations and 70 countries around the
world and been expanding their network since. Over 1200 emirates aircraft depart from Dubai
each week to its several continents (destinations). In the year 2001 emirate demonstrated its
confidence in the industrys future growth and announced the largest order in aviation history;
ordering a value up to USD 15 billion dollars. In 2005 Emirates announced the largest order ever
for Boeing 777 aircraft 42 in all a deal worth USD 3.3 Billon. Later in 2007 and in 2011
Emirates Aviation passed orders of 120 Airbus A350s and 12 Boeing 777-300ERs worth an
estimated USD 34.9 Billion worth approximately USD 18 billion respectively. By now, we all
know that Emirates Aviation has been concentrating with growing and spreading its business and
it has made some jaw dropping orders to grow its fleet and aircraft family. It has been threatened
by some of that huge cost to be paid and managing those globally spread network and managing
its flights all over. Lobbying pressure from European carriers has been one of its main obstacle
or problem for Emirates as for European carriers they never try and go with high budget tickets
and flights, what they offer is very cheap and low as compared to the Emirates aviation service.
Talking about the challenges that Emirates area facing as from the European carriers are they are
comparatively cheaper and they and about services they offer more or less the same, but of
course the quality is the main factor that has been EMIRATEs primary concern as far as the
service goes. Globalization and a healthy competition area the main factors for lowering the
prices and hence the main reason for competition. Emirates Aviation needs to concentrate on the
quality service they provide as for the reputation they have and the overcoming the headache of
cost; the only way out is by increasing the margin of profit, so what they need to do is the
management needs to focus on the most profitable routes for its aircrafts and of course by
abiding international law. The European carriers are putting pressures to the Emirates because
first of all Emirates is a self-financing industry and the government of Dubai is supporting them
financially so the European carriers cannot compete with the Emirates in all aspects. The
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European carriers has a fall in the economic growth of the European carriers, their revenue have
been reduced. The European carriers become unpopular airline industry as the Emirates are
capturing the market. The European carriers are trying to get bonded with the Emirates.
Answer 4:
Emirates which is one of the largest company of airlines that we know and the entire world have
that bit of idea about it. Emirates backdrop is entirely based upon Dubai, United Arab Emirates.
Emirates airline is one of the supporting and subordinate part of the Emirate Group which is
entirely operated and controlled by the Government of Dubai. As we told in the above that it is
one of the largest and renowned airlines that the world ever had, significantly it the largest of
Middle East and nearly operates 3400 flights per week from the base of Dubai International
Airport to almost every single countries and cities across the six continents. One more noticeable
facility that it provides is that it gives cargo facility separately. The cargo facility is operated by
the Sky Cargo Group which is also a part of the Emirates Group. One of the top ten ranked in the
passenger carrier worldwide, this airline is the largest in the Middle East in terms of profits
earned, passenger carried and the fleet size also. As per the passengers carried, it got the fourth
largest airlines of the world term in the year 2012.
So as being one of the largest airlines, Emirate maintains the air fleet of both Boeing wide-body
Aircraft and also all wide body aircraft of the Boeing 777. After the Singapore Airline, Emirate
airline is the next in the world to announce for the orders of 140 airbuses A380s. This order was
passed by signing the contract worth over $34.9 billion and that was spent by the Dubai Govt. at
the Dubai Air Show. The order was announced in the year 2000 and in the month of April and
after the step by step procedures it was developed to be a passing order. It was planned so highly
that the plan itself was the largest civil aircraft that may ever been built. After the constant
development to the airbuses and passing the orders one by another the total toll of the number of
orders that goes to 58 in the year 2007. The first airbus named A380-800 was displayed in the
Dubai Air Show. Some of the airports like London Heathrow are too much crowded and for that
the space for landing and takeoff meet some difficulties. Knowing that fact, the main purpose of
introducing these airbuses was to maximize the use of scarce takeoff and landing slots at the
crowded airports. The demand and the popularity have the positive response after introducing the
airbuses. So taking that into the consideration and knowing the huge success behind the
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introduction the Dubai Govt. in the year 2010, announces the order of additional 32 airbuses of
A380s in the Berlin Air Show, which costs worth US$ 11.5 Billion. So the expectations become
sky high and 90 airbuses are planning to introduce by the year 2017.
Emirates with its newly added 140 A380 airbus to its fleet it will have huge scope in increasing
the operations in the highly profitable routes. This should be based on absolute strategic
decisions because Emirates should consider the upcoming profitable routes to increase its
operations there. As a long term strategic plan with 10 years in to consideration it must add 60%
of the 140 new fleet where there is huge pressure of airline passenger. The European Routes
should connect to cities like London, Paris, Geneva and Frankfurt. It is in these routes the carrier
should add more fleet as the demands from Dubai with these routes are huge. Moreover it should
add fleet to profitable routes to American Cities like New York, California, San Francisco. The
Asian profitable routes to Mumbai, Delhi, Karachi, Islamabad, Bangkok, Beijing, Shanghai
should have more fleets as demand of passengers to Dubai from these cities are immense. So it is
necessary for Emirates to add the new fleets in the coming years as demands are expected to
grow three fold from these regions.
In the strategic portion to handle the situation and the revenue report, I think the authority should
take it as serious matter. The recent dropping in order may result in the certain crunches in the
strategic view. The airbus is going through low sales and that why the review options needs to be
taken care of. It is not possible for the worlds largest jetliners to wait for the economy to rescue
but to come up with the superior strategic plan that will help the entire infrastructure to develop
and support to earn more profits. It is one of the most large airbus facilities, so they got the
competitive advantage. So in that point of view, the only required thing is the sound strategy to
operate the issues of the airbuses A380s and make the systematic plans for the next introduction
.




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