Emirates Airlines PDF

Title Emirates Airlines
Course Accounting
Institution The Robert Gordon University
Pages 22
File Size 636.6 KB
File Type PDF
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Summary

Introduction With just purely two aircrafts, the Emirates airline was established in the year 1985 by the ministry of Dubai. After two decades Emirates has expanded its empire with 83 aircrafts soaring to 78 destinations in more than 55 countries worldwide. Emirates Airlines has a one of the largest...


Description

Introduction With just purely two aircrafts, the Emirates airline was established in the year 1985 by the ministry of Dubai. After two decades Emirates has expanded its empire with 83 aircrafts soaring to 78 destinations in more than 55 countries worldwide. Emirates Airlines has a one of the largest number of cabin crews hailing from 95 different nationals. With such strong history Emirates Airlines are still venturing further in to the future. They have recently made orders which are worth more than 26 billion US dollars for about 45 numbers of A380 Airbus. This will make the company to be the world's largest purchaser of Super-Jumbo Air bus. Emirates Airline is expected to become not only one of the greatest budding airlines but also the fifth most gainful airline in the world. Emirates Airlines is devoted to accomplish its mission. By installing individual entertainment system in all of its classes, having 22 audio & 18 TV channels, as well as enabling customers to not only book online, search for flights but also to choose their seating arena consequently this airline is identified as a pioneering and customer-oriented contributor of advanced services because of these outstanding features. Emirates empowered over 280 international awards, one of them being the prestigious CAPA airline of the year award 2005 by the Centre for Asia Pacific Aviation.

Vision, Mission & Values of Emirates The vision and missions of any brand is the reason for being, In branding vision, mission and values are the essential parts of successful strategic brand management. Before becoming global leading brands, companies should define clearly these key points as they shape strategy, determine companies’ directions and focuses the company’s future. The Emirates and Singapore airlines are not an exception. Let’s take a look at global leaders vision, mission and values. The Emirates is company of lifestyle for people all over the world. Being passionate in everything they perform company defines its brand vision and mission as «The principles which propel us forward»

Vision «To be the leader in aviation innovation, environment protection as well as the best airline in the world with a global network of coverage thanks to its strict compliance with flight safety, responsibility, reliability, product and service quality and competitiveness while making travel without borders to change the lives for the better».

Mission How Emirates will get to the place in the global aviation it wants to be?        

To grow as the most envied service worldwide To deliver the highest standards of product quality Improve the comfort for clients’ pleasure To remain a continued growth trends over industry Invest in new technologies to satisfy customers Zero major accidents/crashes Remain the strategy of open sky discovering new frontiers for the customers Eco-efficiency, bio-fuel usage including all the up-to-date techniques for saving fuel and emissions  To invest even more in employees providing customers with competitive staff

The key values CUSTOMER SATISFACTION - Anticipating the exact needs of customers, thoroughly evaluating and meeting them and operating as a customer focused company at all times is a part of Emirates goals and Company culture. LEADERSHIP - Emirates leadership and management process play an important role for the continuing success of Emirates Airlines. The leaders of Emirates are democratic and the leadership composes the ability and skills to motivate and influence the activities and the thoughts of people or subordinates. Their leaders make a social influence which encourages staff to achieve common goal EMOTIONAL ATTACHMENT – Emirates considers the emotional ties and bonds as the key factors of being the #1 consumers’ choice. Company delivers its character and emotions through air hostesses and investments in video and advertising campaigns and uses it as the mediator between company and customer. Every feature of the brand is called to admire customers. RELIABILITY - On-time performance, minimum of lost luggage, on-time bags deliver, the newest airline fleets in the world the core, absence of accidents/crashes core features in providing the most safe flights to customers with 100% guarantee of reliability. COMMUNITY ENGAGEMENT – is a pivotal factor in increase of Emirates brand awareness between customers. Social Media Presence, Sponsorships, Charity and Donations campaigns, Partnerships, Celebrity Endorsement are the main tools of Emirates in this process. Brand must be engaged with customers at every beloved places creating long-term relationships. RESPONSIBILITY - places great value on corporate citizenship and social responsibility, believes its’ business ethics to be integral to its’ continued success. Takes a responsibility of environmental pollution and invest in protection of the last. HIGH QUALITY OF SERVICE AND PRODUCT – company considers this value as an essential part of its’ leadership in aviation, providing customers with the highest comfort onboard INNOVATION – Emirates links customer needs with innovation strategy on in-flight services together with the newest fleets in aviation industry, making every flight a fascinating experience for each customer. Company discovers and implements permanently new ideas which make products, services, work and processes more effective and productive not only for Emirates, but also to customers. PROFESSIONALISM AND TEAMWORK – employees are one of the most valuable asset of the Emirates airline. Company tries to attract the employees of the highest caliber as well as to invest in their professionalism. «Each member of staff’s commitment towards ongoing improvement combines to maintain the competitive edge of our operation in global markets»

Competitors Overview and Situation analysis The airline industry is in its prime of life, hence there is a tough competition in the market and the rate of sales growing faster before beginning to stabilize gradually. In this stage advertising and promoting sales makes it obvious that the competition is getting more aggressive. Furthermore to find best services required in gaining the attention of customers, many competitors have increased their research and development (R&D)budgets. In view of this, many companies have now started on focusing to differentiate their products and services from their competitors in order to capture their customers' brand loyalty. For case in point, there are companies concentrating on cutting the operating cost, the result is that the profit margin will decrease and so the least efficient companies will have to leave the market so that only the well-established companies remain. There are many companies which use offensive strategies instead of defensive strategies. They achieve this through modifying their market product and marketing mix to survive and compete during this stage.For instances to modifying the marketing mix, the Kuwait airways implemented the strategy by launching a low cost carriers with the intention of increasing its customer base and loyalty and also increasing sales of.

The Competitors Emirates airlines are facing stiff competition with major international and national airlines on the market shares. However the major competitors identified here are the national airlines of other states of UAE.

Air Arabia Air Arabia, a national airline of the Sharjah emirate is established in 2003 by Sharjah ruler's decree. It is based in Sharjah airport and has got quick access to Dubai and fast check-in facility. Air Arabia is the only low-fare airline in UAE and the first airline to introduce the low budget airline in Middle East and Northern Africa since 2004. After success stories of American and European low-cost airlines Air Arabia modeled low fares on customized local preferences. They focused on their business mission by offering most convenient and frequent online booking as well as less expensive air fares in the market with better service and safety standards. Air Arabia's worthy scheme "Pay less. Fly more", enables customers to make smart travel choice; those who can't afford and were hesitant to travel in the past, to start flying and those who traveled more frequently, benefiting both and vacation travels.

Etihad Airways Etihad Airways first captured the skies in November 2003, with only four member team organization. Now it stretched out to a family of over 2500 employees spread across region. Etihad airline has also reputed as the national airline of the UAE (Abu Dhabi) by a royal decree of Sheikh Khalifa bin Zayed Al Nahyan (President of UAE) with investment of AED 500 million. Compared to 2006, Etihad conceded more than 4.6 million passengers in 2007. It has also been designated as the World's leading New Airline two years in a row, in 2004 and 2005.

RAK Airways The fourth national airline of the UAE is RAK Airways which was established under an Emiri Decree by Ruler of Ras Al Khaimah in February 2006. The core intention of RAK Airways is to give support to the economic development of Ras Al Khaima. The development includes economic free zones to magnetize business as well as residential, leisure and tourismprojects. This Airways function on charter as well as scheduled services sobas to assemble the demand of the various markets that the airline willnserve. In a cost successful manner they provide value for money to customers.

Emirate's competitive advantage To gain a competitive advantage amongst its competitors Emirates Airlines adopts differentiation generic strategy by contributing the top notch quality services. This is done to be the best company in the market and to segregate from its competitors. For illustration, the first airline that offered TV screen for all classes was Emirates airways. Another instance, along with other airline company like Qatar Airways, Emirates airlines provided training courses by using the most modern machines, called plane simulator. This was a feather to the hat of Emirates airlines. The aim of such change is to be on top of the industry thus increase the awareness nationally and internationally which in turn increase the demand and the profit.

PEST Analysis of Emirates Political Political situations that affect the airline industry will be mainly wars and terrorism. For instance, due to the terrorist activities in different areas of the globe, namely in USA, Palestine, Iraq etc made these areas unpleasant for not just tourists but businessmen to travel.

Economical One of the factors following the success of any airlines is to have the most sophisticated airports which are facilitated with cutting edge technologies to meet customer’s requirements. UAE has major plans on investing to develop such international airports in Abu Dhabi and Dubai. The benefits are to enhance the economical growth, reduction on oil revenues, to increase the number of tourists plus thereby driving profits to airline firms.

Social The population of the world is shooting at high rates. Thus the social factors also increase. For instance, the population is expanding in UAE, this there is because UAE is a multicultural country. As the expatriates number in UAE increase, the profit obtained by the airline company also increase.

Technological New technologies affect this industry in negative and positive manner. For example, the teleconferencing reduced the necessity for face to face business meetings. This reduced the number of businessmen traveling and hence the purchase of business tickets.

SWOT ANALYSIS OF AMIRATES

Strengths  Member of Arab alliance ( Arab Air)  First Airline Company to offer Internet booking with various features and options.  Self-Check in facility for customers in Dubai and partner airports.  Long-haul flights Dubai to New York  Worlds largest purchaser of Airbus by 2012 , booking 45 Airbus air crafts.  Increasing employees devotion to work by providing training , rewards and performance analysis.  Official sponsor of FIFA World Cup 2006.  Skywards Miles FFP shared with many airlines including Sri Lankan Airways.

Weakness  Huge investment to purchase air planes and implementing latest technologies there is high amount of operational cost.  Emirates airlines fares are higher than traditional airlines.  No global alliance membership for Emirates Airlines.  No permission to operate in Abu Dhabi , capital of UAE.

Opportunity    

UAE ‘s higher per cap income Government is disposing money to develop regional airports. High forecasted growth rate for UAE tourists. Growth on population and internet usages lighten World and Dubai makes room for opportunity.  Dubai Air shows helps to promote regional aviation industry.

Threat  Might face losses of around 5 billion due to soaring oil prices.  Aviation security expenses and insurance will also increase Operational expenses of airlines industry.  Low cost carriers are another threat for traditional airline operators.  Information security vulnerabilities poses danger to electronic ticket System.  Natural disaster and acute diseases affect tourism.

Emirates' service offerings The Emirates is an international air transport organization which is able to communicate with all international airports in the world. It is one of the most popular airlines for its service to all kinds of passengers. Emirates airlines were the second customer in the world when Airbus A 380 was launched. Today, Emirates has the largest fleet of Airbus A380 in the world. It offers: A) First Class B) Business Class C) Economic Class Services

The service of first class Emirates has distinguish first class service and provides 3 kinds of first class seat like: The full suite with doors. Flat bed seat without doors which is Sky cruiser Sleeper Seats. The first class is a comfortable service where there is full suite with doors completely closing with a mini -bar, a coat rack and storage which is suitable for security and privacy. The seats are converted by 6 .7ft fully flat bed and ICE system in 58 cm. Private suites is available in the aircraft.There are flat bed seat without doors which is Sky cruiser these kinds of seating are available on the remaining Boeing 777-300ERs, 777-200s, 777-300s. Likewise these types of seats are converted by flat beds using integrated passenger seat control and 48 cm ICE system. Likewise sleeper seats and these kinds of seating's are available on 3-class A330-200 and A340300 aircraft which is comfortable for passengers.

Business Class The business class seats are enough on all class of modern air craft which include winged headrest with six-way movement, massage function, privacy partition, seat power supply, USB Ports and an RCA socket for laptop connection. On the other hand entertainment on ICE system which is shown on a 43 cm wide TV screen, per seat converted by overhead lights and reading light.

Economic Class headrest with six-way movement, massage function, privacy partition, seat power supply, USB Ports and an RCA socket for laptop connection. On the other hand entertainment on ICE system which is shown on a 43 cm wide TV screen, per seat converted by overhead lights and reading light.The emirates Economy Class are suitable for all kinds of passengers which is offer all time 79-81 cm standard seat. The seats are adjustable headrests, ICE In-Flight-Entertainment with 600-1000 channel and in-seat laptop power-outlets on newer aircraft and laptop recharging facilities in galleys in older aircraft.

Entertainment system By the personal entertainment system Emirates became the first airline in the world. There are three types of entertainment system on Emirates like: ICE, ICE digital, digital widescreen and emirates TV and radio. There are also fleet offers for passengers with 15 video and 26 audio channels, as well as 50 video games.

Pricing strategies Since the 1980s airlines have introduced dynamic pricing strategies which Emirates adopted as well. This model allows airlines to manage the seat capacity of each airplane while obtaining the highest price for each seat. Dynamic pricing is a complex methodology based on availability, customer demand and competitor pricing. As a result, pricing of individual seats is constantly in flux.

Service Quality Dimensions of Emirates After extensive research, Zeithaml, Parasuraman and Berry found five dimensions customers use when evaluating service quality. They named their survey instrument SERVQUAL.In other words, if providers get these dimensions right, customers will hand over the keys to their loyalty. Because they’ll have received service excellence. According to what’s important to them. The five SERVQUAL dimensions are:  RELIABILITY-Ability to perform the promised service dependably and accurately  RESPONSIVENESS-Willingness to help customers and provide prompt service  ASSURANCE-Knowledge and courtesy of employees and their ability to convey trust and confidence  EMPATHY-Caring, individualized attention the firm provides its customers  TANGIBLES-Appearance of physical facilities, equipment, personnel, and communication materials Emirates also follow those quality dimensions.  Reliability-Emirates promised to flights destinations depart and arrive on schedule.  Responsiveness- Emirates gives prompt and speedy system for ticketing,in-flight baggage handling.  Assurance-Emirates is a trusted name,has good safety record and competent employees.  Empathy-Emirates understands special individual needs and also anticipates customer needs.  Tangibles-Aircraft,ticketing counters,baggage area,uniforms all are available in emirates.

Emirates Marketing Strategy Segmentation Emirates segments its market into two major categories, the profitable (business travelers) and the unprofitable one. These can be further divided on the basis of the average length of trip, the frequency of trips and the brand loyal customers. Business class passengers are the most profitable to Emirates and are willing to pay for their luxurious services as price is relatively inelastic for them. Emirates offers these travelers great Wifi services and more room to work and hence they prefer nonstop trips. Emirates loses out where the economy class travelers are concerned as they are very price elastic and prefer to choose low cost carriers. Brand loyal customers are those who have been flying with emirates for years regardless of their prices and rely on the quality and reputation of the airline.

Targeting Emirates caters to high ranking executives and businessmen belonging to the age group of 30-60 who are looking for luxury and comfort in travel. It serves all customers regardless of nationality.

Positioning Emirates positioning strategy is primarily benefit oriented and aims at offering unique services. Emirates positioning is universal, innovative and offers good value for money. Where business and first class passengers are concerned emirates positioning is one of high quality, luxury and comfort on board. For families, Emirates positions itself as a premiere airline providing a complete and enjoyable inflight experience British airways positioned itself as a brand that provides excellent quality and service but the losses incurred over the past 2 year tarnished the brand name and image.

Differentiation

Emirates ranks first when it comes to differentiation. Emirates was the first to implement modern technology like mobile phone usage on board, internet browsing and the sun and moon concept. They also offer services like showering on board for first class passengers and complimentary chauffer services.

Growth strategy Emirates from the very beginning has adopted an aggressive growth strategy. Their profit figures show an annual increase without fail barring the second year of operations. Emirates has been continually expanding their passenger capacity and number of destinations. The strategy employed by them relies on the acquisition of fuel efficient luxurious aircrafts and competent staff and the...


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