HUMAN RESOURCE MANAGEMENT

ASSIGNMENT

Group members: Alan Fernandes, Jonathan Dias,

Jobby Joseph, Najah Bashir
Course: B.Com (Hons), Sem III
Batch: 2018-2021
 PESTEL ANALYSIS OF AVIATION INDUSTRY IN UAE

1. Political Factors
The airline industry is easily influenced by the political changes that take
place in the country. This includes wars as well the economic situations
going on in the country. For example, Trump's administration's decision to
ban travel for the citizens of six Islamic countries that are associated with
an increased number of terror attacks is a political decision that could limit
Emirates' growth in the region. Due to the sudden drop in Gulf airlines'
flights to the US, Airlines have also decided to reduce the number of flights
travelling to the US as well as to discontinue certain routes.
2. Economic Factors
International airlines are constantly exposed to and influenced by the
changes of the global economy. An unfavorable economic condition, such
as an inflation could lead to an increase in the prices for airline seats,
which would subsequently reduce the number of leisure trips and business
trips as customers would not be willing to spend a large amount for it. The
economic condition of a country also affects the resources required by the
aviation industry. For example, the drop in the price of crude oil in 2016
allowed many airlines to reduce their operational expenses. However, for
Gulf airlines, this also reduced the demand for travel to oil rich regions.
3. Social Factors
The social factors in the external environment include consumer tastes'
and demands. This varies according to the income level, demographic and
culture of the country. For example, Emirates Airlines is extremely
cautious of the demographic present in the country as well as their current
needs. For instance, during Ramadan, the crew must respect the values
and traditions of Muslim passengers by providing different drinks and
snacks for Iftar. The cuisine of the flight meals will also depend on the
tastes and preferences of the concerned nation.
4. Technological Factors
The airline industry is always growing, and has witnessed rapid changes in
its technological environment, employed to reach out to their target
audience. Emirates is highly affected by its use of the internet and IT, as it
has been operating with integrates technology services. It includes various
IT systems that passengers can avail during the flight, and includes latest
trends to make it more appealing to the customers.
5. Environmental Factors
Airline companies need to be aware of and consider the environmental
changes that may affect their service. The climate and weather condition
directly influence the travel experience of the passengers on the flight. In
harsh weather conditions, it is important to prioritize the passengers'
safety and avoid any accidents that could occur. It is also essential for a
company to acknowledge the impact it has on the environment, and to
give back to it to reduce the overall impact. The Emirates Airlines offers a
new service known as recyclable cutlery. These eco-friendly gadgets are
not made of plastic, and can easily be recycled after use.
6. Legal Factors
The rules and regulations provided by the Government must allow airline
companies to be more cautious in both international and local dealings.
The various operations and actions of Emirates' Airlines are targeted
towards meeting the highest standards, while also showing concern about
the different policies about law, health, and safety concerns.
 OPPORTUNITIES OF THE AVIATION INDUSTRY IN THE UAE

 There is lot of scope for expansion and growth opportunities:

The aviation sector in the UAE is projected to reach AED323.6 billion
by 2030, according to the Airport Council International (ACI) World.
UAE has invested an estimated $270 billion in the aviation sector,
which includes improvements to airport infrastructure and a fleet of
884 commercial aircraft. UAE airports are expected to increase at a
rate of 5.2 %. Due to the EXPO 2020 it will increase visitor flow to
Dubai, which is projected to cross 20 million in two years from the
currently estimated 16 million.
 Coordination with other relative business Industries to match their
schedules will result in a boom with regards to the number of
passengers:
Linkups with different cargo businesses can extraordinarily expand
traveler volumes. By synchronizing schedules, aircrafts can offer
service support to destinations through a code share arrangement
with an accomplice cargo business.
 The modernization of I.T can help save a lot of expenditure, and by
adding some Value-Added Features:
With large investments being made for the Aviation Industry in UAE
it gives a lot of scope for various technological advancements.
Advancement in I.T can bring about cost reductions, from more eco-
friendly aircrafts to increasingly computerized procedures on the
ground. The Boeing 787 aircraft fuel was made using Salicornia plant
oil extracted from the SEAS farm in Masdar City which is an example
 of how advancement in technology helps aircrafts in UAE be more
eco – friendly. Innovation in technology can likewise bring about
expanded income because of added service features and upgrades
for passengers like in-flight Wi-Fi access and other worth included
items for which clients will pay extra.

Using Solar Panels to completely power Dubai International Airport

(All Terminals)
Dubai International Airport, one of the busiest airports and the 6th
busiest cargo airport in the world can start looking into the future for
the implementation of solar panels and them being the reason to
power up the whole airport. By 15 July 2019, the Terminal 2 has
commenced being powered by solar which is made up of 15,000
photovoltaic panels, making it the largest solar system of any airport in
the region. They can expand their savings more by implementing the
panels for all the International Terminals of DXB Airport. The Terminal 2
has already resulted in an estimated savings of Dh. 3.3 million which
reduces the load by 29% and reducing CO2 emissions by 3,243 tonnes.
The project is part of Shams Dubai, a DEWA initiative that promotes the
use of renewable energy sources.
The idea all began from the first ever airport to be completely powered
by solar, Cochin International Airport Ltd. Located in Cochin, Kerala,
India the airport produces 50,000 to 60,000 units of electricity everyday
which consisted of 46,150 solar panels.
 THREATS OF THE AVIATION INDUSTRY IN THE UAE

 Competitors: Members of the Aviation industry in the UAE face

strong competition from several international airlines such as
Emirates, Etihad and Qatar Airways. Low cost airlines such as Fly
Dubai, Air Arabia and many others also pose as a significant threat to
most airlines established in the UAE. The region's newest ‘super-
connector’ Turkish Airlines is a particular issue. It flies to 300
destinations in 120 countries and has plans in place to expand its
fleet from an existing 329 aircraft to 421 planes. Oman is also set to
provide competition on some key routes between Europe and Asia
as a new terminal in Muscat is due to open in the near future which
will have the capacity to handle some 20 million passengers a year.
The passenger traffic will grow by just 6.5% over the course of this
year being 2018, down sharply from the growth of 11.3% posted in
2016.
 Security threats: The potential risks faced by the industry can be
divided into external security threats and operation-related risks.
Risks that are carried out by outside forces with malicious intentions
are known as external security risks, while operation risks are due to
cracks in knowledge/resources as well as the conventional security
threats. Due to the technological advancements there are new tools
that threaten security (cyber security). Nowadays there is lots of
information that is available on the iCloud. Allows hackers and
terrorist organizations to hack into information and cause damage.
Use of drones by the public has increased over the past three years
has caused the closure of Dubai Airport and Sharjah Airport.
 Economic downturn: An economic turmoil is a major threat to the
aviation industry. Such conditions may result in the reduction of
leisure trips and business trips, thus drastically slowing down the
business of the airline and affecting the growth of the industry. This
also includes unfavorable conditions that may lead to a decline in the
heavy tourism that takes place in Dubai. Example: Emirates suffered
a huge loss by 50 percent from their value which was the world’s
steepest property slump as a result of global recession in 2008.
 Conflicts in the middle east and global terror threats: America’s
major domestic airlines, i.e. the American, Delta and United have
been campaigning for restrictions on the routes and destinations
foreign carriers such as Emirates, Etihad and Qatar can fly to in the
U.S. Such negative relations and conflicts with foreign nations can
also negatively impact the business. The aviation industry is also
constantly under the risk of a terrorist attack, which can negatively
impact its business. Emirates has been diverting services to Addis
Ababa away from Yemen since a war had erupted in the desert
nation in 2015.Qatar Airways is barred from overflying Saudi Arabia,
Bahrain, Egypt and the UAE after a political spat. Seven Emirates
employees were detained as they were collecting sensitive security
information from the UAE’s ports and airports, where Hezbollah
agents filmed sensitive places that are not allowed to be
photographed. These factors show that there are conflicts within the
Middle East and global threats are also present which cause a threat
for the Aviation Industry in UAE.
 Increasing cost of fuel: One of the greatest hurdles most airlines face
is that of high fuel prices. An increase in the cost of fuel can make
the flights more expensive, which inevitably lowers the business.
Thus, the functioning of the business heavily depends of fuel costs.
Jet fuel costs have jumped by more than US$3 per barrel in just one
week, hitting Middle East carriers hard. The increases immediately
preceded a decision by Emirates Airlines on Tuesday to impose fuel
surcharges of up Dh610 per ticket on all its flights from today. This
case is from 2012 and it shows that change in the fuel prices affects
the Aviation Industry in UAE. This causes as a threat as prices go up
and many people will not buy tickets as the prices are quite high.