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Competitive advantages

 The company maintains an ‘open skies’ strategy. This strategy has enabled it to fly
to virtually any country without any sanctions. Emirates airlines signed the “open
skies agreement with the US Government in 1999. This led to massive expansion for
Emirates airlines in the US market. The United States is a key growing market in
Emirates' global network.
 Emirates’ unit operating costs is about 40% lower than other low cost European
airlines. Its cost advantages are derived from- its business model is focused purely on
long haul aircraft and zero tax rate in Dubai and strategic fuel partnership with major oil
companies. Emirates airlines is unique in that it plans to serve the connecting market
with just long haul aircraft. The airline has entered into a deal with several major oil
companies to supply jet fuel to them at a specific price that will remain undeterred or
unchanged no matter what the future markets may present. Strategic fuel
partnership has ensured that Emirates Airline maintains its profitability amidst a
dynamic oil market, thus staying ahead of competition.
 https://www.emirates.com/ir/english/about-us/our-communities/our-global-
presence/emirates-and-the-united-states/

Threats

 Constant threat from US airlines to dismantle Emirates’ Airlines open skies

agreement with the US Government. American Airlines, United Airlines
and Delta Air Lines have asked the US government to consider scrapping
the country’s open skies agreements with the UAE and Qatar. In 2018,  the
US and Qatar airways reached on “open skies ‘agreement enabling Qatar airways to
freely operate in US and creating threat to Emirates airlines. Increase and fluctuations in
fuel prices might raise operational costs. The companies’ too much spending on new
fleets is also one of the reasons for its rising operational costs. Other low costs airlines
may enter the industry and imitate their strategies. Rapidly increasing in the operations
cost due aviation security. The quickly increase of fresh sensitive unprocurable
diseases like the recent coronavirus pandemic that have very bad impact on airline
industry sale.
Mitigation

 The US and the UAE enjoy strong commercial and political ties. As emirates
airlines is dependent on UAE government, Emirates airlines can use this good
diplomatic relationship to their advantage and mitigate this issue. should control
its cost and should decrease its cost through improvement and development of
operations activities .Emirates should improve maintenance process, effective and
efficient flight schedule of the company and better utilization of the company
 resources like aircrafts etc. Another way for reduction of cost is advancement in its
technologies by investment in technologies and in this way cut of labor cost. For
example it is strongly recommended to new installation of self-check service system
on all airports.

https://www.researchgate.net/publication/235294485_The_exceptional_performance_strategies_of_E
mirate_Airlines

https://studymoose.com/competitive-advantage-in-the-airline-industry-essay

With the help of segmentation

of market this company gained
another major competitive
advantage too. This is the only
company operating in UAE that
is actually providing training by
best ever technology i.e. plane
simulator. The aim of these
changes is to make this
company one
of the leader company
(Davahran, et.al, 2014).

First Mover Advantage

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