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Shaira Mae D. Fernandez

Student’s Signature over Printed name

NAME: Shaira Mae D, Fernandez

SECTION: BSAeE 4-1
 My chosen airline company to do a research study
regarding their developments in financial and
technological capabilities was Emirates Airlines. It is an
air transport service provider formed in 1985, with only
two wet-leased aircraft from Pakistan Airlines. Emirates
Airlines is also one of the largest airline companies in
the world. They are operating highly and advanced
Airbus A380 carriers, as well as Boeing 777 models, this
type of aircraft, has the most modernized commercial air
fleet in the world. Emirates Airlines currently has 252 total planes owned and
operated, serving over 141 city pairs across the world. This airline operates in
Dubai.

But like other airline companies, Emirates Airlines also went through the
trouble. Just like when it happened in 2016, the company has seen a marked
decline in its profits and overall revenue, due to geopolitical events that affect
not only Emirates but the airline industry as a whole. There were bans on US
electronic devices and nationality. There were also terror attacks and failed
coups then so, these events caused negatively in travel demand. These
events led Emirates Airlines to slow down the growth of their fleet and had a
freeze on recruitment. According to Forbes, the company's profit has dropped
by 75% for the first half of a year, and overall revenues suffered as well,
dropping to 11.4 billion dollars.

Due to these various laws, of course, apart from the number of routes, the
number of passengers they cater to is also limited, but the Dubai government
has conducted numerous negotiations on behalf of Emirates Airlines, to allow
the company to have access to more routes. And because of that, it helped
them to expand the untapped markets and increased the number of
customers that the company serves. Their strategy is a sole proprietorship
meaning the company is also owned by the Government of Dubai. Meaning it
is easier to run the business because there was no need to consider the
interests of numerous stakeholders, the process is faster and more efficient,
which also increased the speed of the decision-making process.

According to Tim Clarks, CEO of Emirates

Airlines, the government's support is a big
help because, if the company's revenue
continues to decrease then it's a big loss for
them. The government supports the
company in various other ways, such as
providing credit at a rate far below the
average interest rate, speeding up
bureaucratic processes associated with
permits required for commercial flights, as well as bending the rules and
regulations when needed. Although there are such events, one of the greatest
advantages of Emirates is the geographical advantages that give a
competitive advantage, because they are in the midpoint of Europe, Africa,
and Asia. It also reduces cost and makes Emirates Airlines an international-
to-international transfer hub. That is why this is one of their strengths and
strategies for market development, they extended their current network and
entrench the position as a central long-haul hub, given its location advantage
and they can even expand into new airports either through partnerships or
alone. The airlines develop their high-class product that targets business
travelers, it offers better first-class suites, amenity kits, and emirates are also
the first to introduce economy class TV screens and the first to introduce Wi-
Fi on board.
Midpoint of Europe, Africa, and Asia.

Emirates Airlines on Covid-19 pandemic, some countries have imposed travel

restrictions on entry for operating crew and passengers, which resulted in
Emirates amending its operating schedule by either reducing frequencies or
canceling flights in various destinations with restrictions. Emirates Group and
dnata announced that they were hit hard by the drop in demand for
international air travel as some countries closed their borders. That is why
they had an annual loss of AED 22.1 billion or 6.0 billion US dollars for the
financial year ended March 31, 2021. According to them, it declined by 66%
over last year's result, because their revenue was AED 35.6 billion while, the
group's cash balance was AED 19.8 billion, down to 23% from last year
mainly due to weak demand caused by various pandemic related business
and travel restrictions.

Despite those events, the

emirates still prioritize the
health and wellbeing of their
staff, they received a capital
injection of AED 11.3 billion
from their ultimate shareholder,
and the Government of Dubai
provided 800 million, which
helped them sustain operations
and retain the vast majority of
their talents. However, they still need to reduce the workforce so as not to be
completely bankrupt. The airlines reduced 31% (75,145 employees)
representing over 160 different nationalities. Emirates still keeps tight control
on costs across the group, financial obligations were restructured, contracts
renegotiated, processes examined, and operations consolidated. That's what
they spent during that year, which had initiatives return, an estimated saving
of AED 7.7 billion. The airlines, continuously investing in new aircraft and
facilities. Why is it? Sheikh Ahmed, the Chief Executives of the Emirates, said
that no one knows when this pandemic will be over, but they know that
recovery will be patchy. He added, that they will continue to adopt an agile
approach in responding to the dynamic marketplace. Emirates Airlines aims to
recover by fully operating as quickly as possible to serve their customers, to
continue their contribution in rebuilding economies, and communities
impacted by pandemics.

REFERENCES:

StudyCorgi. (2020, December 24). Emirates Airlines: Story of Success and

Failure. Retrieved from https://studycorgi.com/emirates-airlines-story-of-
success-and-failure/

The Emirates Group (2021). Emirates response to COVID-19 Business

Challenges. Retrieved from Emirates Group Announces 2020-21 Results

Linkedin. (2021, March 17). Emirates Airlines: Tough Business Conditions.

Retrieved from Emirates Airlines: Tough Business Conditions (linkedin.com)

TheFirstGroup. The Emirates Success Story. Retrieved from The Emirates

success story | The First Group

ResearchGate. (April 2020). Success and Sustainabilityt of Emirates: A

Research Based case study. Retrieved from (PDF) SUCCESS AND
SUSTAINABILITY OF EMIRATES AIRLINES -A RESEARCH BASED CASE
STUDY (researchgate.net)
CAPA (May 2013) Why Emirates and friends will soon reshape American
aviation. Retrieved from Why Emirates and friends will soon reshape
American aviation | CAPA (centreforaviation.com)