Emirates Case Study

Introduction

Emirates is an airline based in Dubai, United Arab Emirates. The

airline is a subsidiary of The Emirates Group, which is owned by the government of
Dubai's Investment Corporation of Dubai. It is the largest airline in the Middle East,
operating over 3,600 flights per week from its hub at Dubai International Airport, to
more than 150 cities in 80 countries across six continents. Cargo activities are
undertaken by Emirates Sky Cargo.

Emirates is the world's fourth largest airline in scheduled revenue passenger-

kilometres flown, the fourth-largest in terms of international passengers carried, and
the second-largest in terms of freight tonne kilometres flown. From March 2016 to
February 2017 Emirates had the longest non-stop commercial flight from Dubai to
Auckland.

During the mid-1980s, Gulf Air began to cut back its services to Dubai. As a result,
Emirates was conceived in March 1985 with backing from Dubai's royal family, with
Pakistan International Airlines providing two of the airline's first aircraft on wet-lease.
With $10 million in start-up capital it was required to operate independently of
government subsidy. Pakistan International Airlines provided training facilities to
Emirates' cabin crew at its academy. The airline was headed by Ahmed bin Saeed Al
Maktoum, the airline's present chairman. In the years following its founding, the
airline expanded both its fleet and its destinations. In October 2008, Emirates moved
all operations at Dubai International Airport to Terminal 3.

Emirates operates a mixed fleet of Airbus and Boeing wide-body aircraft and is one
of the few airlines to operate an all-wide-body aircraft fleet (while excluding Emirates
Executive. As of February 2019, Emirates is the largest Airbus A380 operator with
112 aircraft in service and a further 11 on order. Since its introduction, the Airbus
A380 has become an integral part of the Emirates fleet, especially on long-haul high-
traffic routes. Emirates is also the world's largest Boeing 777 operator with 144
aircraft in service.

Case Study

1. How has Emirates been able to build a strong brand in the competitive
airline industry worldwide?
Emirates was able to construct a strong brand through lean company
resources, government support, great employee satisfaction, high customer
loyalty, and being imaginative with time as the primary factors in establishing
the company as a brand in the airline sector.
The company’s success can be ascribed to a marketing strategy that puts an
emphasis upon exceptional customer service, product, and infrastructure. In
addition, Emirates is known for maintaining the highest standards of quality in
all aspects of the company, generating first-class, business-class, and
economy-class service.

2. What are some of the apparent weaknesses with the company’s

strategic direction? How can the airline address them?
Emirates has a great brand in the airline sector and is strategically
positioned, yet they do not take their competition into account when selecting
their future paths. In terms of weaknesses, the company is overlooking their
marketing strategy errors and just being overaggressive with its standing in
the air transport industry. Also obtaining the loss of international workforce
because they are not a part of any organization, and ignoring their
competitors.
 They do not evaluate the upsides and downsides of their rivals. For example,
Etihad Airways and many other airlines have approved the open skies policy
and therefore are capable of competing with Emirates at a very good price
with the same service quality. They only focus the wealthy customers, which
seems to be a challenge to them in the years ahead because if people would
get the same service for a lower price, they will take it.
The possible solutions to their weaknesses; Boosting inflight services
also while considering complementary services. Routes should be widened.
Products must also be developed, such like private suits. Budget airlines must
be introduced. By restructuring and continuously generating innovative
strategies in line with target market response.

3. With the decline of fuel prices globally, airline companies continue to

reap the benefits. What impact will this have on Emirates’ business
strategy in the future?
Many airlines diversify a percentage of their energy and economic
needs six to 24 months ahead of time by acquiring aviation fuel or crude oil
contracts from financial firms or on an oil futures market to reduce price-
fluctuation risk on predicted overhead expenses. Once the oil price is starting to
fall, alternatives will be in favor of emirates as it is inexpensive to manage risk
forward into and get protection if prices increase. Low inflation is expected in the
coming years as significant investments in new aircraft and high - end started to
eat into company profits.