Proposal Emirates Airlines

Proposal

Emirates Airlines

The Aviation Industry

Many analysts like Yeung (1998) argued that the Gulf War, worldwide recession and terrorist attacks had put an end to the growth in the airline industry. For the first time since 1945, air travel had actually declined worldwide. The airline industry is rapidly creating integrated global airlines. These global airlines often have local partners for particular segments of service, but each airline retains a distinct global identity and marketing philosophy. The carriers benefit from the ability to offer end- to-end service to minimize interconnection problems for passengers. They profit from the economies of their hub systems for the use of aircraft, and, most vitally, they benefit from integrated information systems to manage pricing, seating capacity, aircraft scheduling, and passenger booking. The analogies for communications include control over low-cost infrastructure, sophisticated tariffing and traffic management schemes, and proprietary software for service applications (Yeung 1998).

According to Adams, De Lollis & Hansen (2008), airlines worldwide have been trying to strike a balance between cooperation and competition. They have been seeking alternatives to their conventional merger and acquisition strategies, such as strategic alliances, to expand services rapidly and to buttress market share without undertaking the difficult task of acquiring a rival. Many airlines are still partially owned by their respective nations, and treaties between them determine which airlines can land in which locations. To get around national laws and regulatory problems and to compete effectively, airlines have formed global networks and individual alliances major airlines from the United States, Europe, and Asia-Pacific have forged their own alliance groups to offer better services internationally. It is estimated that international travel will grow faster than domestic U.S. travel. Consequently, carriers find it advantageous to create collaborative ventures with international carriers as an entry point into new markets (Culpan 2002). This venture requires effective business management and strategy.

With regards to the current era, management of business organizations is a vital aspect affecting its success in the industry. Without the use of an effective management, many aviation businesses, companies, corporations and business organizations including will not be able to cope with the changes and the challenges that come their way. Because of this importance, business organizations must be able to generate strategies and ways to improve their performance, to ensure its good performance and establish its pleasant reputation in the market. With this, an evaluation of different aspects in the aviation business is crucial, including its brand, global operation, current overall global strategy, management, and its key issues and problems. These aspects are important to take note of to be able to assess the overall performance of the whole business organization.

Company Profile

In 1985, The Emirates or Emirates Airlines was created.  The creation of said airline was backed-up by Dubai’s royal family with $10 million start-up capital.  The first two aircraft of the airline is Boeing 727s which is from Dubai Air Wing. The first 9-months of operation of the Airline was so promising and predicted as profitable business. After a year, the Gulf Air, one of the major competitors of Emirates Airline declared a loss. In 1986, the Emirates Airline continuously increased the number of networks they are engaged in. The airline added Dhaka, Colombo, Cairo and Amman, to its route network.  And by 1987, the Airline was serving 11 destinations.[1]

Actually, The Emirates Airline and also known as Emirates was a major airline in the Middle East. It is also the national airline of Dubai, UAE. Basically, the airline was a subsidiary of “The Emirates Group”. As of 2008, the airline became the eighth-largest airline in the world in terms of international passengers carried.[2] Aside from this, The Emirates Airline was also known as the 5th-largest in the world in terms of scheduled international passenger-kilometers flown.[3] With the centre of network in Dubai International Airport, Emirates operates in 101 destinations in 61 countries over 6 continents (e.g. Asia, Australia, Middle East, America, Africa and Europe).

Aim and Objectives of the Study

The primary aim of this study is to examine the current management practices of Emirates Airline. To address this aim, the researcher explores the nature of Emirates Airline business practices and the continuous changes that it gives to aviation industry in UAE.

The objectives of this study are:

Ø  To analyze the current internal and external environment of Emirates Airline.

Ø  To evaluate the challenges brought by the current global crisis to Emirates Airline.

Ø  To investigate the impact of current business practices of Emirates Airline to the next 5 years of aviation industry.

Ø  To develop specific recommendations with regards to the progress of Emirates Airline.

References:

Adams, M De Lollis, B ; Hansen, B 2008, “Fliers in for pain as airlines pack it in”. USA Today. Available at: ;http://www.usatoday.com/travel/flights/2008-06-03-airlines-cuts-flights-fares_N.htm; Retrieved on:  2009-20-04;.

Culpan, R 2002, Global Business Alliances: Theory and Practice, Quorum Books, Westport, Connecticut.

Yeung, H 1998, Trans-national Corporations and Business Networks: Hong Kong Firms in the ASEAN Region, Routledge, London.

[1] http://www.fundinguniverse.com/company-histories/The-Emirates-Group-Company-History.html
[2] From http://www.iata.org/ps/publications/wats-passenger-carried.htm
[3] From http://www.iata.org/ps/publications/wats-passenger-km.htm