stakeholder analysis of emirates airlines

Connectivity, competition and consumer choice - https://www.emirates.com/english/about-us/government-affairs.aspx. The Emirates Group. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future. The GDP growth of the country is exceptional. visit our help centre This report presents a strategic analysis of Emirates Airline, a Dubai-based national carrier with operations in three segments: airline, in-flight, and all other (MarketLine 2014, para. Group records annual loss of AED 22.1 billion (US$ 6.0 billion) due to COVID-19 pandemic impact, its first non-profitable year in over three decades, Emiratesreports a loss of AED20.3 billion(US$ 5.5 billion) down from AED 1.1 billion (US$ 288 million) profit in the previous year, dnata reports a loss of AED1.8 billion (US$496million) down from AED 618 million (US$ 168 million) profit in the previous year. Holistic Analysis 1. A strategic drift arises when a firms strategies are shaped gradually by its history or organizational culture that is not in consonance with industry trends (Grant 2002). This includes a one-time impairment charge of AED 710 million (US$ 193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the President of Emirates, Sir Tim Clark: We know there has been clear evidence of a progression towards aeropolitical multilateralism in the past 20 years. This report contains the table contents only. For frequent flyers, Emirates Skywards offered generous extension on Tier status and Miles validity until 2022, and launched various initiatives to help its members earn and redeem rewards even if they are unable to immediately travel. Family also have great influence on buying behavior (Perreau, 2013). Press Esc to cancel. Economically the country has seen many ups and down in the previous years. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. The airline is considering a geographical diversification strategy to spread its operational risks. Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aeropolitical protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.. Customized Solutions Factors that may affect the airline industry are worldwide terrorisms and war. Different sub-types of passengers have been identified (Neufville & Odoni 2003; pp. Mentioned earlier the main and the foremost thing in the marketing is target market identification. This paper provides an overview of Emirates Airlines, analyzes internal and external factors that affect their business, addresses stakeholders' expectations, and looks into the challenges. At Ethical Systems, we contend that these two approaches should go hand in hand, because good ethics is good for business. better for the environment, better for operations, and better for customers. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. Emirates is an airline company based in Dubai. In October, Emirates SkyCargo set up a dedicated GDP-certified airside hub in Dubai for COVID-19 vaccines, and later it partnered with UNICEFto facilitate the rapid transport of COVID-19 vaccines to developing nations through Dubai. Web. In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. This paper examines the air route development process, including key stakeholder engagement, to identify essential factors in the successful establishment of new international air services at regional airports.Data from semi-structured interviews with airports, airlines and destination marketing organisations were analysed to provide perspective regarding Adelaide, an Australian regional . Due to ongoing pandemic-related flight and travel restrictions, the airline reported a loss of AED 20.3 billion (US$ 5.5 billion) after last years AED 1.1 billion (US$ 288 million) profit, and a negative profit margin of 65.6%. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Emirate Airline target audience includes people of: business people, families, and transit passengers. Its a huge number of seats in an aircraft and according to Mike Boyd, an aviation expert, If you manage to fill them up, you make a lot of money. Type above and press Enter to search. And, as they also cargo carrier then their major aim is also provide on time delivery to its customers. Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirates business. Our global presence Please click here for more information. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Over 37 airlines serve Dubai. From tan till now the airline has shown tremendous growth. raising its passenger capacity through short- and long-hauls to several in-demand destinations. This dramatic revenue decline was due to the COVID . They can impact rivalry by hiking prices or producing low-quality goods. Do you have a 2:1 degree or higher? In terms of acceptability, the three strategic choices can be considered appropriate for the firm, but their utilization would require sound stakeholder management to reduce political risks. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. In addition, Emirates has installed the latest in-flight technology, including TVs, audio/video systems, and on-board communication devices that enhance the travel experience (Emirates 2012). dnata leveraged its established home market presence and the re-opening of Dubai for international travel to promote the UAE, and its UAE-based tour operating division Arabian Adventures started new experiences. However, skill development and proper financial development are required to support implementation. Maximova (2019) opined that stakeholders' analysis can be regarded as a tool for generating ideas about actors or individuals to analyse and understand their intentions, behaviours, interests and relations; accessing the influence they bring on decision-making and . "Emirates Airlines' Strategic Choices and Decisions." Being a service provider the major aim of the airline is to provide comfortable journey to its customers. Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. Therefore, capital is not a problem. Therefore, their employees are also loyal to the company (Group, 2011). The airline is the leading as well as the largest airline of not only UAE but also of Middle East. The airline has pursued an aggressive growth strategy, often being the launch customer for new aircraft models and investing in new technologies to improve operational efficiency. 1 Paper Number: 109 Analysis of Airport Stakeholders David Schaar (Ph.D. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). Strong competitors from the region such as Etihad from neighboring emirate, Abu Dhabi and Doha based Qatar Airways. And try to rate them on term on 1 to 5 rating in scale in term of quality by asking from people. Therefore, competitive rivalry in the UAE commercial airline industry is high. For the purpose of identifying the target audience marketer first have to divide the market into different segments and then on the basis of their needs and wants offering them the desired product (DeMers, 2012). At the end of 2020-21, Emirates SkyCargos total freighter fleetstood unchanged at 11Boeing 777Fs. In aviation industry the company has established the strong brand name. You can use the following in your reference section in order to give credit to the source. Emirates' Economic Impact in Europe Figure 1. Interactive feedback can help tailor in-flight services to customer needs. Some of the prominent airlines from UAE other than Emirates Airline are Etihad Airline, and Qatar Airline. 5, pp. People from many other countries come to live in UAE or for visiting UAE. It also pressed ahead with key investments to strengthen the business including the opening of a new state-of-the-art cargo facility in Manchester; upgrades to technology across its leisure and corporate travel businesses; the setting up of a dedicated inflight retail centre of excellence in the UK to serve global customers; and the opening of its second catering facility in Dublin. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. in case of Emirates Airline as it is the oldest airline of UAE and has shown the tremendous growth over the time therefore, toady its as clear cut competitive advantage over it competitors. Buying activities are deeply influenced by cultural factors such as: culture, subculture, and social class. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. 3. All work is written to order. Emirates received a capital injection of AED 11.3 billion (US$ 3.1 billion) from our ultimate shareholder, the Government of Dubai, and dnata tapped on various industry support programmes and availed a total relief of nearly AED 800 million in 2020-21. To track regional businesses and to the . document.write(new Date().getFullYear()); Sheffi, Y 2006, The Resilient Enterprise: Overcoming vulnerability for competitive advantage, Pearson Education, New Jersey. (2021, July 23). In very short time span the company has establish it some a major competitor of other airlines. Competition from low-cost carriers (LCC) like Jazeera Airways and Air Arabia reduces the profits of carriers that offer long-haul services, such as Emirates. With reduced flight and travel activity across the world, dnata's total revenue decreased by 62% to AED5.5billion (US$1.5 billion). DUBAI, U.A.E., 12 November 2020: The Emirates Group today announced its half-year results for its 2020-21 financial year. Emirates invested to upgrade its signature A380 experience with new Premium Economy seats and other product enhancements. No plagiarism, guaranteed! The government has also establish a trade free zone for conducting businesses activities. All Rights Reserved by Barakaat Consulting. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. You dont fill them up, you lose a lot of money. Emirates would be concerned about potential business expansion in the attractive U.S. markets and it may affect its future growth and profitability. However, the profit margin for the year 2017 has plunged lowest in the . Aviation biofuels: which airlines are doing what, with whom - https://intelligent-partnership.com/aviation-biofuels-which-airlines-are-doing-what-with-whom/, 5. International airport operations continue to represent the largest business segment in dnata by revenue contribution. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. In response to the pandemic, Emirates led the industry in developing new service and operating protocols to protect its customers and employees. The airline is not a competitor to the major airlines but poses competition to other low cost airlines. Dedicated to your worth and value as a human being! The prosperity of the organization is since it is developing in the UAE, a country characterized by rapid and efficient economic development (Simmons, 2020; Almarri and Abu-Hijleh, 2017). The business saw a positive operating cash flow of AED 10 million (US$ 3 million) in 2020-21 despite the sharp decline in revenues and the unprecedented volumes of refunds in its travel division. The airline operates more than 3400 flights per week. student. SWOT & PESTLE.com (2023). The threats in the SWOT Analysis of Emirates are as mentioned: 1. We ask sample of 15 people to rate out competitors brands and our brand price quality on rating scale of 1 to 5. In 2020-21, the Group collectively investedAED4.7 billion(US$1.3 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. DII impact in Europe from Emirates' operations 4 Figure 3. 2023 The Emirates Group. With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). Key Performance Indicators (KPI's) Report. In 2020-21, dnata executed the USs first green turnaround of a customer aircraft at New York JFK, an achievement made possible by its previous investments in zero-emission, electric ramp ground support equipment. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. In addition, many airlines depend on two suppliers for maintenance parts and services. This section of the report will in-detail analyze some of the major direct and indirect competitors of Emirates Airline. Kotler, P & Keller, K 2011, Marketing Management, Prentice Hall, New York. Emirates carried 6.6million passengers (down 88%) in 2020-21, with seat capacity down by 83%. (2021) 'Emirates Airlines' Strategic Choices and Decisions'. Emirates average fleet age remains at a youthful 7.3 years. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. Web. IvyPanda. In addition to supporting global supply chains for food, medical and other trade items, Emirates SkyCargo also tapped on its pharma capabilities and infrastructure to support the worldwide distribution of COVID-19 vaccines and humanitarian relief to Lebanon in the aftermath of the Port of Beirut explosions. Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy. Three type of people is the target audience of Emirates Airline business people, families, and transit passengers. Emirates Airlines' Strategic Choices and Decisions. Therefore, the airline is first choice of customer around the country and around the world. This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. . The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. Emirates Airlines, founded in 1985, is the largest airline in the Middle East, based in Dubai, United Arab Emirates (UAE). The number domestic, regional, international carriers keep on increasing. Free resources to assist you with your university studies! You can reach us out at [emailprotected] .Disclaimer: The views and opinions expressed in any article on the website are solely those of the authors and do not necessarily reflect the official policy or position of companies in context. And the government is working hard for the development of UAE. British Airways : Stakeholders Objectives Parsa Lohani, FHEA, MCIM (Chartered Marketer) 8.4K views12 slides. Emirates average fleet age remains at a youthful 7.3 years. In addition, the switching costs between airlines are low. 2021. This is IvyPanda's free database of academic paper samples. Are you looking for a report which is not covered on our website? This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. Therefore we take the rating scale of 1-10 to rate these factors. The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. dnatas Travel division saw corporate and leisure travel demand dry up across markets. Until 2020-21, Emirates and dnata have had a track record of growth and profitability, based on solid business models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by a stable leadership team. Etihad Airways Overview Etihad Airways was incorporated in July 2003 as a national carrier. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Moreover, the airline is economically strong and it will never turn down. The StB entails five features that automate the entire traveling process, namely, e-ticketing, eCheck-In, eBoarding pass, eBaggage Management, and eFreight (International Air Transport Association [IATA] 2008). In short, the government of UAE is stable politically, with strong political reforms. 1. Thus, the LCC-dominated markets in Asia, including China, India, Malaysia, and the Philippines, are potential destinations for Emirates (Damuri & Anas 2008). A core part of our strength as a business stems from the 'open skies' environment at our main operating base, Dubai International, where we compete with over 100 other scheduled airlines. Strengthening presence in the low-cost segment, Check out the SWOT Analysis of Global Businesses. The analysis will cover the suitability, acceptability, and feasibility (SAF) of these strategies. Web. The Emirates Group is a highly profitable business with revenue of approximately US$ 12 billion and more than 40,000 employees. This is primarily due to the full year impact of the pandemic situation including a nearly 12-month shut down of the facilities in Australia which dnata had acquired only two years ago. However, the successful implementation of these strategies will require staff training and development. The Emirates story started in 1985 when we launched operations with just two aircraft. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. Moreover, it has also provide lot of opportunities for foreign investors. Overall, the three strategies can be implemented without incurring extra costs. "Emirates Airlines' Strategic Choices and Decisions." 5). 2, pp. Emirates is an established brand of the Emirates group. Emirates Airline is the global airline that serves around 155 destinations across the world. Emiratisation strategy to recruit and retain UAE Nationals, 1. Cash used in financing activities, primarily payments for loans and leases, amounted to AED 548 million (US$ 149 million), while the business utilised net cash of AED 149 million (US$ 41 million) in essential investing activities. Web. Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option). The Essay Writing ExpertsUK Essay Experts. Totaloperating costs decreased by46% from last financial year. Commitment to eco-efficiency through major investments and initiatives, Emirates Airlines Porter's Five Forces Analysis, Emirates Airlines Covid-19 Impact Analysis, Emirates Airlines Segmentation, Targeting and Positioning (STP) Analysis. It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. The inflight catering business upliftednearly 16.9million meals to airline customers, a substantial decrease of 82%. With significantly reduced and constrained capacity deployment across most markets, Emirates, Due to ongoing pandemic-related flight and travel restrictions, the airline reported a, Emirates carried 6.6million passengers (down 88%) in 2020-21, with, With the strong demand in air freight throughout the year, Emirates cargo division reported a, The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a, With reduced flight and travel activity across the world, dnata's. SWOT Analysis: Meaning, Importance, and Examples. This section will in detail analyze the targeted market of Emirates Airline. Some modules are disabled because cookies are declined. These helped us sustain operations and retain the vast majority of our talent pool. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the . In term of UAE, the environment of UAE is the dynamic environment. Emirate Airline is positioning their product on the basis of price. The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED 1.8 billion (US$ 496 million) for the first time. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The huge capital investments constitute another barrier to new entry. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). Highly priced tickets compared to competitors, 1. And the company is one of the few in the world to use all wide-body aircraft. DII impact of Emirates' A380 deliveries in 2013 6 Figure 5. Emirates closed the financial year with cash assets of AED 15.1 billion (US$ 4.1 billion), a position which would have stronger if not for a one-time payout of AED 8.5 billion for customer refunds. The cargo division also introduced new loading protocols to safely utilise overhead bins and passenger seats to carry cargo. Accept cookies to experience the full functionality of this page. To identify the marketing changes that have occured in the company beginning from the time the company was established to the present. Increasing Competition in Middle East Market can affect business of Emirates airlines 2. Increasing fuel costs has impact on margins 3. Culture is defined as totally learned behavior that contain shared values believe, norms, customs and rituals of particular region. The firm has won several accolades for its quality in-flight products, including the Airline Passenger Experience Award and the British Travel Award, among others (Lohman et al. In airline industry there is lot of competition. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. Together with Dubais undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before., He concluded: In the year ahead, we will continue to adopt an agile approach in responding to the dynamic marketplace. For details on how we use your information, please see our privacy policy. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. dnata Travel Group continued to secure growth opportunities. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! A detailed Porters five forces analysis is included in Appendix 2. The firms other cost-efficient operations include. This report on Emirates Airlines Strategic Choices and Decisions was written and submitted by your fellow Notably, in Australia dnata began ground handling for Qantas at most of its major airports and GTA dnata, its joint-venture company in Canada, was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport. Sheikh Ahmed said: No one knows when the pandemic will be over, but we know recovery will be patchy. And its operating in many industries and sectors. Other people:Business people, families, professional and other people from all over the world. If you want to get in touch with our media team, please mail us on: If you're a customer and you have a general question about our services or would like some help, please IvyPanda. Emirates Airlines Annual Report 2019 - https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2019.pdf, 2. To expand its network into emerging markets or international destinations in Asia and the Americas. Diversification is referred as offering new services to new market. The airliner invested in 37 lounges in different destinations globally to provide dining services to passengers (Jammoul 2014). In 2020-21,dnatasoperating costs decreased by 48% to AED7.4billion (US$ 2.0 billion), in line with reduced operations in its Airport Operations, Catering and Travel divisions across the world. Applying this model to Emirates indicates that the forces could have a significant effect on the airlines competitiveness. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. However, the threat of new entry is low because of the high capital/resource requirements and brand equity enjoyed by established carriers (Sheffi 2006). In analyzing product positioning, needs and wants are commonly referred to as product attributes. This section is available only in the 'Complete Report' on purchase. According to 2007 report the airline is declared as the leading airline in term of revenue it generate, fleets (group of planes), and the passenger it carry, of Middle East. The airlines fuel bill declined by 76% to AED 6.4 billion (US$ 1.7 billion) compared to the previous year, driven primarily by 69% lower uplift in line with capacity reduction. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io.

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stakeholder analysis of emirates airlines

stakeholder analysis of emirates airlines