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. At Ethical Systems, we contend that these two approaches should go hand in hand, because good ethics is good for business. During the year, it launched numerous customer initiatives such as: providing the industrys first complimentary COVID-19 medical cover for all passengers; waiving fees so customers can rebook their travel without penalty; expediting refunds handling; and fast-tracking biometric processing and other technology projects that enhanced the travel experience while reducing contact at airport touchpoints. The aviation industry has only two aircraft manufacturers, Boeing and Airbus. 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. visit our help centre The airline has a cost reduction model that entails a lean workforce and young fleet compared to other players gives it a strong competitive profile (Jammoul 2014, p. 7). The airline is also a member of various international airline alliances and industry associations, including the International Air Transport Association (IATA) and the Arab Air Carriers Organization (AACO). The wholesaler and retailer through the use of their cargo services send their products to end customer. So it shows that over all Emirates Airline is working better as compared to other competitors. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. This dramatic revenue decline was due to the COVID . IvyPanda, 23 July 2021, ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. Other people:Business people, families, professional and other people from all over the world. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines. Three type of passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. 1.1.1. In the UAE and GCC region, dnatas Travel business remained steady. To investigate the Emirates airline's advertisement and marketing methods and strategies that enable it to gain competitive advantages. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.. A detailed Porters five forces analysis is included in Appendix 2. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. All Rights Reserved. As, Etihad Airline is also doing well and providing tough time to its competitors. 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. Increasing fuel costs has impact on margins 3. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. In short, the government of UAE is stable politically, with strong political reforms. Segmentation, Targeting and Positioning (STP) Analysis Report. 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. The Emirates Group. The various cost reduction initiatives returned an estimated saving of AED 7.7 billion during the year. 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. This report on Emirates Airlines Strategic Choices and Decisions was written and submitted by your fellow His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. Over 37 airlines serve Dubai. For details on how we use your information, please see our privacy policy. Emirates 2012, Airlines and Subsidy: Our Position. The analysis can employ a range of analytical methods that include the SWOT analysis, the PESTEL analysis, Porter's Five Forces analysis, TOWS Matrix, and Stakeholder Analysis for the evaluation of strategic choices for the case of Etihad Airways. In case you need the complete report please purchase using the buy options displayed. These helped us sustain operations and retain the vast majority of our talent pool. And its operating in many industries and sectors. Key Performance Indicators (KPI's) Report. Different sub-types of passengers have been identified (Neufville & Odoni 2003; pp. Our global presence Please click here for more information. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The price difference between substitutes (LCC) and Emirates services is large. This includes impairment charges of AED 766 million (USD 209 million) on goodwill and other intangible assets across all its divisions. 5). With significantly reduced and constrained capacity deployment across most markets, Emirates total revenue for the financial year declined 66% to AED30.9 billion (US$8.4billion). Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. Emirates carried 6.6million passengers (down 88%) in 2020-21, with seat capacity down by 83%. The firms A380 fleet is the largest in the industry globally (Lohman et al. The full 2020-21 Annual Report of the Emirates Group comprising Emirates, dnata and their subsidiaries is available at: www.theemiratesgroup.com/annualreport. 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. DII impact in Europe from Emirates' operations 4 Figure 3. Interactive feedback can help tailor in-flight services to customer needs. Being a service provider the major aim of the airline is to provide comfortable journey to its customers. Emirates average fleet age remains at a youthful 7.3 years. Here is a SWOT analysis for Emirates Airlines: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Emirates is an international airline so the revenues are collected in multiple currencies - any sudden movement in the exchange rate and change in global macroeconomic conditions could lead to revenue fluctuation (Parasie, 2016). Emirates order book for 200 aircraft remains unchanged at this time. In addition, many airlines depend on two suppliers for maintenance parts and services. Factors on which these airlines positioned their brands, Above data clearly show that in term of quality, price, availability and promotional activities the top of the mind brand is Emirates Airline. Table 2: External stakeholders (Source: Qantas, 2020) Stakeholders' nature and implications of conflicting interests. Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. 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. This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. To expand its network into emerging markets or international destinations in Asia and the Americas. Emirates. Moreover, the airline is economically strong and it will never turn down. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future. Totaloperating costs decreased by46% from last financial year. They can impact rivalry by hiking prices or producing low-quality goods. 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. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. 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 [EMIRA.UL], the world's biggest long-haul airline, said on Monday it was in the process of only a "modest restructuring," two months after it reported a 75 percent decline in half-year . customer services and relationship activities. Therefore, the airline is first choice of customer around the country and around the world. Customized Solutions Therefore, switching costs for carriers are very high. Today the economy of the country is growing on fastest pace and the recorded economy in 2013 was 4.4 percent, which was expected to reach at 4.8 percent this year. With the strong demand in air freight throughout the year, Emirates cargo division reported a revenue of AED 17.1 billion (US$ 4.7 billion), an increase of 53% over last year. The introduction of new technology will also affect the airline industry in positive as well as negative way. Therefore, ensuring the quality services is the foremost strategy of the airline. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. All work is written to order. The Executive Board defines the strategic decisions. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. The Groups cash balance was AED 19.8 billion (US$ 5.4 billion), down 23% from last year mainly due to weak demand caused by the various pandemic related business and travel restrictions across all of the Groups core business divisions and markets. For the first time in the Groups history, redundancies were implemented across all parts of the business. 610 - 611): 1) Arriving passengers These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. 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. Your privacy is extremely important to us. [1] has identified the following 15 airport stakeholders: passengers, air carriers, general aviation users, airport organisation, investor holders and bondholders . dnatasInternational Airport Operations division revenue declined by 43% to AED2.3 billion (US$617 million), reflecting the broad impact of the global pandemic across markets. In addition, it offers integrated in-flight catering and accommodation for travelers. Emirates SkyCargo put in a stellar performance by rapidly responding to new demand in a changed global marketplace, contributing to 60% of the airlines total transport revenue. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. Thus, carriers compete by providing schemes that include cheap tickets with quality services. The airline operates more than 3400 flights per week. This section of the report will in-detail analyze some of the major direct and indirect competitors of Emirates Airline. In 2020-21, Emirates and dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions. Emirates and Dnata are independent entities, but under common management. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. Therefore, the threat of new entry is low. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. Emirates local competitors include RAK Airways and Etihad Airways. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. Our academic experts are ready and waiting to assist with any writing project you may have. While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. 2011). DII impact from Emirates' operations 5 Figure 4. All Rights Reserved by Barakaat Consulting. . The airline is the leading as well as the largest airline of not only UAE but also of Middle East. Three type of people is the target audience of Emirates Airline business people, families, and transit passengers. The airline is also the 10th largest airline in the world in term of travels who travel every week from this airline. Its primary actions involve managing cargo and ground handling, catering and travel services. Therefore, capital is not a problem. With competition increasing, airlines are finding that offering the lowest fares is no longer enough. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. Across its travel brands, dnata helped its customers rebuild traveller trust by processing refunds and rebookings, and providing the latest travel information. Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option).