Emirates Airlines SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

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Threat

1. Emergence of Strong Competitors in the region like Etihad, Turkish Airlines and Qatar Airways: Emergence of new airlines around the globe, has increased the competition for the airlines tremendously. Strong competitors from the region such as Etihad from neighboring emirate, Abu Dhabi and Doha based Qatar Airways. The domestic and international passenger share thus would be divided among all these airlines. Turkish Airlines based in Istanbul is also emerging as a formidable regional rival covering more than 280 destinations through its ‘hub and spoke’ model. Moreover it has the population advantage of almost 80 million people staying in Turkey compared to just over 9 million in UAE where Abu Dhabi based Etihad also competes with Emirates.

2. Accusation of Subsidy Benefits by rivals in the United States: Emirates’ rivals in the United States such as Delta, United and American Airlines say that Emirates benefits from local U.A.E subsidies as it’s a government owned carrier. The issues are still under discussion. This may restrict Emirates' ability to expand its presence in the U.S. Also Emirates uses Airbus A380’s which has a capacity of up to 600 passengers. It’s 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. You don’t 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.

3. Conflicts in the Middle East and Global Terror Threats: The ongoing conflicts and instability in Middle East and North Africa region including Syria, Iraq, Libya, Egypt, Yemen and Sudan are a cause of concern. Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirate’s business. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs.

Political

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Economic

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Social

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Technological

1. Omni-channel strategy for seamless customer experience: Omni channel strategies are all about providing customers with a seamless experience. It enables the airlines to present its brand in through the most effective channels. Airlines can utilize travel agencies, advertisements and the internet to promote their brand. With competition increasing, airlines are finding that offering the lowest fares is no longer enough. One of the things customers value the most is receiving accurate information andomni-channel strategies ensure that proper communication is maintained at all times. Adding the option of accessing the airlines services in the customer’s native language can also being implemented as are 24x7 customer care services that can offer solutions to basic questions and add a human touch to the booking process. Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy.

2. Efficient passenger support systems and functions: Reliability and efficiency of passenger support systems and functions is critical for the operations and business continuity of an airline. In recent times major airlines such as British Airways has been plagued by downtime in their passenger support systems due to failure of IT infrastructure causing cancellations of flights and passenger inconvenience. Emirates in efforts to strengthen its IT infrastructure signed a 10-year technology services agreement with IBM in 2016. IBM will assist the airline in areas such as improving passenger support systems, encryption of airline’s data in near real-time and effective communication between airline’s systems.

Legal

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Environmental

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