COMPANY PROFILE -Emirates Airlines
Business Sector :Aviation
Operating Geography :Middle East, Global
About Emirates Airlines :Emirates founded in 1985, is a Dubai (UAE) based global airline with operations in more than 83 countries serving 155 airports and boasting a fleet of over 265 aircrafts. It is the largest airline in the Middle East and the fourth largest globally in terms of passenger volumes, operating the world’s largest fleets of Airbus A380 and Boeing 777 aircrafts. It is a subsidiary of the Emirates Group which is owned and backed up by the government and the Dubai royal family. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. Its primary actions involve managing cargo and ground handling, catering and travel services. Emirates and dnata are independent entities, but under common management. In 2017, Emirates was lauded as the “Best Airline in the World” in the inaugural TripAdvisor Travelers’ Choice Awards for Airlines. The airlines also bagged the Passenger Choice Awards and World’s Best Inflight Entertainment award for a phenomenal 13th year at the Skytrax World Airline Awards 2017.
Emirates vision statement reads “To maintain recognition internationally as being one of the leading organizations, in the business of providing aviation and security related services and to set the benchmark for this service within the aviation industry.” Emirates mission statement reads “Emirates Group Security is committed to safeguarding all customers, staff and assets against acts of unlawful interference through continuous review, training and education. To implement international and all other established industry standards and practices.” The USP or Unique Selling Proposition of Emirates Group lies in flying the world’s largest fleets of Airbus A380s and Boeing 777s, offering passengers the best-in-class luxury and opulence of the latest inflight entertainment, regionally inspired cuisine, and service in the skies.
Emirates Airlines Revenue :
AED 94.7 billion (US$ 25.8 billion) - FY ending 31st March 2017 (y-o-y growth 8.1%)
AED 102.4 billion ) - FY ending 31st March 2016
Competitive Analysis of Emirates Airlines
|1. Strong growth and world class infrastructure|
2. Local government support
3. Branding and sponsorship
4. Global alliances and partnerships
|1. Highly priced tickets compared to competitors
2. Fall in oil prices a business paradox
|1. Dubai World Expo 2020 to be a major business opportunity|
2. New Al Maktoum International airport to help in unlocking growth
3. Emergence of Dubai as a business and tourism hub
4. Untapped markets like Iran and Cuba
|1. Emergence of strong competitors in the region like Etihad, Turkish Airlines and Qatar Airways
2. Accusation of subsidy benefits by rivals in the United States
3. Conflicts in the Middle East and global terror threats
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Detailed SWOT Analysis of Emirates Airlines
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 duration and increases costs.
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Emirates SWOT and PESTLE analysis has been conducted by Sanchit Gupta and reviewed by senior analysts from Barakaat Consulting.