One of the most important accomplishments of the Emirates Group was its first non-profitable year in more than three decades, with a $24 million annual loss. But, in the upcoming future few of the factors which Emirates enjoy today will start to deteriorate such as. We look forward to the development of biofuels that are technically safe, cost competitive, and truly sustainable, with a viable supply chain in place from feedstock to the aircraft. The airline is also actively involved in the fight against illegal wildlife trafficking and exploitation, and is a member of the United for Wildlife Transport Taskforce, and is also a partner of ROUTES (Reducing Opportunities for Unlawful Transport of Endangered Species). All of these measures help to save fuel and emissions, as well as to cut down on noise. Retrieved from http://studymoose.com/the-emirates-airlines-success-essay. Air Traffic: In the past decade Emirates has gained advantage with its lower air traffic levels, helping it to have its customers arrive the hub on time to connect to their respective flights. and then Add to Home Screen. Today, the Emirates Group is one the most comprehensive travel and tourism operation in the world. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. It has not just increased its fleet size, but has also held stakes8 in many major airlines around the world such as Alitalia, Air Serbia and Jet Airways. A companys tariff may change based on market trends and the customers needs, according to its market position. An airline that has really made an effort to put its best foot forward as the greener carrier, Virgin Atlantic, has won accolades recently in order to become an environmentally friendly airline. what is the competitive advantage of emirates airlines? Helping & empowering business owners for over 15 years, helping them to understand how to protect own interests, build bridges to amplify joint ventures, adapting new business practices and solutions. Its emissions were 11,106,670 tonnes of carbon. Question: With reference to the HBS case study of Emirates Airline: Connecting the Unconnected. This allowed Emirates to take maximum advantage of its connectivity. The 130,000 square foot controlled environment facility will produce 2,700 kilogram of high quality, herbicide- and pesticide-free leafy greens daily, using 99 percent less water than outdoor fields. Dubai hub. Its freight arm, Emirates SkyCargo, has adopted a zero tolerance policy on illegal wildlife trade which includes big cats, elephants, rhinos and pangolins, among other types of wildlife, and has implemented a complete ban on hunting trophies. Answer:Yes, the Emirate's strategy is sustainable. A clearly defined strategy is required from Emirates namely establishing a long-haul transfer hub in Dubai, so as to make it convenient for anybody anywhere in the world. Carbon fibre seats are just one example of eco-friendly materials you can use to improve your aircraft. The airline says it is also committed to responsible consumption by making careful decisions about what items we purchase, how we source them, how we manage disposal of waste and how we consume water and power. Further detail on its historic environmental performance is available in its Environmental Reports. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. The 2,990 panels form a roof over the carpark, and are expected to generate in excess of 1,800 megawatt-hours of electricity and save around 800 tonnes of carbon dioxide every year. Second, there has not yet been a holistic, structured approach for designing sustainable business model innovations that generate full value. Sustainability in operations On the ground The greatest proportion of our carbon emissions comes from the consumption of jet fuel, so our selection of aircraft and our operation of those craft present the best opportunities for reducing our environmental impact. strategy and people, helping clients navigate a dynamic environment through four global businesses. The airline operates across more than 140 destinations in six continents, with over 3600 flights every week. They should also be of value to policy-makers, planners and These reports provide far less information about the strategy, but do have some data which can be analysed. The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. Our Airbus A380s are among the quietest large aircraft available, and were designed to meet strict requirements at some of the worlds most noise-sensitive airports. Emirates Airline has been largely successful due to its competitive pricing strategies that it uses successfully against its competitors. Emirates has actively supported fragile habitats since 1999, when it established the Al Maha Desert Resort and Spa in Dubai with a 27 square kilometres conservation reserve for the protection of desert fauna and flora. These efforts have been ongoing since 2003, and the airline has also been working with IATA to extend this routing system across the world as a standard operating procedure where possible. Cutting down on unnecessary weight carried helps us to save fuel. Recent initiatives include the use of data analytics and in the near future of machine learning (ML) and artificial intelligence (AI) to better forecast potable water uplift in each flight. High profile projects such as the Burj-al-Arab, the World andPalms development projects, and the Burj-Khalifa tower helped grow the citys global renown, which in turn led to higher volumes of tourists. 1. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Course Hero is not sponsored or endorsed by any college or university. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. Sustainability in operations Please click here for more information. And our engine washing procedures keep internal engine components clean, maintaining fuel-efficient performance and prolonging the useful life of the engine. Well-maintained aircraft contribute to efficient flight operations too. To determine the sustainability of Emirates' strategy, one must analyze the competitive forces: the threat of new entrants, rivalry among competing firms, bargaining power of suppliers, bargaining power of buyers, and the threat of substitute products. Emirates was capable of reducing their fixed cost, and the subsidies and Tax exemptions by the government fused many of the profits made by the company into its own development. It has learntfrom the mistakes done by the Emirates and has tried to imitate the same to improve its quality and to be one of the best airlines in the world at the age of 10. The case emphasizes how Emirates capitalized on its location-a small city-state strategically located to reach of the world population in a flight of less than eight hours-to build a fast-growing and profitable hub-based business model. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. Strong growth and world class infrastructure 2. Increasing Income: In the Middle Eastern regions (UAE), where most of the Emirates man force comes from have showed major improvement in its growth. Importantly, students are asked to evaluate if the airlines' strategy will be sustainable as Emirates faces technical and political challenges to expand and must compete with numerous new players . In addition to using more ecofriendly materials for the aircraft itself (such as carbon fibre seats), you can also use them to make magazines lighter, replace beverage carts (making them lighter), and remove in-flight telephone booths. The first flights connected to the neighbouring. The major contribution on each of the below mentioned fields has taken the airline and the aviation industry, far from where it started. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. some airlines are doing this through reducing weight on the aircraft. Small wings, Big dream Capitalization of the Initial Fund: In contrast to other major Airline operators such as Air France and British Airways, who have often received huge bailout packages or debt reliefs from the government; The Dubai government had given the airline a total of just $18 million, including the start-up money. Over one-third of the planets seven billion citizens lived within a four-hour flight of Dubai, and over two-thirds lived within an eight-hour flight. Due to the lower operation cost, Emirates was able to pass the benefits on to the customers which many of its competitors couldn't afford to. an academic expert within 3 minutes. Emirates also enjoyed subsidised fuel, no income tax, and strategic synergies with the Government at its principle hub which also aided the success of the airline. To better understanding the dynamics of the airline industry where Emirates is a part, a Porter's Five Forces analysis performed. To install StudyMoose App tap In 2010, the UAE Cabinet approved the Green Building and Sustainable Building standards to be applied across the country. Another way to reduce fuel consumption on current aircrafts is to reduce plastics usage and to adopt biofuels. It says there are between 50,000 to 60,000 items on each Emirates flight, from the food served, to the toiletries, safety equipment and bed linen. Abstract. On opening, Emirates One & Only Wolgan Valley was the first carboNZero certified hotel in the world, and the first carbon neutral resort to be certified through an internationally accredited greenhouse gas programme. I am a UK resident and the airline youll have to use is Air France / KLM. Their efforts have seen them receive several awards for sustainable transport in Dubai. Leadership at Emirates is considered as an influential and democratic. what are the strengths of emirates airlines? Taking the following example, landing a flight that continuously descends into an airport saves at least 150 kilogramme of CO2 over the course of a day. Lower Cost Airlines: With increased number of lower cost airlines in the recent years, there is a huge trend of population, especially from the developing regions who prefer to travel at a lower cost than having a premium service. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Maurice Flanagan, Executive Vice Chairman and Tim Clark, President of the Emirates Airline. This view of Dubai hindered Emirates to be known as a popular brand in the aviation industry. The Emirates' strategy is very much sustainable. The airline has also had economy class blankets made from recycled plastic bottles since 2017. Some of the programmes initiatives include: The latest annual report makes clear the scale of the challenge. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. Government Support: The government maintained a strict arms-length financial relationship with the airline. Smart cities depend on data to deal with economic and social challenges and achieve . For example, we use lightweight cargo containers, and optimise the amount of potable water loaded for each flight based on the planned passenger load and distance to fly. Based in Dubai, the company is a subsidiary of the Emirates Group, a government-owned corporation. Strategic Alliances with Manufacturer: Existing plane models with Emirates in the end of 20th century, could only fly distances of up to 14 hours, due to which they were not able to connect to the key potential markets such as Los Angeles or Sao Paulo. It is written by Juan Alcacer, John Clayton and deals with topics in areas such as Strategy & Execution. It will also encourage the development of a commercially-viable supply chain for sustainable aviation fuel (SAF) and conduct trials of, and purchasing, electric and hybrid ground equipment and vehicles to replace diesel-fuelled equipment. The Emirates Airlines' success. The sustainability imperative seems driven by a realization of the global business community: a firm's purpose beyond profit and its codependency on other firms, organizations and individuals in the ecosystems in which it operates represent significant forces in maintaining long-term profitability. Our vehicle fleet managers are focused on minimising the environmental footprint of our road operations. All parts of the company were affected by redundancy, resulting in a 31 percent reduction in employees. Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. Emirates, which was in-turn knows for its high quality service is facing serious threats from Qatar Airways, which has renounced itself to have the best in class air experience. Sustainability and eco-efficiency are the cornerstones of all Emirates Group operations both in the air, and on the ground. The scale of the airlines operations means that even a small change can make a big positive impact with low carbon footprint. A loss of Dhs22 was recorded by Emirates Group last year for its first annual profit in over 30 years. Dont know where to start? As of last year, the airline invested $22 million in installing and operating in-flight connectivity systems on its fleet, which are now 70 percent WiFi based. Helping & empowering business owners for over 15 years, helping them to understand how to protect own interests, build bridges to amplify joint ventures, adapting new business practices and solutions. Local government support 3. The Dubai government further facilitated incoming tourist flows by eliminating the majority of visa requirements and launching marketing campaigns. Emirates reaffirms its wildlife commitments on World Environment Day. The Emirates Flight Catering solar rooftop power plant has 8,112 individual solar panels and is expected to generate 4,195 megawatt-hours of electricity annually, allowing the company to reduce traditional energy consumption by 15 per cent across its laundry, food manufacturing and staff accommodation facilities. operates 158 destinations in 85 countries, making it the worlds largest airline. Highly priced tickets compared to competitors 2. Etihad, which enjoys all the exclusive facilities like Emirates, such as the subsidised fuel, exemption from the Income Tax, Free-Air initiatives from the government has structured a similar business model for itself. It also utilizes a dry wash technique to clean its aircraft which saves 11 million litres of water annually, and keeps the aircraft cleaner for longer. why is sustainability important to airline industry? A geographic & psychographic segmentation strategy has worked for Emirates in order to create offers that are more relevant for target audiences. All rights reserved. Once the planes were confirmed, the planning team examined the overall fleet, the available craft currently in use, and how many planes remained. You can read more about the CORSIA on ICAOs website(Opens in a new window). Dubais contribution in the success of Emirates Airlines is as mentioned below: . The purpose of customizing a customer selection strategy with Emirates is to gain exclusive access to customers where they plan to sell their products. ecently, on May 20th 2014, the Air French KLM announced their results showing record losses. On carbon emissions, the airline says that as well as the above efficiency measures, it supports the development and introduction of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) through the International Civil Aviation Organization (ICAO). why? Read more about this strategy at www.enviro.aero(Opens in a new window). The aviation industry has actively called on the worlds governments to put in place a single global market-based measure to address carbon emissions from international aviation. The government also sees Emirates to be one of the strong pillars in their economy, which has paid a total of $2.3 Billion in dividend since the royal family bankrolled the venture 28 years ago. It also has a fuel efficiency programme that helps reduce unnecessary fuel burn through the use of a fuel monitoring system, flexible route planning with air navigation partners, air traffic management to develop efficient routes and aircraft weight management to reduce aircraft weight (and thereby fuel burn). Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. Emirates policy of investing in the most modern, eco-efficient technology available means we have one of the youngest fleets in the industry. Most of the Asian and Australian population traveling to Americas find it easier to travel via Singapore Airlines which has a lower travel time, such as Sydney to California; Others traveling from developing regions of china find it convenient to fly to European regions with Turkish airlines. Highly priced tickets compared to competitors 2. 3. Customers appreciate Emirates ability to continually improve products, services, and technology in order to earn their loyalty. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. Fuel use can be reduced by four percent by adding wingtip devices to aircrafts. Recent initiatives include the use of data analytics and in the near future of machine learning (ML) and artificial intelligence (AI) to better forecast potable water uplift in each flight. Dubais Open-Air: In order to tap these new markets and fill its network, however, Emirates needed regulatory approval to fly to new destinations. Power BI monday.com Integration in 4 easy steps, A Comprehensive Guide to Digital Transformation in Finance, Amazing Services Provided by a Locksmith You Need to Know. Emirates Airlines is an integral part of "The Emirates Group", which comprises more than All Rights Reserved. Sustainability and ecoefficiency are the cornerstones of all Emirates Group operations - both in the air, and on the ground. It helped create a strong pull that attracted business and leisure tourists alike. Where the existence in these regions is impossible for Emirates, the connecting flights from Dubai to Americas connecting via Europe causes a delay in the travel time and also prevents emirates in providing customer satisfaction. Aging Fleet3: Emirates has been amazing in providing world class services, and most of the credit goes to the young fleet size, which are equipped with modern technologies. It also standardized the customer experience. Our customers, staff and regulators are increasingly conscious about the environment and greenhouse gas emissions. Course Hero is not sponsored or endorsed by any college or university. Representing about 5 per cent of Dubais total land area, this is the biggest piece of land which Dubai has dedicated to a single project. You can read more in the Aviation Benefits Beyond Borders report(Opens a PDF in a new tab) written in July 2016. It also accesses to be the gateway to major cities around the world and is the hub of the UAE tourism at the Abu Dhabi International Airport, few kilometres away from Dubai. Emirates growth into new markets produced some additional peak-period hiccups. 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