Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Emirates Airlines
Introduction
In just 100 years, aviation has become an essential part of our
global infrastructure.
It has become a catalyst for change.
In 2014, airlines will safely transport 3.3 billion passengers and
move 50 million metric tons of cargo across a network of 50,000
routes.
Aviation industrys global economic impact is $2.4 trillion, equals
to 3.4% of worlds GDP. The industry supports more than 58
million jobs worldwide. (Tony Tyler, 2014)
Source: Tony Tyler, IATA 70th Annual General Meeting Review,
Environmental Responsibilities
Airline operations produce 705 million metric tons of CO2 emissions.
Total man made emission in 2013 was 36 billion tons.
Industry is already delivering on its target to improve fleet fuel
efficiency by 1.5% per year.
By 2050, the industry is committed to reduce its net carbon footprint
by 50% as compared to 2005. (Thompson, 2013)
A four pillar strategy of new technology, efficient operations,
improved infrastructure and market based measures.
Source: Aerospace & Defence, 2013 PriceWaterhouseCooper.
http://www.pwc.com/en_US/us/industrial-products/assets/pwc-aerospace-defense-2013-year-in-reviewand-2014-forecast.pdf
COMPANY INTRODUCTION
Founded in 1985
Based in Dubai, UAE
Headed by CEO and Chairman, Ahmed Bin Saeed Al
Maktoum
Subsidiary of The Emirates Group, wholly owned by
Government of Dubais Investment Corporation of
Dubai
Largest airline in Middle East in terms of revenue,
fleet size and, passengers carried operating nearly
3400 flights per week from its hub Dubai
International Airport
Source: www.emirates.com
Ranks among
top ten carriers worldwide in terms of
passenger kilometre
Source: www.emirates.com
SEGMENT
TARGET
POSITIONIN
G
Premium Airline
Source: www.emirates.com
INDIAN SUBCONTINENT
7%
2%
11%
EUROPE
25%
AUSTRALIA & NZ
11%
Indian Sub-continent is
also a major serving
area of Emirates
12%
MIDDLE EAST
32%
AFRICA
FAR EAST
AMERICAS
8%
LEISURE
39%
19%
Male
OTHERS
53%
81%
Female
CONSUMER DECISION IN
AVIATION
Decide
Time
Shortlist
Destinati
on
Make
Booking
Source:
a. D.L. Hawkins, Consumer Behavior Trends 11th edition,
2010
b. www.paragise.com/cv/year%202%208.doc
Compare
Brochure,
Select Best
Itinerary
CONSUMER BEHAVIOUR
TRENDS
Chauffer
Drive service in 70 cities
all over
the world.
Lounges in International Airports across six
continents
Source: www.emirates.com
CONSUMER BEHAVIOUR
TRENDS
Source: www.emirates.com
Source: www.emirates.com
Qantas-Spur Tourism
Right infrastructurepartners in Dubai
70m passengers
in 2020
Source:
www.dailymail.co
.uk
Competitor Analysis
Point of Parity
Both Emirates Airlines and Etihad Airways have stemmed from the same
country United Arab Emirates
In effect, we may conclude that both carriers have the same philosophies
and core values
Both Emirates Airlines and Etihad Airways cater to the premium segment of
travellers. Their target group is Corporate/Middle and Upper Middle Class
Source: www.centreforaviation.com
Competitor Analysis
Both are sponsors to leading football clubs in the field of football.
Etihad Airways Manchester City
Emirates Arsenal
Point of Difference
Though both carriers stem from the same country, they are the ventures
of two different Emirates (state). Emirates Airlines belongs to Dubai
whereas Etihad Airways was introduced by Abu Dhabi
Source: www.centreforaviation.com
Competitor Analysis
Etihad is backed by an oil rich state / supplier whereas Emirates is
backed by an oil buyer
Etihad is a relatively new venture which was founded in the year 2003.
Emirates first flight was in the year 1985.
Emirates has a network of 190 destinations, Etihad has just 55
extensively networked destinations.
Emirates is a prolific advertiser, Etihad has a relatively dormant
advertising policy.
Source: www.centreforaviation.com
Qatar Airways
Etihad Airways
12.1%
9.7%
Carrier
CY2013
Passengers
transported
and growth
Destinations
served
Fleet size
aircraft in
service
Emirates
39 million, 16%
128
212
Qatar
18 million, 6%
124
126
Etihad
79
88
Network Structure
Airport Traffic
Emira
tes
Qatar
Etihad
42 AsiaPacific
35 Europe
44 AsiaPacific
30 Europe
7 AsiaPacific
42 Europe
Airline
Reservation
System
Customer
Third Party
Reservation
System(GDS)
Airline
Reservation
Centres
Online Travel
Agent
Retail
/Corporate
Travel Agents
Exclusi
ve
Selecti
ve
Source : IATA
BCG MATRIX
As market share
rises,profit margin on
sales increases sharply
Buzzell , 1975.
Business
Class
First Class
Economy
Class
Profit Cycle
5400
5100
4800
4500
4200
3900
3600
3300
3000
2700
2400
2100
1800
1500
1200
900
600
300
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year
Source : Datas from Emirates Group Financial
Statements
16000
Developme
nt Stage
Introduction
Stage
14000
12000
10000
8000
6000
4000
2000
0
0
10
15
20
Years
Source : Datas from Emirates Group Financial
25
30
Stealth Positioning
It can give products a fresh run at the life cycle and keep them from languishingor
dying outrightin the introduction phase.
Economy Class Can be Stealth Positioned to gain its growth in market share.
Perceptual Mapping
Important
Multi-Stop
Flights
Safety Ontime
Arrivals
Variety of
routes
Special
Deals
Brand Weakness
Brand Strengt
Good InFlight
Service
Unimportant
Increase its
Services to New
York JFK
t
u
b
ri
Res
t
pas art two
s
from enger weekly
fligh
16t
ts t
hD
o
ece
mbe Erbil
r 20
14.
t
n
co to y, nd
to n o m P a
0
o
on illi on GD er 02
i
at 1 b ec its ov y 2
i
Av 53. ais to ort s b
$ ub % pp ob
D 7.5 su 0 j
3 ill 00
w 50,
7
Source:
Onboard WiFi
Book flights
Store and use boarding pass offline
Get push alerts for chauffeur-drive service, flight
boarding, seat selection, gate changes, baggage belt
numbers and check-in
Dietary Requirements
Bibliography
Alcacer, J. & Clayton, J., 2014. Emirates Airlines. Harvard Business Review.
Berman Johnathan., 2013.7 Reasons Africas time is now. Harvard Business Review
Fox J., 2013. Which is worse: Airline monopolies or Airline competition.? Harvard Business Review
Kim, W.C. & Mauborgne R., 2009. How strategy shapes structure. Harvard Business Review
Tyler, T. IATA Annual Review, 2014
Porter, M.E., 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review
Burke A. & Stephanie H., 2013. How Competition Strengthens Start-ups. Harvard Business Review
Kotler Philip, 2009. 13th Edition, Marketing Management : A South Asian Perspective.
Ramaswamy V.S., 2010. 4th Edition, Marketing Management
Hawkins D.L., Mothersbaugh D.L. & Mookerjee A. 2010. 11th Edition, Consumer Behavior
Trends
Websites
http://www.worldairlineawards.com/ [Accessed on 12 th November, 2014]
www.academia.edu/5494792/Emirates_Strategy [Accessed on 15th November,
2014]
www.emirates.com/ [Accessed on 15th November, 2014]
http://www.spafax.com/download/media-kits/emirates-inflight-mediakit-2013.pdf
[Accessed on17th November, 2014]
http://www.airlinetrends.com [Accessed on 19th November, 2014]
Target Market and Marketing Strategies of Emirates Airline
http://www.sturesearcher.ch/?p=787 [Accessed on 20th November, 2014]
http://www.economist.com/node/16271573 [Accessed on 21st November,2014]
http://centreforaviation.com/analysis [Accessed on 18 th November, 2014]
http://www.travelweekly.com.au/news/emirates-sees-sharp-lift-in-market-share-1
[Accessed on 22nd November, 2014]
http://centreforaviation.com/analysis/indias-airlines-lost-usd165-billion-in-fy2013-capa-india-aviationoutlook-201314-part-4-111778
http://www.travelweekly.com.au/news/emirates-sees-sharp-lift-in-market-share-1
http://fshahim.com/2013/07/01/gulf-based-airlines-ambitions-and-its-implications-on-its-customersand-competitors-in-europe-and-the-united-states
http://www.aspireaviation.com/2013/08/07/etihad-airways-equity-alliance-strategy/
http://centreforaviation.com/analysis/emirates-qatar-airways-and-etihad-airways-opportunities-forairports-as-gulf-airlines-expand-18668
http://www.iata.org/whatwedo/Documents/economics/IATA-Economic-Performance-of-the-Industrymid-year-2014-report.pdf