investigates the management of Emirates Airlines PDF

Abstract
This study investigates the management of Emirates Airlines in comparison to other airlines. The
first part provides a brief outlook of the Emirates Airlines and there is a look at where the
company came from. The numerous development stages are discussed showing the changes the
company had to make to accommodate its growth.
There is a look at the goals of the company which the management strives to achieve. These
objectives bear the expression of strategies including a diversification strategy, an intensive
strategy and a generic strategy to ensure the airline remains one of the top airlines in the world.
Emirates Airline has been innovative in the use of technology to enhance its service and has set
the trend in the industry. This report also discusses the strategic alliances that the airline has
made to increase its reach and therefore access more customers.
It also delves into the stages a company goes through facing different challenges and
competition. There is a look at some challengers in the industry and other similar type of
organizations. British Airways and Singapore Airlines offer the stylish exemplifications of the
diverse competition that Emirates Airlines faces. There is a look at the similarities and contrasts
in challenges and strategies taken by these airlines in comparison to Emirates Airline.
A swot analysis also goes through the strengths, weaknesses, opportunities and competition that
the company may have. Recommendations on how the airline can ensure it remains competitive
and profitable are also stated in conclusion

Introduction
After a gap was left by the closure of Gulf Air, Emirates Airlines was established in the 25th of
October 1985 by the Dubai government with only two aircrafts at the time. It has now over 142
aircraft and flies to 78 destinations that are spread over 102 countries throughout the world. The
cabin crew is so diverse that it accommodates 95 nationalities. Recently it made aircraft orders of
at least 27 billion dollars for 45 Airbus A380 making it the largest buyer of Airbus super jumbo
in the world. Emirates Airlines is also the fifth most profitable airline worldwide. According to a
BBC report, it has been growing by at least 20% each year for the last 17 accumulating a profit
of 637 million dollars in 2004-2005.
Offering consistent and high quality for money service and being the best airline on all routes is
the Emirates Airline’s mission which it is committed to achieve. Towards this goal it has been
known to be innovative and customer oriented in the provision of services including personal
entertainment system offers in all classes, 22 audio channels, 18 TV channels and an online
booking service enabling customers to search for flights, book and choose seats. It remains one
of the fastest growing airlines

1.1 In an industry where profitable firms are scarce, Emirates has delivered
solid growth and solid financial performance for many years. Why?
The airline industry profits have been declining in recent years. The rise in costs combined with
increase in global competition has forced airlines to look for ways to reduce costs and find
alternative ways to stay competitive. When most airlines have turned their business level strategy
to cost leadership, Emirates' successfully applied differentiation strategy. Other airlines reduced
the comfort of travel while Emirates have gone the opposite way by implementing the luxurious
accommodations.
Another reason why they have become such a successful company is that they were able to use
their geographic location and favorable political environment to tap into underdeveloped markets
which in turn increased their profits that are associated with the first mover's advantages. Even
though cost leadership is not their business-level strategy, they managed to lower quite a few
such as labor costs. Other airlines' hubs are located in countries with high level of government
regulations which require more benefits paid to employees like retirement funds, healthcare,
social security payments or unemployment contributions. On the other hand, Emirates did
provide housing. Lower salaries must have been attractive enough to potential employees
possibly due to a combination of factors such as no income taxes due and the housing
accommodations the Emirate Airlines provide for this company to be able to attract a large
international crew.
The Emirates Airlines also lowered their costs by limiting the type of airplanes to just three. This
allowed the airline to use their human resources (e.g. pilots) more effectively, and the customer
experience was more standardized. The limited number of aircraft types also allowed the
company to be more flexible by allowing the deployment of more or fewer airplanes in any
existing route as needed. The operational flexibility is also achieved by the airline's flat
management structure. This type of structure removes excess layers of managements which
improves the coordination and speed communication between employees and managers. Fewer
levels of management encourage an easier decision-making process giving the company more
flexibility and faster response to making necessary changes.