Corporate Airline Planning and Development

This report discusses the external environment, internal strengths and capabilities, forecasting methods, and strategic position of Emirates, the largest airline company. It covers factors such as political, economic, social, technological, legal, and environmental that impact the company's growth. It also analyzes the strengths, weaknesses, opportunities, and threats of Emirates and discusses various forecasting methods used by financial specialists. The report concludes with an analysis of the strategic position of Emirates using the Ansoff matrix.

Corporate Airline
Planning and
Development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External environment.............................................................................................................3
Internal strengths and capabilities of Emirates.......................................................................5
Forecasting methods...............................................................................................................6
Strategic position....................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Corporate planning and development tend to integrate several functional departments in
company undertaking various units considering finance, accounting, marketing, production,
human resources and so on as all of them are interrelated. In regard of this, effective corporate
plan is undertaken as the decision-making process of company by undertaking the risk factor for
having effective elimination (Hausladen and Schosser, 2020). In regard of this, planning tends to
consume lot of time and effectively undertake wisest investment due to planning factor for the
future development and growth. To carry forward this report, Emirates is considered which is the
largest airline company and flag carrier situated in Dubai and also operate over 3600 flights per
week. It is undertaken as the world's fourth largest airline and the second largest in terms of
freight tonne KM flown. The report tends to cover the prominent trends with the help of external
environment and also analyse internal strengths and capabilities. Furthermore, it also tends to
consider forecasting methods and strategic position in terms of making sure for the maintenance
of carrier for the foreseeable future.
MAIN BODY
External environment
PESTLE Analysis:
This framework is useful in terms of having effective analysis of overall factors which
impact the growth and development of company. For this, company tends to have effective
analysis of suitable risk factors and also tends to overcome them in terms of having effective
expansion of company. Few factors are mentioned as: Political: Each and every country has their own political circumstances and they need to
consider them at the time of having prominent factors including as emirates itself has
individual governmental organisation that permit them for effective and flexible
management. It undertakes global security which is concerned with the prominent terror
attacks and other parts that tends to eliminate the demand for air travel (Camilleri, 2018).
Besides this, Emirates also tends to operate flights for several emerging regions and also
at the stable political environment undertaking the political change that halt the demand
of flights.

 Economical: Emirates is the international online airline company which undertake
revenues in collective manner and undertake sudden movement regarding the exchange
rate considering the global conditions that leads for the revenues fluctuation. It depicts
the economic growth that has been prominently undertake the effective investment with
the sector. Besides this, it also tends to attempt for the attractive business destinations
which is beneficial for the airline company. Social: The frequent change for the population of world depict the essential factor that
leads to shape for the demand for the airline travelling. It depicts the most lucrative travel
area that tends to enhance the overall generation considering the emerging insatiable
factor for travel (Park, 2019) (Karaman and Akman, 2018). Besides this, millennial
travellers tend to have huge expectations from the earlier generations as the emerging
region depict the disposable income that increase for the valuable business potential to
find opportunities in market. Technological: Emirates and other airline units are depending on the effective
technological development and consider the world for rapid changing that become
breakthrough innovation in terms of moving towards the competitive advantage.
Therefore, Emirates need to keep up with the overall technological development in terms
of remaining in the effective airline company. Besides this, it also tends to enhance the
overall capabilities of airlines to carry forward the additional cargo during low cloud
conditions. Legal: These factors undertake prominent law suits by other organisations, government
and so on and consider the supreme court of EU that has impose compensation on
emirates amounting for the millions of pounds. It depicts the right on compensation that
tends to delay for maximum three hours or more. Besides this, Emirates airlines
undertake legal actions against US carriers in order to accuse company for unfair
competition.
 Environmental: It depict the improvement in the overall demand of public to undertake
the climate change that leads to force several organisations to modify their strategies
(Saarinen, Rogerson and Hall, 2019). It also tends to take and landing to consume 25-
30% of fuels. For this, the public demand effective purchase for company undertaking

suitable air crafts that leads to consumer less fuel. Emirates need to make sure to
purchase the most effective fuel air craft that has the youngest fleet in its arsenal.
Internal strengths and capabilities of Emirates
In terms of identifying suitable strengths and capabilities, SWOT analysis is used which
is helpful in terms of analysing prominent strengths and capabilities of company. Some of the
elements are discussed as underneath: Strengths: Emirates has strong backing for the Dubai government and also become the
greatest strength for the success and growth of airlines in market. Company also provide
effective customer service and also has enormous response from their potential customers
(Lee, Kim and Roh, 2019). For this, company also has strong workforce which is
approximately 50,000 employees that will help the company to function effectively.
Emirates tends to develop decision by focusing on the diversified market undertaking the
strength and also tends to increase their visibility to gain more revenues. Weaknesses: There is the wide range of intense competition for the limited market share
growth for the company and also depict the effective cost to maintain benchmarking
standards. Besides this, the airlines heavily rely on the international onward moving
traffic and the current pandemic and lock down tends to put negative impact on the
functioning of company. As during this period because of government restrictions and
norms travelling got ban that hugely impact the functioning of company. Opportunities: Emirates tends to launch new fleet that tends to use enhance level of
customer satisfaction and confidence as it leads to enable them to offer suitable services
to their customers. Moreover, company also leads to increase the international
destinations which leads to become effective opportunities in terms of becoming more
popular among customers (Kasemsap, 2018). Along with this, undertaking partnerships
and joint venture leads towards the effective opportunities for airline company that leads
to increase their revenues.
 Threats: Airline sector face enhanced level of competition in market and Emirates
prominently face strong competition in middle East market as it become serious threat for
company offer prominent services to the high-class travellers by offering prominent
chance to eliminate visibility. Moreover, there is the enhance level of fuel cost that leads
to impact the airline margins as it leads to fluctuate cost and also become threat to

Emirates. Besides this, effective change in government policies and norms also tends to
impact airline company.
Forecasting methods
There are various types of forecasting methods which is used by financial specialist in terms
of predicting future revenues capital cost and expenses of business. There are wide range of
frequently used forecasting tools which are mentioned as below:
 Straight line: It is undertaken as a simplest and easy forecasting method as in this the
financial specialist of Emirates use historical Trends and figures in terms of predicting
future revenue growth.
 Moving average: It is also undertaken as the smoke technique which depend on the
significant pattern for this set of data which is developed as the estimate of upcoming
values (Upadhaya and et. al., 2018). In terms of performing a moving average forecast
then the financial analyst of Emirates needs to consider the revenue data and place it in
the vertical column before moving towards the average.

 Simple linear regression: It is the white term which is used in terms of analysing the
prominent relationship among the variables for having suitable production for the specific
purpose (Lee, Kim and Roh, 2019). In regard of this the financial analyst of Emirates
look for defective relationship among the radio advertisements and revenue by suitable
running of regression analysis on the suitable variables.

 Multiple linear regression: In this the financial expert of Emirates use multiple Linear
regressions in terms of forecasting revenues considering the two or more independent
variables which are required for projection (Abbasi, Jhatial and Halepota, 2018).
Moreover, in terms of Emirates there an integration in terms of having suitable promotion
cost revenue and Advertising cost in terms of identifying prominent relationship among
the variables.

Therefore, by considering the above discussion straight line forecasting method is useful in
terms of having constant growth rate and it is quite simple and easy method which is identified
by considering the suitable data considering the historical information in terms of predicting
future growth for the sales and revenues.
Strategic position
Ansoff matrix is undertaken as the suitable technique which is obtained by Business
organisations in terms of leading towards the suitable success and growth for the for the
expansion of business (Tomczak, Reinecke and Kuss, 2018). This Matrix consider four
prominent quadrants in terms of having suitable marketing strategy for the suitable growth of
product. It effectively offers prominent guidance towards the functioning of complete is helpful
to accomplish competitive advantage for company and useful for effective forecasting and
planning undertaken the success factor which is discussed as below:
 Market penetration: In this organisation suitably offer effective products and services in
their current market area under taking the improvement in growth and success of an
organisation. In terms of Emirates the management unit effectively undertake this is
strategy in terms of offering their suitable products across the global level. Despite from

this the overall objective of this strategy is to collect maximum number of Information
and acquire customer base by providing products and facilities according to their
preferences in order to improve sales for the future.
 Market Development: For this company effectively focus on targeting new market area
with the existing product and facilities. In terms of Emirates the manager prominently
focuses on suitable offerings of the commodities in the market area in terms of improving
their customer base (Camilleri, 2018) (Park, 2019). Along with this effectively consider
several types of communication in terms of advertising considering product in their
market area. Moreover, it is useful for the customers in order to improve profitability and
sales of the considered organisation.
 Product Development: In this company suitably offer effective products that are
available in market considering the attraction for maximum number of customers in terms
of enhancing their sales for the upcoming period of time. In relation with Emirates then
management and managers prominently focus on improving market area and customer
base by enhancing their brand reputation with the help of their staff members and their
performance towards the company that leads to attract maximum number of customers
and helps in acquiring large market area (Saarinen, Rogerson and Hall, 2019). It is
helpful in terms of generating awareness undertaking the suitable offerings in the market
as due to the innovative services companies’ suitability focus on attracting large number
of customer base in order to improve their profit margin and living news considering the
effective market area.
 Diversification: It is considered as there most risky strategy in which organisation
prominently put emphasis on targeting new market area with the help of fresh
commodities and facilities in market (Karaman and Akman, 2018). In relation with
Emirates effectively focus on assessing their market before offering unique products by
considering prominent market research that turns them for the huge investment for
company and also considered as risky in terms of introducing services in the market area.
Hence, it is analysed that suitable strategy for company which day consider is market
development as due to this Emirates prominently offer effective services and products in New
Market Area on the grounds of their forecasting factor and past experience and also slowly move
forward towards the prominent expansion and success. Despite from this to improve the suitable

activities of company they need to conduct effective market research by offering product to their
customer base in terms of improving profit margin by considering future period of time.
CONCLUSION
By undertaking the above discussion, it is identified that planning is essential in terms of
having effective performance for the growth and development of company. Besides this,
effective planning leads to accomplish prominent targets and objectives in stipulated period of
time. In regard of this, in the business organisations effective planning and development of
company is essential in terms of having proper growth and development of company. Therefore,
in terms of this, several frameworks and approaches are considered in terms of having effective
development and analysing prominent growth and development by considering risk factors.
Besides this, for planning effective forecasting methods are used which is useful in achieving
strategic position within an organisation.

REFERENCES
Books and Journals
Abbasi, K.H., Jhatial, A.A. and Halepota, J.A., 2018. Corporate Governance in Pakistan: An
Exploratory Study of the Pakistan International Airlines Corporation
Limited. Grassroots, 52(1).
Camilleri, M.A., 2018. Airline schedules planning and route development. In Travel marketing,
tourism economics and the airline product (pp. 179-190). Springer, Cham.
Hausladen, I. and Schosser, M., 2020. Towards a maturity model for big data analytics in airline
network planning. Journal of Air Transport Management, 82, p.101721.
Karaman, A.S. and Akman, E., 2018. Taking-off corporate social responsibility programs: An
AHP application in airline industry. Journal of Air Transport Management, 68, pp.187-
197.
Kasemsap, K., 2018. Encouraging corporate social responsibility and sustainable tourism
development in global tourism. In Operations and Service Management: Concepts,
Methodologies, Tools, and Applications (pp. 1028-1056). IGI Global.
Lee, S.S., Kim, Y. and Roh, T., 2019. Modified pyramid of CSR for corporate image and
customer loyalty: Focusing on the moderating role of the CSR
experience. Sustainability, 11(17), p.4745.
Park, E., 2019. Corporate social responsibility as a determinant of corporate reputation in the
airline industry. Journal of retailing and consumer services, 47, pp.215-221.
Saarinen, J., Rogerson, C.M. and Hall, C.M. eds., 2019. Tourism planning and development:
contemporary cases and emerging issues. Routledge.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Market-oriented corporate planning. In Strategic
Marketing (pp. 49-95). Springer Gabler, Wiesbaden.
Upadhaya, B and et. al., 2018. Diffusion of corporate social responsibility in the airline
industry. International Journal of Operations & Production Management.