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Presented By: Nikhil Aggarwal (11201004) Vivek Diwedi (11201968) Karan Khanna (11201920) Abhimanyu Durga Saketh Sachin

Emirates_Case_Study

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Page 1: Emirates_Case_Study

Presented By:

Nikhil Aggarwal (11201004)Vivek Diwedi (11201968)Karan Khanna (11201920)Abhimanyu DurgaSaketh Sachin

Page 2: Emirates_Case_Study

Overview of Emirates:

Founded 1985 Headquarters Dubai Fleet Size 205 Destinations 148+

/ 78 Countries

Owned By : The Emirates Group

Largest airline in the Middle East

Page 3: Emirates_Case_Study

Boeing, Airbus

Govt. of Dubai

Dubai International Airport

AirLanka

Quantas

Codeshare Agreements

Ground handling

Baggage handling

Aircraft Maintainence

Passenger Services

FuelLabour / Staff

OnlineAirportsTravel Agents

FuelAirport User ChargesStaff / LaborTaxes

First Class

Business Class

Economy Class

SkywardsBusiness Rewards

Branding

Offers

Low Cost

Destinations

PassengerCargoExcess BaggageDestination and Leisure

IndividualsBusinesses

DepreciationOperations

Page 4: Emirates_Case_Study

Value Creation …..

In-Flight Entertainment System (ICE) 1200 channels In-flight email server In-flight mobile phones 130 on-demand movie titles 15 video on-demand channels 150+ audio channels 50 video-game titles iPod Dock External cameras giving a bird’s

eye view from the plane

Ground Services

Lounges

Complementary Chauffeur-Driven Cars

Low Cost

Premium Services

Page 5: Emirates_Case_Study

Emirates: Case study analysis Query: How has Emirates been able to build a strong brand in the

competitive airline industry worldwide? It is the largest airline in the Middle East, operating over 3,300 flights per week from

its hub at Dubai International Airport, to more than 148 cities in 78 countries across six continents. Also the seventh largest airline in the world in terms of revenue, and the largest airline in the Middle East in terms of revenue, fleet size, and passengers carried

In the financial year 2014–15, Emirates generated revenues of around AED 89 billion ($24.2 billion), which represented an increase of approximately 7.5% over the previous year's revenues of AED 83 billion. Passenger numbers also increased from 44.5 million to 49.2 million over the same period representing an increase of around 11%. Passenger seat factor increased by 0.2% to 79.6%.

Also, Lean Human resource, Dubai government support, High employee satisfaction, High customer loyalty, Wide area of business activity (80 countries),Innovation with the time were the prime factors in building itself as a brand in aviation industry

Emirates has invested in a program called "tailored arrivals". This allows air traffic control to uplink to aircraft en route. It first determines the speed and flight profile from the air onto the runway, this allows the crew to accept and fly a continuous descent profile, saving fuel and emissions

Page 6: Emirates_Case_Study

Figures & Numerical data

Page 7: Emirates_Case_Study

Emirates: Case Study Analysis Query: What are some of the apparent weaknesses with the

company’s strategic direction? How can the airline address them?

The Apparent weaknesses of companies strategic direction are :1.  They Overlook the faults in their marketing strategies.2. They are overconfident about their position in the aviation industry3. They are not a part of any alliance.4. They do not look into the pros and cons of their competitors. for eg.

Etihad airways and many other airways have also signed the open skies policy and are ready to compete with emirates at a very competitive price with the same quality of service.

5. Ignore the competition :they totally ignore their competitors like Gulf Air Company GSC, Air France, Lufthansa AG, British Airways, and Qatar Airways Group.

6. Target only the Elite class of customer.

Contd.

Page 8: Emirates_Case_Study

Solutions to above addressed issues:1.  Improving in flight service to an even better level.2.  Extending new routes.3.  Product development-private suites.4.  Low cost carrier(budget airlines)5. By involving in the competition and making their strategies as per the

market demand.6. Work for middle and low class population also.

Page 9: Emirates_Case_Study

Emirates: Case study Analysis Query: With the decline of fuel prices globally, airline companies

continue to reap the benefits. What impact will this have on Emirates’ business strategy in the future?

1. Company will now attract cost conscious customers through declining of fuel price.

2. To reduce price-fluctuation risk on projected operating costs, many airlines hedge a proportion of their future fuel needs six to 24 months in advance by buying jet fuel or crude oil contracts from banks or on an oil futures market.

3. When the oil price is falling, options are an advantage. It is cheaper to hedge forwards and get protection if prices go up, but if you pay a premium for options you also retain the potential to benefit from lower oil prices more immediately.

4. Risked slower growth in the coming years as heavy investments in new planes and premium-class services begin to erode profit margins.

Page 10: Emirates_Case_Study

Recent Facts: Emirates is not subsidized Sheikh Ahmed (Chairman of The Emirates Group) said the airline is not

subsidised and it's been profitable from day one. He also said following points while addressing “World Government Summit”1.  “Government should play the role to ensure we are competitive and prices are

right… We all fly the same aircraft, it's what extras we give.“2.  “We were the first airline to install videos in every seat. We have more than

2,200 channels on board; we have showers. What will come next on board? As an airline we always see what customer wants, but you have to pay for it. We can't give it for free. “

3.  People believe 2016 will be bad year. “I say it will be a good year in relation to capacity. People said that when Qatar Airways came, when Etihad Airways came. Same would happen.

4. “UAE is not the same as 30 years ago. We have more people now. Today, Dubai has 80 million passengers and we aim for 120 million - it is the hub for the world.”

5. Emirates chief said Internet access on 17-hour flight is for just a dollar but the airline needs a wider bandwidth to meet the demands of passengers.

Page 11: Emirates_Case_Study

For More updates visit:

www.emirates247.com