It also standardized the customer experience. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. This view of Dubai hindered Emirates to be known as a popular brand in the aviation industry. ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. Since, we can see that Emirates strategy is not only. The airline operates across more than 140 destinations in six continents, with over 3600 flights every week. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. 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. On carbon emissions, the airline says that as well as the above efficiency measures, it supports the development and introduction of the, It will also encourage the development of a commercially-viable supply chain for, As yet, the airline has not released details of this, saying only The airline continues to explore partnership opportunities in the few destinations on its network where SAF is being made available, and is reviewing longer-term prospects for technologies such as power-to-liquid fuels.. Emirates uses an innovative foam wash technique for cleaning aircraft engines that helps us saves about 200 tonnes of carbon dioxide emissions per year across our fleet. But with the increased air traffic by Emirates itself, having being forecasted to carry twice as capacity soon in future. The Emirates Airlines success has been the continuity of its management team, many of whom have been with the airline since its start of the company. Our business units are constantly on the lookout for opportunities to reduce resource consumption, repurpose items, and recycle materials when they reach the end of their life all essential aspects of a circular economy. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. More than 125,000 visitors made their way to the DDCR in 2021, and plans are underway for a Visitors Centre at the reserve to enhance the visitor experience and will also be used as a platform to develop educational programmes for schools and higher educational institutions. This reduces the aircrafts fuel consumption because of less accumulation of dirt, and reduces the number of times the aircraft has to be washed to about three times a year. For customers, it also served as the fastest way to connect to their destinations, where in other major carriers offered a zigzag path. 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. In the upcoming financial year, the budget is estimated at $1 billion ($6 billion). Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Sustainability and ecoefficiency are the cornerstones of all Emirates Group operations - both in the air, and on the ground. Weve invested in one of the best flight planning systems available, to carefully plan flights and optimise routes based on each days weather conditions, airspace constraints and the specific aircraft allocated for each sector. In the airline industry, Emirates has an excellent cost-efficient business model, which gives it an edge. Emirates promotes its sustainable operations through three core environmental initiatives: Reducing fuel emissions; . what are airlines doing to be more sustainable? Emirates has always been precise with its strategies, and has always enjoyed it benefits. Qatar Airways soon realised the lack of tourist for its primary hub, contrast to that of Emirates/Etihad, and have modified its business model to suite its transit customers. The leadership in the organisation were able to capitalize on this initial funding by the Dubai Royal Family and flew out of Dubai with just two aircrafts, leased Boeing 737 and an Airbus 300 B4 from the Pakistan International Airlines. The airline has also had economy class blankets made from recycled plastic bottles since 2017. Emirates, will have to make some strategic moves either to have their airlines positioned to be an average cost airline with premium services, to have a fair trade-off with its customers and gain the depreciating markets from low cost airlines. All Rights Reserved. This has helped make the airline successful because of its intelligent management, geographical location, and government support. Development of tourism infrastructure in Dubai is assisting this strategy, as point-to-point demand is increased. We implement this strategy by employing advanced technology throughout our group, including in aircraft and engines; encouraging governments to make air navigation more fuel- and emission-friendly; reducing the environmental impact of our ground operations; and supporting the development of a global sectoral approach to carbon emissions through the International Civil Aviation Organization (ICAO), the United Nations agency for international civil aviation. But, when it comes to the pacific travels, they have no existence. International Competitors: Strategic competitors such as Singapore Airlines and Turkish Airlines have also been able to mark themselves as a hub inconnecting different parts of the world. Examples include continuous climbs and descents, and inflight rerouting on long-haul flights to take into account shifting winds. 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? Typically for an airline this means having a modern and efficient fleet, and Emirates has this, with an average age of fleet in 2020-21 of 7.3 years. The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. Dubais position on the Arabian Peninsula placed it at the nexus of global transit routes, a strategic location between Europe, Oceania, Asia, and Africa. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? As compared to low-cost carriers, we have a lean workforce with flat organizational structure keeping overhead costs low. 2023 The Emirates Group. Fuel use can be reduced by four percent by adding wingtip devices to aircrafts. We strive to be leaders in environmental performance in our industry and in our region, and were committed to complying with all applicable environmental regulations and standards. It reflects how Emirates strategies are sustainable at present day business. 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. Chairman's message Please click here for more information. 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. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. 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. 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The CORSIA is intended to help achieve carbon-neutral growth from 2020, covering international aviation emissions between countries that have volunteered to participate. 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. 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. Dont know where to start? While some nations such as the UAE, the US and the Netherlands have open skies agreements with other nations permitting unrestricted access to their markets by any foreign carrier, many countries continue to regulate the level of access. The leadership team has 23 years of experience inside the company. And our engine washing procedures keep internal engine components clean, maintaining fuel-efficient performance and prolonging the useful life of the engine. Emirates has been headquartered at a multi-million dollar facility situated in Dubai, which handles a strength of 105,000 employees at an increased rate of 11% from the previous year of its operation. In order to promote a sustainable global business environment, the company ensures the bio-diversity of the trees and animals in Australia. Copyright 2023 by Ictsd. To lure tourists, Emirates partnered with local tourism organizations to promote the city of Dubai. In the initial years of Emirates, many potential customers in target markets were still largely unfamiliar with Dubai, and few saw it as a principal tourist destination. These spikes strained the airports capacity, but they were essential to allow connecting passengers the widest possible choice of connections from points east to west13. 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. This team is also using LED lights for aircraft cabin maintenance where they have the added advantage of being much cooler than the lights they replaced. operates 158 destinations in 85 countries, making it the worlds largest airline. On landing, our pilots use idle reverse thrust (instead of full reverse thrust) and switch off one engine while taxiing where it is safe and practicable to do so. Emirates airlines and Dnata, the ground handling agent at Dubai Its success can be attributed to its intelligent management, a geographically convenient location, and support from both local and international governments. Realising the Advantages: The government-owned Dubai carrier has lower personnel costs than much of the industry, in part by drawing many workers from the nearby lowwage nations of Pakistan and India1. Explain. 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. There are a few ways that the Emirates have a competitive advantage over other competitors, and the most important one starts with their hub. Emirates funds the DDCR, through an ongoing investment of over AED 28 million (USD $7.6million) and sits on its management board. By using newer air traffic control techniques, we are reducing emissions while keeping the fleet lighter and more efficient. Introducing a robust fuel monitoring system and advanced data analytics, which has resulted in reduction of discretionary fuel uplift from crews and dispatchers. 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. Emirates reaffirms its wildlife commitments on World Environment Day. Saving fuel inflight begins with planning on the ground. Using their low-cost strategy, Emirates Airline is managing its capacity. Air Traffic: Dubais relative distance from congested European airspace meant that aviation traffic was minimal and that flights could connect at almost any time of the day, allowing for twenty-four-hour operations. Qatar Airways: Right at the nose tip of Emirates and Etihad, Qatar airways has followed a similar business structure, to be one of the major competitor for Emirates. why? Dubai Desert Conservation Please click here for more information. Theyve introduced more fuel efficient vehicles, optimised trip planning to reduce the number of routes served and number of empty trips, and trained drivers on safe and efficient driving practices, including avoidance of unnecessary engine idling. Emirates uses an innovative foam wash technique for cleaning aircraft engines that helps us saves about 200 tonnes of carbon dioxide emissions per year across our fleet. Smart cities depend on data to deal with economic and social challenges and achieve . This base was then used to determine whether to add capacity to existing routes or launch a new route. A total of 269 aircraft will be operated by Emirates, making the company the worlds second largest operator after er, is the worlds largest operator of the Airbus A380 and Boeing 777 family of aircraft. 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. Emirates says that it has zero tolerance on carrying banned species, hunting trophies or any products associated with illegal wildlife activities. Its ground handling colleagues are trained in IATAs Live Animal Regulations and its own internal policies on carrying wildlife, with frontline employees trained to recognise and report suspicious cargo. Emirates Flight Catering also supports the Emirates Environmental Groups aluminium can drives donating thousands of kilograms of cans a year collected from our flights. Get your custom essay on, Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". In its first years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted. Emirates also maintained a younger fleet in the industry, with an average airplane age of 6.4 years, which enhanced the passenger experience and increased fuel efficiency. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. 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. For more information, you can read the Emirates Group's Environmental Policy(Opens a PDF in a new tab). Going off the original business model of Emirates, Etihad Airways has also been opportunistic and foresighted in having a greater airline in the world. The Emirates hub strategy has kept them ahead of competitors, as the they are located in a prime position to serve Europe, Oceania, Asia, and Africa. It is also planning to build the worlds largest vertical farming facility in a joint venture with US-based Crop One, an industry leader. 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. The Dubaigovernment further facilitated incoming tourist flows by eliminating the majority of visa requirements and launching marketing campaigns. 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. 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. 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. The rich population between the pacific is out of the emirates reach. Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. 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 has other advantages that have placed it on a par with Singapore Airlines the two are the worlds fastest-growing and most profitable jetliners- including its remarkable Dubai location within an eight-hour flight of more than half the worlds population2. 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. Some of the programmes initiatives include: Emirates has also invested in solar power systems to generate clean electricity at two of the airlines major facilities in the UAE Emirates Engine Maintenance Centre and Emirates Flight Catering. Read the stories behind our sustainable products on board. Its competitive with low-cost carriers. Sustainability of Emirates' Current Strategy and Way of Operation. Our flight operations specialists collaborate with air traffic control organisations internationally to deliver more efficient routes and operational procedures, applying the latest in technology to support these enhancements. Governments reached a historical agreement on the framework for this new scheme, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), at the 39th Session of the Assembly of ICAO in October 2016. Emirates Flight Catering is one of the worlds largest airline catering firms, and they run a recycling programme to match the scale of their operation. Getting more customers is the main goal. The Flight Training Facilities department sources a range of items from Emirates Engineering when aircraft interiors are being upgraded. The purpose of customizing a customer selection strategy with Emirates is to gain exclusive access to customers where they plan to sell their products. We firmly support the four-pillar strategy to reduce emissions developed by our industry body the International Air Transport Association (IATA). Strong growth and world class infrastructure 2. Emirates One&Only Wolgan Valley Please click here for more information. We prioritise the use of ground power and pre-conditioned air where it is available so that the aircrafts auxiliary power unit a small jet turbine located at the rear of the aircraft can be switched off. The connectivity option made Emirates push to reach many destinations as possible. Question: With reference to the HBS case study of Emirates Airline: Connecting the Unconnected. does emirates airlines have good capacity management strategy? Emirates reaffirms its wildlife commitments on World Environment Day. Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. The strategy of alliance between two struggling airlines is yet to prove its success. Location2: The Dubai benefited from several inherent strategic advantages as a hub city. SIA to acquire 25 per cent stake in Air India. Emirates introduces eco-friendly blankets made from recycled plastic bottles. And with jet fuel comprising one of our largest areas of expenditure, fuel efficiency is essential to every part of the business. Due to the lower operation cost, Emirates was able to pass the benefits on to the customers which many of its competitors couldnt afford to. The main issue in the presented research is the United Arab Emirates' foreign aid commitment, the development of its brand, and its position in international relations. Have a competitive price advantage over the competitors.2. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter. Emirates Airline has been largely successful due to its competitive pricing strategies that it uses successfully against its competitors. 4. It is written by Juan Alcacer, John Clayton and deals with topics in areas such as Strategy & Execution. 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. Dubais Open-Air: In order to tap these new markets and fill its network, however, Emirates needed regulatory approval to fly to new destinations. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. Today, even though a greater number of population are in Emirates reach, a majority of those population is still under the middle-class level. The Emirates' strategy is very much sustainable. The first flights connected to the neighbouring. 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. This has so far saved 95 million bottles from landfill. Our customers, staff and regulators are increasingly conscious about the environment and greenhouse gas emissions. Its location will enable quick delivery of fresh products within hours of harvest, maintaining the foods nutritional value and reducing carbon emissions associated with transportation. 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