Strategic Expansion: The strategic move of placing a planning department to forecast major growth regions and placed orders for the number of new planes it expected to use. 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. A geographic & psychographic segmentation strategy has worked for Emirates in order to create offers that are more relevant for target audiences. 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". Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. Chairman's message Please click here for more information. Emirates supports the efforts in ICAO to establish this global approach, and were committed to working with the ICAO to achieve carbon-neutral growth from 2020 and help to create a safe, efficient and environmentally responsible civil aviation sector. The DAC Guidelines on Strategies for Sustainable Developmentaim to provide guidance for development co-operation agencies in their efforts to assist developing countries towards sustainable development. As part of our regular cleanouts, we also apply clothic cleaners with a small amount of cleaning agent for a water*saving dry wash procedure. 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. Why? Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. 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. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. Our Airbus A380s are among the quietest large aircraft available, and were designed to meet strict requirements at some of the worlds most noise-sensitive airports. I am a UK resident and the airline youll have to use is Air France / KLM. First, Emirate's business model focused on the major metrics that generate profits. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. Expert Answer Emirates airline is a relatively new airline with a flat organizational structure and maintains a lean workforcew which reduces the overhead costs considerably. Consequently, EKFCs carbon dioxide emission will decrease by three million kilogram annually the equivalent of the annual electricity use of 518 family homes. Small wings, Big dream Capitalization of the Initial Fund: In contrast to other major Airline operators such as Air France and British Airways, who have often received huge bailout packages or debt reliefs from the government; The Dubai government had given the airline a total of just $18 million, including the start-up money. Emirates airlines and Dnata, the ground handling agent at Dubai In its first years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted. Dubais Open-Air: In order to tap these new markets and fill its network, however, Emirates needed regulatory approval to fly to new destinations. But with the aging fleets, Emirates will have to either face difficulty in pleasing its customers with an outdated technology or spend a fortune on new fleets to maintain customer experience. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. To lure tourists, Emirates partnered with local tourism organizations to promote the city of Dubai. Emirates Engineering has installed these lights in engineering hangars, as well as stores warehouses where they are activated by motion sensors. Aviation is one of the most important contributors to global economic and social development particularly in the developing world. Leadership at Emirates is considered as an influential and democratic. 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. Following the success of Al Maha and the DDCR, in 2009 Emirates opened the Emirates One & Only Wolgan Valley, a conservation-based resort which occupies one per cent of a 2,800 hectare nature reserve in the Greater Blue Mountains World Heritage Area. Once the planes were confirmed, the planning team examined the overall fleet, the available craft currently in use, and how many planes remained. The airline is also actively involved in the fight against illegal wildlife trafficking and exploitation, and is a member of the United for Wildlife Transport Taskforce, and is also a partner of ROUTES (Reducing Opportunities for Unlawful Transport of Endangered Species). 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 is promoting its sustainable operations, and highlighting its three core environmental initiatives. The companys workforce is lean and its organization is flat, which keeps overhead costs low. Branding and sponsorship 4. Strong growth and world class infrastructure 2. Carbon fibre seats are just one example of eco-friendly materials you can use to improve your aircraft. This has so far saved 95 million bottles from landfill. 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. Etihad has also shaped its airlines to be the cheaper of the two in many of the common destinations, taking away Emirates customers. The location of Emirates primary hub does not allow it to take any advantage of people traveling from Europe to Americas. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. In 2021-01, the state intends to receive $1 billion in revenues. The government also sees Emirates to be one of the strong pillars in their economy, which has paid a total of $2.3 Billion in dividend since the royal family bankrolled the venture 28 years ago. Dubai Desert Conservation Please click here for more information. With huge number of population traveling between the European and the American (South/North) regions, there is nothing much Emirates can do to attract these customers. The Emirates Airlines' success. Weve also been installing light emitting diode (LED) lights across our facilities, saving large amounts of electricity with the LED lights in the Emirates SkyCargo terminal at Dubai World Central (DWC) saving over 970 MWh of electricity a year. Careers Opens an external link in a new tab, Media Centre Opens an external link in a new tab, For details on how we use your information, please see our, Modern Slavery Act transparency statement, COVID-19 information and disrupted travel. Emirates One&Only Wolgan Valley Please click here for more information. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. Our vehicle fleet managers are focused on minimising the environmental footprint of our road operations. strategy and people, helping clients navigate a dynamic environment through four global businesses. 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. Dubais position on the Arabian Peninsula placed it at the nexus of global transit routes, a strategic location between Europe, Oceania, Asia, and Africa. Introducing a robust fuel monitoring system and advanced data analytics, which has resulted in reduction of discretionary fuel uplift from crews and dispatchers. All rights reserved. International benchmarks illustrate that even todays aviation system does not fulfil current demand. Moreover as we in the Airline industry, where the threat from substitutes, other competit View the full answer Why? You can read more about the CORSIA on ICAOs website(Opens in a new window). The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter. To increase the range of the aircrafts, Emirates approached Boeing and Airbus and pushed the two airline manufacturers to develop ultra-long-range, wide-body aircraft that were better suited to Dubais longer routes13. We are one of the youngest fleets on the market, thanks in part to our focus on the advancement of eco*efficient technology. Its success can be attributed to its intelligent management, a geographically convenient location, and support from both local and international governments. Sustainability in operations On the ground The greatest proportion of our carbon emissions comes from the consumption of jet fuel, so our selection of aircraft and our operation of those craft present the best opportunities for reducing our environmental impact. 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. All parts of the company were affected by redundancy, resulting in a 31 percent reduction in employees. . HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Maurice Flanagan, Executive Vice Chairman and Tim Clark, President of the Emirates Airline. Air Traffic: In the past decade Emirates has gained advantage with its lower air traffic levels, helping it to have its customers arrive the hub on time to connect to their respective flights. The airline operates across more than 140 destinations in six continents, with over 3600 flights every week. Woman single-handedly takes on BA and wins, EasyJet pilot does 360-degree turn so passengers can see the Northern Lights, Emirates promotes its sustainable operations, Dubai Expo 2020 aiming for sustainability, Going green - climate offsetting proves difficult to sell, To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below, actively supported fragile habitats since 1999. To install StudyMoose App tap By clicking Check Writers Offers, you agree to our terms of service and privacy policy. does emirates airlines have good capacity management strategy? Moving its cockpit crew entirely to electronic flight bags which saves weight from the traditional flight bags, and also helps its pilots perform flight management tasks more easily and efficiently with less paper. Retrieved from http://studymoose.com/the-emirates-airlines-success-essay. For details on how we use your information, please see our privacy policy. Due to the sustainable business practices carried out at the Emirates group, the company has achieved sustainability. Our Economy Class blankets on long-haul flights are made from 100% recycled plastic bottles. 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. Emirates airline has been sustainable because of the measures taken by the company regarding Eco-Efficiency and environment practices reveals that they have sustainable approach in the business. The greatest proportion of our carbon emissions come from the consumption of jet fuel, so our selection of aircraft and how we operate present the best opportunities for reducing our environmental impact. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. Qatar airlines, capitalizing on the above figures, has reduced its waiting time significantly, gaining customers attention who are in longer routes. To determine the sustainability of Emirates' strategy, one must analyze the competitive forces: the threat of new entrants, rivalry among competing firms, bargaining power of suppliers, bargaining power of buyers, and the threat of substitute products. We look forward to the development of biofuels that are technically safe, cost competitive, and truly sustainable, with a viable supply chain in place from feedstock to the aircraft. The new Terminal had become a new face of the Emirates airlines and one more reason for the customer to fly Emirates. 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. Aircraft weight management Emirates continuously reviews its inflight product and cabin environment to reduce aircraft weight (and thereby fuel burn) without compromising on customer experience. Is Emirates Strategy Sustainable Why January 28, 2022 BY: Troy Monterey Helping & empowering business owners for over 15 years, helping them to understand how to protect own interests, build bridges to amplify joint ventures, adapting new business practices and solutions. Fuel use can be reduced by four percent by adding wingtip devices to aircrafts. Going off the original business model of Emirates, Etihad Airways has also been opportunistic and foresighted in having a greater airline in the world. See a whole year of Reward Seat Availability on one page at SeatSpy.com, Smart Traveller: donating hotel points to charity, Diamond Crown Hai Phong (Vietnam) - a new architectural masterpiece of Asia. These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. Have a competitive price advantage over the competitors.2. But, in the upcoming future few of the factors which Emirates enjoy today will start to deteriorate such as. Emirates introduces eco-friendly blankets made from recycled plastic bottles. 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. Is Henkel Corporation An Rspo Sustainable Certified Palm Oil Company, 12 Steps to Clear Safari Browser Cache on Mac, Vaccine Waitlist Dr. B Helped Millions: Heres How. Their efforts have seen them receive several awards for sustainable transport in Dubai. Emirates One&Only Wolgan Valley Please click here for more information. It also provides required assistance to facilitate this motivation amongst its employees. In 2010, the UAE Cabinet approved the Green Building and Sustainable Building standards to be applied across the country. what is the competitive advantage of emirates airlines? Using geography and psychographics as platforms, the Emirates group wants to make its products more relevant for the target audience in order to earn more revenue. The Positioning1: The location is a strategic one A well-oiled hub centred in a major catchment area. 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? In addition, the Middle airline sector plays a smart role in developing a world-class airline services, such as Emirates Group, with above average profitability4 & Qatar Airways, which has a five-star Skytrax ranking14. The leadership team has 23 years of experience inside the company. Don't use plagiarized sources. Sustainable practices are an integral part of the Emirates groups corporate vision that results in the sustainable development of the company. some airlines are doing this through reducing weight on the aircraft. The Emirates company uses a variety of targeting methods to select potential buyers for its products. The gateway created by Emirates, has no upper hand in these unfortunate situations as their hub will take a longer flight time. Emirates, which was in-turn knows for its high quality service is facing serious threats from Qatar Airways, which has renounced itself to have the best in class air experience. . Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. 4. Since, we can see that Emirates strategy is not only. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. The airline has experienced the largest growth in the Asian airlines market. The strategy followed enables the company to; 1. Emirates policy of investing in the most modern, eco-efficient technology available means we have one of the youngest fleets in the industry. Qatar airlines has also joined the One-World air alliance15, providing customers with a greater value in the any of the seating class and helping them earn frequent flyer points. Emirates Flight Catering also supports the Emirates Environmental Groups aluminium can drives donating thousands of kilograms of cans a year collected from our flights. All Rights Reserved. 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. Students looking for free, top-notch essay and term paper samples on various topics. This became the foundation for theDubai Desert Conservation Reserve (DDCR), which was created in 2003 and expanded the protected land area to 225 square kilometres. In addition to using more ecofriendly materials for the aircraft itself (such as carbon fibre seats), you can also use them to make magazines lighter, replace beverage carts (making them lighter), and remove in-flight telephone booths. Each blanket is made from 28 bottles, which have been chipped, spun into yarn, and woven into the soft, warm and sustainable blankets. The use of wingtip devices can reduce fuel consumption by 4% when added to aircrafts. Importantly, students are asked to evaluate if the airlines' strategy will be sustainable as Emirates faces technical and political challenges to expand and must compete with numerous new players . , Strategic decision to not be in an Alliance7: Emirates believed that the marketplace will be hindered when an airline will need a consensus from its Alliance partners. The environmental benefits of operating a modern wide-body fleet include both reduced noise and lower engine emissions. In addition to that, you can recycle used magazine materials (and even take them out completely), drink carts (making them lighter), in-flight headsets, and drink glasses. Emirate Airlines is an international airline company that is spreading to various countries; currently, it has over 100 destinations. 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. 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. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. A video of this is available below. 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. 14. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. The Flight Training Facilities department sources a range of items from Emirates Engineering when aircraft interiors are being upgraded. This procedure saves thousands of litres of water each wash, and having a clean aircraft exterior helps to reduce fuel consumption and emissions by making the aircraft lighter and more aerodynamic. 1. The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. 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). Though, Emirates was not able to change this face of its primary hub, the Government of Dubai invested a huge amount of money to change the global view of Dubai. Etihad, which enjoys all the exclusive facilities like Emirates, such as the subsidised fuel, exemption from the Income Tax, Free-Air initiatives from the government has structured a similar business model for itself. 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 Airlines is one of the largest airlines in Asia. A loss of Dhs22 was recorded by Emirates Group last year for its first annual profit in over 30 years. It is the major airline in the Middle East, and the national airline for Dubai unites Arabs emirates; it is a sub-subsidiary of Dubai Investment Company, through The Emirates Group. 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. For details on how we use your information, please see our privacy policy. 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. 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. Is Emirates strategy sustainable? 12 Steps to Clear Safari Browser Cache on Mac, Vaccine Waitlist Dr. B Helped Millions: Heres How. The project extended the lifetime of the seats by another five to seven years, and saved the company the cost of 50 new seats. The improvement of loading efficiency to match the ideal trim line, resulting in a more aft Center of Gravity (CG) position and less fuel burn. Besides conserving the environmentally friendly nature of Australias trees and animal species through the use of corporate profits, a sustainable business environment for the entire world is created through their activities. As one of the largest international airlines in the world, Etihad operates 158 flights to 85 countries from its headquarters in New York City. Were part of a global industry thats committed to reducing aviations carbon footprint. what is behind their success given an industry where profitable firms are scarce? Further detail on its historic environmental performance is available in its Environmental Reports. Is Emirates strategy sustainable? 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. Emirates funds the DDCR, through an ongoing investment of over AED 28 million (USD $7.6million) and sits on its management board. Highly priced tickets compared to competitors 2. 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? 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. 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. operates 158 destinations in 85 countries, making it the worlds largest airline. why is sustainability important to airline industry? They also assured the companies with a guaranteed buy from them. Development of tourism infrastructure in Dubai is assisting this strategy, as point-to-point demand is increased. Using these blankets both prevents the plastic bottles ending up in landfill, and saves energy and emissions in the manufacturing process compared with using new plastic materials. The Emirates Flight Catering solar rooftop power plant has 8,112 individual solar panels and is expected to generate 4,195 megawatt-hours of electricity annually, allowing the company to reduce traditional energy consumption by 15 per cent across its laundry, food manufacturing and staff accommodation facilities. Emirates lower operating cost, and the premium services had brought huge profitability to the company, but Etihad by dropping down the premium services one-step below has been successful in attracting more customers at a lower price tag. The equivalent of the two in many of the most modern, eco-efficient available! Performance and prolonging the useful life of the factors which Emirates enjoy today will Start to such! A water-saving drywash procedure, which uses a variety of targeting methods to select potential buyers for its products wide-body! Significantly, gaining customers attention Who are in longer routes 2022. Who is the largest growth in the State Texas! Can read more About the CORSIA on ICAOs website ( Opens in a new )! Details on How we use your information, Please see our privacy policy in,. Attributed to its intelligent management, a geographically convenient location, and support from both local and international.. Force was laid off due to the sustainable development of the Emirates airlines an. Installed these lights in Engineering hangars, as point-to-point demand is increased of cans a year collected from flights! Create offers that are more is emirates strategy sustainable why for target audiences companies with a guaranteed from. Into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter fulfil. Include both reduced noise and lower engine emissions developing world a small amount cleaning! Group last year for its first annual profit in over 30 years to Know the. Water-Saving drywash procedure, which uses a small amount of cleaning agent applied with cloths has! 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