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Contents
Executive Summary....................................................................................................................................... 3
Introduction: ................................................................................................................................................. 4
Company Profile:........................................................................................................................................... 4
Current Strategies: ........................................................................................................................................ 5
Expansion via strategic partnerships .................................................................................................... 5
Contributing by FDI in the countries in which the company is operating ............................................ 5
Investing in our efficient fleet and route network................................................................................ 5
Building strong brand equity................................................................................................................. 6
Hiring professional multinational employees ....................................................................................... 6
Developing sustainable business through corporate social responsibility. .......................................... 7
PESTEL Analysis: ............................................................................................................................................ 7
Political Aspect .......................................................................................................................................... 7
Economic Aspect: ...................................................................................................................................... 8
Social Aspect: ............................................................................................................................................ 8
Technological Aspect: ............................................................................................................................... 8
Environmental Aspects: ............................................................................................................................ 8
Legal Aspects:............................................................................................................................................ 8
Porters five Forces: ...................................................................................................................................... 9
1. The threat of the entry of new competitors ......................................................................................... 9
2. The intensity of competitive rivalry ...................................................................................................... 9
3. The bargaining power of customers ..................................................................................................... 9
4. The bargaining power of suppliers ..................................................................................................... 10
5. The threat of substitute products ....................................................................................................... 10
Value Chain Analysis: .................................................................................................................................. 10
In-bound logistics: ................................................................................................................................... 10
Inbound Logistics .................................................................................................................................... 10
Operations .............................................................................................................................................. 11
Out bound Logistics ................................................................................................................................ 11
Marketing and sales ................................................................................................................................ 11
Page 1
Services ................................................................................................................................................... 11
Human resource management ............................................................................................................... 11
Technology development ....................................................................................................................... 12
Procurement ........................................................................................................................................... 12
VRIO Analysis: ............................................................................................................................................. 13
SWOT Analysis: ........................................................................................................................................... 15
Strengths: ................................................................................................................................................ 15
Weakness: ............................................................................................................................................... 16
Opportunities: ......................................................................................................................................... 16
Threats: ................................................................................................................................................... 16
SWOT analysis summary: ............................................................................................................................ 17
TOWS Analysis: ........................................................................................................................................... 18
Stakeholders Analysis- Needs and Expectations......................................................................................... 19
Stakeholders Mapping ................................................................................................................................ 20
Benchmarking ............................................................................................................................................. 21
Financial Analysis ........................................................................................................................................ 22
Conclusion and Recommendations: ........................................................................................................... 23
Referneces: ................................................................................................................................................. 24
Page 2
Executive Summary
This report presents strategic analysis for Emirates Airlines. Starting from external analysis :
which is benchmarking , PESTEL analysis and VRIO analysis to internal analysis of the company
by SWOT and TOWS analysis and finally Stakeholders Analysis and Mapping.
The company is a major company in the region and worldwide; and it is the official carrier of
Dubai. It was started by an Amiri Decree by the late Sheikh Rashid Bin Maktoum, who ordered
that the Carrier of Dubai should provide excellent services with the highest available standards.
Emirates Airlines is a born global company aiming to compete with international airlines. This
can explain its marketing strategy of sports sponsorships and it noticed that the company has
chosen the best in the world like Real Madrid and Barcelona.
The huge advertising campaigns like Keep Discovering and Hello Tomorrow which were spread
worldwide resulted in producing a valuable brand image as well as its own philanthropic
organization which is Emirates Airlines Foundation.
The company has specific advantages like onboard entertainment system and single stop flights
to many destinations.
The company has to be more competitive especially to low cost companies which are the main
rivals in UAE right now. Air Arabia and Fly Dubai are providing lower charges flights which cause
losses to Emirates Airlines. The company has to face many threats and try harder to keep its
status.
Page 3
Introduction:
The airline companies contribute mainly in the countrys economy. Emirates Airlines is the
official carrier of Dubai which aims to become Hong Kong of the Gulf. Dubai economy is heavily
relying on Tourism and tries to depend on it more than oil. So Dubai is depending on Emirates
Airlines to be its own representative internationally. Emirates Airlines spends heavily on
marketing and advertising as one of its main strategies for expansion and sustainability.
The company is wholly owned by Dubai government and it is paying dividends to the
government annually. In the same time in case of crisis Dubai Government is not providing any
help to Emirates Airlines.
Although Emirates Airlines is not publicly listed; it is providing its financial results annually on its
annual report; while other airlines like Etihad airways is not doing so.
The company is trying to follow the new international trends and strategies like corporate social
responsibility. Emirates Airlines Foundation is established to help children in poor countries.
The foundation aims to provide food, cloth, medications and shelter to disadvantaged kids.
Emirates Airlines cares about environment; it maintains gases emissions below the
international standards and cares about wild life as well.
The company high operating expenses and the high rival market are the main threats of
Emirates Airlines. Low cost airlines in the country like Air Arabia and Fly Dubai are strong threat.
(Nataraja,S and Al-Aali,A. -2011).
Company Profile:
Based in Dubai in the United Arab Emirates (UAE), Emirates Airlines is the fastest growing and
largest airline in the Middle East. It is the most moneymaking airline company worldwide. The
company also runs three of the longest non-stop trips from Dubai to Los Angeles, San Francisco,
and Houston. With more than 400 prizes for distinction internationally, Emirates is one of two
major components in the Emirates Group. The other is Dnata, one of the major travel
establishments in the Middle East with over 8,000 employees managing travelers, cargo, and
ramp and technical services for several airlines at Dubai International Airport. Emirates Airlines
is wholly owned by the Government of Dubai, but the airline is working on a profit-making basis
and obtains no financial funding or shelter from the government. This report is mainly on
Emirates Airlines. (Nataraja,S and Al-Aali,A. -2011).
In the year 1974, Gulf Air was started as a combined carrier of some countries in Gulf
Cooperation Council. Nevertheless; a dispute arises between Dubai government and Gulf Air;
Gulf Air has reduced the flights to and from Dubai between 1984 and 1985; which lead Dubai to
think of starting its own carrier. The late Sheik Maktoum bin Rashid Al-Maktoum; the ruler of
Dubai at that time order the establishment of Dubai Carrier on two conditions: the new airlines
should provide the highest standards and there would not be any funds for Dubai government
other than the capital of $ 10 million.
Emirates Airlines was established on 26 June 1985 and wholly owned by The Investment
Corporation of Dubai.
Page 4
Today Emirates Airlines runs a fleet of more than 230 airplanes flying to more than 150
destinations in more than 80 countries worldwide with continuous efforts for expansion; every
week more than 1500 flights leaves Dubai; with exceptional onboard entertainment and
cuisine. (Emirates.com).
Current Strategies:
The Emirates Airline annual report in the year 2015; explains the major strategies of the
company; which are:
1.
2.
3.
4.
5.
6.
Page 5
Page 6
The Group Learning & Development (GL&D) group has trained more than 41,000
employees last year at the Aviation College, the major training center in Dubai. For the
international employees, the company conducted courses at Melbourne hub for staff
based in Australia and New Zealand, and another training center in Houston, USA.
The company got the first place in the Lead 2015 (USA) international awards for
leadership programmes. Pages 22& 23
PESTEL Analysis:
Political Aspect
United Arab Emirates and many countries in Asia have signed inclusive business agreements in
addition to other countries in Europe, and the USA. Such agreements strengthen the political
association and trade exchange between countries, including the improvement of the aviation
industry. These agreements have enabled Emirates Airlines to widen its network.
Emirates Airlines is supported by the Government of Dubai; which is its sole owner by providing
infrastructure developments to increase the growth of Dubai and Emirates Airlines. Emirates
Airlines have exclusive Terminal 3 in Dubai Airport as well as having low fees and charges at
Dubai Airport; same opportunities for all the air carriers provided by the open skies policy; the
no taxation policy; and the easy to issue visit visa and work permits for foreign workers to fulfill
the labor requirements of Dubai governments. In contrary, a possible issue for Emirates Airlines
Emirates Airlines Strategic Analysis
Page 7
is the current political instability in the Middle East region which has the possibility to reduce
for the additional growth of Emirates. (Nataraja & Al-Aali 2011, p482).
Emirates Airline has been sheltered by the rules and policies created by the Dubai government
and other countries where they are operating. Since Dubai government is the only owner of the
industry the company has been able to follow to the policies given by government to run its
operations productively and efficiently.
Economic Aspect:
Emirates airlines is one of leading aviation companies in the world, which enables it to maintain
stability and growth.
Because the Dubai government holds controlling stake of Emirates Airlines, the companys
fortunes are forever intertwined with that of Dubai economy. This can be a blessing as well as a
curse. Sustainability of Emirates will lie in their managing to ride the Dubai credit crunch of
2009. They seem to have done this successfully. The main target of Emirates should be to
diversify its operations
Social Aspect:
The company adheres to having good status and connections in the society that they belong to.
UAE is an 80% of its population is expats according to the World Bank which makes it sensitive
to different socio-cultural characteristics.
The growth in middle class will force aviation industry to reduce its expenses and therefore the
prices which will increase the low-cost airlines market (PWC, Oct 2013).
Technological Aspect:
Technology is the most effective component in the airline industry; as its the fundamental to
success in the competitive market. It helps the airline industry to provide higher quality at
lower cost, by reducing the fuel usage, reducing the engine sound; E-ticketing system decreases
the customer service expense and time and enables Emirates airlines to provide the best
entertainments features.
Environmental Aspects:
Emirates Airlines aim to be sustainable and eco-friendly company in its operations. The
company goal is to reduce emissions and carbon print; and that is mentioned in Emirates
Groups Environmental Policy; (Emirates environment policy, 2013). Being friendly to the
environment is also reducing cost and expenses and reducing pollution.
Legal Aspects:
The rules and regulations given by the government, both locally and internationally allow the
airlines to be more careful in its activities. To prevent difficulties with their practices, the
company ensures that of its operations are legal and following the best practices.
Page 8
Page 9
Differential advantage products: Having A380 airplanes, quality service, menu selection for
first class, having its private terminal, one stop direct flights to various routes are some
products that differentiate Emirates airlines from its rivals.
Inbound logistics.
Operations.
Outbound logistics.
Marketing and sales.
Services.
Inbound Logistics: Reasonable benefit is gained in inbound logistics period of the business by
Emirates Airline by creating strong relations with suppliers, advance systems for stock control
and specialized training (BA Press Office, 2008). Emirates has expert engineers, flight deck crew,
cabin crew, airline maintenance, personnel, air craft controllers, etc, it has sufficient airlines
and pilots. So it can maintain the flight time properly.
Page 10
Operations: Emirates Airline is giving excellent services by using a variety of airline types. Dubai
International Airport has private Emirates Terminal 3. Emirates Airline operates a varied fleet of
air bus and Boeing airplanes and is one of the rare airlines to use an all-wide-body aircraft fleet.
Emirates Airline offers long haul flight services at cheaper charges. Emirates Airline plans to
increase its long haul flight services into different destinations.
Out bound Logistics: Emirates Airline gathers its aircraft and other required equipment in
fastest possible time. It provides emergency client service. Emirates Airline keeps business
supervision by reporting, EDI, settlement, audit. It picks the customer appropriately and keeps
the flight schedule.
Marketing and sales: Emirates Airline implements vertical integration into its main business
arrangement. This happens through production, marketing and technology Emirates Airline has
diversified its investment range into ranges of airport services as well as infrastructure
improvements within its operating routes. Day by day it is growing its services by fulfilling the
customers needs and desires. The emirates brand name and image is handled by skilled
professionals experienced in brand management (Emirates group careers,).
Services: There are 3 types of first class chairs; the full suite with doors, horizontal bed 'Sky
cruiser' seat (without doors) and 'Sleeper' seats. Emirates Airline directly functions check- in
services, service desks, lodging and lounge services, and luggage and. Moreover, Emirates
hotels and resorts, Emirates sky cargo, Emirates aviation college for pilot and staff training,
Emirates engineering centre for repair, maintenance and training, Emirates catering,
incorporate business support are its special services.
These activities make up smooth operations for the airlines success. Emirates became the
pioneer airline to provide a personal entertainment system on a commercial aircraft after
providing the worlds initial seatback commercial monitors in 1992. All three classes provide a
personal in-flight entertainment (IFE) system on Emirates airplane. Self-service cabins are also
provided.
Human resource management The Company is one of the chief companies in the region with
over 62,000 employees presently. The employment procedure happens through site
assignments from their own Emirates Aviation College, where students are studying subjects of
aviation industry , possibly modeling them to become a future staffs of Emirates. Emirates
believes that their staffs is its main values and provides them countless of benefits for example
cash and non-cash benefits. Further, they also provide a reward package to improve
employees performance (Emirates group).
Page 11
Technology development : Emirates has its own expertise research Centre to guarantee that
the company gains the modern technology available. Providing usage of mobile phones and wifi
onboard is one of its recent achievements in this regard.
Procurement : Emirates airlines obtains its properties from multiple origins from inside and
outside the emirates group. The fleet of airlines is obtained from either Airbus or Boeing.
emirates engineering is providing required technical support ; while the in-flight catering
services are provided by Emirates flight catering
Page 12
VRIO Analysis:
Resource or
Capability
Valuable
Rare
Imitable
Non-Substitutable
(there is no similar
resource that can be
used by a competitor)
Exceptional
level of
customer
Service
of
for
the
be
Advanced
Technology
used
Trained
personnel and
Operating
Strategy
Large and
innovative
Fleet
Yes,
because
adapted services
customers enable
company
to
exceptional.
Page 13
Resource or
Capability
Valuable
Rare
Imitable
Non-Substitutable
(there is no similar
resource that can be
used by a competitor)
Advance
infrastructure.
Widespread
Network
Yes,
Emirates
international route map
has
been
growing
continuously.
Yes,
It
provides
customer
with
an
extensive
travel
destination
network
which is inimitable
fundamental
level
strategies
Page 14
no
SWOT Analysis:
Strengths:
- One of the leading airlines worldwide: Emirates is one of the leading airlines
worldwide in revenue, fleet size, and number of passengers. As well as being one of
the fastest growing; with growth rate has never been lower than 20% annually.
- Emirates Airlines is excellent in operating during crises: Emirates Airline was one
of very few airlines that survived from many major crises and managed to make
profit, such as, 11 September attack, and the recession in 2008/2009.
- High service quality: Emirates is advanced in quality of service given to customer
and was awarded the "Airline of the Year".
- The official carrier of modern Dubai: The enormous development of Dubai
infrastructure and facilities is considered as strength to its carrier, Emirates Airlines.
The Dubai Airport and the new airport in Jebel Ali are measured from largest
airports around the world. Also, Dubai considered as an important commercial
center in the area. Dubai is very attractive for tourisms, international sport events
and international forums.
- The company is good in developing the staff: the company communicates its
vision, value, and strategic plan to first line staff and stresses cost control with
them. Also, it is providing a frequent training and improvement of the employees.
- Variation of the executive management approach and the multi-origin staff:
Managements come from different nationalities and backgrounds which enhances
the experience; with a combination of different cultures. Emirates consist of more
than 80 nationalities, and they are working together as a team.
- Youngest fleet in the industry: Emirates Airline operates one of the youngest
airplanes in the market with an average age of 65.89 months, compared with an
industry average of 156 months.
- High operations efficiency measured by trip length: Analysts estimated that
Emirates longer trip length of nearly 4,000 kilometers per average trip in 2003
provided operating efficiency relative to flag carriers such as British airways. Air
France and Lufthansa with average trip lengths in the range of 2,000 to 3,000
kilometers.
- Strategic location: located in the Middle East, Emirates is placed at the middle of
world and being near to countries with high population like: China, India, the
Russian Federation, and Europe.
- Desired working environment: Emirates is reputed airlines, which offers salaries
and benefits with no taxes and no unions.
- Strong branding strategy: Emirates spends lots of money on its marketing and
branding strategies and consider it the only way to global expansion. The airline
spent approximately $300 million annually on sponsorships, promotions, events
and public relations.
Page 15
Weakness:
- No available succession plan: Emirates Airline does not have a succession plan for
its top managers. This h can be considered as a risk and lack of applying sound
corporate governance practices.
- Lack of Emirati Staff: hiring Emirati is very difficult due to the low percentage of
Emiratis in the countrys population.
- Diseconomy of scale: Emirates could reach a point where the airline would face
diseconomies of scale. Emirates getting complex and costs are high.
Opportunities:
- Development of more advanced airline services: To develop incessantly new
generations of more advanced airline and aviation services, and in result tap into
more markets.
- Leveraging Emirates Airlines infrastructure business to get first choice.
- Opportunity to tap budget travelers' market: Emirates Airlines is part of Emirates
Group; so the parent company can establish low cost airlines to attract the
customers who cannot afford to pay expensive tickets on Emirates.
Threats:
- High rival market, locally and internationally. The entrance of new rivals like low
cost airline such as Air Arabia in Sharjah; fly Dubai and Etihad Airways in Abu Dhabi
as well as Qatar Airlines and Gulf Air in GCC and globally Lufthansa and British
Airways
- Airlines business is disturb by the economic crises: Airlines business is very
responsive to economic crises and other changes like the variation in currencies
exchange rates, many airline companies had great losses or bankruptcy. Emirates
profits became less during 2008 recession.
- Oil prices and fluctuation in exchange rates: changes in oil prices are highly
affecting the cost of operations, because oil cost is the second main portion of
operations cost.
- Variation in demand and failure to forecast: Fluctuation in consumers demand
disturbs the capability of predicting demand.
- Natural disasters and acute diseases: like earthquakes; floods and corona flu
affect tourism and travelling in general.
- Security reasons: hijacking airplanes or any other terrorist actions can increase the
operations cost and cause a decrease in number of travelers.
- Instability in the political status in the region: the political situation in Yemen,
Syria and other MENA countries can affect the flights routes and travelers to these
destinations and to neighboring countries.
For the aviation industry, 2014-15 was
Page 16
No available succession
plan.
Diseconomy of scale.
Development of more
advanced airline services.
Leveraging Emirates
Airlines infrastructure
business to get first
choice.
Opportunity to tap budget
travelers' market.
Page 17
TOWS Analysis:
Strength/ opportunities
Being one of the leading airlines
companies with high service quality allow
Emirates airlines to develop more
advanced aviation services through R&D
and following new trends in the industry.
Emirates airlines should take an advantage
of being the official carrier of Dubai to
leverage the companys infrastructure.
Emirates Airlines use being in strategic
location; its strong brand image and
having attractive working environment to
expand through opening a low-cost carrier
company.
Weaknesses/ opportunities
The diseconomies in scale can be
overcome by expansion through new lowcost airlines and reaching budget travelers.
Strengths/ Threats
High quality in service; desired working
environment and strong brand image; all
these advantages should be maintained
and empathized in order for Emirates
Airlines to keep its leading position in the
aviation industry among the strong rivals.
Emirates Airlines operates well during
crises like the economic crises of 2008;
exchange rates fluctuations and the oil
prices instabilities.
The variation in demand and failure to
forecast can be overcome by the variation
in the top management approaches and
the powerful capability to work within
crises.
Natural disasters; acute diseases; security
reasons and the instability in the political
status in the region can be faced by the
strong support from Dubai government to
the Emirates airlines and its strong ability
to operate during crises.
Being the main customer of Airbus and
Boeing, this can be an advantage to
bargain the price and after sale service
terms which will lower the operational
cost.
Start a Strategic acquisition of the Airline
operating in other region will make a
barrier for the new entrants who will not
enjoy the leverage with the economies of
scale in other regions.
Weakness/Threats
Investing more in the E-commerce with
higher security so as to strengthen the IT
infrastructure, lessen cyber threats ;
reduce the operation cost and reaching
more customers
Work to have fuel supplies at a fixed price
for a certain period of time to reduce the
threat of rising oil prices.
Page 18
Requirement
Competitors
Senior executives
Government/
regulator
Legal compliance
Potential Customer
Brand awareness
Product in put
Suppliers
Customers
Community groups
Employees
Page 19
Stakeholders Mapping
High
High
Low
Owners
Suppliers
Senior Executives
Competitors
Financial
institutions
B2B customers
Media
Gov. regulators
Low
Employees.
Customers
Community Groups
Potential Customers
Public
Page 20
Benchmarking
Benchmarking is an exercise to understand an organizations strategic capability, in regards to
internal procedures, comparing the same business product with other companies in similar
business line (Johnson et. al, 2008). Various approaches are used for benchmarking depending
on the business nature. For this specific case Industry/sector bench marking has been used.
Benchmarking allows organizations to compare their business processes and performance
metrics with the industrys finest. In case of Emirates, it can be said unequivocally that no other
carrier companies has a similar profile to that of Emirates.
In 2010, an inclusive survey was done between some recurrent passengers of seven main
airlines providing longer haul flights out of the UAE, which are: Air France, British Airways,
Emirates Airlines, Etihad Airways, Qatar Airways, Swiss Air, and Virgin Atlantic Airways to
determine the level of service quality in relations to the customer point of view: from flight
booking all the way through to check-in, baggage drop, boarding, plane conditions, inflight
services such as food and beverage, entertainment and shopping, all through to arrival and final
baggage receiving. The survey results indicated that Emirates has outperformed its rivals and
was on the top in the list as the best service provider (Ethos Consultancy, 2010).
Major competitors of Emirates are: Etihad airways, Qatar Airways, Lufthansa, and few others
are termed as major competitors for Emirates Airlines and. Most of them have realized the
importance of having a similar kind of product like Emirates and are set to initialize on the same
business model which Emirates has.
Etihad Airways
Etihad airways is the national carrier of Abu Dhabi and one of the fastest growing airlines in the
world and one of the main rivals of Emirates Airlines having the same advantages of UAE
attractive strategic location between the continents and the support of the UAE government.
Etihad Airways was established in 2007 by the ruling family of Abu Dhabi. And it is wholly
owned by the Abu Dhabi government. Etihad currently runs around 116 destinations, and over
25,200 flights per week with 120 aircrafts. Etihad Airways experienced a milestone year
In 201 Etihad Airways gained net profit, up 48 per cent to US$62 million. Etihad does not reveal
its financial performance, nor does it provide specifics regarding its operations other than those
published in its Facts and Figures reports. in its Facts and Figures reports.
So it is difficult to compare the financial performance of Etihad with Emirates. But it is very
obvious that Etihad Airways is trying hard to imitate the strategies of Emirates Airlines. It is
trying to reach many destinations by having alliances in different countries to expand. Etihad
even is sponsoring football teams like Manchester City Football Club; cricket teams and golf
teams( Etihad website).
Emirates Airlines Strategic Analysis
Page 21
Though there pricing is competitive advantage of Etihad airways and their services and fleets
are well-matched, the competitive advantage still lies with Emirates as they are more
experienced, have more destinations then Etihad Airways ; have a bigger market share, and
higher global recognition due to their marketing efforts. Emirates being the older in business
have certainly an advantage over Etihad airways. (Squalli, J.-2014)
Qatar Airways
Another major rival of Emirates airline is Qatar Airways. Qatar Airways is offering the same
variety of products and services as Emirates does. Since its establishment in 1994, Qatar
Airways developed 150 destinations internationally and having 180 air crafts in its fleet,
presenting good service which helped it to gain market share. While Qatar Airways enjoys
loyalty in Middle East and North African (MENA) region, Emirates Airlines is famous
internationally and enjoys wider network. Source: Qatar Airways.
Air Arabia
Arabia Air Arabia was established in 2003 by decree by the ruler of Sharjah, Dr. Sultan Bin
Mohamed Al-Qasimi. It is a public joint stock company with 45 percent of the shares owned by
the government of Sharjah and the remaining shares owned by individual and institutional
investors. The airline was started as low-cost airlines and was gaining profits from its second
year of operations. Air Arabia has made a substantial increase in profits in 2005, reaching over
$138 million in 2008 before the financial crisis. Air Arabia runs of Sharjah and has extended its
operation to reach Casablanca, Morocco and Alexandria, Egypt. Its fleet has grown since the
2003 and is expected to grow even more with the companys expansion in to other countries.
Air Arabia provides service to a total of 101 destinations. Air Arabia does not have any
codeshare with any other carriers. (Squalli, J.-2014)
Financial Analysis
Profit margin: 5.1% compared to 3.9 % on 2014; return on shareholders funds : 17.2%
compared to 13.6 % on 2014
Total assets: 111.4; total liabilities = total assets- total equity= 111.4-28.3= 83.1
Debt ratio =
=
ratio
EBITDAR
2015-2014
20259
2014-2013
17229
2012-2013
13891
2011-2012
10735
EBITDAR
margin
22.8
20.8
19.0
17.2
Page 22
EBITDAR ratio: stands for Operating profit before depreciation, amortization and airplanes
operating rent charges.
Below is table of Operating profit before depreciation, amortization and airplanes operating
rents charges for ten years; from 2005 till 2015.
ratio
2015- 2014- 2013- 2012- 2011- 2010- 2009- 2008- 2007- 20062014 2013 2012 2011 2010 2009 2008 2007 2006 2005
EBITDAR
20259 17229 13891 10735 13437 10638 8286 9730 7600 5970
(Source: Emirates airlines annual report 2012)
The continuous and steady growth can be noticed; which reflects the profitability of the
company despite the high cost which comes from buying expensive aircrafts and providing
exceptional on board services.
Conclusion and Recommendations:
The company should continue in expansion through providing new and unique destinations.
The important geographic location of Dubai which is close to Europe, Asia, Africa and Pacific is
an advantage to Emirates Airlines. The one stop flights are the firm specific advantage and I
think that Emirates Airlines should focus more on it. The company also should keep on investing
on its R&D to offer more luxurious services and experience on board. The unique entertainment
system of Emirates Airlines is hard to imitate.
The huge operational cost is major concern to the company; and diversifying is one solution.
Another is to start low cost division to gain more market share.
Figures:
Page 23
Referneces:
Page 24