Environment Scanning Report for Etihad - Assignment Example

Etihad Airlines: Growing Air Industry of Etihad Airlines: Growing Air Industry UAE Aviation Industry is to contribute $53b by2020. The organization has a plan to expand the capacity of the airline. By 2020, the air industry if UAE would contribute $53 billion by generating more than 75,000 jobs.The growing air industry may exacerbate the already existing problems such as the safety, airspace management, infrastructure, finance, and human skills. In addition, the air industry of UAE is already having wide-reaching accident rate of 0.

33 per million at the time of departures and the expected growth of the air industry would be critical in the sense of regulating the industry. In order to tackle this possible issue, the government, the air industry and other teams that are related to the regulation of the air industry must take actions in advance. In addition to above, the number of airplanes is thought to be double by 2030 and the General Civil Aviation Authority will be tackling the movement of more than five thousand per day.

It will not be an easy task for the UAE air industry to handle such a large number of movements of airplane and therefore the government should take some action in advance either by dividing the industry into further branches to meet the challenges or putting new institution for the regulation.UAE’s aviation sector is one of the booming air carrier fleets. It has taken a great part in expanding UAE’s economy by generating huge revenues as well as creating lots of opportunities in the sector.

These endeavors are very important in when UAE is making strenuous effort to free itself from dependence on diminishing oil reserves (broadening Economic base). Etihad also has to face severe competition with rival regional competitors of neighboring countries and also with the global competitors. In a case of inability in meeting the expected demands, UAE’s aviation agency will not be able to sustain its growth and market share. The huge contribution to the country’s economy every year will be put into halt resulting bad impact on the overall growth of the country.

Other competing aviation agencies in the region which include Qatar Airways and others are also expanding their business, which will result in loss in regional and global market share.In order achieve the objective, huge skilled human resource of 55,000 pilots, and 62,000 technicians are needed along with a fleet of 3000 airplanes. In order to meet the goal of the industry-government, industrial stakeholders, and regulators to work together to ensure that Etihad meet the expected growth rate.

Similarly, air traffic problem is a growing concern in the Middle East. For this reason, Etihad and UAE should work in close collaboration with neighboring partner countries to make air traffic more harmonious and smooth in the region by upgrading the air traffic system. (Gulfnews.com, 2015). 3. Rate:IssuesRateweightGrowing aviation industryH4Safety issuesM3Human resourceH4Air traffic managementM3Impact of the Issue:Issue(s)Impact Rating Weight Growing aviation industryHuge positive impact H4Safety issuesNegative impact on the issueM3Human resourceShortage of HRs may result into failure H4Air traffic managementMay restrict the expansion strategyM3Urgency of the Issue:Issue(s)Urgency Rating Weight Growing aviation industryUrgentH4Safety issuesMild M3Human resourceUrgent H4Air traffic managementUrgent tM3Nature of issue(s), implications on your company, and recommended actionsIssue(s)Impact(R+W)Urgency(R+W)StrategicOperationalOP(R+W)Threat(R+W)Strength(R+W)Weakness(R+W)Recommended actionsGrowing aviation industryH4H4H3H4Expand investment and handle all related issuesSafety issuesM3M3 M2M4Coordinate with other stakeholders to ensure safetyHuman resourceH4H4 H3H3Develop and recruit human resource Air traffic managementM3M3 M4H4M2Manage air traffic with governmental agencies and other countriesReferences ListGulfnews.com. (2015, January 18).

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