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Airlines Management - Essay Example

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Airlines Management

Over the years it has shown tremendous growth so much that European Airlines have begun to see Emirates as a threat. Emirates’ president and Executive vice chairman are of the opinion that the reasons behind the success of Emirates are the central location (Dubai) and the favourable aviation policies of Dubai (The Economist, 2010). Etihad and Qatar Airways are two rivals of Emirates. Analysts are of the opinion that Qatar Airways is better than its competitors- including Emirates- at cost control. This could pose a huge threat for Emirates in the future (The Economist, 2010). Emirates owns one of the world’s largest fleet of aircrafts that constitutes the biggest aircrafts (e.g the Airbus A380). A common belief is that fares offered by Emirates are economical and the airline is a pioneer in offering low-cost tickets for longer flights (The Economist, 2011). Operational Characteristics Presently, Emirates caters to a world-wide market. It flies to more than a hundred destinations worldwide that cover six of the world’s continents (Emirates, 2012). One major reason for the success of Emirates is that in addition to connecting major airports (e.g London, New York etc.), it also has a strong presence in “secondary markets” that include Manchester, Seattle etc. (The Economist, 2010). ...
Services for destinations for example Alexandria in Egypt have been terminated because of the rising fuel prices (AMEinfo, 2008). The Emirates Annual report 2010-2011 has claimed that the number of destinations in 2010-2011 is 111, whereas this figure was a mere 76 in 2004-2005. Every few years, Emirates doubled in size. This was mainly because of the lenient regulation in Dubai and the huge size of their airport (Super-duper-connectors from the Gulf, The economist, 2010). In 2010-2011, Emirates transported more than 30 million passengers (IATA, 2011). According to the Emirates annual report Emirates carried 31, 422,000 passengers in 2010-2011 alone. This number has risen over the years. In the previous year (2009-2010) this figure was about 27 million. In 2004-2005 emirates transported 12,529,000 passengers. As is evident, the number of passengers more than doubled in the 5 years tenure. European carriers face a growing threat in the form of Emirates, especially Lufthansa (Paul, 2010). But in the Middle East itself, both Etihad and Qatar Airways are a major threat to Emirates (The Economist, 2010). Qatar Airways, is one of the six airlines of the world to be given a five star ranking by Skytrax (it is a consultancy that is involved in market-research, specialized in aviation). As has been mentioned above, analysts believe that Qatar Airways is better at controlling costs than Emirates (and most other airlines). In 2009-2010, the number of passenger for Qatar airways increased by 20% to 14 million. This number is further expected to grow (Kingsley-Jones, 2010). What is even more challenging for Emirates is that for 2011, Qatar Airways was awarded the world’s best airline award by Skytrax. Qatar Airways was ranked no. 1 ...Show more

Summary

Emirates Instructor University Emirates Introduction Emirates was incorporated in 1985 in Dubai. “Wholly owned by Dubai’s sovereign-wealth fund”, Emirates has become one of the world’s most influential airlines (The Economist, 2010)…
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