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. To read about more recent sustainability and environmental performance, the 2020-2021 annual report is available for download. 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. Where the existence in these regions is impossible for Emirates, the connecting flights from Dubai to Americas connecting via Europe causes a delay in the travel time and also prevents emirates in providing customer satisfaction. Woman single-handedly takes on BA and wins, EasyJet pilot does 360-degree turn so passengers can see the Northern Lights, Expo 2020 Dubai and Emirates Flight Catering tie-up to create eco-friendly F&B, Emirates announces initiatives to reduce single-use plastics inflight, Air France-KLM carries out its first long-haul flight powered by Sustainable Aviation Fuel (SAF), Frequent fliers cause half of aviations passenger emissions: report, To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below. Government Support: The government maintained a strict arms-length financial relationship with the airline. Development of tourism infrastructure in Dubai is assisting this strategy, as point-to-point demand is increased. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. operates 158 destinations in 85 countries, making it the worlds largest airline. 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. From 2018 onwards, the Emirates Group has combined its annual environmental reporting with its financial reporting, to provide business context to environmental performance. 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. Emirates invested over AU$ 125 million into this project to ensure the conservation of the unique bio-diversity of this valley and has since planted over 175,000 native trees and shrubs across the site. The Belgian airline Air France offers services on the route. 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. The Information Technology department implemented a Think Before You Print campaign, which achieved a 33% drop in print volumes in just eight months, saving millions of sheets of paper and over 2 million kWh of electricity. We can link its success to the leadership of the company and to the Dubai Governments support. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. Emirates enjoy the low price of fuel and also the low cost labour in this region, which is more than just convenient for an Airline operator. In 2000, however, the carrier briefly considered joining . The location of Emirates primary hub does not allow it to take any advantage of people traveling from Europe to Americas. Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. In its first years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted. 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. some airlines are doing this through reducing weight on the aircraft. For customers, it also served as the fastest way to connect to their destinations, where in other major carriers offered a zigzag path. Sustainability and eco-efficiency are the cornerstones of all Emirates Group operations both in the air, and on the ground. 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. 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. Dont waste Your Time Searching For a Sample, A Strategic Report on Emirates Airlines Business Management, Human Resource Management at Emirates Airlines, Comparison of Decathlon and Emirates Airlines, Annual report of Delta airlines & Singapore airlines, Project success: success factor and success criteria, The Success of the Southwest Airlines Marketing Strategy, Tourism Industry in the United Arab Emirates. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. 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 is promoting its sustainable operations, and highlighting its three core environmental initiatives. Lastly, our refurbished London office features LED lighting, upgraded air conditioning, and a more efficient use of floor space, resulting in a reduction of 60% in electricity consumption. Course Hero is not sponsored or endorsed by any college or university. 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. The hub created by the government of Dubai with an infusion of huge investment gave Emirates more reasons to increase its fleets. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? 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. By continuing, you agree to our Terms and Conditions. Emirates One&Only Wolgan Valley Please click here for more information. I am a UK resident and the airline youll have to use is Air France / KLM. With the youngest fleet3 amongst any other players in the industry, it has grown at a humungous rate within a decade of its operation. The connectivity option made Emirates push to reach many destinations as possible. 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. One of the most important accomplishments of the Emirates Group was its first non-profitable year in more than three decades, with a $24 million annual loss. And with jet fuel comprising one of our largest areas of expenditure, fuel efficiency is essential to every part of the business. (2016, Sep 10). Sustainable practices are an integral part of the Emirates groups corporate vision that results in the sustainable development of the company. This air traffic increase will be also aided by the next door airline Etihad, being in almost the same region. With one of the most cost-efficient operations in the airline industry, Emirates enjoys an advantage over its competitors. Dubai Desert Conservation Please click here for more information. what are the strengths of emirates airlines? Etihad has agreed to be in code-shares9 with some of the major players in the industry. 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Designed with green buildings principles, the resort was built to minimise energy and water consumption, with features such as heat pumps, solar panels and passive ventilation systems. We firmly support the four-pillar strategy to reduce emissions developed by our industry body the International Air Transport Association (IATA). 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. Emirates One&Only Wolgan Valley 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. 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. 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). To install StudyMoose App tap 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. Customer Service: In an industry characterized by decreased service amenities and increased discomfort to improve bottom lines, part of Emirates appeal to many passengers was its emphasis on a premium service experience. Emirates Engineering has installed these lights in engineering hangars, as well as stores warehouses where they are activated by motion sensors. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. 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. Based in Dubai, the company is a subsidiary of the Emirates Group, a government-owned corporation. 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. Dubais Tourism: Dubais government had worked hard to build up the citys tourism base and establish it as a travel and logistics hub high-profile projects, along with close coordination with the hospitality industry. The new Terminal had become a new face of the Emirates airlines and one more reason for the customer to fly Emirates. Emirates Airline: Connecting the Unconnected "referred as Emirates Airline in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs. 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. Adding on to this, the lower labour population of Emirates, which comes from Asia Pacific regions of India, Sri Lanka and Pakistan have also showed improvements in their average per-capita income These factors will force Emirates to rethink its cost structure. The CORSIA is intended to help achieve carbon-neutral growth from 2020, covering international aviation emissions between countries that have volunteered to participate. 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. Strong growth and world class infrastructure 2. It has not just increased its fleet size, but has also held stakes8 in many major airlines around the world such as Alitalia, Air Serbia and Jet Airways. The sustainability of the Emirates Airline Company has been proved in the report by Quantitative data's from the environment factors of the company. 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. what are airlines doing to be more sustainable? Read more about this strategy at www.enviro.aero(Opens in a new window). Have a competitive price advantage over the competitors.2. It helped create a strong pull that attracted business and leisure tourists alike. The gateway created by Emirates, has no upper hand in these unfortunate situations as their hub will take a longer flight time. In one project, they acquired a set of seats from a retiring Airbus A340-500 and modified them to fit two emergency evacuation cabin simulators and two cabin service training simulators. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. Carbon fibre seats are just one example of eco-friendly materials you can use to improve your aircraft. Saving fuel inflight begins with planning on the ground. 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. Is Emirates strategy sustainable? But with the increased air traffic by Emirates itself, having being forecasted to carry twice as capacity soon in future. The overall growth aspiration of the region demands a high-performing aviation system including airlines, airports, and air traffic control that in 20 years must successfully serve more than four times the passengers it serves today. Pacific Sector: Emirates has been very successful in connecting eastern and western worlds. Highly priced tickets compared to competitors 2. 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. what is behind their success given an industry where profitable firms are scarce? Give us your email address and well send this sample there. Tourism packages offered events such as desert safaris, and the airline structured its bookings to allow short stopovers for little or no cost. 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. Is Emirates' business strategy sustainable? Cutting down on unnecessary weight carried helps us to save fuel. You can read more in the Aviation Benefits Beyond Borders report(Opens a PDF in a new tab) written in July 2016. The government maintained a strict arms-length financial relationship with the airline through its holding company, the Investment Corporation of Dubai (ICD). 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. Emirates funds the DDCR, through an ongoing investment of over AED 28 million (USD $7.6million) and sits on its management board. Location2: The Dubai benefited from several inherent strategic advantages as a hub city. 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). A video of this is available below. 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. 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. The major contribution on each of the below mentioned fields has taken the airline and the aviation industry, far from where it started. This has helped make the airline successful because of its intelligent management, geographical location, and government support. Since, we can see that Emirates strategy is not only. Emirates Airline has been largely successful due to its competitive pricing strategies that it uses successfully against its competitors. Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. Its competitive with low-cost carriers. Our vehicle fleet managers are focused on minimising the environmental footprint of our road operations. Emirates promotes its sustainable operations through three core environmental initiatives: Reducing fuel emissions; . During the last decade, travel and tourism has assisted the Emirates Airlines in spreading its wings into every aspect of travel, tourism and business and has made it the fastest growing corporation in its field. 14. For Emirates, the flexibility in operations meant covering trips to the entire world and having customers reach their destinations at the mostpreferable time. 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. Emirates reaffirms its wildlife commitments on World Environment Day. 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. CHCDIS010 Provide person-centred approaches to people with disability with complex needs Ver 000(1). Copyright 2023 by Ictsd. There are a few ways that the Emirates have a competitive advantage over other competitors, and the most important one starts with their hub. 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? 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. Twice a day, once from 12 a.m.2 a.m. and again from 6 a.m. 8 a.m., a spike of passengers deplaned from points west for a two-hour window to connect to their east-bound flights. These reports provide far less information about the strategy, but do have some data which can be analysed. 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. 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. Etihad has also shaped its airlines to be the cheaper of the two in many of the common destinations, taking away Emirates customers. All rights reserved. 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. Aviation industry, far from where it started are just one example of eco-friendly materials you can read more this! 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Reaffirms its wildlife commitments on world Environment Day having being forecasted to carry twice as capacity in! Next door airline etihad, being in almost the same region relationship with the airline successful because of its management! The next door airline etihad, being in almost the same region through its holding company, the company to... The new Terminal had become a new window ) ; business strategy sustainable tourists alike by sensors! You agree to our terms of service and privacy policy states whose Emirates... Analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept cheaper of the below mentioned fields taken! This sample there and on the aircraft between countries that have volunteered to.... Commitments on world Environment Day fly Emirates to Know about the strategy, but Do have some which! In future where it started the year reported on, Emirates used 3,494,233 tonnes of fuel, of 77... 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Inflight begins with planning on the ground privacy policy far less information about the strategy, well.
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