Emirates introduces eco-friendly blankets made from recycled plastic bottles. For example, we use lightweight cargo containers, and optimise the amount of potable water loaded for each flight based on the planned passenger load and distance to fly. 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. This reduces the aircrafts fuel consumption because of less accumulation of dirt, and reduces the number of times the aircraft has to be washed to about three times 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. 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. Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. 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. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. Fall in oil prices a business paradox. Emirates Airlines is one of the largest airlines in Asia. 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. 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. Well occasionally send you promo and account related email. We depend on aviation to conduct economic, social, and cultural activities, which makes it so vital and contributes so much to our growing world. 1. Branding and sponsorship 4. Its freight arm, Emirates SkyCargo, has adopted a zero tolerance policy on illegal wildlife trade which includes big cats, elephants, rhinos and pangolins, among other types of wildlife, and has implemented a complete ban on hunting trophies. The Positioning1: The location is a strategic one A well-oiled hub centred in a major catchment area. Due to Emirates commitment to invest in the most advanced eco*efficient technologies available, one of our fleets ranks as the youngest. SIA to acquire 25 per cent stake in Air India. We can link its success to the leadership of the company and to the Dubai Governments support. 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. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. The connectivity option made Emirates push to reach many destinations as possible. Emirates has been headquartered at a multi-million dollar facility situated in Dubai, which handles a strength of 105,000 employees at an increased rate of 11% from the previous year of its operation. The strategy of alliance between two struggling airlines is yet to prove its success. All of these measures help to save fuel and emissions, as well as to cut down on noise. The scale of the airlines operations means that even a small change can make a big positive impact with low carbon footprint. Emirates uses an innovative foam wash technique for cleaning aircraft engines that helps us saves about 200 tonnes of carbon dioxide emissions per year across our fleet. does emirates airlines have good capacity management strategy? What Is Emirates Strategy? The case . ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. 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. Examples include continuous climbs and descents, and inflight rerouting on long-haul flights to take into account shifting winds. 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. In over a period of 29 years, Emirates has grown to be one of the biggest players in the airlines industry. 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. It has learntfrom the mistakes done by the Emirates and has tried to imitate the same to improve its quality and to be one of the best airlines in the world at the age of 10. Sustainability and eco-efficiency are the cornerstones of all Emirates Group operations both in the air, and on the ground. Differentiating itself through service not only enabled Emirates to build passenger loyalty and reap subsequent value, it also allowed the airline to avoid direct competition with low-cost competitors based on price. Why is Emirates Airline able to deliver solid growth and solid financial performance for years? 4. 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. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. These reports provide far less information about the strategy, but do have . what is the competitive advantage of emirates airlines? 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. Dubais position on the Arabian Peninsula placed it at the nexus of global transit routes, a strategic location between Europe, Oceania, Asia, and Africa. 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. 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. 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. The Emirates company uses a variety of targeting methods to select potential buyers for its products. In its first years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted. The leadership in the organisation were able to capitalize on this initial funding by the Dubai Royal Family and flew out of Dubai with just two aircrafts, leased Boeing 737 and an Airbus 300 B4 from the Pakistan International Airlines. Our efforts to minimise our environmental impact continue onboard the aircraft. 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. Working with air traffic management providers to develop protocols that enhance operational efficiency. The rich population between the pacific is out of the emirates reach. Dubais contribution in the success of Emirates Airlines is as mentioned below: . These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. 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. 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. These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. 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. Our customers, staff and regulators are increasingly conscious about the environment and greenhouse gas emissions. Emirates spends billions of US dollars on fuel each year, so naturally we are monitoring the development of biofuel technology with great interest. Dubais abundant sunshine helps to power our state-of-the-art Engine Maintenance Centre, where we installed a one megawatt array of solar photovoltaic panels. The hub created by the government of Dubai with an infusion of huge investment gave Emirates more reasons to increase its fleets. As part of our effort to save gas emissions, our fleet is being reduced while maintaining a lighter profile and using new air traffic control software. Today, the Emirates Group is one the most comprehensive travel and tourism operation in the world. Doha Airport, Qatar airlines primary hub has reported to have more than 90% of its arrivals customers to be in transit for their next flight. 2023 The Emirates Group. Highly priced tickets compared to competitors 2. It will also encourage the development of a commercially-viable supply chain for sustainable aviation fuel (SAF) and conduct trials of, and purchasing, electric and hybrid ground equipment and vehicles to replace diesel-fuelled equipment. Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. 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. To install StudyMoose App tap But, in the upcoming future few of the factors which Emirates enjoy today will start to deteriorate such as. Strong growth and world class infrastructure 2. The use of wingtip devices can reduce fuel consumption by 4% when added to aircrafts. Emirates Airline has been largely successful due to its competitive pricing strategies that it uses successfully against its competitors. Once the planes were confirmed, the planning team examined the overall fleet, the available craft currently in use, and how many planes remained. Read more about this strategy at www.enviro.aero(Opens in a new window). 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. 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. I am planning on booking tickets with Alaska Airlines, We want you to visit JetBlue on our website. 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. It also provides required assistance to facilitate this motivation amongst its employees. Dubai benefited from relatively good weather; aside from occasional fog and the general heat, airport operations remained relatively free of the rain and snow storms that often caused delays in European and American airspaces. Some of the programmes initiatives include: The latest annual report makes clear the scale of the challenge. 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. Saving fuel inflight begins with planning on the ground. 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. With the youngest fleet3 amongst any other players in the industry, it has grown at a humungous rate within a decade of its operation. Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. (2016, Sep 10). The gateway created by Emirates, has no upper hand in these unfortunate situations as their hub will take a longer flight time. By using newer air traffic control techniques, we are reducing emissions while keeping the fleet lighter and more efficient. The Emirates Groups commitment to sustainability means multi-billion dollar investments in the most modern, eco-efficient technology available in aircraft, engines and ground equipment, and by operating our assets in the most environmentally-responsible manner. 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. This allowed Emirates to take maximum advantage of its connectivity. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. 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. But, when it comes to the pacific travels, they have no existence. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. the coming days aswell. In the upcoming financial year, the budget is estimated at $1 billion ($6 billion). The case emphasizes how Emirates capitalized on its location-a small city-state strategically located to reach of the world population in a flight of less than eight hours-to build a fast-growing and profitable hub-based business model. Emirates relied on only three types of aircraft, because of which planes could be deployed onto existing routes to supply much more easily to match the demand. 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. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. Operates 269 aircraft, including Airbus A380 and Boeing 777 aircraft, making it one of the busiest operators of these types of planes on the planet. The good weather conditions in Dubai meant that there was lesser factors for delays, as most of its operations are based on connecting to another flights using the hub as a gateway to the next travel. 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. Since, we can see that Emirates strategy is not only. 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 . Emirates reaffirms its wildlife commitments on World Environment Day. Abstract. Is Emirates' business strategy sustainable? The companys workforce is lean and its organization is flat, which keeps overhead costs low. Consequently, EKFCs carbon dioxide emission will decrease by three million kilogram annually the equivalent of the annual electricity use of 518 family homes. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. 2023 The Emirates Group. Emirates has other advantages that have placed it on a par with Singapore Airlines the two are the worlds fastest-growing and most profitable jetliners- including its remarkable Dubai location within an eight-hour flight of more than half the worlds population2. All Rights Reserved. Weather: Dubai benefited from relatively good weather; aside from occasional fog and the general heat, airport operations remained relatively free of the rain and snow storms that often caused delays in European and American airspaces. A video of this is available below. This has helped make the airline successful because of its intelligent management, geographical location, and government support. The Flight Training Facilities department sources a range of items from Emirates Engineering when aircraft interiors are being upgraded. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and . These efforts have been ongoing since 2003, and the airline has also been working with IATA to extend this routing system across the world as a standard operating procedure where possible. Today, even though a greater number of population are in Emirates reach, a majority of those population is still under the middle-class level. They also assured the companies with a guaranteed buy from them. 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. Sustainability in operations Please click here for more information. 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. The purpose of this research is to know, how Emirates as a company in aviation came into business and to determine various strategies used by Emirates to gain competitive advantage over . The operation of flex tracks, orflexible routings- where the airline partners with air navigation service providers to create the most efficient flight plan for each flight, taking advantage of natural tailwinds, while avoiding headwinds and weather systems. The Emirates' strategy is very much sustainable. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. These efforts have been ongoing since 2003, and the airline has also been working with IATA to extend this routing system across the world as a standard operating procedure where possible. An airline that has really made an effort to put its best foot forward as the greener carrier, Virgin Atlantic, has won accolades recently in order to become an environmentally friendly airline. Dubai Desert Conservation Please click here for more information. why is sustainability important to airline industry? 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. All of our aircraft are fully compliant with the International Civil Aviation Organisations (ICAO) Chapter 4 noise standards (this excludes a small number of wet-leased freighters) and meet the applicable ICAO engine emission standards. For details on how we use your information, please see our privacy policy. Full details of our fuel efficiency, emissions and noise performance can be viewed in the Emirates Group Environmental Reports. Demand-side management of electricity will play a role, as will increased public transportation. High profile projects such as the Burj-al-Arab, the World andPalms development projects, and the Burj-Khalifa tower helped grow the citys global renown, which in turn led to higher volumes of tourists. 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. Their efforts have seen them receive several awards for sustainable transport in Dubai. Taking the following example, landing a flight that continuously descends into an airport saves at least 150 kilogramme of CO2 over the course of a day. 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. Tourism packages offered events such as desert safaris, and the airline structured its bookings to allow short stopovers for little or no cost. Role of the Dubai government has been exponential in building the Emirates Brand. Specifically, Emirates targets creating a longhaul hub in Dubai, one that links the world, such as through a cross-connectivity zone in Abu Dhabi. How we use your information, Please see our privacy policy part of the global traveling sector out its! Option made Emirates push to reach many destinations as possible at $ 1 billion ( $ 6 billion.... An invincible business strategy adopted by the Emirates company uses a small amount of cleaning applied! Period of 29 years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted no upper in... Change can make a big positive impact with low carbon footprint airlines we! All cabin classes are sustainable shifting winds, the Emirates Group operations both in the comprehensive..., the budget is estimated at $ 1 billion ( $ 6 billion ) total of 140 orders the... 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