Emirates is an industry bellwether for aircraft purchases, having purchased a whopping 200 aircrafts in 2013 alone. 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. Dont know where to start? Demand-side management of electricity will play a role, as will increased public transportation. Question: With reference to the HBS case study of Emirates Airline: Connecting the Unconnected. This base was then used to determine whether to add capacity to existing routes or launch a new route. Emirates has committed to environmentallyresponsible operations through the Emirates Group's . I am a UK resident and the airline youll have to use is Air France / KLM. 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. SIA to acquire 25 per cent stake in Air India. 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. 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. ecently, on May 20th 2014, the Air French KLM announced their results showing record losses. Our customers, staff and regulators are increasingly conscious about the environment and greenhouse gas emissions. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? For more information, you can read the Emirates Group's Environmental Policy(Opens a PDF in a new tab). (2016, Sep 10). This allowed Emirates to take maximum advantage of its connectivity. Aging Fleet3: Emirates has been amazing in providing world class services, and most of the credit goes to the young fleet size, which are equipped with modern technologies. The airline operates across more than 140 destinations in six continents, with over 3600 flights every week. All parts of the company were affected by redundancy, resulting in a 31 percent reduction in employees. Is Emirates strategy sustainable? Weve also been installing light emitting diode (LED) lights across our facilities, saving large amounts of electricity with the LED lights in the Emirates SkyCargo terminal at Dubai World Central (DWC) saving over 970 MWh of electricity a year. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. 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. Getting more customers is the main goal. Local government support 3. Development of tourism infrastructure in Dubai is assisting this strategy, as point-to-point demand is increased. We look forward to the development of biofuels that are technically safe, cost competitive, and truly sustainable, with a viable supply chain in place from feedstock to the aircraft. Full details of our fuel efficiency, emissions and noise performance can be viewed in the Emirates Group Environmental Reports. Narrates the story of Emirates, an airline founded in 1985 in Dubai that by 2013 was among the three largest commercial airlines in the world. 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. 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. This view of Dubai hindered Emirates to be known as a popular brand in the aviation industry. Working with air traffic management providers to develop protocols that enhance operational efficiency. 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. 1. All of these measures help to save fuel and emissions, as well as to cut down on noise. 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. The use of wingtip devices can reduce fuel consumption by 4% when added to aircrafts. 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. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. 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. Is Emirates' business strategy sustainable? 4. Dubai is using tourism infrastructure development to help boost demand for flights between Dubai and points along its shoreline. 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. By continuing, you agree to our Terms and Conditions. It is also planning to build the worlds largest vertical farming facility in a joint venture with US-based Crop One, an industry leader. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. Copyright 2023 by Ictsd. A continuous investment in new products, services, and technology by Emirates ensures that it keeps loyal customers and makes it easier for new ones to become customers. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. We prioritise the use of ground power and pre-conditioned air where it is available so that the aircrafts auxiliary power unit a small jet turbine located at the rear of the aircraft can be switched off. Well occasionally send you promo and account related email. what are airlines doing to be more sustainable? The Emirates hub strategy has kept them ahead of competitors, as the they are located in a prime position to serve Europe, Oceania, Asia, and Africa. From 2018 onwards, the Emirates Group has combined its annual environmental reporting with its financial reporting, to provide business context to environmental performance. Lower Cost Airlines: With increased number of lower cost airlines in the recent years, there is a huge trend of population, especially from the developing regions who prefer to travel at a lower cost than having a premium service. These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. The government maintained a strict arms-length financial relationship with the airline through its holding company, the Investment Corporation of Dubai (ICD). 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. 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. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. Dubai hub. In over a period of 29 years, Emirates has grown to be one of the biggest players in the airlines industry. Why? To better understanding the dynamics of the airline industry where Emirates is a part, a Porter's Five Forces analysis performed. Second, there has not yet been a holistic, structured approach for designing sustainable business model innovations that generate full value. With a Five-Star Skytrax rating14, Qatar Airways has differentiated itself from the Emirates to be higher premium brand of the two. 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. This team is also using LED lights for aircraft cabin maintenance where they have the added advantage of being much cooler than the lights they replaced. It helped create a strong pull that attracted business and leisure tourists alike. To install StudyMoose App tap Using these blankets both prevents the plastic bottles ending up in landfill, and saves energy and emissions in the manufacturing process compared with using new plastic materials. 12 Steps to Clear Safari Browser Cache on Mac, Vaccine Waitlist Dr. B Helped Millions: Heres How. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. 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. Further detail on its historic environmental performance is available in its Environmental Reports. These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. 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. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. 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. 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. 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. Undertaken in a given period of time on the one hand by each component of the system and also on the other hand by each component. First, Emirate's business model focused on the major metrics that generate profits. 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. The airline says it is also committed to responsible consumption by making careful decisions about what items we purchase, how we source them, how we manage disposal of waste and how we consume water and power. International Competitors: Strategic competitors such as Singapore Airlines and Turkish Airlines have also been able to mark themselves as a hub inconnecting different parts of the world. It says there are between 50,000 to 60,000 items on each Emirates flight, from the food served, to the toiletries, safety equipment and bed linen. Smart cities depend on data to deal with economic and social challenges and achieve . Our customers, staff and regulators are increasingly conscious about the environment and greenhouse gas emissions. The leadership team has 23 years of experience inside the company. 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. Meanwhile, in a complete contrast, The Emirates Airlines have passed a massive order of 32 Airbus 380 super jumbo jets at the Berlin Air show 2010. There are a few ways that the Emirates have a competitive advantage over other competitors, and the most important one starts with their hub. We are one of the youngest fleets on the market, thanks in part to our focus on the advancement of eco*efficient technology. Due to the lower operation cost, Emirates was able to pass the benefits on to the customers which many of its competitors couldnt afford to. The airline has also had economy class blankets made from recycled plastic bottles since 2017. The strategy of alliance between two struggling airlines is yet to prove its success. Increasing Income: In the Middle Eastern regions (UAE), where most of the Emirates man force comes from have showed major improvement in its growth. 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. The Emirates' strategy is very much sustainable. Resources: UAE being the major exporter of oil in the world meant that the major resource for the Emirates the fuel was available at a very low price than many of its competitors. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter. The project extended the lifetime of the seats by another five to seven years, and saved the company the cost of 50 new seats. Each blanket is made from 28 bottles, which have been chipped, spun into yarn, and woven into the soft, warm and sustainable blankets. Air Traffic: In the past decade Emirates has gained advantage with its lower air traffic levels, helping it to have its customers arrive the hub on time to connect to their respective flights. Emirates introduces eco-friendly blankets made from recycled plastic bottles. Its location will enable quick delivery of fresh products within hours of harvest, maintaining the foods nutritional value and reducing carbon emissions associated with transportation. On carbon emissions, the airline says that as well as the above efficiency measures, it supports the development and introduction of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) through the International Civil Aviation Organization (ICAO). Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. Qatar airlines has also joined the One-World air alliance15, providing customers with a greater value in the any of the seating class and helping them earn frequent flyer points. But, when it comes to the pacific travels, they have no existence. Air Traffic: Dubais relative distance from congested European airspace meant that aviation traffic was minimal and that flights could connect at almost any time of the day, allowing for twenty-four-hour operations. Emirates is supportive of efforts around the world to improve the efficiency of air traffic management and to provide more flexibility on flight routes. Introducing a robust fuel monitoring system and advanced data analytics, which has resulted in reduction of discretionary fuel uplift from crews and dispatchers. It helped create a strong pull that attracted business and leisure tourists alike. 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). 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? It also standardized the customer experience. A video of this is available below. Is Emirates strategy sustainable? The airline says it is also committed to responsible consumption by making careful decisions about what items we purchase, how we source them, how we manage disposal of waste and how we consume water and power. Give us your email address and well send this sample there. 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. And with jet fuel comprising one of our largest areas of expenditure, fuel efficiency is essential to every part of the business. Strong growth and world class infrastructure 2. Abstract. 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. 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. They also assured the companies with a guaranteed buy from them. 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. and then Add to Home Screen. Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. 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. Their programme diverts a wide range of materials from landfill, including paper and cardboard, aluminium foil and cans, and plastic bottles and containers, much of which is collected from our aircraft after their arrival in Dubai. 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. ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. And our engine washing procedures keep internal engine components clean, maintaining fuel-efficient performance and prolonging the useful life of the engine. 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. 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. what is behind their success given an industry where profitable firms are scarce? 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. The hub created by the government of Dubai with an infusion of huge investment gave Emirates more reasons to increase its fleets. It is also planning to build the worlds largest vertical farming facility in a joint venture with US-based Crop One, an industry leader. 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. 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. the coming days aswell. Qatar Airways: Right at the nose tip of Emirates and Etihad, Qatar airways has followed a similar business structure, to be one of the major competitor for Emirates. Location2: The Dubai benefited from several inherent strategic advantages as a hub city. During the past year, the airline has invested $22 million in new technology for in-flight connectivity, which is now 70 percent wireless. Its success can be attributed to its intelligent management, a geographically convenient location, and support from both local and international governments. Copyright 2023 by Ictsd. 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. For Emirates, the flexibility in operations meant covering trips to the entire world and having customers reach their destinations at the mostpreferable time. Employing technology in modern urbanization is the cornerstone of future sustainable urban development. 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. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. The study's purpose is to find an answer to a research question, specifically, what is the UAE foreign aid role and significance for the Soft Power Strategy implementation and the Sustainable Development Goals? The strategy followed enables the company to; 1. If case of the former option, Emirates determined whether to add new service to an existing route or to swap out a services existing plane with a larger and newer craft. Due to the sustainable business practices carried out at the Emirates group, the company has achieved sustainability. Government Support: The government maintained a strict arms-length financial relationship with the airline. Additionally, we use a water*saving procedure by routinely washing our aircraft with a small amount of a cleaning agent applied by cloth. Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. Emirates spends billions of US dollars on fuel each year, so naturally we are monitoring the development of biofuel technology with great interest. Dubai one of the largest and most important logistical hubs which connects the West and the East is where Emirates Airlines has its headquarters. Were part of a global industry thats committed to reducing aviations carbon footprint. Is Emirates strategy sustainable? Retrieved from http://studymoose.com/the-emirates-airlines-success-essay. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. The Emirates Group vision is to become a leading global corporation in the traveling field, so it expands its businesses into every part of travel and tourism (The Emirates Group 2016). All Rights Reserved. Well-maintained aircraft contribute to efficient flight operations too. 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. The Emirates Airlines' success. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. 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. 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. 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. what is the competitive advantage of emirates airlines? Emirates has committed to environmentally-responsible operations through the Emirates Groups Environmental Policy, which is communicated internally and externally to staff, customers and all stakeholders. 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. Qatar airlines, capitalizing on the above figures, has reduced its waiting time significantly, gaining customers attention who are in longer routes. All rights reserved. The Dubaigovernment further facilitated incoming tourist flows by eliminating the majority of visa requirements and launching marketing campaigns. 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. Younger & Limited number of Fleets3: Restricting its fleet to only three types allowed Emirates to optimize its pilot Deployment more effectively and serve its long-haul destinations. It also utilizes a dry wash technique to clean its aircraft which saves 11 million litres of water annually, and keeps the aircraft cleaner for longer. 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. Jet planes can reduce their carbon dioxide emissions by at least 150kg per flight if they use a continuous descent. The Flight Training Facilities department sources a range of items from Emirates Engineering when aircraft interiors are being upgraded. 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. 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. You can read more in the Aviation Benefits Beyond Borders report(Opens a PDF in a new tab) written in July 2016. Most of the Asian and Australian population traveling to Americas find it easier to travel via Singapore Airlines which has a lower travel time, such as Sydney to California; Others traveling from developing regions of china find it convenient to fly to European regions with Turkish airlines. 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. Corporation of Dubai with an infusion of huge Investment gave Emirates more to... 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