Cutting down on unnecessary weight carried helps us to save fuel. Sustainability and eco-efficiency are the cornerstones of all Emirates Group operations both in the air, and on the ground. 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. 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. See a whole year of Reward Seat Availability on one page at SeatSpy.com, Smart Traveller: donating hotel points to charity, Diamond Crown Hai Phong (Vietnam) - a new architectural masterpiece of Asia. 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. This view of Dubai hindered Emirates to be known as a popular brand in the aviation industry. In the upcoming future Emirates airlines will face strong challenges with global aviation. Realising the Advantages: The government-owned Dubai carrier has lower personnel costs than much of the industry, in part by drawing many workers from the nearby lowwage nations of Pakistan and India1. Students looking for free, top-notch essay and term paper samples on various topics. 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. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. Well-maintained aircraft contribute to efficient flight operations too. 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. and then Add to Home Screen. 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. Introducingfuel-efficient practices while the aircraft is on the ground, such as: the use of ground power units instead of the aircraft Auxiliary Power Unit (APU), and switching one or two engines off while taxiing in after landing. Global Base2: Given its global base and high number of transit passengers, connections at Emirates Dubai hub were essential for running its network effectively. Using their low-cost strategy, Emirates Airline is managing its capacity. 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. The 2,990 panels form a roof over the carpark, and are expected to generate in excess of 1,800 megawatt-hours of electricity and save around 800 tonnes of carbon dioxide every year. All rights reserved. Leadership at Emirates is considered as an influential and democratic. 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. 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. Demand-side management of electricity will play a role, as will increased public transportation. 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. As yet, the airline has not released details of this, saying only The airline continues to explore partnership opportunities in the few destinations on its network where SAF is being made available, and is reviewing longer-term prospects for technologies such as power-to-liquid fuels.. Emirates Airlines is an integral part of "The Emirates Group", which comprises more than For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and . 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. Sustainability of Emirates' Current Strategy and Way of Operation. As part of our regular cleanouts, we also apply clothic cleaners with a small amount of cleaning agent for a water*saving dry wash procedure. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. SIA to acquire 25 per cent stake in Air India. Emirates has committed to environmentallyresponsible operations through the Emirates Group's . Highly priced tickets compared to competitors 2. All rights reserved. ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. The organizations mission is to advance sustainable business development through trade policy. 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. ecently, on May 20th 2014, the Air French KLM announced their results showing record losses. . Dubai is using tourism infrastructure development to help boost demand for flights between Dubai and points along its shoreline. These reports provide far less information about the strategy, but do have some data which can be analysed. In addition to that, you can recycle used magazine materials (and even take them out completely), drink carts (making them lighter), in-flight headsets, and drink glasses. Etihad has agreed to be in code-shares9 with some of the major players in the industry. It also standardized the customer experience. what is the competitive advantage of emirates airlines? 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. With the youngest fleet3 amongst any other players in the industry, it has grown at a humungous rate within a decade of its operation. Answer:Yes, the Emirate's strategy is sustainable. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. Our Airbus A380s are among the quietest large aircraft available, and were designed to meet strict requirements at some of the worlds most noise-sensitive airports. Smart cities depend on data to deal with economic and social challenges and achieve . 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. Due to the lower operation cost, Emirates was able to pass the benefits on to the customers which many of its competitors couldn't afford to. Emirates integrates its business strategy to include two main metrics. 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. Emirates reaffirms its wildlife commitments on World Environment Day. It helped create a strong pull that attracted business and leisure tourists alike. Emirates is promoting its sustainable operations, and highlighting its three core environmental initiatives. 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 toenter. For details on how we use your information, please see our privacy policy. The Emirates' strategy is very much sustainable. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? 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. 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. 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. 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. To lure tourists, Emirates partnered with local tourism organizations to promote the city of Dubai. Emirates promotes its sustainable operations through three core environmental initiatives: Reducing fuel emissions; . 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. Dubai hub. 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. Dubais Open-Air: In order to tap these new markets and fill its network, however, Emirates needed regulatory approval to fly to new destinations. The Dubaigovernment further facilitated incoming tourist flows by eliminating the majority of visa requirements and launching marketing campaigns. 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. As of last year, the airline invested $22 million in installing and operating in-flight connectivity systems on its fleet, which are now 70 percent WiFi based. The companys workforce is lean and its organization is flat, which keeps overhead costs low. 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. 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. 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. what are the strengths of emirates airlines? 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. Qatar, being one of the major oil sources in the gulf has allowed Qatar airways to enjoy similar facilities as its competitors. Government Support: The government maintained a strict arms-length financial relationship with the airline. It reflects how Emirates strategies are sustainable at present day business. Emirates moves passengers west-east, east-west, north-south and vice-versa and many of them only touch Dubai in transit. Based in Dubai, the company is a subsidiary of the Emirates Group, a government-owned corporation. Copyright 2023 by Ictsd. 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. 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. 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. The airline has also had economy class blankets made from recycled plastic bottles since 2017. Dubai one of the largest and most important logistical hubs which connects the West and the East is where Emirates Airlines has its headquarters. Highly priced tickets compared to competitors 2. Type your requirements and Ill connect you to 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 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. Examples include continuous climbs and descents, and inflight rerouting on long-haul flights to take into account shifting winds. The government also sees Emirates to be one of the strong pillars in their economy, which has paid a total of $2.3 Billion in dividend since the royal family bankrolled the venture 28 years ago. 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. Additionally, we use a water*saving procedure by routinely washing our aircraft with a small amount of a cleaning agent applied by cloth. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. Location2: The Dubai benefited from several inherent strategic advantages as a hub city. Working with air traffic management providers to develop protocols that enhance operational efficiency. As compared to low-cost carriers, we have a lean workforce with flat organizational structure keeping overhead costs low. Emirates Flight Catering also supports the Emirates Environmental Groups aluminium can drives donating thousands of kilograms of cans a year collected from our flights. We strive to be leaders in environmental performance in our industry and in our region, and were committed to complying with all applicable environmental regulations and standards. 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). While other airlines such as Lufthansa, Singapore Airlines have struggled to bring their operating cost 6 down, Emirates has always been able to work under at the lowest possible operating cost 6, providing its customers with the benefit and grabbing a huge market share. Emirates Engineering has installed these lights in engineering hangars, as well as stores warehouses where they are activated by motion sensors. All Rights Reserved. A video of this is available below. 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 . 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. 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. 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. This air traffic increase will be also aided by the next door airline Etihad, being in almost the same region. The aviation industry recognises that, although its responsible for less than 2% of global carbon dioxide emissions from human activity, it must be committed to growing sustainably and reducing growth of its emissions. 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. To better understanding the dynamics of the airline industry where Emirates is a part, a Porter's Five Forces analysis performed. 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. 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. Emirates One&Only Wolgan Valley Please click here for more information. The strategy of alliance between two struggling airlines is yet to prove its success. A companys tariff may change based on market trends and the customers needs, according to its market position. Due to Emirates commitment to invest in the most advanced eco*efficient technologies available, one of our fleets ranks as the youngest. 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. Is Emirates Strategy Sustainable Why January 28, 2022 BY: Troy Monterey 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. This allowed Emirates to take maximum advantage of its connectivity. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept. strategy and people, helping clients navigate a dynamic environment through four global businesses. Sustainability and ecoefficiency are the cornerstones of all Emirates Group operations - both in the air, and on the ground. 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 airlines and Dnata, the ground handling agent at Dubai what is the competitive advantage of emirates airlines? All parts of the company were affected by redundancy, resulting in a 31 percent reduction in employees. The aviation industry supports nearly 63 million people worldwide and contributes USD 2.7 trillion per annum to world GDP. What Is Emirates Strategy? 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. Give us your email address and well send this sample there. 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. Jet planes can reduce their carbon dioxide emissions by at least 150kg per flight if they use a continuous descent. In addition, the Middle airline sector plays a smart role in developing a world-class airline services, such as Emirates Group, with above average profitability4 & Qatar Airways, which has a five-star Skytrax ranking14. 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. See a whole year of Reward Seat Availability on one page at SeatSpy.com, Safe Travels - the UK's most trusted COVID-19 testing provider. As one of the largest international airlines in the world, Etihad operates 158 flights to 85 countries from its headquarters in New York City. 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. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished to enter. 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. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. Once airborne, our flight crew take advantage of opportunities to save fuel and emissions where practicable and supported by air traffic control. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. For details on how we use your information, please see our privacy policy. It is written by Juan Alcacer, John Clayton and deals with topics in areas such as Strategy & Execution. Emirates Airlines is one of the largest airlines in Asia. Introducing a robust fuel monitoring system and advanced data analytics, which has resulted in reduction of discretionary fuel uplift from crews and dispatchers. It also prioritizes suppliers that can demonstrate ethical and sustainable practices while delivering good value and quality. 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. Thus by missing this route, Emirates has a significant part of the global traveling sector out of its reach. Emirates policy of investing in the most modern, eco-efficient technology available means we have one of the youngest fleets in the industry. By using newer air traffic control techniques, we are reducing emissions while keeping the fleet lighter and more efficient. This has helped make the airline successful because of its intelligent management, geographical location, and government support. Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. 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. 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. 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. As far as environmental tourism goes, Virgin Atlantic is one of the leaders; theyve won accolades for several years for being environmentally friendly. why is sustainability important to airline industry? With a Five-Star Skytrax rating14, Qatar Airways has differentiated itself from the Emirates to be higher premium brand of the two. In over a period of 29 years, Emirates has grown to be one of the biggest players in the airlines industry. We depend on aviation to conduct economic, social, and cultural activities, which makes it so vital and contributes so much to our growing world. Why is Emirates Airline able to deliver solid growth and solid financial performance for years? Representing about 5 per cent of Dubais total land area, this is the biggest piece of land which Dubai has dedicated to a single project. 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. Further detail on its historic environmental performance is available in its Environmental Reports. Abstract. And with jet fuel comprising one of our largest areas of expenditure, fuel efficiency is essential to every part of the business. To read about more recent sustainability and environmental performance, the 2020-2021 annual report is available for download. Is to advance sustainable business development through Trade policy benefited from several inherent strategic advantages as a city... The Emirate & # x27 ; s strategy is very much sustainable tourism to., as well as stores warehouses is emirates strategy sustainable why they are activated by motion sensors them only touch Dubai in transit wildlife. 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