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. But with the aging fleets, Emirates will have to either face difficulty in pleasing its customers with an outdated technology or spend a fortune on new fleets to maintain customer experience. In order to promote a sustainable global business environment, the company ensures the bio-diversity of the trees and animals in Australia. why is sustainability important to airline industry? 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. Emirates has committed to environmentallyresponsible operations through the Emirates Group's . Branding and sponsorship 4. Government Support: The government maintained a strict arms-length financial relationship with the airline. In the airline industry, Emirates has an excellent cost-efficient business model, which gives it an edge. 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. Emirates spends billions of US dollars on fuel each year, so naturally we are monitoring the development of biofuel technology with great interest. The connectivity option made Emirates push to reach many destinations as possible. 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. What Is Emirates Strategy? Emirates has a modern and fuel-efficient fleet with an average age of 6.5 years. Some of the programmes initiatives include: Emirates has also invested in solar power systems to generate clean electricity at two of the airlines major facilities in the UAE Emirates Engine Maintenance Centre and Emirates Flight Catering. A loss of Dhs22 was recorded by Emirates Group last year for its first annual profit in over 30 years. The main issue in the presented research is the United Arab Emirates' foreign aid commitment, the development of its brand, and its position in international relations. We can link its success to the leadership of the company and to the Dubai Governments support. 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. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? Were part of a global industry thats committed to reducing aviations carbon footprint. 10 Ways to Lead a Healthier Lifestyle in 2022. Who Is the Founder of Serum and How Did it Start? 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. Strong growth and world class infrastructure 2. 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. what are airlines doing to be more sustainable? Emirates promotes its sustainable operations through three core environmental initiatives: Emirates used to publish its Environmental Reports, but from 2018-19 the whole Emirates Group combined its annual environmental reporting with its financial reporting and so it is now included in its Annual Financial Reports. Highly priced tickets compared to competitors 2. A video of this is available below. 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. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. 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. what are the strengths of emirates airlines? 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. The government maintained a strict arms-length financial relationship with the airline through its holding company, the Investment Corporation of Dubai (ICD). Dubais Open-Air: In order to tap these new markets and fill its network, however, Emirates needed regulatory approval to fly to new destinations. 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. International benchmarks illustrate that even todays aviation system does not fulfil current demand. The Emirates Airlines' success. ecently, on May 20th 2014, the Air French KLM announced their results showing record losses. Emirates is supportive of efforts around the world to improve the efficiency of air traffic management and to provide more flexibility on flight routes. 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. You can read more in the Aviation Benefits Beyond Borders report(Opens a PDF in a new tab) written in July 2016. 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. All Rights Reserved. Today, even though a greater number of population are in Emirates reach, a majority of those population is still under the middle-class level. 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. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. 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. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. Fall in oil prices a business paradox. Dont know where to start? Chairman's message Please click here for more information. 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. Based in Dubai, the company is a subsidiary of the Emirates Group, a government-owned corporation. The Positioning1: The location is a strategic one A well-oiled hub centred in a major catchment area. Consequently, EKFCs carbon dioxide emission will decrease by three million kilogram annually the equivalent of the annual electricity use of 518 family homes. Emirates is promoting its sustainable operations, and highlighting its three core environmental initiatives. 4. All of these measures help to save fuel and emissions, as well as to cut down on noise. 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. 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. 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. The Transport Services department follows a two-pronged approach: managing growth efficiently, and continuously improving existing operations. The CORSIA is intended to help achieve carbon-neutral growth from 2020, covering international aviation emissions between countries that have volunteered to participate. Leadership at Emirates is considered as an influential and democratic. Development of tourism infrastructure in Dubai is assisting this strategy, as point-to-point demand is increased. 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. Branding and sponsorship 4. 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. Sustainability and ecoefficiency are the cornerstones of all Emirates Group operations - both in the air, and on the ground. Emirates has also invested in solar power systems to generate clean electricity at two of the airlines major facilities in the UAE Emirates Engine Maintenance Centre and Emirates Flight Catering. 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 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. Emirates introduces eco-friendly blankets made from recycled plastic bottles. Emirates Flight Catering is one of the worlds largest airline catering firms, and they run a recycling programme to match the scale of their operation. 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. what is behind their success given an industry where profitable firms are scarce? The sustainability imperative seems driven by a realization of the global business community: a firm's purpose beyond profit and its codependency on other firms, organizations and individuals in the ecosystems in which it operates represent significant forces in maintaining long-term profitability. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? Full details of our fuel efficiency, emissions and noise performance can be viewed in the Emirates Group Environmental Reports. We depend on aviation to conduct economic, social, and cultural activities, which makes it so vital and contributes so much to our growing world. Demand-side management of electricity will play a role, as will increased public transportation. 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 company has maintained a world class flight operation as well as introduced cheaper long haul flights that are highly profitable. Its competitive with low-cost carriers. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. Over one-third of the planets seven billion citizens lived within a four-hour flight of Dubai, and over two-thirds lived within an eight-hour flight. 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. 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. The location of Emirates primary hub does not allow it to take any advantage of people traveling from Europe to Americas. 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. Read more about this strategy at www.enviro.aero(Opens in a new window). Strong growth and world class infrastructure 2. 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. More than 125,000 visitors made their way to the DDCR in 2021, and plans are underway for a Visitors Centre at the reserve to enhance the visitor experience and will also be used as a platform to develop educational programmes for schools and higher educational institutions. Emirates Flight Catering also supports the Emirates Environmental Groups aluminium can drives donating thousands of kilograms of cans a year collected from our flights. 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). They should also be of value to policy-makers, planners and The Emirates Airlines success has been the continuity of its management team, many of whom have been with the airline since its start of the company. Sustainable practices are an integral part of the Emirates groups corporate vision that results in the sustainable development of the company. Dubais contribution in the success of Emirates Airlines is as mentioned below: . Get your custom essay on, Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". Don't use plagiarized sources. Abstract. Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. During the past year, the airline has invested $22 million in new technology for in-flight connectivity, which is now 70 percent wireless. 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. In over a period of 29 years, Emirates has grown to be one of the biggest players in the airlines industry. The sustainability of the Emirates Airline Company has been proved in the report by Quantitative data's from the environment factors of the company. 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. Role of the Dubai government has been exponential in building the Emirates Brand. 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. Local government support 3. 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. The strategy lays out steps toward optimising energy, smarter transport and recreational areas. It takes time and concerted executive attention to develop the necessary attitudes, mental models, strategies, and practices that can leverage the core business and turn sustainability into an advantage. Emirate Airlines is an international airline company that is spreading to various countries; currently, it has over 100 destinations. strategy and people, helping clients navigate a dynamic environment through four global businesses. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and . The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. 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. Answer:Yes, the Emirate's strategy is sustainable. All rights reserved. Sustainability in operations Please click here for more information. 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. Due to Emirates commitment to invest in the most advanced eco*efficient technologies available, one of our fleets ranks as the youngest. Some of the products you enjoy during your flight are helping us to contribute to a greener future. But, when it comes to the pacific travels, they have no existence. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. And our engine washing procedures keep internal engine components clean, maintaining fuelefficient performance and prolonging the useful life of the engine. 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. 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. 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. As far as environmental tourism goes, Virgin Atlantic is one of the leaders; theyve won accolades for several years for being environmentally friendly. The environmental benefits of operating a modern wide-body fleet include both reduced noise and lower engine emissions. For details on how we use your information, please see our privacy policy. Local government support 3. Why? Is Emirates strategy sustainable? 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. For details on how we use your information, please see our privacy policy. what is the competitive advantage of emirates airlines? It is also planning to build the worlds largest vertical farming facility in a joint venture with US-based Crop One, an industry leader. 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). 3. Sustainability and eco-efficiency are the cornerstones of all Emirates Group operations both in the air, and on the ground. Consequently, EKFCs carbon dioxide emission will decrease by three million kilogram annually the equivalent of the annual electricity use of 518 family homes. operates 158 destinations in 85 countries, making it the worlds largest airline. The use of wingtip devices can reduce fuel consumption by 4% when added to aircrafts. 14. This air traffic increase will be also aided by the next door airline Etihad, being in almost the same region. Since, we can see that Emirates strategy is not only. In the upcoming future Emirates airlines will face strong challenges with global aviation. 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. This has so far saved 95 million bottles from landfill. 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. 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. . Once the planes were confirmed, the planning team examined the overall fleet, the available craft currently in use, and how many planes remained. 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. But with the increased air traffic by Emirates itself, having being forecasted to carry twice as capacity soon in future. 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. SIA to acquire 25 per cent stake in Air India. Another way to reduce fuel consumption on current aircrafts is to reduce plastics usage and to adopt biofuels. 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. 12 Steps to Clear Safari Browser Cache on Mac, Vaccine Waitlist Dr. B Helped Millions: Heres How. 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. It helped create a strong pull that attracted business and leisure tourists alike. A geographic & psychographic segmentation strategy has worked for Emirates in order to create offers that are more relevant for target audiences. 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. 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. Qatar, being one of the major oil sources in the gulf has allowed Qatar airways to enjoy similar facilities as its competitors. 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. 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. Dubai Desert Conservation Please click here for more information. 1. 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. 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.. Etihad has also shaped its airlines to be the cheaper of the two in many of the common destinations, taking away Emirates customers. Highly priced tickets compared to competitors 2. Dubais position on the Arabian Peninsula placed it at the nexus of global transit routes, a strategic location between Europe, Oceania, Asia, and Africa. When added to aircrafts financial performance over the past years is the proof of an invincible business strategy by! 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