BUSINESS

Deregulation of the Air Transport Industry in the Middle East



Deregulation of the Air Transport Industry in the Middle East

Introduction

British Airline is the national flag carrier in the UK. In terms of international destinations, fleet size and the number of destination, it is the largest airline in the UK. British Airways is the merger of Cambrian Airways, BOAC, Northeast Airlines, and BEA. This merger took place back in the year 1974. The company got sold as a part of the privatization policy after thirteen years of remaining a public company (BA 2010, p. 2). Boeing is the major supplier of British Airways carriers. s expanded extensively in the global market. It covers a significant number of destinations when it comes to local and international destinations.

In the recent future, the company will be taking off in a much better way after its merger with the Spanish flag carrier. The company has merged with Iberia. through this merger, British Airways has become the second largest airline in the Europe and the third largest airline in the world. This categorization takes place in terms of revenue. British Airways is involved in the business of air freight, air mail, carriage of passengers, and other ancillary services. The company also has a very large marine network. The company covers 41 destinations in America, 9 destinations in UK, 67 in Europe and over 16 in Africa. The company is one of the leading airlines in the UK.

British Airways faces stiff competition with the phenomenal growth of the Middle East airlines. Emirates, which is a Dubai based airline is one of the fastest growing airline of the region. Emirates has benefitted a great deal from hoe country rule. the most ironic fact is that this growth of Emirate Airline is funded by Europe. the European government had been providing easy access to capital to Emirates Airline and Etihad Airways.

SWOT Analysis

The SWOT analysis of Emirate Airline is given as follows: The Emirates group which is a conglomerate of Dnata and Emirates Airline is one of the biggest groups in the country and is run by the state. The best advantage that any of the middle Eastern airlines have over the airlines of the world is their geographical positioning. They are a major connecting point between the West and the East.

Strengths

Weaknesses

Strong market position gives a competitive edge to Emirates over its peer group

Diversified geographical spread reduces the group's business risk

High employee productivity indicates greater operational efficiency

High debt burden restricts the group ability to obtain additional financing to facilitate its expansion plans

Opportunities

Threats

Positive outlook of Dubai tourism industry would boost Emirates top line growth

Growing global air freight sector offers ample scope for growth

Strategic Partnerships help Emirates to expand its operational network

Intense competition from low cost carriers

Consolidation in airline industry may intensify market competition

Financial Assessment of the carrier

From the very inception of 2010, British Airways carry forwarded many daunting challenges from the preceding year. It tried its level best to overcome the many challenges that the company ...