EMIRATES CASE STUDY

What would you do with 90 A380s?



What would you do with 90 A380s?

Introduction

According to RBS, Emirates' assumptions for rapid growth are basically, in line with the general growth trend predicted by Airbus and Boeing. The airline will therefore, not gain market share at the expense of its competitors, except in four regions: South Asia to North America, North Asia to the Middle East, North Asia to Africa and Eastern Europe to the Middle East as for this traffic flows Dubai is “optimally located as a hub.” So gaining market share in these specific markets is “not implausible” to RBS (Chang, 2005, pp.22-5).

Question 1: The Prime Airline Segment an Attractive Place to Compete

Emirates is the national airline in UAE, based in Dubai International Airport in the Emirate of Dubai's second largest city in the State of the United Arab Emirates -based and center for their operations, and the airline providing services to more than 101 destinations in 61 countries around the world , Emirates is one of the subsidiaries of the Group UAE and owned by the Dubai government in full, and is characterized by Emirates' fast growth rate as a vector world and boasts a fleet of aircraft is one of the youngest fleets current age, as has the airline about 129 aircraft of various models, and the Emirates is the largest operator of the aircraft, the Airbus A380 as it contracted with the giant aircraft European company Airbus to purchase 55 aircraft of this type, I received them so far only four aircraft. The Emirates Airline numerous awards for excellence and meals and variety of entertainment during the flight and the superiority of the service provided by the company in general and the Emirates in 2008 the transfer of 21.2 million passengers and 1.3 million tons of cargo on board the Emirates Sky Cargo. Few analysts follow the airline because it is government owned and unavailable to equity investors. So it was somewhat of a rarity when the Royal Bank of Scotland (RBS) published a report called “What would you do with 90 A380s?” (Flottau, 2011)

Five Forces Analysis

The airlines market will be analyzed taking airline companies as players. The dominant buyers will be taken as leisure and business travelers, the latter considered as business-to-business (B2B), and fuel suppliers, aircraft manufacturers, and skilled employees as the leading suppliers.

Buyer power

Airlines typically have a large number of buyers. Many of these are individual consumers purchasing flights directly from the airline, although there are B2B sales to charter companies, discounters, and similar buyers. This tends to strengthen buyer power in the airlines market. However, airlines can defend themselves against this by differentiating their service in several ways. A common strategy for easing price competition is to focus on the additional features available on higher-priced flights, such as extra leg room, in-flight entertainment (Campbell, 2005, pp. 534-553).

Supplier power

Airlines must enter into contracts when buying or leasing aircraft from suppliers. Breaking these contracts can often imply a heavy financial ...