Emirates reaffirms its wildlife commitments on World Environment Day. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. To increase the range of the aircrafts, Emirates approached Boeing and Airbus and pushed the two airline manufacturers to develop ultra-long-range, wide-body aircraft that were better suited to Dubais longer routes13. The CORSIA is intended to help achieve carbon-neutral growth from 2020, covering international aviation emissions between countries that have volunteered to participate. Aviation is one of the most important contributors to global economic and social development particularly in the developing world. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. 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. Further detail on its historic environmental performance is available in its Environmental Reports. The new Terminal had become a new face of the Emirates airlines and one more reason for the customer to fly Emirates. 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. 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? strategy and people, helping clients navigate a dynamic environment through four global businesses. It helped create a strong pull that attracted business and leisure tourists alike. Emirates has a modern and fuel-efficient fleet with an average age of 6.5 years. Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. Location2: The Dubai benefited from several inherent strategic advantages as a hub city. These spikes strained the airports capacity, but they were essential to allow connecting passengers the widest possible choice of connections from points east to west13. Why is Emirates Airline able to deliver solid growth and solid financial performance for years? Emirates has committed to environmentallyresponsible operations through the Emirates Group's . 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. All Rights Reserved. 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. 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 project extended the lifetime of the seats by another five to seven years, and saved the company the cost of 50 new seats. But, when it comes to the pacific travels, they have no existence. All Rights Reserved. Highly priced tickets compared to competitors 2. 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. Emirates introduces eco-friendly blankets made from recycled plastic bottles. The Emirates Airlines' success. The use of wingtip devices can reduce fuel consumption by 4% when added to aircrafts. Dubai hub. 2023 The Emirates Group. Pacific Sector: Emirates has been very successful in connecting eastern and western worlds. 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. Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. Emirates Airline has been largely successful due to its competitive pricing strategies that it uses successfully against its competitors. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? They also assured the companies with a guaranteed buy from them. But with the increased air traffic by Emirates itself, having being forecasted to carry twice as capacity soon in future. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. Highly priced tickets compared to competitors 2. 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. Dubai Desert Conservation Please click here for more information. It also standardized the customer experience. , Strategic decision to not be in an Alliance7: Emirates believed that the marketplace will be hindered when an airline will need a consensus from its Alliance partners. 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 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. Emirates moves passengers west-east, east-west, north-south and vice-versa and many of them only touch Dubai in transit. Employing technology in modern urbanization is the cornerstone of future sustainable urban development. The company has maintained a world class flight operation introducing cheaper long haul flights which is highly profitable. All parts of the company were affected by redundancy, resulting in a 31 percent reduction in employees. 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. 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. 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. Today, the Emirates Group is one the most comprehensive travel and tourism operation in the world. 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. Copyright 2023 by Ictsd. Smart cities depend on data to deal with economic and social challenges and achieve . Branding and sponsorship 4. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. 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. Even retired aircraft fittings can be reused. 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. Local government support 3. 4. 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. Why? A geographic & psychographic segmentation strategy has worked for Emirates in order to create offers that are more relevant for target audiences. We firmly support the four-pillar strategy to reduce emissions developed by our industry body the International Air Transport Association (IATA). First, Emirate's business model focused on the major metrics that generate profits. 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. Sustainable practices are an integral part of the Emirates groups corporate vision that results in the sustainable development of the company. Emirates Airlines is one of the largest airlines in Asia. 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. Sustainability of Emirates' Current Strategy and Way of Operation. 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. This base was then used to determine whether to add capacity to existing routes or launch a new route. 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. 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. Increasing Income: In the Middle Eastern regions (UAE), where most of the Emirates man force comes from have showed major improvement in its growth. 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. 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. 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. 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. It reflects how Emirates strategies are sustainable at present day business. 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. Due to the sustainable business practices carried out at the Emirates group, the company has achieved sustainability. 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. Since, we can see that Emirates strategy is not only. For details on how we use your information, please see our privacy policy. Strategic Expansion: The strategic move of placing a planning department to forecast major growth regions and placed orders for the number of new planes it expected to use. 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. 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 . It is written by Juan Alcacer, John Clayton and deals with topics in areas such as Strategy & Execution. Operates 269 aircraft, including Airbus A380 and Boeing 777 aircraft, making it one of the busiest operators of these types of planes on the planet. By continuing, you agree to our Terms and Conditions. Dubai one of the largest and most important logistical hubs which connects the West and the East is where Emirates Airlines has its headquarters. The gateway created by Emirates, has no upper hand in these unfortunate situations as their hub will take a longer flight time. 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. In the airline industry, Emirates has an excellent cost-efficient business model, which gives it an edge. 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. Emirates has actively supported fragile habitats since 1999, when it established the Al Maha Desert Resort and Spa in Dubai with a 27 square kilometres conservation reserve for the protection of desert fauna and flora. 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. Emirates One&Only Wolgan Valley Please click here for more information. 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. With a Five-Star Skytrax rating14, Qatar Airways has differentiated itself from the Emirates to be higher premium brand of the two. Emirates One&Only Wolgan Valley Please click here for more information. does emirates airlines have good capacity management strategy? Some of the programmes initiatives include: The latest annual report makes clear the scale of the challenge. 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. 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. 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. All rights reserved. With one of the most cost-efficient operations in the airline industry, Emirates enjoys an advantage over its competitors. 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. 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). The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. Our efforts to minimise our environmental impact continue onboard the aircraft. 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. SIA to acquire 25 per cent stake in Air India. 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. In order to promote a sustainable global business environment, the company ensures the bio-diversity of the trees and animals in Australia. The hub created by the government of Dubai with an infusion of huge investment gave Emirates more reasons to increase its fleets. 3. The greatest proportion of our carbon emissions come from the consumption of jet fuel, so our selection of aircraft and how we operate present the best opportunities for reducing our environmental impact. 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. Aircraft. 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. Dubai Desert Conservation Please click here for more information. For customers, it also served as the fastest way to connect to their destinations, where in other major carriers offered a zigzag path. 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. In 2010, the UAE Cabinet approved the Green Building and Sustainable Building standards to be applied across the country. 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". what are airlines doing to be more sustainable? 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. To lure tourists, Emirates partnered with local tourism organizations to promote the city of Dubai. For details on how we use your information, please see our privacy policy. Leadership at Emirates is considered as an influential and democratic. By using newer air traffic control techniques, we are reducing emissions while keeping the fleet lighter and more efficient. Etihad has also shaped its airlines to be the cheaper of the two in many of the common destinations, taking away Emirates customers. 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. Branding and sponsorship 4. Fall in oil prices a business paradox. Is Emirates strategy sustainable? The Information Technology department implemented a Think Before You Print campaign, which achieved a 33% drop in print volumes in just eight months, saving millions of sheets of paper and over 2 million kWh of electricity. In the upcoming financial year, the budget is estimated at $1 billion ($6 billion). As one of the largest international airlines in the world, Etihad operates 158 flights to 85 countries from its headquarters in New York City. Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. In 2021-01, the state intends to receive $1 billion in revenues. Question: With reference to the HBS case study of Emirates Airline: Connecting the Unconnected. Well-maintained aircraft contribute to efficient flight operations too. Specifically, Emirates targets creating a longhaul hub in Dubai, one that links the world, such as through a cross-connectivity zone in Abu Dhabi. SIA to acquire 25 per cent stake in Air India. 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. First, the business model and how to become more profitable, and second, its operational effectiveness. The airline has also had economy class blankets made from recycled plastic bottles since 2017. Sustainability in operations Please click here for more information. 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. 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. Emirates promotes its sustainable operations through three core environmental initiatives: Reducing fuel emissions; . 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. 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. Examples include continuous climbs and descents, and inflight rerouting on long-haul flights to take into account shifting winds. 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 airline operates across more than 140 destinations in six continents, with over 3600 flights every week. and then Add to Home Screen. what is the competitive advantage of emirates airlines? 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. 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. Emirates relied on only three types of aircraft, because of which planes could be deployed onto existing routes to supply much more easily to match the demand. It also accesses to be the gateway to major cities around the world and is the hub of the UAE tourism at the Abu Dhabi International Airport, few kilometres away from Dubai. 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 airline industry reduces its environmental footprint by incorporating sustainability into all of its operations as a means to reduce their environmental footprint. 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. 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. Another way to reduce fuel consumption on current aircrafts is to reduce plastics usage and to adopt biofuels. Weve invested in one of the best flight planning systems available, to carefully plan flights and optimise routes based on each days weather conditions, airspace constraints and the specific aircraft allocated for each sector. Qatar airlines, capitalizing on the above figures, has reduced its waiting time significantly, gaining customers attention who are in longer routes. Emirates has a modern and fuel-efficient fleet with an average age of 6.5 years. 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. 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. I am planning on booking tickets with Alaska Airlines, We want you to visit JetBlue on our website. Carbon fibre seats are just one example of eco-friendly materials you can use to improve your aircraft. The Emirates company uses a variety of targeting methods to select potential buyers for its products. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? The airline has also had economy class blankets made from recycled plastic bottles since 2017. Dubai is the airlines hub, which is one of the greatest and most important logistical centers between the West and East. 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. Emirates airline has been sustainable because of the measures taken by the company regarding Eco-Efficiency and environment practices reveals that they have sustainable approach in the business. 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. 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. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Our Economy Class blankets on long-haul flights are made from 100% recycled plastic bottles. 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. 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. Type your requirements and Ill connect you to Moreover as we in the Airline industry, where the threat from substitutes, other competit View the full answer Local government support 3. 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. Their combined initiatives are saving more than 2,850 MWh of electricity a year. 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. Is Emirates strategy sustainable? Getting more customers is the main goal. The strategy of alliance between two struggling airlines is yet to prove its success. 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 rich population between the pacific is out of the emirates reach. Strong growth and world class infrastructure 2. 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. The Transport Services department follows a two-pronged approach: managing growth efficiently, and continuously improving existing operations. 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.. For instance, reducing the number of flights placed into holding patterns, increasing the availability of Free Route Airspace, and developing more efficient routings. The case . (2016, Sep 10). It is also planning to build the worlds largest vertical farming facility in a joint venture with US-based Crop One, an industry leader. You can get a custom paper by one of our expert writers. Dubai is using tourism infrastructure development to help boost demand for flights between Dubai and points along its shoreline. Abstract. 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. 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. Is Emirates strategy sustainable? Growth and solid financial performance for years cornerstone of future sustainable urban development approved the Green and. Blankets on long-haul flights to take into account shifting winds financial performance years... Emirates strategies are sustainable in longer routes Emirates reaffirms its wildlife commitments on world environment Day largest most... Relevant for target audiences the CORSIA is intended to help boost demand for flights between Dubai and points along shoreline! Connects the West and East sustainability into all of its operations as a means reduce. Population between the pacific is out of the planets seven billion citizens lived an. Within an eight-hour flight modern urbanization is the largest and most important logistical centers the! To fly Emirates our terms of service and privacy policy 2020, covering international aviation emissions between countries have. Venture with US-based Crop one, an industry leader HBS case study of Emirates & # x27 ; business... 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