Tipping Point on Emirate Airlines - Kaosarat Animashaun
1. EMIRATES AIRLINES A380 (FIRST AND BUSINESS CLASS PRIVATE SUITE)
“Looking for comfort and travel privacy at its best, Fly Emirates A380” It creates a private jet like environment!
“Hello Tomorrow, Wake up to flying as it should be”
The company I have chosen to analyze as the next social epidemic in business world from the Aviation
Service Industry is the Emirate Airline A380 (First and Business class). Emirates Airline provides air
transportation services to people travelling around the world for business, leisure, education, medical, and
for any other personal reasons.
Before I discuss Emirates A380, There will be need to discuss in great detail Emirate Airline as a whole as
well as the airline’s SWOT and TOWS because based on this lies the future success of Emirate A380.
Emirates Airline is based in Dubai, United Arab Emirates, It is a subsidiary of the Emirates Group, which is
wholly owned by the government of Dubai's Investment Corporation of Dubai; it is the world’s biggest
international carrier and the largest airline in the Middle East.
Emirates Airlines is one of the youngest and fastest growing airlines, its core mission is providing
passengers a comfortable travel flight experience
The history of Emirates dates back to the mid-1980s, when Gulf Air cut back its services to Dubai as it was
concerned that it was providing regional feeder flights for other carriers, this action led to plans for Dubai
to have its own small local airline independent of government subsidies and in March 1985 the Dubai's
royal family backed it and Dubai government contributed $10 million start-up capital. Pakistan
International Airlines played a large role in establishing the Emirates airline through leasing out two of its
used airplanes Airbus A300 and Boeing 737, as well as providing technical and administrative assistance to
the new carrier. Also the airline leased two new aircrafts Boeing 737–300 and Airbus 300B4-200 from
Pakistan International Airlines as well as two more used Boeing 727–200 Adv aircrafts donated by Royal
Family's Dubai Royal Air Wing giving the airline a total of 6 aircrafts.
The airline's first flight, flight EK600, was Dubai–Karachi on 25 October 1985 and in its first year of
operation, it carried about 260,000 passengers and 10,000 tons of freight, which grew positively over the
years as its destinations and fleets increased for example, in the early 1990s, Emirates was among the
world's fastest growing airlines; revenue increased approximately US$100 million each year, approaching
US$500 million in the year 1993. The airline carried 1.6 million passengers and 68,000 tons of cargo that
2. same year and in 2000 the skywards membership incentive was launched resulting in more demand for
Emirates and by October 2008 it moved all operations at Dubai International Airport to Terminal 3 to
sustain its rapid expansion and growth plans. Emirates airline operation managed from inception by
Maurice Flanagan as CEO and recently is under the management of Sheikh Ahmed bin Saeed Al Maktoum
with Tim Clark as Emirates president.
Its revenue ranks seventh in the world among large airline carriers, The Emirates Group reported
passenger, cargo and profit for the last 10 years is shown below:
Emirates Financial and Operational Performance[D][98][99]
Year
Ended
Passengers Flown
(thousand)
Cargo
carried
(thousand
tonnes)
Turnover
(AEDm)
Expenditure
(AEDm)
Net Profit(+)/Loss(-)
(AEDm)
31 March
2005
12,529 838 17,909 15,290 (+)2,619
31 March
2006
14,498 1,019 22,658 20,006 (+)2,652
31 March
2007
17,544 1,156 29,173 25,834 (+)3,339
31 March
2008
21,229 1,282 38,810 34,359 (+)4,451
31 March
2009
22,731 1,408 43,266 40,988 (+)2,278
31 March
2010
27,454 1,580 43,455 39,890 (+)3,565
31 March
2011
31,422 1,767 54,231 48,788 (+)5,443
31 March
2012
33,981 1,796 62,287 60,474 (+)1,813
3. Emirates Financial and Operational Performance[D][98][99]
Year
Ended
Passengers Flown
(thousand)
Cargo
carried
(thousand
tonnes)
Turnover
(AEDm)
Expenditure
(AEDm)
Net Profit(+)/Loss(-)
(AEDm)
31 March
2013
39,391 2,086 73,113 70,274 (+)2,839
31 March
2014
44,537 2,250 82,636 79,382 (+)3,254
31 March
2015
49,292 2,377 88,819 82,926 (+)5,893
With a fleet of more than 245 aircrafts, Emirates currently flies to over 140 destinations and has been to
more than 80 countries from the six continents it operates and over 1,500 Emirates flights depart from
Dubai International airport weekly with cargo activities undertaken by Emirates SkyCargo. It has over 1165
pilots with more than 15463 crew members as well as 44. 9 million customers worldwide, its fleet consist
of the following aircrafts:
Boeing 777-200, 777-300, 777-200LR and 777-300LR
Airbus A380-200, A340-300, A340-500
Emirates A380
Emirates Executive A319
Emirates A380 Hub
4. Emirates Airline is known for providing exceptional services to passengers because it pays great attention
to their unique needs prior to booking flight, onboard flight and after-flight destination has been reached.
These exceptional services creates a stickiness factor in the memories of its passengers and allows it to
generate more repeat business, return flights from satisfied passengers as well as generate new flyers
when the satisfied passengers share their wonderful and relaxing inspirational flight experience with
others. Satisfied customers are the most important connectors as well as mavens for Emirates and this is
why it keeps improving on the quality of service it provides regularly. Emirate Airline cosmopolitan nature
appeals to many people around the world because of its appreciation for different cultures and non
discriminatory services.
Its flight cost are affordable and one of the cheapest despite the excellent services it provides and the best
part is that passengers need not be wealthy to fly its business or first class because the airline offers
passengers numerous flying packages and services for its different classes of flyers – Economy, Business
and First class under different packages or programs like the Frequent Flyer; Skywards reward program
that allow for earning miles on trips based on membership tier - blue, silver, gold and platinum cards with
each offering unique benefits, rewards and sequential graduation from blue to the next higher card. Each
new tier brings inviting benefits that increase in value, such as dedicated check-in, priority boarding, and
lounge access. Once you have been promoted to a new tier, you enjoy membership privileges for 14
months, even if you don’t earn enough miles or take enough flights to retain the tier status in your annual
review.
Also recently added is the Business reward program for small and medium scale companies, clubs and
charity organisations with benefits like miles earned given to business(one mile earned per dollar spent) as
well as individual employees(skyward miles) whenever they travel with Emirates, access to a range of
booking options via emirates.com, emirates contact centers, or your nominated travel agent, competitively
priced fares for all classes across the Emirates network, use of Miles for flight rewards and upgrades,
5. exclusive special offers and discounts from its Business Rewards partners and Emirates High street, easy-
to-use online tools for seamless booking and managing travel itineraries.
Skywards and Business rewards have stickiness factor like benefits of earning miles as you fly that can be
redeemed to pay for future flight once sufficient mileage is available or book hotels, purchase items at a
cheaper rate anywhere in the world from its Emirate partners. Each reward program and card colour has
been personalised to meet each flyers budget and passengers can pick suitable prices from its price
options; special fares, saver, flex, flex plus, best price, and flexible dates. Also additional benefits below
apply to both Skywards and Business reward member.
Emirates also has Skysurfers program for younger travellers (Aged 2-16), it treats children as royalty always
and unaccompanied children who are without guardians travelling are safely gotten to their destination.
The special treatment given to children makes the long trip comfortable and interesting like children
meals, toys, and entertainment from cartoons to Disney channel, as well as brochures to inspire them to
explore the greater outdoors. The children are always happy flying Emirate and request their parents to
always the airline whenever they are travelling, which the parents always do because they see the joy in
the children’s faces and always want to keep them happy.
Skysurfers get a special membership card that can redeem miles for treats like free flights, Apple iPods,
games and the latest fashion accessories also miles don’t expire for three years so one can save up miles to
purchase stuff in the future. Skysurfers earn miles at the same rate as Emirates Skywards® members, and
can graduate to Silver or Gold membership just like the rest of the family by quoting membership number
at the time of booking with a parent or guardian’s signature is needed to join and to redeem miles for
rewards.
Based on all the exceptional services, skyward packages and associated benefits of flying Emirates Airlines
highlighted above, I now focus on the main topic of interest Emirates A380 First and Business class private
6. suites and demonstrate how it would be the next big buzz in the world and generate more revenue for
Emirates. The unique features of A380 differentiate it from the rest of the Emirate fleets and other Airlines.
The future of air travel has arrived and with the A380 “the sky is yours”. Designed for the 21st century
aviation industry, its unique size allows airlines to maximize their revenue potential through an optimized,
segmented cabin – boosting their contribution to profit by up to 65 per cent per flight.
The jetliner’s standard four-class cabin arrangement includes more high-yield seats with a premium
economy section, additional seats in business class and an even more luxurious first-class layout. Airlines
can gain a revenue boost approximately equivalent to a 50 per cent saving in fuel burn through applying
this market-matched cabin segmentation and the latest cabin innovations. The A380 cabin is the quietest
and most spacious in the sky.
Emirates A380 is currently the only commercial airline with shower spa on board. On this plane, there are
actually two showers for exclusive use of those seated in the 14 first class seats onboard. Showers last five
minutes, with a full stream of hot water for four minutes and a pulsating warning stream for the last
minute, passengers get to indulge in a refreshing shower at 40,000 feet to reawaken their senses with
luxury Bvlgari toiletries and signature Timeless Spa products and arrive at their destination look fresh after
a long flight, and head off to the place of purpose for their travelling. Most first class passenger use the
shower spa on A380 long haul flights and also say after the shower they were given detoxifying fresh juices
to replenish their energy to take on the day.
Emirates A380 Shower Spa versus other Fleets and Airlines
Versus
Emirates A380 business class comes in a 1-2-1 unlike the seven-across (2-3-2) Boeing 777s layout, providing
each passenger with direct access to the aisle. Its business class seats go fully-flat and transform into a bed
with a padded mattress, a full-sized pillow and sometimes blanket (if required) for a more relaxing sleep
than the angled lie-flat beds on the Boeing 777s.
Step aboard the upper deck of Emirates' flagship Airbus A380 aircraft, It has a private mini-suite unlike
other typical business class seat: complete with a sizeable side table and also a room temperature mini-bar
with a full bottle of water for you to drink to your satisfaction without you requesting from the crew a swig
from the bottle before heading to the on-board bar and lounge for a cocktail with fellow business class
passengers.
The seating area interior design has a mix of faux wood used in luxury cars making its passenger have an
opulent and royal-like feel on their seats unlike the normal all-plastic design on most airlines, no stretching
to reach light switches when you want to read, work, and sleep. It has leg room space with an adjustable
foot rest and compartment to keep your shoes and or valuables, seating for too long during flights reduces
blood circulation, but with the footrest and flat bed provided on the A380 helps passengers stay healthy.
Also you have a 17-inch touch screen TV, packed with over 2,000 'channels' of movies, TV shows and audio
to entertain passengers.
7. The royal lifestyle does not stop there, once seated after boarding A380 First class and Business are
welcomed with a glass of Moët & Chandon Champagne, the in-flight menu and a wine list, Also passengers
have a royal feast from champagne to snacks to appetizer to main course to desert to pre-landing meal.
Everyone wants comfort and personal space while travelling, but not until now has an airline made this
desire a reality, Emirates A380 Private suite fulfils this desire to make its passengers feel at home while
travelling. Stretch out and unwind on A380 convert seats into a flat bed, choose your entertainment and
relax in your own private cinema.
A380 gives its First and Business class passengers a close to owning their own private jet feeling because it
offers private suite with sliding doors to give a personal space to work, entertain yourself and relax like
you are at home and forgetting that other people are around you
.
Versus other Fleets and Airlines
8. When you are done with your personal stuff you can take a break to stretch your legs and walk to the
onboard lounge area and go join the conversation, meet interesting passengers who could probably share
one or two things in common with you personally or in business, thereby leading close relationships and
more business connections. Meet the world at 40,000 feet while sipping a selection of canapés, premium
spirits, exclusive wines, champagne, cocktails, and beers alongside hot and cold beverages.
9. Versus no bar on other Fleets and Airline
Also, First and Business class passengers board the plane via an underground train that takes them directly
to their departure gate unlike the other aircrafts that passengers have to walk and use either one or more
of jetways, escalators and elevators to get to their departure gate.
First and Business class travellers wait in a private room at the Emirate hub till departure, there is an Air-
side hotel near the A gate with a timeless spa to pamper you.
In totality the A380 cabin features lets one stretch out to relax, fly and feast like the royals and meet the
world at 40,000 feet
Its first and business class creates the law of the few and power of context, since they are pricy thus
portraying a wealthy image and instantly identifies you as an upper class group especially in the society we
live in where “image is everything. Planes are places of class distinction. Money, rather than lineage,
divides the line between gentry and nobility, upper and middle classes.
Currently, Emirates has 65 A380 fleets, that flown to 35 destinations and been to over 55 airports
worldwide and Its Connectors and Mavens are Google Map Business View Virtual Tours has been a
connector in promoting Emirates A380 to the world through videos showing the plane’s unique features
and this drew lots of attention because it is the first aircraft ever featured on the prestigious Google
View, also CNN Business Traveller hosted by Richard Quest has helped to inform people about Emirate
A380’s uniqueness as well as influential celebrities like Jennifer Aniston, Cristiano Ronaldo and Pele have
been some of the mavens that have helped advertise Emirates A380 Private suite to the world. Bloggers
and customer reviews are mavens that help connect Emirate to the world and increased it service demand
via write ups and word of mouth respectively.
Emirates Crew and customer service representatives are the Internal connectors to the world about
Emirate airline based on how well they treat passengers who are in fact the real mavens and the breakers
or maker of any business.
SWOT THREATS:
Emirates threats are majorly due to it expansive growth than its competitors and now its competitors
claim, it has unfair advantages like getting loans at favourable rates from its government and secretly
receiving subsidies from its government in the form of low tax rates and shiny new facilities like Terminal 3,
where another expansion is under way to accommodate Emirates’ growing fleet of A380s. The likely
threats the Emirates will be facing are as follows:
10. Aeropolitical Riskwhere somecompetitorcountriesmay stop, limitordeny itfromoperatingflightstoand
fromtheircountry.
Geopolitical risk,the political instabilityandwarinneighbouringcountriesmightpreventitfromflyingover
themfor fearof being shotdown.
Huge InvestmentlossinA380’shigherthanits highpositive growth, if itdoesnotgetpassengerstooccupy
all classesof seat.
Regional Competitor’sEtihadAirline andQatarAirways formingalliancesthroughmergerstocounter
EmiratesAirline dominance inthe MiddleEast.
New generationqualitycarriers likeKingfisherAirlines andJetAirways,now offerssome appealingdomestic
alternativesforIndia’svastexpatriate population.
Sustainingitsmomentumwithoutjeopardizingqualityandservice.
SWOT STRENGTHS:
Emirates Airline aims at providing best in class service, in all classes. It emphasises high quality standards
and not quantity puts its passengers first by paying close attention to detail and passenger needs; it closely
monitors how to improve on passengers comfort by focusing on what airlines are lacking to provide
comfort and its crew are professional and friendly. This mission has resulted in its evolving into globally
influential travel and tourism conglomerate; more of its strengths are as follows:
Pacesetterandrisktakerintechnological advancements e.g. Itfirstintroducedanin-flightmobilephone
service, on-flightfax facility,andvideosystemsinseatsforall classesthroughoutitsfleet;itsgoodbusiness
acumen,ambitionandsavvyinvestmenthaspropelledEmiratestobecome one of the mostrespectedand
recognisedbrandsinthe world.
Emiratesisalwaysa classapart fromthe rest intermsof the qualityof its in-flightcuisine,the breadthof its
in-flightentertainment, whichisanintegral andincrediblypopularpartof the Emiratespassenger
experience andthe excellence of itsoverallservice.
AbilitytoexpandairporttomeethighdemandforA380 an expansiontothe new concourse 3 in2011
exclusivelyforthe A380- 800 whichhas helpeditgenerate more revenue.
Sportsservesas a connectorforEmiratesairline anditseessponsorshipof differentsportingeventsas
crucial marketingstrategybecause bythese sponsorshipsitconnects withsportfanswhofeel thatEmirates
share and supporttheirpassionandthismotivate the fanstoflyEmirate to go watch these sportsaround
the world.
Social Responsibilitytowardsneedychildrenin differentparts of the worldisa keyemirate missionandby
doingthisitindirectlypromotesitsbusiness because byhelpingthese needychildrenpeoplesee amore
humane side tothe companyand thiscreatesa sense of belongingandthusfosterbetterbusiness
environmentforEmiratesoperations.
Mix of qualityservice,operatingefficiencyandlow costs fromitshighfuel efficiency aircraftsresultinlower
pricesof it flightscomparedtootherAirliners.
Dubai'sgeographical locationis prettymuchinthe middle of the world;roughlyfourbillionpeople live
withinaneight-hourflightfromhere anideal transferpointbetweenmanyof the fastest-growingmarkets.
Thisis one of factors contributingtoEmiratesAirline success;itsgreateststrideshave come frombuilding
routesto developingcountrieslongneglectedbytraditionalcarriersandprovidinganalternative tolocal
airlines.Insteadof connectingthroughEuropeanhubslikeLondonorFrankfurt,all of these new routesrun
throughDubai.
EmiratesAirline hasemergedasa formidableplayeronthe international travelscene.Itsinnovations,
includingprivate suitesinfirstclassandindividual entertainmentscreensinthe coachcabin,have been
11. copiedbymanyother airlines;its emphasisonqualityhasforcedtraditional legacycarrierstopay more
attentiontotheirownproducts.
Emirate has a good workingenvironmentforitemployees,itpaysthemwell ,givesbonuses, shopping
discountswithinDubai,travel discountsaswell asfull medical coverage.Itcaresfortheirfamiliesandthis
generatedthe dedication andprofessionalism itstaff exudetopassengers.
Emiratesmarketingstrategyisaggressiveandistakingotherairline passengers,itisliterallyeatingall the
otherairlinespassengersforlunch,because itrecognizedthe valueof aglobal huband If you wantto go
fromAfricato Asia,or fromSouth AmericatoChina,the straightline isthrough the Middle East. Advertising
of Emiratesisdone throughitsIn-flightMediaoffersaunique "single-cell"environment,givingadistinct
advantage overotherformsof mass mediabyofferinganeffective waytoreachmillionsof people.
Governmentsupporthasalsobeenessential.Fromthe start,Emirateswasseenas integral tothe
government’sambitionsof buildingDubai intoacommercial,financial andtourismcenterinthe Persian
Gulf.
TOWS:
Strengths and Threats:
Emirates does not have any weakness and for the opportunities it is an airline that always watches out for
new opportunities constantly, so my TOWS will be based on only its strengths and threats
Continue sourcing for new opportunities and maintain the best services always in the industry this would
help it generate more revenue
To generate more demand for the A380 First and Business class seats, it can give special discounts to it life
time value economy class passengers to encourage them to fly those classes.
Sponsormore eventsandadvertise toAthletes and Celebrities, who most times always want privacy when
travelling and also use them as Mavens to advertise airline more.
Continue with its pacesetter innovative technological development trend, but ensure that it adopts
technologythatwouldbe of optimal benefitforall itsfleetsandbe relevantanduseful forat least 4-6 years.
Aimto findmore external connectorstoadvertiseits airline aswell asmavens that are influential and know
a lot of people to spread the word about the airlines world class services.
Continue makingitsemployees happy as they are it internal connectors to the world about Emirate airline
based on how well they treat passengers who are in fact the real mavens.
Emirates group by utilising the proposed TOWS strategies, Emirates A380 would have a very good ride to
become the next business epidemic because all the special features is found nowhere else except on
Emirates A380 as well as Emirate Airlines exceptional customer service, the A380 First and Business class
private suites will be generate the highest demand wave in the next few years in the aviation industry. Also
meet the airline’s goal to win over customers by bringing a bit of glamour back to air travel.
12. References
1. "Emirates – Our Destinations". Emirates.com. 2015. Retrieved 23 May 2015.
2. http://content.emirates.com/downloads/ek/pdfs/report/annual_report_2015.pdf
3. GulfNews.com – Emirates and Dnata now under ICD
4. http://content.emirates.com/downloads/ek/pdfs/open_sky/Open