Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. Emirates enjoy the low price of fuel and also the low cost labour in this region, which is more than just convenient for an Airline operator. 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. Due to the sustainable business practices carried out at the Emirates group, the company has achieved sustainability. 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. , 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. Emirates One&Only Wolgan Valley Please click here for more information. 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. In 2010, the UAE Cabinet approved the Green Building and Sustainable Building standards to be applied across the country. For Emirates, the flexibility in operations meant covering trips to the entire world and having customers reach their destinations at the mostpreferable time. Emirates promotes its sustainable operations through three core environmental initiatives: Reducing fuel emissions; . 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. By continuing, you agree to our Terms and Conditions. Additionally, we use a water*saving procedure by routinely washing our aircraft with a small amount of a cleaning agent applied by cloth. 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. By using newer air traffic control techniques, we are reducing emissions while keeping the fleet lighter and more efficient. Dont waste Your Time Searching For a Sample, A Strategic Report on Emirates Airlines Business Management, Human Resource Management at Emirates Airlines, Comparison of Decathlon and Emirates Airlines, Annual report of Delta airlines & Singapore airlines, Project success: success factor and success criteria, The Success of the Southwest Airlines Marketing Strategy, Tourism Industry in the United Arab Emirates. The organizations mission is to advance sustainable business development through trade policy. Our vehicle fleet managers are focused on minimising the environmental footprint of our road operations. In the year reported on, Emirates used 3,494,233 tonnes of fuel, of which 77 tonnes was SAF. 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.. This team is also using LED lights for aircraft cabin maintenance where they have the added advantage of being much cooler than the lights they replaced. 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. The Transport Services department follows a two-pronged approach: managing growth efficiently, and continuously improving existing operations. 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. A video of this is available below. what is the competitive advantage of emirates airlines? 2023 The Emirates Group. The good weather conditions in Dubai meant that there was lesser factors for delays, as most of its operations are based on connecting to another flights using the hub as a gateway to the next travel. Emirates, which was in-turn knows for its high quality service is facing serious threats from Qatar Airways, which has renounced itself to have the best in class air experience. The companys workforce is lean and its organization is flat, which keeps overhead costs low. 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. For customers, it also served as the fastest way to connect to their destinations, where in other major carriers offered a zigzag path. Etihad Airways: Emirates has enjoyed the subsidised fuel offered by the UAE region. A total of 269 aircraft will be operated by Emirates, making the company the worlds second largest operator after er, is the worlds largest operator of the Airbus A380 and Boeing 777 family of aircraft. Fall in oil prices a business paradox. Careers Opens an external link in a new tab, 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, COVID-19 information and disrupted travel. some airlines are doing this through reducing weight on the aircraft. 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. Emirates was capable of reducing their fixed cost, and the subsidies and Tax exemptions by the government fused many of the profits made by the company into its own development. Emirates has other advantages that have placed it on a par with Singapore Airlines the two are the worlds fastest-growing and most profitable jetliners- including its remarkable Dubai location within an eight-hour flight of more than half the worlds population2. Is Henkel Corporation An Rspo Sustainable Certified Palm Oil Company, 12 Steps to Clear Safari Browser Cache on Mac, Vaccine Waitlist Dr. B Helped Millions: Heres How. Copyright 2023 by Ictsd. Air Traffic: In the past decade Emirates has gained advantage with its lower air traffic levels, helping it to have its customers arrive the hub on time to connect to their respective flights. 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. 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 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. strategy and people, helping clients navigate a dynamic environment through four global businesses. 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. 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. The new Terminal had become a new face of the Emirates airlines and one more reason for the customer to fly Emirates. . Emirates funds the DDCR, and sits on its management board. 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. The government also sees Emirates to be one of the strong pillars in their economy, which has paid a total of $2.3 Billion in dividend since the royal family bankrolled the venture 28 years ago. 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. why is sustainability important to airline industry? Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. Dont know where to start? Fuel use can be reduced by four percent by adding wingtip devices to aircrafts. The leadership team has 23 years of experience inside the company. Adding on to this, the lower labour population of Emirates, which comes from Asia Pacific regions of India, Sri Lanka and Pakistan have also showed improvements in their average per-capita income These factors will force Emirates to rethink its cost structure. 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. 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 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. 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 integrates its business strategy to include two main metrics. Introducingfuel-efficient practices while the aircraft is on the ground, such as: the use of ground power units instead of the aircraft Auxiliary Power Unit (APU), and switching one or two engines off while taxiing in after landing. 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 . The United Arab Emirates (UAE) has made significant progress in Sustainable Development since signing up to the United Nations' Sustainable Development Goals framework upon its establishment in 2015. . 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. Global alliances and partnerships, 1. Even retired aircraft fittings can be reused. The invasion of Etihad Airways, the national airline of the UAE, is an in house competitor for Emirates. Woman single-handedly takes on BA and wins, EasyJet pilot does 360-degree turn so passengers can see the Northern Lights, Emirates promotes its sustainable operations, Dubai Expo 2020 aiming for sustainability, Going green - climate offsetting proves difficult to sell, To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below, actively supported fragile habitats since 1999. The airline has also had economy class blankets made from recycled plastic bottles since 2017. 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. What Do You Need To Know About The Law Regarding Wrongful Death In The State Of Texas? Construction of the new terminal: Dubai Governments decision to build a new terminal, ahead of the global transit forecast, gave Emirates a new makeover. Where the existence in these regions is impossible for Emirates, the connecting flights from Dubai to Americas connecting via Europe causes a delay in the travel time and also prevents emirates in providing customer satisfaction. Emirates Airlines is one of the largest airlines in Asia. 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 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. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. 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. SIA to acquire 25 per cent stake in Air India. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and . Moreover as we in the Airline industry, where the threat from substitutes, other competit View the full answer All of these measures help to save fuel and emissions, as well as to cut down on noise. As far as environmental tourism goes, Virgin Atlantic is one of the leaders; theyve won accolades for several years for being environmentally friendly. Its success can be attributed to its intelligent management, a geographically convenient location, and support from both local and international governments. Differentiating itself through service not only enabled Emirates to build passenger loyalty and reap subsequent value, it also allowed the airline to avoid direct competition with low-cost competitors based on price. The Dubaigovernment further facilitated incoming tourist flows by eliminating the majority of visa requirements and launching marketing campaigns. The UAE government supported Emirates entry into new markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter. Its tea supplier, Dilmah Tea, has achieved carbon neutrality, ensuring that the tea options served in all cabin classes are sustainable. It also prioritizes suppliers that can demonstrate ethical and sustainable practices while delivering good value and quality. 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. 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. 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. Emirates will have to position itself to manage this nasty situation, since most of its passengers cannot afford to be delayed in reaching the hub. It will also encourage the development of a commercially-viable supply chain for sustainable aviation fuel (SAF) and conduct trials of, and purchasing, electric and hybrid ground equipment and vehicles to replace diesel-fuelled equipment. Sustainability and ecoefficiency 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. 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. 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. A geographic & psychographic segmentation strategy has worked for Emirates in order to create offers that are more relevant for target audiences. International benchmarks illustrate that even todays aviation system does not fulfil current demand. 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. Dubai one of the largest and most important logistical hubs which connects the West and the East is where Emirates Airlines has its headquarters. In 2000, however, the carrier briefly considered joining . By clicking Check Writers Offers, you agree to our terms of service and privacy policy. focused on one strategy but is rather open to change. 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. The rich population between the pacific is out of the emirates reach. Younger & Limited number of Fleets3: Restricting its fleet to only three types allowed Emirates to optimize its pilot Deployment more effectively and serve its long-haul destinations. Amazing as always, gave her a week to finish a big assignment and came through way ahead of time. Emirates spends billions of US dollars on fuel each year, so naturally we are monitoring the development of biofuel technology with great interest. To install StudyMoose App tap Emirates is supportive of efforts around the world to improve the efficiency of air traffic management and to provide more flexibility on flight routes. Sustainability in operations Please click here for more information. To better understanding the dynamics of the airline industry where Emirates is a part, a Porter's Five Forces analysis performed. 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. Emirates Engineering has installed these lights in engineering hangars, as well as stores warehouses where they are activated by motion sensors. In order to promote a sustainable global business environment, the company ensures the bio-diversity of the trees and animals in Australia. . Course Hero is not sponsored or endorsed by any college or university. Have a competitive price advantage over the competitors.2. Strong growth and world class infrastructure 2. The Flight Training Facilities department sources a range of items from Emirates Engineering when aircraft interiors are being upgraded. 1. But, when it comes to the pacific travels, they have no existence. Aircraft. You can get a custom paper by one of our expert writers. 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 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. The Emirates Airlines' success. You can read more in the Aviation Benefits Beyond Borders report(Opens a PDF in a new tab) written in July 2016. The aptitude and skills inspire as well as influence the subordinates to achieve a common goal. Course Hero is not sponsored or endorsed by any college or university. These two installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide emissions annually. As one of the largest international airlines in the world, Etihad operates 158 flights to 85 countries from its headquarters in New York City. (2016, Sep 10). The hub created by the government of Dubai with an infusion of huge investment gave Emirates more reasons to increase its fleets. The project extended the lifetime of the seats by another five to seven years, and saved the company the cost of 50 new seats. 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. 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. 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. Since, we can see that Emirates strategy is not only. Branding and sponsorship 4. 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. The implementation ofidle reverse thrust on landing, instead of switching the engines into reverse thrust. Why? an academic expert within 3 minutes. Its competitive with low-cost carriers. It helped create a strong pull that attracted business and leisure tourists alike. All Rights Reserved. All rights reserved. Aircraft. 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. 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. 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. Emirates Engineering ensures that our aircraft are performing at their optimum level at all times. Were part of a global industry thats committed to reducing aviations carbon footprint. ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. Typically for an airline this means having a modern and efficient fleet, and Emirates has this, with an average age of fleet in 2020-21 of 7.3 years. 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. Connectivity: Dubais small size was not seen as a deterrent by the Emirates. The aviation industry has actively called on the worlds governments to put in place a single global market-based measure to address carbon emissions from international aviation. 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 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. This base was then used to determine whether to add capacity to existing routes or launch a new route. 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. A video of this is available below. We also regularly clean our aircraft with a water-saving drywash procedure, which uses a small amount of cleaning agent applied with cloths. Emirates reaffirms its wildlife commitments on World Environment Day. what is behind their success given an industry where profitable firms are scarce? With the youngest fleet3 amongst any other players in the industry, it has grown at a humungous rate within a decade of its operation. 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. Etihad has also shaped its airlines to be the cheaper of the two in many of the common destinations, taking away Emirates customers. Sustainable practices are an integral part of the Emirates groups corporate vision that results in the sustainable development of the company. Chairman's message Please click here for more information. 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. In its first years, 70 Arabian Oryx were re-introduced and 6,000 indigenous trees and shrubs planted. 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 airline operates across more than 140 destinations in six continents, with over 3600 flights every week. 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. 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. 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). 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. During the past year, the airline has invested $22 million in new technology for in-flight connectivity, which is now 70 percent wireless. 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. 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. A total of 31 per cent of the companys work force was laid off due to redundancy across all parts of the business. The Positioning1: The location is a strategic one A well-oiled hub centred in a major catchment area. 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. Branding and sponsorship 4. The strategy of alliance between two struggling airlines is yet to prove its success. There are a few ways that the Emirates have a competitive advantage over other competitors, and the most important one starts with their hub. 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 Emirates Groups commitment to sustainability means multi-billion dollar investments in the most modern, eco-efficient technology available in aircraft, engines and ground equipment, and by operating our assets in the most environmentally-responsible manner. 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. ICTSD (International Centre for Trade and Sustainable Development) was established in 1996 as a non-profit organization based in Geneva, Switzerland. does emirates airlines have good capacity management strategy? 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. Demand-side management of electricity will play a role, as will increased public transportation. Organization is flat, which keeps overhead costs low that results in the sustainable development biofuel... One of the Emirates some airlines are doing this through reducing weight on the ground a organization. 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Every week sia to acquire 25 per cent of the company has achieved sustainability Need. Play a role, as well as influence the subordinates to achieve a common goal its business to... The flight Training Facilities department sources a range of items from Emirates Engineering has installed these lights in hangars... Benchmarks illustrate that even todays aviation system does not fulfil current demand annual electricity use of 518 family homes Dilmah. Markets by negotiating bilateral aviation agreements with foreign states whose markets Emirates wished toenter 1996 as a deterrent by Emirates. Intelligent management, a geographically convenient location, and continuously improving existing operations whose Emirates... Installations are expected to produce savings of up to 3.8 million kilogrammes of carbon dioxide will... The Positioning1: the location is a strategic one a well-oiled hub centred in a new face of business! 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