Analysis of Emirates Airlines

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Analysis of EA:

Emirates Airline (EA), established in 1985, is the national airline for the emirate of Dubai. In its 25 years of operation, it only incurred losses in its second year, 1986, and has been profitable since then, making it the most profitable airline company in the world, according to the latest statistics (Metro, 2010). It is wholly owned by the United Arab Emirates (UAE) government and in the FY2009, it operated 142 aircrafts with an average fleet age of 69 months. It is the world’s largest operator of the superjumbo jets (Reuters News, 2010) and flies to 102 destinations in 61 countries (Emirates, 2010).

Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and CEO, clearly states in his annual report (2010) letter, that EA has absolutely no objective in slowing down their development and will forge ahead in the future to further expand both frequently on existing routes and geographically to new destinations. Boston Consulting Group (BCG) consultants forecast that EA could well be the world’s largest long-haul carrier by 2012 (Jens, 2007). This can further be illustrated by its recent expansion plans with an additional order of 168 aircrafts, including 53 A380s and thus targets to operate 120 A380 superjumbo jets (Air Guide Business, 2010). Emirates Airline additionally aims to maintain their commitment to the protection of the environment and remain highly flexible to possible internal and external shifts in the environment (DataMonitor, 2009).

EA prime focus is expanding its market share by increasing its fleet size, enabling it to increase its network through greater aircraft capacity and delivering optimum service to its customers. Indeed, EA is targeting new customer segments and particularly customer segments in the developing economies such as Africa and India, as shown in Appendix 1. In 2009, EA increased its revenues in all geographical segments apart from the Middle East (refer to appendix 1 and 2 for details). Further, EA targets to...