Emirates Airline Company
Emirates Company began in 1985 in Dubai with just two aircraft in the fleet - the Boeing 737 and the Airbus 300 B4 (Lohmann, Albers, Koch, & Pavlovich, 2009). With time, the company fully expanded in size, growth, and activities. Today, the airline operates as the national carrier of the United Arab Emirates and Dubai and extending its services globally. This paper will critically review the company and the contribution to the tourism and hospitality sector, conduct the SWOT analysis, and suggest recommendations based on the evaluated shortfalls of the company.
The vision of the company is to practice sustainability through long-term security and safety while maintaining serenity in nuclear energy and ionizing radiation use through the establishment of the standard regulations and keep the supervision of the implementation of the established laws of the UAE.
The company has a mission to protect the community, employees, and environmental soundness by conducting its operation in safe, secured, radiation protected environment while taking keen measures in nuclear regulation. Everything is done in harmony with the international standards and practices by conducting thorough licensing, inspection, and substantial capacity building to maintain sustainability and to ensure that the obligations of the UAE match the international conventions and requirements for the nuclear zone.
Core Values of Emirates Company
The company practices a high level of transparency in work with its clients, stakeholders, and other interested parties regarding the decisions and actions made. Similarly, the formal and well-organized communication takes place between distributors and the company. The business is independent and it undertakes mature personal decisions free from other persuasions, an instance that stimulates upkeep of business ethics.
Competency is another core value pursued by Emirates Airlines. The technical expertise has been hired to carry out necessary research and benchmarks to keep the business improvement on the domestic and global market. On the other hand, safety standards and regulations are conducted, and every bit of operation entails the protection and regulation aspects. In addition, the company has made steps to collaborate with national bodies, stakeholders, and other international organizations that deal with atomic and nuclear energy and ascertaining that such regulations are strictly followed.
The Management of Emirates Airlines
The top management consists of the Chairman, who is the chief executive of Emirates Airlines and groups (Shaw, Badri, & Hukul, 1995). Under him, there are the two presidents: one is in charge of the Emirates Airlines and the other is responsible for group services and data. The presidents offer the technical support needed for the expansion of the company and foster the global operation of data. The executive vice presidents support various sections such as service, commercial operations, facilities and project management, human resources and general operations.
The Roles of Emirates Company within Tourism and Hospitality Industries and the Relationship with Other Tourism and Hospitality Sectors
Tourism activities require certain prerequisite factors such as purposes (business, leisure, or excursions), means to travel, such as as vehicles, air transport, and sea as well as time and money that vital elements of tourism (Anwar & Sohail, 2004). The Emirates Company, working in an international air transport sector, promotes both domestic and international tourism directly or indirectly. The company enhances connectivity of various tourism destinations and other places through the short-haul travel within Dubai and the UAE. It serves mainly people who travel with business purposes and those whose purpose is tourism. On the other hand, many tourists from all over the world use the airline in pursuit of different pleasures, including leisure satisfaction and the drive to invest in the niche Dubai market.
Planning for the special tours such as adventure trips and package holiday are similarly conducted by the airlines. Usually, it offers package tours and affordable offers and incentives. The aim is to allow loyal customers to have the experience of unique natural features located in other parts of the word, for example, in Australia, Sri Lanka, and Dubai (Anwar & Sohail, 2004).
Numerous large chain hotels, restaurants, and spas as well as other food service and recreational sectors have been developed in Dubai since the airline began its activities (Grant, Golawala, & McKechnie, 2007). Thus, Emirates Company provides some links to the hotel owners by availing some guests willing to spend in specific hotels, hence promoting the development of hospitality sector. Similarly, the company offers hospitality services in the inflight package, usually in the port hotels for the travelers. The hotels owned by Emirates Airlines offer maximum customer satisfaction and experience as well as provide foods and drinks to the travelling customers.
Emirates Company plays the following roles in relation to tourism and hospitality sector. It increases the occupancy level by liaising with the tour operators and the hotel owners, participates in travel and tourism exhibitions, including the Dubai road show of 2008. The company also hosts a number of press conferences and workshops, thereby promoting hotel bookings (Stephenson & Ali-Knight, 2010).
The SWOT Analysis of Emirates Company
Strengths are the unique internal factors that enable firms to prosper and maintain their competitive position. Emirates Airlines has the following aspects of strengths. The company has acquired a wide coverage regarding areas of operation, extending its links to the six continents and operating in nearly 100 cities with approximately 2,400 passengers and covers a total of 72 countries (“The future of the airline industry”, 2006). The company also enjoys high revenue earnings, accruing up to 39% of the Asia-Pacific continent.
The company’s another strength is its location since it is strategically placed between the East and West of Asia. This central placement makes the organization spend little in collecting the resources and enables it to have customers from all over the globe (McKechnie, Grant, & Katsioloudes, 2008). The company is also innovative; thus, for example, it is among the rare global airline companies having the digital windscreen system. High customer satisfaction through the provision of the quality services, such as in-flight entertainment, is fostered usually in the form of live text news and other email services.
Emirates Company also extends its services and sponsors several sports and other festivals. This activity is quite beneficial to the company since it creates a positive image and the general awareness of its existence everywhere in the world. According to McKechnie, Grant, and Katsioloudes (2008), businesses receive notoriety by taking part in the promotion of social events and other activities.
Emirates Company offers average to minimum wages to the employees despite its large size. The salary figure is falsely reflected on the company's scale. The level of technological advancement is still gradual. In addition, the occasional instances of world oil crisis still affect the activities of the company. The company loses millions of dollars when oil prices hike, and it is entirely overwhelmed when there is a need to control fuel prices despite it being a large-scale firm. The reduced market share has been reported common in the Emirates Airlines. The increased number of competitors, including other international airline companies, makes it costly for Emirates Airlines to undertake benchmarking activities necessary to conduct a proper marketing research on competitors and ultimately bring improvements. The organization also has the long-term labor policy that has not been revised for a long time.
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The company has several international destinations that are quite popular among the customers. The existence of business ventures like the Disney Land in Dubai attracts many investors and entrepreneurs to Dubai; hence, they use Emirates’ flights to travel to the UAE. Likewise, the company takes the advantage of the incentives given to the airline companies that take part in frequent flights.
The fast growing economy of the Middle East and the Asian Pacific region has made it possible for the prosperity of the airline. Thus, several middle class and rich capitalists continually dominate the economy and pursue businesses and other personal concerns in the region and globally. The later effect helps in the promotion of Emirates Company that provides transportation to business venues and from them.
Threats of Emirates Company
The company is affected by the ever-changing government policies and regulations. The existence of competitors on the market creates pressure for the business such as Etihad and Gulf Airlines. According to O'Connel, 2006, “Airways business is full of competitors that the management needs to take critical measures to co-exist mutually in the competitive global world." At times, low-cost carriers create a challenge to the prices charged to optimize the profit for the company. Thus, the airlines such as Jazeera Airways to Arabia often charge very low prices in comparison with Emirates. At the same time, the global economic changes still affect the business very much.
The Competitive Advantage of Emirates Company
The efficient long-haul pricing, which is highly affordable and profitable to the business, has been adopted for use by the company. The flights are also planned with caution, targeting war-free zones unlike other Middle East airline companies, such as Singapore, that extend the flights to the risk prone areas of the Middle East.
Emirates Airlines signs strategic deals with major oil producing companies with the intention of harmonizing and controlling fuel prices to reduce fluctuations. In addition, biofuels have been adapted for alternative use, which has greatly harmonized the company’s operation with the environmental concerns. The strategies to increase security measures in the airport, scrutiny, and surveillance of terrorists and suspects have improved the positive image of Emirates Airlines since security threats in the Middle East make the passengers choose the most secured places. As a result, Emirates is always successful in operations.
Emirates Company also has the highest number of employees as compared to other airline companies within the UAE. The research conducted by Zeffane, Ibrahim, and Al Mehairi (2008) found that several employees in the company work under low wages with some level of satisfaction. The notion has boosted the revenues since the company spends less in the fixed cost labor. Frequent and adequate training is also conducted for the workers to enhance the critical performance of the organization.
Evaluation and Recommendations of Emirates Airlines
Even though Emirates Airlines has the largest number of laborers among the Middle East airlines, it pays minimal wages to the workers. Furthermore, the labor policy has not been revised for a long time, and this makes the workers continually pinned down with low salaries that are inconsistent with the growing economy. The success of various organizations requires adequate wages and other motivations to the employees. According to Zeffane, Ibrahim, and Al Mehairi (2008), employees perform their tasks with great passion, interest, and they are committed to success. Thus, the management of Emirates should improve the benefits they offer to the employees to boost their performance.
The adventure and package tours offered by the company need to be improved in coverage and branding. The scope of coverage should reach other parts of the world, avoiding the limitation to Dubai, Sri Lanka, and Australia. The range of services needs to be improved during trips, and indeed, more research should be shifted to obtain new products. In the tourism sector, constant innovation in new offers and services, which bring new experience in various destinations, brings progressive prosperity to such establishments. The destination branding in collaboration with tourism marketing bodies and government of different countries will sensitize and motivate leisure travelers to use Emirates Airlines if they want to get to new places.
Additionally, the operations and activities of Emirates should be inclusive. Concerning planning and decision-making, the management needs to enhance an integrated approach involving various stakeholders, including the local communities. The all-encompassing participation fosters friendly interaction and positive attitude and unity towards the existing projects. Finally, the company should strive to initiate various projects in the hosting communities and take part in various conservation practices beyond the mere tree planting.