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Copy of Emirates Airline
Transcript of Copy of Emirates Airline
Vision and Mission
Emirates Airlines launched its first aircraft on 25th October 1985.
More than 500 honor prizes worldwide, 62000 employees, 140 destinations, and more than 1200 flight every week.
Emirates declared the largest demand with 15 billion USD.
Emirates conveyed more than 30 million passengers, and more than 1.5 million tons of cargo.
Emirates airlines dominate the worldwide Airbus A380 and Boeing 777 market.
- Becoming the world’s most admired services provider.
- Penetrate in new markets.
- Increase market shares.
"Our vision is to be the world’s leaders in Airline Industry."
- Pioneering new partnerships for growth and sustainability
- Be a worldwide airline
- Being an outstanding with high quality and maintaining global expansion
Strengths and Weaknesses
-Strong Financial Position
-High Quality Standards compared to competitors
-Support of the government of Dubai
-Skilled Labor force
-Lower human resource costs
-Youngest skies aircraft fleet
-Multicultural labor force (120 nationalities)
-Strategic location (Dubai)
-Inconsistencies quality in the service provided in some flight segments
-Technical issues (2004 , 2009)
Opportunities and threats
- Unique events host: Dubai expo 2020, Dubai Formula1
- Low taxation policy of government on companies
- New market opportunity ( North and South America)
- Economic cooperation and free trade agreement with many governments
- 3.5 billion people leaving within 8 hours flight from Dubai
- Abundance of human capital in the region
- Low charges and fees collected at Dubai Airport
- Qatar and Etihad Airways growth strategies
- Dubai debt crisis
- Political instability in the Middle East
- Sky rocketing oil prices
Five Porter Model
"Our mission is to be
air transportation industry
. We intent to provide
the eminent quality service
. Our desire is to offer
safety and comfort
creativity and inspiration
, and provide an
to our shareholders.
is to attain
our employees’ satisfaction
by gathering the best conditions"
Grand Strategy Matrix
Summary of matrices
Rida Ait Hamza
Expansion to the American Continent
1st Destination : Miami
Emirates limited to 8 destinations in US and 1 in Canada.
Primordial destination to enhance Emirates global positioning.
Miami largest US gateway to Latin America.
The Miami International Airport ranked 2nd for international passengers (more than 20,201,503 passenger) and 1st concerning international freight.
More than 48% of the US-South America passenger market in 2012.
Increase market share/ reach the Latin America through Miami.
Emirates will benefit from both the American segment as well as the Latin American segment.
2nd destination: Lima
Emirates destinations to South America are limited to 3 (Sao Paulo, Rio de Janero ,and Bueno Aires).
Jorge Chavez International Airport( Lima) is the best airport in the Latin America Region.
No direct flight to Peru must stop in US or Europe.
No Gulf airlines present in Peru.
Increase the market share/ annual profits.
Increase brand awareness in the Latin America region/ Expansion.
Destination: Bogota ( Columbia)
Bogota :the Capital and largest city of Colombia ; it has the 50th busiest airport in the world.
Important geographical position of Columbia , it’s near to Mexico, and also it has the Panama’s channel that bring goods from North America to South America.
Emirates Sky cargo is limited to two freight destination to South America that are Quinto in Ecuador and Campinas Viracopos in Brazil.
Add Bogota as the third destinations to the Latin American market.
Competitors Cargo destinations in South America :
UPS Airlines: Buenos Aires, Guatemala city, Viracopos , Panama, Bogota
FedEx Express: Colombia, Panama, Buenos Aires, Mexico, and Venezuela
Korea Air Cargo: Sao Paulo, Lima
- Buenos Aries (ARG) ,
- Manaus, Rio de Janeiro, Campunas Curitiba (BRZ)
- Bogota (CLB)
- Quito (Ecuador)
Take advantage from Colombia’s geographical location (between North America and South America).
Increase market shares.
Benefit from the rapid growth market.
Inconsistencies in Emirates service
1- Additional destinations ( Miami and Lima)
2- Sky cargo Expansion ( Columbia)
3- Eliminate Inconsistencies in Emirates service
Dr. Abdrrahman Hassi
Thank you for your attention !
• Emirates airlines Official Website/ annual report 2013 / Financial report 2009-2013
• Emirates Airlines :Airlines and subsidy
• World Airlines Award 2013 Official Website
• Passport, Emirate Airlines in Travel and Tourism ( World)
• Emirate Airlines Customers Survey 2012-2013
• IATA (International Airport Association )
• Miami International Airport official website &Annual Report 2013
• Word Airline Award
• Book: Strategic Management Concepts and Cases (Emirate Airlines Case)
• Lufthansa Financial Report 2009-2013
. Cathay Pacific Financial Report 2009-2013
• Singapore Financial Report 2009-2013
• France KLM Financial Report 2009-2013
• Jorge Chavez, International Airport: LAP Report, 2012 Access Rates and Charges.
• El Dorado-Bogota International Airport 2013
• El Dorado Financial Report 2009-2013
• World Finance, Keiretsu for a new age
• The Economist, Keiretsu
• The World's Best Inflight Caterers Honored at Miami Beach Gala http://www.fox8live.com/story/24886297/the-worlds-best-inflight-caterers-honored-at-miami-beach-gala
• Airline meals official website ( Kansai best catering inflight company)
% change in EBIT
% change in EPS
% change in EBIT
% change in EPS
% change in EBIT
% change in EPS
The major weakness Emirates suffer from is the inconsistency of the service it provides to its passengers.
• If Kansai succeeds in enhancing the catering service image of Emirates; an additional profit will be shared between the two companies.
• If Kansai isn’t able to reach the level of satisfaction required. it will be penalized.
Cost of implementation
Scenario 1 (satisfaction):
0.5% of Emirates net income will be given to Kansai as a reward for 90% of the customer’s satisfaction.
Profit of the year 2013:
2408 AED M
Inflight catering and related costs for the 2012-2013:
3159 AED M
In case of dissatisfaction; a 1% of the catering cost incurred by emirates will be charged to Kansai.
Surveys will be distributed to passengers
• Provide fidelity points.
• Offer discount
Profit for Emirates:
o Enhance effectiveness and efficiency
o Enhance Brand image
o Enhance World raking in in-flight catering services
o Improve passenger’s onboard satisfaction
o Decrease time and staff responsible for quality control
o Improve customer- relationship model.
Keiretsu model is a partnership beween companies based on trust and penalties.