Emirates airline entered the airline industry on October 1985 with two leased couriers. The company focused on regional travel and operated in a small scale. The company has since evolved and launched global operations after a few years of providing local and regional services. Quality dedication is the key driver to the success of the airline company. Currently, the airline has established itself globally and has been influential in international freight and passenger transport as well as international tourism industry. The airline company is wholly owned by the UAE government. The company has grown as a result of effective and well structured competition. The number of airline companies in the region have been increasing over the years and Emirates employs strategic measures to grow a midst the strong competition. The “open skies policy” in Dubai has encouraged many companies to venture into the airline industry causing stiff competition in the industry (Chant, 2007).
According to Lazzarini, (2007), Emirates airline has managed to record positive cash flows in every year operation irrespective of the strong competition from other airline companies. Provision of quality services and customer focus has been Emirate’s secret to evade stiff competition and to achieve constant growth. Emirates airline currently fly to over 140 international destinations. The airline company boasts of a fleet of 200 or more couriers and records more than 1200 international flights from Dubai to over 70 countries. Approximately 40 percent of total daily flights in Dubai International Airport are accounted to Emirates. Emirates airline is however facing stiff completion from a number of local and international airlines.
3. Problem Description
One of the major challenges facing Emirates airline is the strong nature of competition in the local and international market. In the local market, Emirates airline is facing stiff competition from local couriers who have specialized in domestic travels. There are over twenty airline companies in Dubai aggressively seeking for local market share. In the Gulf region, Emirates is particularly facing fierce competition from Etihad Airways, RAK Airways and Air Arabia. Fujairah Airways is also gaining considerable market share in the region and is a potential threat to Emirates airlines. A number of other regional airlines are also coming up worsening the situation for Emirates airline (Barbot, Costa & Sochirca, 2008)…