Homework Question on Influencing Factors on the Airline Business
Emirates is planning to increase its fleet of 50 A380s to 140 of these superjumbos when many analysts were already talking about existing fleet ongoing challenges in terms of global network operations and overall lifecycle costs.
This imposes a big challenge onto Emirates Management to also plan effective deployment of those aircraft to its network and wherever possible on potential profitable routes.
Keeping view of the aforementioned, you are required to address the following questions:
- What factors account for the success of Dubai’s aviation sector in terms of the product of strategic decisions that the government of Dubai and the aviation sector have taken in the past and as influenced by external and internal environment (also strengths and opportunities)?
- Is the prime airline segment an attractive place to compete?
Using the information presented in class and other relevant sources use Michael Porter’s five forces model to analyze the competitive environment for Emirates and similarly the scale of the threat from other Gulf airlines, to the rest of the world. The analysis should consist of five parts ( five forces), which should cover (a) threat of entry, (b) power of suppliers, (c) power of buyers, (d) threats of substitutes, (e) competitive rivalry. At the end of each part, a conclusion should be provided. Students are expected to draw”attached file named (important slide 6) the final conclusion to explain why Emirates will most likely survive and serve those planned markets.
- In the middle of those threats and continued lobbying pressures by European and United States carriers, how can Emirates continue to grow and deliver value and prime service to its customers?
- Review the fleet and network growth plans available through relevant sources. Then discuss how Emirates would develop a sound strategy to operate those 140 A380s by the year 2024 and achieve the planned profits and growth whilst sustaining its competitive advantage?
Homework Answer on Factors on the Airline Business
Roy (2) argues that over the past decades, the Airline business has been enhancing considerable economic growth in many countries across the world. Notably, Airline is used in the transportation of goods and people over a short period of time. Previously, transportation was very slow making it problematic to transport goods over a long distance. According to Roy (2), the Dubai-based airline industry has experienced much improvement over the last decade attributed to both external and internal elements that played the critical role in propelling its services. For instance, such progress led to the creation of leisure and business trips.
Consequently, the number of the flights increased tremendously. In addition, such increase is associated with the splendors economic growth of Dubai having potential entrepreneurs. Also, Dubai is considered as one of the safest countries in the world with well-developed infrastructure. Moreover, the country gains financial support from tourism and real estate. Furthermore, the airline has increased its volume of services amid the growing demand from the tourists and investors (Han, 1105).
Success of Dubai Aviation Sector (PESTLE ANALYSIS)
Therefore, incorporating the PESTLE Analysis, the progress made by the Dubai Airline can be linked to both internal and external dynamics. Presumably, the factors are can be analyzed as follows: