Airline Business Analysis Report
Introduction on Airline Business
In this research paper two airlines which have been chosen are: Emirates airways and Etihad airways. Both are offering its services worldwide, and they are governed by UAE government. They both are Full-Service Network Carrier (FSNC). Tough Emirates is larger than Etihad. Emirates Airlines counting its Emirates Sky Cargo which is its cargo and it is a single component of the Emirates Group. 43.6 percent own by Emirati Group from Sri Lankan airlines. No doubt it is one of the fastest emerging airlines all over the globe but perhaps, Emirates is the biggest test to ensure that its image continues to operate and reliably acquires everything in the association. In the event you represent a statement of intent as Emirates they did with its name called “Brand” which claimed its name to “Committed to the highest standards in everything we do” so if they want to be true or stick to their statemen then this would be regarded as their challenge which should keep them on their toes. (Time Out Staff, 2021).
Etihad Airways is supervised by the Abu Dhabi, it offers air freight forwarding arrangements with customers. The only investor in the organization is simply the public manager of the Abu Dhabi Emirate, was separated from his combined efforts at "Gulf Air in 2005" and maintained its focus on Etihad Airways. In 2003 the Etihad airways was spotted. It is a public or private banner with air traffic controllers in Abu Dhabi, the capital of the United Arab Emirates (UAE). (Parker and Mumfor, 2010).
PESTE (Political, Economic, Social, Technological, and Environmental) Analysis of both the Airlines – Etihad and Emirates
The Political Analysis of Both the Airlines
The political analysis of the Emirates airlines resulted as it is government-owned airline from the UAE, with operations spread all over the world. It is not only for consumers that the government can have an impact on the Company's business at the moment and but also for the country from which it is derived disputes with the country in which it is required to function. It can make a tone of danger in emirate aircrafts. In addition, the person in charge of the service is an assistant to the Emirates Group headed by a government official of the Dubai Investment Corporation, so it is common for the government to have a significant impact on the selection of flight keys. (All Answers Ltd., 2018).
As for the Etihad, it is an international carrier based in Abu Dhabi, working on international studies, and from now on the plane is often introduced at the turning point of political events around the world. The Trump administration's boycott of detention of citizens of six Muslim nations is linked to an increased risk of political instability that could impede carrier development in the region. (All Answers Ltd., 2018). Clearly, due to the unexpected drop in cargo on the Gulf aircrafts trip to the US, carriers prefer to reduce the frequency of US flights and complete certain studies. American and European carriers continue their strenuous exercise to limit the acceptance of oriental flights in their business sectors.
The Economic Analysis of Both the Airlines
The economic analysis of both the airlines appeared as very interesting. It was revealed that by 2030 air traffic controllers will double the number of 8.2 billion stated by the International Air Transport Association. And it offers an unusual opportunity for Emirates Airlines to expand its market in North and South America and to entertain itself in the European and Asian business sectors where the carrier market is rapidly evolving. (MBA Skool Team., 2020). It is possible that the main components contributing to the Emirates aircrafts oil issue, the rest of the oil costs make the situation unpredictable for the organization to operate on. In addition, the organization has no option but to fully recover from the 2008 international suspension. The disappearance of the Malaysian carrier has damaged the business and people are starting to look at how secure the flight is as the carriers say.
Global carriers are brought to the forefront of global economic exposure, so any progressive climate change is changing the interest in air travel. Since the financial crisis of 2007/08, the global economy has recovered and has had the opportunity to show balanced development and positive results in the Etihad aviation industry, however, the exhibitions of emerging business sectors, for example, Asia and Africa represent financial risk gains. of Gulf carriers. (MBA Skool Team., 2020). The reduction in the cost of crude oil, on the other hand, has helped many carriers to reduce their operating costs, but on the other hand, for Gulf flights, this has also shown that interest rates in oil-rich regions have declined.
The Social Analysis of Both the Airlines
In recent years, airlines have seen unexpected developments in their rare ticket deals from non-industrialized countries such as China and India. The social analysis on both the airlines find out that the Flying flights and the increase in payroll have annoyed airline workers. The vast majority of people need to fly an aero yet before the high cost made it unthinkable for the working class to fly but the intense competition in the aviation market has caused a huge drop in passenger ticket costs and these lines make it possible for working people to fly. (MBA Skool Team., 2020). The promotion of the tourism industry space has also added to the growing Emirates Airlines deal. Right now, people need to move around the planet and search for better places. This has opened the door for Emirates officials to build a piece of pie by pulling on a possible trip to its flights.
Etihad Airways also has certain public functions to follow. The organization needs to take real steps to meet social work in relation to its relatives and the country’s way of life. The definition is that as Aviation exists with the national relations sector; needs to ensure that the residential industry is not discouraged. In addition to the financial recovery in the wake of the 2007/08 financial crisis, the development of the workforce and the rapid acceleration of human development in developing countries have added to the positive change in aviation interests. As more and more people stop to enter emerging destinations, for example, Africa and Asia airlines can improve by entering these lucrative business sectors. Another social development that should be considered by Generation Y explorers, extending the higher powers of carriers as in the past (e.g. postwar American children) the tendency to exit depends on the reduction over time. Age Y clients place a high value on travel so while Y clients are not yet a major market for carriers, expanding such management and business measures that address the needs of the current segment will be a key element in achieving global flights. (MBA Skool Team., 2020).
The Technological Analysis of Both the Airlines
As for the technological analysis for both the airlines, they are doing marvelous job for the service of customers. Emirates, like other airlines, relies on acceptable new avenues. Innovation in the modern era is rapidly changing to the point that any developmental development now has the initial advantages of moving only 2-3 years, which means that in 2-3 years new innovations can make creative development older. (MBA Skool Team., 2020). In this way, emirates airline needs to stay abreast of new strategies in order to remain the world's largest passenger airline. The organization has a process that allows the plane to transfer more cargo to Kabul International Airport. Currently the new route allows the Emirates organization to unload even in mild weather.
As innovation changes, representatives who can manage new innovations are needed in each part of the work. Increasingly there is a need for the current representatives to be redesigned to be able to adapt to the new style of work. Thus, in this way, the Etihad carrier industry has seen rapid mechanical changes related to the strategies used to communicate with their intended interest group and to find business models to improve management continuity and management. (Xoomarticle, 2020). As more clients use the web categories to address their appointments and lists of carrier companies, industry players have no choice but to embrace new computer-based products to follow changing customer thinking (e.g. mobile applications, modified management, adaptive and so on). In the future, the distribution of new equipment is not dependent on seeing positive changes, although eco-friendly developers are always a major concern for manufacturers and airlines. (MBA Skool Team., 2020).
The Environmental Analysis of Both the Airlines
In the Emirates PESTE Analysis environmental components that have an impact on their business as its growing public demand for environmental change has forced many organizations to change their plans. Flying oil is an important supporter of global warming. Older planes burn more fuel. Pick-up and arrival are just about 25-30 percent of the energy. The general public is asking organizations to buy those hot airplanes with less fuel and, if possible, use crude gas. In addition, the planes are being tested to create a ton of turbulence pollution. Emirates carriers currently secure the purchase of the world’s most advanced aircraft and have the world’s most youthful weapons in its archives. (All Answers Ltd., 2018).
The carbon footprint of the Etihad carrier has been slow due to the increased interest in air travel. Manufacturers are investing heavily in R&D projects to create options unlike petroleum product motors; ensures that the use of biofuels can reduce aviation business pollution by 50 to 70 percent in the near future, as technology begins. Changes in global conditions can meet some of the challenges of aviation operations, for example, bad weather. Another of the climate variants of this carrier is the earth's active armada and its low water consumption.
In conclusion, the above Emirates and Etihad PESTE Analysis which incorporates a variety of factors that affect the performance of their business. This setting helps assess the value of foreign business features in any type of product. However, Etihad should invest as much in the preparation and development of staff as it is in the management industry. (All Answers Ltd., 2018). Although it is a collection of airplanes, many fleets, low cost but in the end of the day, travelers judge with the help of their customer services. And in the end, the passengers experience matters most, and this makes the huge difference in the future business.
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Emirates and Etihad Airways Product Equity
The direct competitors for Emirates Airline are Qatar Airways, Lufthansa, Fly Dubai, Malaysia Airlines, Turkish Airlines, Saudi Arabian Airlines, Cathay Pacific, and PIA and other international carriers. Emirates Airlines achieving acceptable benefits with a steady increase in revenue. Saudi Arabia Lines has more customers compared to Emirates Airline in terms of its cost to a board structure that allows it to get a piece of low-end customer pie. Its position compared to its rivals is staggering, the Emirates is found as the Middle East Market Leader, Etihad Airline is the enemy, While the Gulf director also hangs Air Arabia special because it aims for a small collection of important and fragile key people. Emirates Airlines is ranked as the top UAE manager providing the most appropriate management to its customers.
Etihad Airways will measure business and performance compared to its competitors. Etihad Airways is one of the leading brands in the airport area. Abu Dhabi's Etihad Airways has provided additional assistance aimed at finding a way to get motor vehicles around the world. As indicated by the superintendent, the shipment of the 'Flight Valet' mirrors during the annual flood required the export of vehicles to well-known opposition areas, which often saw the Etihad transporting a number of prestigious vehicles on passenger and tanks. For the "organizational portfolio" of the various organizations that carry out their duties by sharing goods, international shipping takes a higher rate of 60%, followed by Etihad Crystal goods which take up 30% and in third place have an Etihad holiday that accounts for 10%. Hence from the analysis it is find out that the product equity of both the airlines is outstanding.
Emirates and Etihad Airways Marketing Strategies
The marketing strategies of both the airlines is much smart due to which they both are highly liked airlines of the UAE. Pax chooses Etihad and Emirates because of their magnificent customer service and advanced technologies for air travelling. Both the airlines make sure that their wellness Ambassadors it will make you feel safe and attractive on the board are your first communication goals if you need any guidance. They will make sure that our extended hygiene practices are followed, and that you have all the information you need while traveling with us, as you should do when you reach your goal. Pax agrees to fly with these two aircraft by observing their remarkable relative calm while traveling with these carriers. Efficient aircrafts Ambassadors can also give the pax a lot of details about accreditation and the latest developments around the world and give them tips on how best to stay safe while traveling. (Spivakovskyy, Spivakovska, and Heiets, 2019).
Trans-Tasman routes are important at the Emirates, as the manager can provide direct managers between New Zealand and Dubai. Emirates management in Auckland and Christchurch operates with a triple focus on the east coast of Australia. Trans-Tasman Airlines is critical to their business environment and allows carriers to maximize NZ aviation decisions and aviation in line with Emirates' Australian international plans. BITRE also holds a plethora of accessible seats as similar; In any case, this is not the case for Emirates as the seats available for purchase at Trans-Tasman courses rely on the number of 'travelers' traveling between Dubai and Australia. As an integral part of Trans-Tasman, the Emirates operates a wide-ranging four-day aircraft retrieving managers. Emirates' unique point of sale is that it offers three classrooms and global availability, however a mix of scheduled times, solid AU times in the morning and NZ in the evening from a wide range of organization, repetition restrictions and type of flight, all forces Emirates to touch things. (UKEssays, 2018).
Etihad Airways continues to improve its marking process to separate from its rivals. The airline became the official host of the 2017 New York Fashion Week. Etihad similarly acquired one of New York City FC’s top executives since 2014. Within five years, the type of network company will be involved in the pullovers that play for the club during matches at Major League Soccer. Etihad Airways is best known for its airline fleet and in addition to its five stars and its commercial stops. These honors are based on the specific compliments offered by Pax. (Cole, 2011).
Flying on an unmanned aircraft with high-flying theatrical setups, great deal, and perfect help. Stay tuned for the tour with E-BOX, the requested theater setup, while being charged for the latest movies, TV shows, music, and in-depth games. One can refresh the PC or mobile phone, or associate individual gadgets with the frame. Young guests / young flyers alike have a good engagement with the Etihad and continue to add younger contacts to create a remarkable flight experience for the whole family. Likewise, for the peaceful child caregivers on the plane, they offer everything to make a child’s trip more enjoyable, with help such as changing offices, baby parties and bassinets; and wishing to pass milk or infant formula, one can warm themselves up and have soft toys and games to keep the youngest guests happy and involved on airplanes. Similarly, very young tourists who are mature for 2-11 years can expect an inspiring trip with the Etihad, such as toys and games for a child who can appreciate the wide range of aircraft entertainment programs and unique casual games designed for teens. Also have a unique menu for spoiling the younger guests as you set the requirement for a children’s party at booking hour or if there is nothing more than 24 hours before the flight. In addition, the extraordinary assistance given to children who are inconsistent, if a child is present somewhere between the ages of 5 and 11 with understanding and walking alone, is treated unexpectedly.
Currently, the commanding officer is serving around 116 opponents everywhere in the world. The company holding these vehicles was accustomed of six additional objections to the 2015 international tourism network Etihad currently travels to Madrid, Entebbe, Kolkata, Hong Kong, Edinburgh, and Dar es Salaam. The flight also provides additional emergency assistance in Brisbane. (Cole, 2011). In 2016 Etihad expanded its coding and pricing sharing organizations. These organizations are thought to be bearing fruit as there have been a record of five million passengers flying at Etihad Airways. (UKEssays, 2018).
In conclusion, Etihad Airways offers its clients a warm and welcoming atmosphere. Emirati Ratings are reflected in their customer support. It relies on continuous improvement and balances itself with the best in the sector. Etihad Airways builds strong connections and creates important interests, especially carriers. As a result, passengers can fly in their own aircraft that maintain the same value and fly more easily, where direct Etihad Airways assistance is not available. In international travel, a traveler is required to create a Visa and Passport. Airlines reserved for Etihad Airways flights must take place with airport locations, tour planners, outdoor tourist reservations. For the convenience of customers, Etihad Airways has grown and significantly postponed cycles and activities. The favorable conditions for customers while traveling with Emirates, an Etihad rival, are similar to those found when traveling with Etihad Airways. (Cole, 2011).
However, when considering the image, Emirates gives impetus to customers, and this is because the organization has been active throughout the last 26 years. On the basis of financial value, Air Arabia remains ahead of the opposition as the organization charges lower costs compared to Etihad Airways.
Etihad and Emirates Financial Assessment
Both the airlines, Etihad and Emirates are full-service airline. They have designed their customer service in the best possible and comfort way for their passengers. They both are high in standards but quite expensive as they are fully service airlines. Emirates is somehow charging less as compared top Etihad airways. The brief analysis about their financial assessment is discussed below.
The idea of a plan to move the action forward has been drawn up too late in developing considerations in business processes and logical negotiations. In the current age of rapid technological change and strategic planning, development is a key element of a strong business plan to combat carriers in the commercial aviation industry. (Spivakovskyy, Spivakovska, and Heiets, 2019). Air transport is considered to be one of the most important activities for social and financial benefits. The UAE aviation industry has been an important supporter of financial development and monetary policy. The rise in development has brought about the integration of organizations and individuals together. The Middle East is defined by its thriving business as an important center for avionics. An investigation into Emirates Airlines and Etihad Airways applications led to key development developments. This provides experience in the testing of artistic strategies in Middle East aircrafts to explore the topic of how various development factors affect the revenue earned from full-time operators. (UKEssays, 2018).
Interpretation of Financial Results
Etihad Airways reported the results of the 50 years that saw the results in February but were blocked in the months leading up to the start of travel restrictions. The manager transferred 3.5 million travelers at the beginning of the second half of 2020 and sent $ 758 million this time to $ 1.7 billion. Etihad in the wake of the catastrophic moment was successfully completing the success of the transition program for many years, but the absence of a request for Covid's move disrupted the manager's transformation process. Receivable receivables could not save the plane from being red. Etihad is not the only one who can send bad luck. Basically, everyone currently in charge of the above water has sent misfortune for the second quarter approaching close to billions. The Etihad is sponsored by the world’s richest royal family through their guess cars. This gives the aviation access to goods such as speculation or small progress to tolerate this problem. During all these difficulties, Etihad has entered into agreements with Air Arabia Abu Dhabi to take care of local travelers in Etihad international courses. (Parker and Mumfor, 2010).
Applications from Emirates Airlines and Etihad Airways were tested to determine the development components. From an examination of the mechanical design of both UAE aircraft, we see that these two carriers have many comparable features in their design. However, Emirates Airlines Company has more qualifications than Etihad Airways. (Spivakovskyy, Spivakovska, and Heiets, 2019). Emirates Airlines flies 70 complaints about Etihad Airways and working with smaller airlines in Dubai has expanded its overall training. A thinking organization incorporates integrated organizational efforts and integrated planning. The two carriers built their space, modifying their structure and functions to ensure a consistent understanding of modern travel. (Parker and Mumfor, 2010). In addition, the heads of Emirates Airlines and Etihad Airways were fully committed to making what could become the world's largest airline for a traveler. In that case, the total budget will be US $ 29.3 billion, and the control of international studies will reach about 5%. The biggest problem is that airlines are stationed at various airports. The UAE government is trying to make a point with the world’s largest tourism agency in Dubai. The entire Etihad Airways seat at the same time as Emirates Airlines operates. Most of the studies that flow through both Gulf senders are about 96% of Etihad Airway and 74% of Emirates Airline. (Spivakovskyy, Spivakovska, and Heiets, 2019).
In Conclusion, UAE carriers use code-related management that encourages them to adapt to increase the number of flights between carriers and simplify the workload. Emirates Airlines and Etihad Airways both are using a variety of resources, for example, a customer's customer system, avionics security participation, new regional deployments, international office distribution, a joint two-passenger flight effort, etc. as it is clear to say they both are supporting each other. Also, two carriers can combine their development points. to further promote and add their extra hands to the global aeronautics market.
Conclusion
Conclusively, as per the above information, one can analyze that both the airways are on the top of developed airlines of UAE and besides this, they are still developing their services and technologies to better serve their customers. Both the airlines rely on comparative factors, for example, use of single web, development file and global stability record in the UAE.
Recommendations
The recommendations for both the airlines are they should look for a way where they can serve the handicapped people and special people up to their abilities. They should design something for their travelling ease. The technological development created by Emirates and Etihad are much appreciated but for Etihad, there is still more development needed. For the next 20 years people can be more towards automatic friendly machines so technically both the airlines should see in this regard where they can serve their pax easily and comfortably being at distant.
References
All Answers Ltd. (2018). “Etihad PESTEL Analysis: Business Teacher.” Available at: https://businessteacher.org/pestel/etihad-pestel.php
Cole, Dr. Alex. (2011). “Analysis of the Etihad Airways.” Pp. 1-17. Available at: https://www.grin.com/document/215657
MBA Skool Team. (2020). “Emirates PESTLE Analysis.” Available at: https://www.mbaskool.com/pestle-analysis/companies/18058-emirates.html
MBA Skool Team. (2020). “Etihad Airways Marketing Mix (4Ps) Strategy.” Available at: https://www.mbaskool.com/marketing-mix/services/17430-etihad-airways.html
Parker, Andrew J. and Mumfor, Trent L. (2010). “Emirates Airline.” Available at: https://www.accc.gov.au/system/files/public-registers/documents/D10%2B3705653.pdf
Spivakovskyy, Sergiy, Spivakovska, Tetiana and Heiets, Iryna. (2019). “Innovative business models for full cycle operating airlines.” International Journal of Business Performance Management. 20(4), pp.1- 356. Available at: https://www.researchgate.net/publication/339227361_Innovative_business_models_for_full_cycle_operating_airlines
Time Out Staff. (2021). “UAE’s Emirates Airline and Etihad Airways in world's top 10 safest airlines.” Available at: https://www.timeoutdubai.com/travel/457858-uaes-emirates-airline-and-etihad-airways-in-worlds-top-10-safest-airlines
UKEssays. (2018). “A Brief History of Emirates Marketing Essay.” Available at: https://www.ukessays.com/essays/marketing/a-brief-history-of-emirates-marketing-essay.php
UKEssays. (2018). “Study on Etihad Airlines.” Available at: https://www.ukessays.com/essays/aviation/study-on-etihad-airlines-aviation-essay.php
Xoomarticle. (2020). “Research Paper on Etihad Airways.” Available at: https://xoomarticles.com/example-of-an-essay-on-swat-and-pestel-analysis-of-ethiad-airliness/
