Research Proposal: Success of Airline Brand Emirates Airlines

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¶ … Emirates Airlines

The purpose of this study is to assist in the identification of the key concepts of brand image and development utilized by industries and to examine the issues of how the brand image of Emirates Airlines might be changed based on performance and scope of operations. The research issues will result in the provision of new tools for the company in defining strategies for brand nurturing and development globally. The questions addressed in this research study include those of: (1) How is the brand of Emirates Airlines viewed currently and how is this brand image impacted globally? (2) Who does the company view as its main competitors for its brand image and why? And (3) What steps can be taken to ensure brand success for the short-term as well as the long-term? Study objectives include the assessment of the significance of the Emirates brand in the lives of air travelers and whether the exposure to different brands have a positive or negative impact on preference of travel as well as the assessment of the cross-cultural impact of the Emirates Brand globally and the effect of routes and service (ground and in-flight) on the brand image. Additionally this study has the objective of providing an analysis of the brand name success and its impact on customer perception and the assessment of changes and improvements that ensure brand success. Finally, this work intends to provide, where appropriate, recommendations for improvements to the current airline strategies and services managed by Emirates Airline.

THE SUCCESS of AIRLINE BRAND (EMIRATES AIRLINES)

CHAPTER ONE

INTRODUCTION

AIMS and OBJECTIVES

The objective of this study is to identify the factors that affect brand image as perceived by both the management and the customer. The proposed objectives for the dissertation will focus on the following: (1) to assess the significance of the Emirates brand in the lives of air travelers and whether the exposure to different brands have a positive or negative impact on preference of travel; (2) to assess the cross-cultural impact of the Emirates Brand globally and the effect of routes and service (ground and in-flight) on the brand image; (3) to provide an analysis of the brand name success and its impact on customer perception; (4) to assess the changes and improvements that can ensure brand success; and (5) to provide, where appropriate, recommendations for improvements to the current airline strategies and services managed by Emirates Airline.

THE SUCCESS of AIRLINE BRAND (EMIRATES AIRLINES)

CHAPTER TWO

EMIRATES AIRLINES

ORGANIZATIONAL BACKGROUND

Mayerowitz (2008) reports in the work entitled: "How Foreign Airlines Thrive as U.S. Flounders" that the world's largest "passenger aircraft has arrived in the United States. United isn't flying it. Neither is Delta, American, Continental or any other domestic airline. No, the first Airbus A380 to land in the United States is flow by Dubai-based Emirates Airlines." The work of Knorr and Eisenkopf entitled: "How Sustainable is Emirates' Business Model?" relates that that the Dubai-based Emirates Airline, founded in 1985 with just 2 leased aircraft is one of the fastest growing and most consistently profitable carriers in aviation history." (nd) the UAE rulers decided in 1974 to establish 'Gulf Air' a 'joint flag carrier but this relationship was a tense one between the Dubai government and the airline. The government in Dubai simply would not "give in to Gulf Air's demands to abandon its open-skies policy. In reaction, Gulf Air reduced frequencies and capacities to and from Dubai by more than two thirds between 1984 and 1985 without advance notice." (Knorr and Eisenkopf, 2004) There were no carriers that were capable of, or willing to, fill in the gap so the ruler of Dubai at that time, Sheik Mohhamed bin Rashid Al-Maktoum gathered a team of experts for designing a plan for an emergency which resulted in a recommendation for a home carrier to be set up specifically for Dubai to which the ruler readily agreed upon two conditions being met:

1) the new airline should meet the highest quality standards; and 2) There would be no additional capital injections from the government (except for the USD 10 million agreed for start-up capital)

The first flight of Emirates airlines departed in October 2005 and in 1987, Emirates began serving the destinations of London Gatwick and Frankfurt. By 2001, 2003 and 2005 Emirates is stated to have "...placed some of the largest aircraft orders ever." (Knorr and Eisenkopf, 2004) by 2007, Emirates serviced 91 destinations globally. It is related that Emirates Airline is a "crucial element of Dubai's growth and development strategy." (Knorr and Eisenkopf, 2004)

Emirates Business Model - Primary Features

It is stated in the Dubai Strategic Plan 2015 the objective to "prepare the emirate for the post-oil era by firmly establishing it as a leading tourist destination (including trade and fair conferences) as a center for financial, it and professional services, as a location for corporate headquarters and light manufacturing, and, last but not least, as a regional transportation logistics and distribution hub (regional refers to the area between Singapore, Europe, Southern Africa)." (Knorr and Eisenkopf, 2004) it is held that the factors of 'sound politics' and 'its very favorable geographic location' are to be accredited for "spectacular growth in recent years - on average, GDP increased by 3.4% per year since 2000, and its population is set to grow from today's 1.45 million to around 5.4 million." (Knorr and Eisenkopf, 2004) the primary features of Emirates business model are those features as follows:

1) Well-balanced mix of O&D- and transfers traffic in its passenger business;

2) Very strong focus on cargo traffic, which generates 20% of Emirates' revenues - one of the highest percentages in the airline industry;

3) Strong presence in those secondary markets that are underserved by Emirates' competitors such as BA, LH, and AF, which focus on their own hubs for long-distance flights. Typical destinations in this category include Newcastle, Manchester, Birmingham, Glasgow, Dusseldorf, and Hamburg in its European network as well as Kochin, Kolkata, Thiruvananthapuram, and Ahmedabad in India, to name just a few. Emirates' competitive advantage in these markets is enhanced by the fact that it, unlike the competition, does not have to deploy a fleet of rather small and, hence, inefficient short-haul and even regional air crafts for feeder flights to its hub, but can offer long haul service standards instead (moreover, given its much longer average stage length;

4) high-quality service in all classes onboard and on the ground including up to 600 entertainment channels in all classes and limousine service (pick-up and drop-off) for first and business class passengers;

5) High labor productivity; and 6) No alliance membership. (Knorr and Eisenkopf, 2004)

Strengths of Emirates Airline Identified

Knorr and Eisenkopf (2004) state that many of the strengths of Emirates Airline "come from the right decisions taken at its foundation, and from its unique organizational structure. Not only does the carrier benefit from having been created from scratch only 22 years ago, resulting in flat hierarchies and essentially no legacy costs, but, more importantly, the central role of aviation in Dubai's development strategy also guarantees Emirates a very favorable political environment." (2004)

Additionally stated as among Emirates Airline strengths are the profits that Emirates makes "from the very low charges at its home airport. While landing fees are largely identical to those at major European airports, no airline flying into DXB has to pay any additional charges (such as noise charges, ATC charges, security charges etc.). This is because the airport infrastructure and all related services are provided by Dubai's government and fully financed from the state budget. It is a hotly debated issue whether this particular fee regime is a form of indirect subsidy to Emirates. Judged against the EU's state aid rules, this would clearly not be the case since Dubai operates an open-skies policy and all airlines are subject to the same non-discriminatory treatment." (2004)

Next stated among Emirates Airline strengths is that the Emirates "like all other companies doing business in Dubai or, for that matter, in most Gulf states - benefits from Dubai's low tax regime, which only subjects subsidiaries of foreign banks and energy companies to corporate tax. Obviously, this is an advantage as long as the company remains profitable. As ordinary citizens including expats do not pay income tax either, and enjoy generous government-financed social benefits, too, Emirates is a very attractive employer paying above average net wages although gross wages are lower than in Western countries." (Knorr and Eisenkopf, 2004) the fourth strength stated in the work of Knorr and Eisenkopf to be attributed to Emirates Airline is that regarding its immigration laws, which are stated to be "...quite generous by international standards. This does not only hold for foreign experts who may be easily recruited by local firms. It also applies to transit passengers who do not have to clear immigration at DBX when changing planes. While this might appear to be a negligible fact at first sight, it greatly improves Emirates' competitive… [END OF PREVIEW]

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Success of Airline Brand Emirates Airlines.  (2008, September 26).  Retrieved September 21, 2019, from https://www.essaytown.com/subjects/paper/success-airline-brand-emirates-airlines/81583

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"Success of Airline Brand Emirates Airlines."  Essaytown.com.  September 26, 2008.  Accessed September 21, 2019.
https://www.essaytown.com/subjects/paper/success-airline-brand-emirates-airlines/81583.