Emirates Airlines was founded in 1985 and has grown to be the largest air hose in the world.According to Emirates web site, Emirates airlines operates 2500 flights a hebdomad to 122 metropoliss in 74 states around the universe. Emirates carried 34 million riders and 1.8 million dozenss of lading in 2011-12 ( Emirates.com, 2011 ) . In that twelvemonth, Emirates air hoses was voted as the air hose of the twelvemonth by riders in 160 states. Its in-flight amusement and nutrient besides receive awards from riders ( Emirates.com, 2011 ) . It is besides systematically the universe ‘s largest air hose in footings of international rider path kilometres flown ( CAPA, 2011 ) .
Emirates Airlines is owned by the UAE authorities, and it operates out of Dubai as the hub. Dubai has emerged as an option to the overcrowded European air power hubs of London, Frankfurt and Paris. Over 125 international air hoses now operate through Dubai and the airdrome handled over 57 million riders in 2012 ( Dubai International, 2012 )
2. Travel experience on an Emirates flight
Emirates is one of the few international air hoses that operates wholly with widebody aircraft aircraft. Their fleet of 200 planes is made up of 124 Boeing 777 planes, 4 Boeing 747, 31 Airbus A 380, 18 Airbus 340 and the staying Airbus A 330 planes. The mean age of the fleet is merely 6.3 old ages doing this the air hose with one of the most modern fleet ( planespotters.net ) .
The First Class and Business category seating is really epicurean but even the economic system category seating is rather comfy. The economic system cabin has a 3-4-3 seating constellation with 32 inch pitch between seats. The seats are provided with adjustable head restraints for rider comfort ( Emirates, 2013 ) .
Emirates has late upgraded its in-flight amusement system to Panasonic High Definition screens that are “ 27 inch for first category, 20 inch for concern category and 12.1 inch for the economic system category ” where the old size was 10.9 inch. The system now has 1300 channels including 300 film rubrics, 100s of Television channels and 1000s of music paths ( Travel Blackboard, 2012 ) . In-flight proclamations are made in Arabic and English. Extra proclamations are made in the prevailing linguistic communication of the state to which the plane in winging such as Gallic for flights to Paris and German for flights to Germany.
The cabin crew in Emirates planes have uniforms designed by Simon Jersey of UK who is specialized in the design and supply of workplace vesture. The male cabin crew members wear chocolate brown colour suits with a pick colored shirt and a brown tie with ruddy diagonal chevrons. The female cabin crew members wear mushroom colored pant-suits with brown and ruddy pinstripes with a pick colored blouse with ruddy trims. The crew besides wear ruddy or brown caps, the colour demoing senior status. The uniforms were reviewed and accepted by members of the Dubai Royal household ( Simon Jersey, 2009 ) . The entire figure of cabin staff that are employeed by Emirates air hose are 23,000 employee.
In- flight catering is handled by an Emirates subordinate that employs over 5400 staff and burden 115,000 repast trays a twenty-four hours. This subordinate serves non merely Emirates but besides other air hoses that operate from the Dubai airdrome ( EKCatering.com ) .
3. Emirates Airlines concern theoretical account
In the fiscal twelvemonth 2011-12, Emirates Airlines had grosss of $ 18.4 billion and net incomes of $ 629 million, stand foring the 24th back-to-back twelvemonth of net incomes for the air hose. Emirates is one of the really few big commercial air hoses with such a record of net incomes. Even in the 2001-2003 period when the planetary air hose industry impacted by the 9/11 onslaughts lost over $ 31 billion, Emirates remained profitable. The concern theoretical account of Emirates Airlines has been studied by Donald Sull, Sumantra Ghoshal and Felipe Monteiro of the London Business School in 2005 who found that their success lies in making things different from conventional big air hoses ( Sull, Ghoshal and Monteiro, 2005 ) .
The organisational construction is informal and does non follow the typical hierarchy of big corporations. A 30 member senior executive squad meets to decide all direction issues through argument and consensus and these are communicated to the president Sheikh Al-Maktoum in hebdomadal meetings instead through memos and presentations. The direction manner is more that of a start-up company instead than a big organisation. The senior direction squad emphasizes that they pay attending to inside informations in pull offing the company instead than concentrate merely on the large image as happens in most big corporations. They describe their direction manner as ‘fluid ‘ to react to each job as it arises instead than put down luxuriant processs to cover with every eventuality.
Emirates treats its 23,000 plus employees as a big household. These people belong to 90 different nationalities with over 80 % being exiles. Since most unrecorded and work in Dubai which is itself a metropolis made up of 95 % exiles, there are few cultural issues. In the wake of the 9/11 onslaughts when air hose rider traffic fell worldwide, most air hoses resorted to big scale employee lay-offs. What Emirates decided to make is to retain all its employees. The Emirates president wrote to the employees seeking their aid in beef uping the air hose and the employees responded with enthusiasm. The air hose used the chance to purchase extra planes and to spread out its operation, doing itself a stronger rival when the planetary air hose industry revived after 2003 ( Sull. Ghoshal and Monteiro, 2005 ) .
The senior direction squad at Emirates led by its CEO Tim Clark systematically gives the message both within the company and outside that Emirates wants to be the largest and the most preferable air hose in the universe, presenting a superior winging experience at low-cost costs to all its clients.
The Dubai hub has the great advantage that over half the universe ‘s population of 7 billion people live within 8 hours winging distance. In add-on, Dubai is being actively promoted by the authorities as a tourer and commercial hub. This attracts 15 million visitants a twelvemonth to Dubai in add-on to 22 million theodolite riders. Dubai ‘s population is made up of over 95 % exiles who travel to their place states at least one time a twelvemonth. All of these coupled with the image of Emirates as a quality air hose gives Emirates a alone concern advantage.
Emirates is already seeing its growing transcending what Dubai can offer and is believing of a 2nd hub. The pick of location for the 2nd hub and whether Emirates can retroflex its Dubai direction theoretical account at the 2nd hub should be interesting to analyze as it unfolds.
4. The competitory advantages for Emirates over its challengers
Over 35 % of air hose operating costs are labour costs ( ICAO Almanac, 2010 ) . Emirates pays its employees rewards at the prevailing degrees in Dubai which are two-thirds of the pay degrees in viing air hoses. The fact that there is no revenue enhancement in income in Dubai makes the pay differential seen by the employee as much smaller. This one factor provides Emirates with an tremendous cost advantage. Fuel costs are the 2nd largest component of air hose operating costs at approximately 10-12 % of entire costs ( ICAO Almanac, 2010 ) . Here excessively Emirates has the advantage that fuel costs at its place base are lower than international costs. When the aeroplane refuels outside Dubai, of class, they have to pay the prevalent monetary value at those airdromes. The newer fleet of planes that Emirates operates is besides more fuel efficient than the older planes many of their rivals operate.
5. The application of the Hofstede Cultural Dimensions Model to Emirates Airlines
The Geert Hofstede theoretical account of cultural dimensions consists of five factors, Power Distance ( PDI ) , Individualism vs. Collectivism ( IDV ) , Masculinity vs. , Femininity ( MAS ) , Uncertainty Avoidance ( UAI ) and Long Term vs. Short Term Orientation ( LTO ) . A 6th factor, Indulgence vs. , Restraint has subsequently been added to the theoretical account. The theoretical account has been extensively used to analyze how values in the workplace are influenced by civilization.
The application of this theoretical account to Emirates Airlines is peculiarly hard. It is based in Dubai which is in the Arab universe where factors such as Power Distance and Masculinity Femininity are different from western societies. The company direction is nevertheless made up of exiles from western societies and the employees themselves are exiles from legion states. The direction manner in Emirates besides being more informal and caring besides is non typical for an Arab society. The international air hose concern is in itself a people concern where the air hose staff is in changeless interaction with people from assorted civilizations. They besides need to remain often overnight at assorted metropoliss in other states. The Hofstede theoretical account for Emirates Airlines would hence non follow any specific state or civilization theoretical account and could even be rather alone to it.
6. Drumhead and Decision
Emirates Airlines has set an impressive record of growing into one of the universe ‘s largest air hoses that delivers a superior travel experience at low-cost monetary values to its riders. The air hose has been systematically profitable, which is rather alone in the air hose industry. The air hose ‘s growing parallels the growing of Dubai into a major touristry and commercial hub and the metropolis and the air hose complement each other unambiguously. The air hose has aspiration and the vision to go on being a leader in the planetary air power industry.
The direction manner at Emirates remains informal as in a start-up company and has non yet developed the jobs that a more formal construction imposes on big corporations. The intervention of its staff as an drawn-out household is besides unusual for a big corporation with over 23,000 employees. The mostly expatriate senior direction squad has set up this effectual theoretical account with the freedom given by the Chairman Sheikh Al-Maktoum. The direction squad is now adding more UAE subjects and as their Numberss grow in the coming old ages, it would be interesting to see if the construction remains as it is at present. The demand to get down a 2nd operations hub outside the Middle East country would besides convey in new challenges in retaining the direction civilization.