Introduction of Emirate Airline

Emirate Airlines was founded in the year 1985 with the support of the Sheikh of the United Arab
Emirates. The Dubai government in agreement with the Pakistan International Airlines helped in the
formation of the airline (Graham, 2010). The initial destinations included Bombay, Delhi in India and
Karachi. Currently, Emirates offers a number of scheduled, international, regional and domestic
destinations. This ranges to a total of about 75 destinations in over 53 countries. Emirates Airline is
part of the Emirates group. The group consists of various entities such as the airlines division,
aircraft maintenance division as well as the cargo division. Other divisions include the hospitality
division, an aviation college as well as transguard division. The aviation college was instituted to
offer training and development of staff and partner organizations in the group.

In addition, Emirates Airlines in one of the few airlines that hardly felt the harsh economic and
aviation downtime in the past few years. This is as a result of the great marketing trends aimed at
promoting Dubai as a world class tourism destination with tax-free shopping. In addition, Emirates
Airlines also strives in promoting its hub in Dubai (Graham, 2010). This is because Dubai is believed
to be the best geographically positioned city in connecting Asia and Europe. Since Dubai is known
for its trade, Emirates Airlines operates large cargo aircrafts because of the large tourist’s number.
This explains why Emirates Airlines is in a position to accommodate expanding international and
regional market cargo demands. The main goal of Emirates Airlines is to keep expanding and this is
the very reason why their market keeps expanding.

Emirates Airlines was ranked the largest airlines carrier in the Middle East and among the ten largest
in the world. This research was based on the international passenger traffic. Emirates Airlines is a
fast growing international airline in possession of some of the youngest fleets of aircrafts and closely
above 400 awards of excellence internationally.

Strengths
Membership of the Arab Alliance, which is known as “Arab Air Carriers Organization.

First Airline company in the Arab world who introduce e-booking system

Self check-in system at airport offered by Emirates

Emirates Airlines world biggest purchaser Airline company by order of new 45 Super jumbo Air
Buses.

Providing qualitative training, benefits and rewords’ and very impressive salary packages and
benefits to his employees and also cutting labour cost increasing employees' loyalty (People).

Latest March, 2010 held Festival of Literature and in 2006 sponsored Fifa World Cup in both way he
gained its brand awareness and also makes its goodwill in market.
Balance sheet looking sound and showing Profits for 2009-2010 grew four-fold to $964m inspite high
oil prices and tough trading environment.

Latest progress of Emirates Airlines rolls out flights to San Francisco. It is ready to rule the roost to
take world leader in Airline business with the latest technology in hand.

Weaknesses
High operation cost due to big investment on purchasing aircrafts and application of latest
technology.

High Prices as comparatively other airlines companies.

Non membership of any International Alliances.

Non availability of hub in Abu Dhabi.

As establishment not much old just in 1985 ,so it’s young airline.

History Of The Rise Of The Emirates

Although having been ruled for centuries by some of the world’s most powerful and wealthy empires,
the United Arab Emirates (UAE) has depended solely on the land’s valuable resources to sustain
itself economically throughout much of its recent history. But it was not always that way. The UAE
faced serious fiscal problems during much of the pre- and post- WWII time periods. The boom the
country is now facing only came about for a few reasons. The first is the discovery and exploitation
of oil reserves throughout the nation. The second is the prudent and responsible use of these new
revenues by Sheikh Rashid Al Maktoum, Dubai’s de facto ruler. The third is the reluctant decision by
Britain to release the nine emirates to form either independent nations or group together (as is the
case with the UAE). After the financial ruin the United Arab Emirates faced in the 1920s and 1930s,
the discovery and proper use of oil reserves throughout the newly founded federation gave more
freedom to the people and allowed the government to spend much needed money on public works.

During the time period directly following World War One, Dubai’s (one of the emirates that eventually
merged to form the UAE) economy was based on one sole resource – pearls. Even through much of
the Great Depression, the pearl industry in the Middle East was booming, and providing the people
of Dubai with a fairly decent living. But things changed in the mid-1930s when the demand for
authentic pearl fell as the quality of imitation pearls increased. Soon Dubai and the other British-
controlled emirates were facing economic ruin. After a number of years of hardship, the emirates
found an even greater fountain of wealth – oil. Buried under the sand of Arabia was the largest
deposit of extractable oil in the world. The discovery and exploitation of these new found reserves
reinvigorated the emirates’ economies. When the first shipment of oil from Dubai was made in 1969,
Dubai guaranteed itself a role in the formation of the United Arab Emirates – and as a leader in the
oil industry in the Middle East. With the emergence of the oil industry in the Arabian Peninsula,
Dubai and Qatar decided to partner up in creating a new currency based solely in those two
emirates, it became known as the Riyal. At that point, the emirates’ currency, the Persian-Gulf
Rupee, was issued by the government of India and faced severe devaluation in world markets. It
was these two actions – the exploitation of oil reserves and the creation of the Riyal – that marked
the major economic revolution throughout the emirates. Oil provided Dubai with a massive source of
new income that the government could use on public works – but it would take a leader with vision to
vault the emirates onto the world stage.

With the flooding of oil money into government coffers in the British-Arabian emirates, prudent fiscal
management was key to creating and sustaining economic prosperity throughout the emirates.
Unlike other rulers of his time, Sheikh Rashid Al Maktoum did not want nor need to win the support
of his people through government handouts. Instead, Al Maktoum carefully planned where and to
whom the emirates’ new found oil money went. In the past, certain rulers in the Arabian Peninsula
used new wealth (most notably during the Arabian pearl boom of the 1920s) in a more insular
fashion. Instead of strengthening trading relationships with other areas of the world, Sheikh Saeed Al
Maktoum (Rashid’s predecessor) instead poured money into port development. Rather than
physically trade materials, Saeed tried to reinvigorate the emirates’ economies (devastated by drop
in demand for real pearls due the emergence of new artificial pearls) by marketing Dubai as a tax-
haven for exporters. Exporters could ship into Dubai tax-free and send the materials abroad with
little or no tax. Although this did strengthen the economy of Dubai, it did not create a larger
workforce nor did it vault Dubai and the emirates onto the world stage. After a number of years as a
mere tax-haven, Dubai (now officially tied with the other ‘superpower’ emirate Abu Dhabi) had the
immense luck of striking oil. At this time, Sheikh Saeed Al Maktoum had died and in his place came
Sheikh Rashid Al Maktoum. Unlike his predecessor, Rashid immediately began planning on both
domestic investment projects as well as foreign trade investment projects – the latter of which
proved to be the most crucial and beneficial for Dubai and the emirates in the long term. Rashid
formed new partnerships with Britain and Qatar that allowed the building of a multitude of public
works, most notably: the airport and the continual building along the Dubai Creek. With a heavy
emphasis on exporting oil to a number of nations worldwide, Dubai and the emirates succeeded –
through the wise and pragmatic leadership of Sheikh Rashid Al Maktoum during the 1960s and
1970s – in transforming itself from regional economic power to world economic giant in only two
decades.

Although nearly all partnerships Sheikh Rashid made with other world leaders were important, none
come close to the crucial commitment by Britain to leave the Arabian Peninsula as colonial power.
After nearly three years of promising to leave the area, Britain did just that in early 1971. Despite
having little practical influence in Dubai and the emirates (compared to other once-British colonies
such as India, Canada, and Australia) the departure of the British created a new country that
incorporated six of the strongest Arab emirates. This new country, established on December 2,
1971, not only allowed increased inter-Peninsula trade, but also merged two economic powers, Abu
Dhabi and Dubai into the same nation. In fact, a major stipulation of the agreement to form into one
united nation was that Abu Dhabi and Dubai would retain their roles of high importance. To this day
Abu Dhabi and Dubai are the only of the six emirates to hold a veto power on matters of national
importance. Had Britain not left the emirates to manage themselves, it is likely that cities like Dubai
and Abu Dhabi would not be nearly as built-up and would not be known as the economic
powerhouses they were during the late 1980s and early 1990s.

Although the United Arab Emirates has faced an economic downturn over the past few years, during
the late 1980s and early 1990s the nation was the economic envy of the world. Despite having been
ruled for centuries by wealthy and powerful empires, the United Arab Emirates has, in the last
century, depended on a unique blend of the exploitation of natural resources with wise economic
navigation. After the collapse of the pearl industry just after the Great Depression, Dubai struck oil –
filling government coffers. After the more insular policies of his predecessor, Sheikh Saeed Al
Maktoum, Sheikh Rashid Al Maktoum guided Dubai onto the world stage through wise advice
focused on international interaction. The creation of the United Arab Emirates in 1971 from the
remains of the British colonies on the Arabian Peninsula created a strong nation with two economic
centres, Abu Dhabi and Dubai. The economic success of the United Arab Emirates (and the
individual emirates before unification) during the latter portion of the twentieth century was based
both on the luck of natural resources and the sensible manoeuvrings of Sheikh Rashid Al Maktoum.
Despite its small area, throughout the twentieth century the United Arab Emirates has grown into a
sparkling pearl amidst the vast sands of the Middle East.

Mission
“An effective mission statement defines the fundamental, unique purpose that sets a business apart
from other firms of its type and identifies the scope of the business’s operations in product and
market terms. It is an enduring statement of purpose that reveals an organization’s product or
service, markets, customers, and philosophy.” (John A. Pearce II & Fred David, 2006).

Emirates Airlines or rather Emirates Group mission statement is simply “Committed to the highest
standards in everything we do.” Being a vast enterprise by itself – Emirates group – the group has
been quiet successful in embodying the mission of “committing to the highest standard” onto its one
of its two core corporation (Emirates Airlines) - the other being DNATA, by marketing the brand of
Emirates as the pinnacle emblem or a luxury standard throughout the world as an emerging Global
Brand.

Value Proposition & Marketing Objective

Emirates is a brand that is truly emerging as a global icon with its logo representation in Arabic script
as a symbol of its origin. Emirates has committed on building an operational and service approach
as a true global provider, by delivering high quality service and catapulting itself as the industry’s
youngest and most advanced fleet to retain its ever growing loyal customers worldwide. Emirates is
able to achieve this boasting quality as an emerging “global brand” by updating its fly roster to 100
destinations in over 60 countries with more than 14 million passengers annually.

Emirates Airline (or rather the Emirates Group as a whole) is a crucial element of Dubai’s growth and
development strategy. Currently based on the Dubai Strategic Plan 2015 (Dubai Government 2011),
its objective is to prepare the emirate for the post-oil era by firmly establishing it as a leading tourist
destination (including trade fairs and 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). This is where Emirates plays a big hand in planning out its
marketing approach that encompasses the Emirate of Dubai as a key factor in its marketing strategy.

Dubai’s (and, as a result, Emirates’) spectacular growth in recent years – on average, GDP
increased by 13.4 percent per year since 2000, and its population is set to grow from today’s 1.45
million to around 5.4 million by 2015 (Dubai Census) –, has been helped by two complementary
factors: sound politics and its very favourable geographical location.

Sound Politics

It’s uniquely liberal (by regional standards), cosmopolitan environment, political stability, free-trade
agreements with most of the booming Asian economies, world-class infrastructure, efficient public
services, and very low to non-existent corporate and income taxes.

Geographical location

The geographical location reflects the fact no major mass (geographically) on the globe is further
than 8,000 nautical miles away from Dubai. As a result, any two major cities on earth can be
connected via Dubai with only one stop. It is against this backdrop that Emirates marketing strategy
must be analyzed. First and foremost, the airline – plus the next to 140 carriers which serve Dubai –
provides excellent air links worldwide, not only for the benefit of Dubai’s thriving tourist industry, but
also of its rapidly expanding local business community (including the thousands of foreign
companies that have set up their regional presence there).