Latest worst flooding situation in Pakistan as before he faced crises by earthquake as well which was worst impact on the sale of airlines companies. Klassen, K. & Rohleder, T. 2002, ‘Demand and capacity management decisions in services; how they impact on one another’, International Journal of Operations & Production Management, vol. All in all, the Emirates Group posted a total revenue of $29.8 billion, up 7% from last years’ results. Retrieved from https://ivypanda.com/essays/capacity-management-in-emirates-airlines/. L, 2008). Therefore, airline companies are not only faced by the challenge of satisfying the market demand, but also meeting the customers’ level of satisfaction. In this way operations cost also will be decreased. Value Chain Activities 3. Emirates airlines launched its operations from the year 1985 and have the distinction of being the flagship Carrier for the UAE. (Thompson & Strickland, 1995). Emirates Airline: Strategic Management Report ... Boeing 777-200LR has the capacity of 266 passengers and is technologically sound. (Growth phenomena, Nora & Byman). The principles advocate for a flight caterers to undertake a comprehensive hazard analysis, establish the critical control points, and the monitoring system. Emirates should offer advance level services and control cost and this way no need to reduce the prices and in this order it should introduce its new brand as subsidiary which should be base on low cost. Emirates Airlines implement differentiation generic strategy by offering high quality services in order to gaining benefit among its competitors and getting palce in market as Leader Company. The literature review section shows that a high likelihood of Emirates Airlines achieving its growth and market leadership objectives in the global airline industry due to the prevailing market trends. Mahadevan, B. Hellermann, R. 2006, Capacity options for revenue management; theory and application in the air cargo industry, Springer, New York. These all thing not only distinguish the companies also helpful to attractive new customers for the company.(e.g. Emirates Airlines is really fast turning air hoses. It includes an analysis of the company's current strategy from customer acquisition, customer retention, distribution and customer services perspective. No plagiarism, guaranteed! a subsidiary. With such strong history Emirates Airlines are still venturing further in to the future. However, this aspect will depend on the company’s commitment to engage in capacity management and flight catering. One of these elements includes yield management, which emphasises the significance of adopting effective revenue maximisation and ensuring optimal capacity utilisation. Advancement in Information Technology is most important for progress of emirates airlines and in this order it should make contracts with E-Business Company for improving its services and increase the customer’s satisfactions. Optimal operations management is vital in an airline’s efforts to stimulate its productivity. Singapore Airlines have very good repute in market as most respectful travel brands in the market and was established in 1947. Unfortunately, your browser is too old to work on this site. Airline companies can be differentiated by offering latest and modern services like big comfortable seats, advance aircrafts and new e-ticketing system. Taneja, A. The classic product life cycle has four stages are: According to product life cycle at the movement airline industry on its maturity stage due to big and perfect competition in the market. The introducing of young and modernized fleets by Emirates Airline is an excellent strategy for maintaining dominance and beating the competition. Emirates should control its cost and should decrease its cost through improvement and development of operations activities .Emirates should improve maintenance process, effective and efficient flight schedule of the company and better utilization of the company resources like aircrafts etc. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Eventually, Emirate’s Airlines make comprehensive analysis and review of company internal and external factors and its competitors and should develop new strategies for staying and keep good position in airline industry at this maturity time. Emirates Airlines has implemented a fully-fledged state-of-the-art flight catering facility. In 2013, the facility was considered the largest in the world with regard to volume throughput. Emirates have 5th number over the world in profitability. Airline companies should also integrate food safety experts throughout the food production process. The airline is the largest in terms of passengers, revenues earned and the fleet size in the Middle Eastern region and is owned by the Dubai government. Rapidly increasing in the operations cost due aviation security. In the past financial year, Emirates’ fleet grew by 13, meaning many more seats available for the airline. The business environment is undergoing a high rate of revolution arising from different factors. He is one of the main people behind Emirates as we know it today, because he built the airline from the ground up. Subsequently, it is imperative for the airline’s operations manager to adjust its flight catering capacity. Inventory control component is concerned with ensuring that the necessary resources such as employees and aircrafts are availed. The industry players should focus on two main aspects, which entail revenue maximisation and optimal capacity utilisation. (30 marks-700 words) Q3. Non membership of any International Alliances. You are free to use it for research and reference purposes in order to write your own paper; however, you must. "Capacity Management in Emirates Airlines." The global airline industry faces a myriad of opportunities and challenges arising from the external and internal business environment. Airline industry has high entry barriers, primarily associated with the huge start-up costs involved. We need huge capital for this industry for purchasing new crafts and also for starting new projects and also need for attractive to customers. The database is updated daily, so anyone can easily find a relevant essay example. STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Emirates Airlines Case Study: To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. Emirates Airlines has adopted flight catering as one of its operational aspects in the pursuit of competitive advantage. In a bid to address this challenge, it is vital for airlines to evaluate the most effective capacity management strategies. Furthermore, diseases also disturb the population of different countries, big example of this Bird Flue which is a killer unprocurable disease. Our academic experts are ready and waiting to assist with any writing project you may have. IvyPanda. It started due to cut backs in destinations from Gulf Air and has evolved as one of the best service providers worldwide. This is also another fundamental strategy of the company for increased the numbers of tourist in this way it assist to local bodies and advice for development of new Hotels, Restaurants, new buildings etc. Slack, N., Chambers, S. & Johnson, R. 2010, Operation management, Financial Times, New York. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. There is rapidly increasing world population and in this way increasing in number of tourist and educated people. Furthermore, it is also imperative for organisational leaders to integrate clear service quality targets by integrating the concepts of benchmarking. 22 no. 5, pp. The high rate at which change is occurring in the business opportunity poses a threat to the firms’ operation. The firm recently upgraded the JD Edward EnterpriseOne 8.10 to 9.0 in an effort to achieve system stability (The Emirates Group 2014). This move will enable the firm to exploit the business opportunity successfully. Emirate has its threshold resources which include its flights, office equipment, head quarter, finance resources and employees. From analyzing external and internal environments, it is worth that Emirates management identifies its capabilities and competitive advantages and access how competitive it is in the field. (Saaksvuore. Increase in the consumers’ disposable income across the world coupled with the high rate of globalisation has also contributed to the industry’s growth as individuals explore new opportunities in other countries. The catering process is further complicated by the number of flights from the main hubs especially in large airlines companies such as Emirates Airlines. According to Hellermann (2006), forecasting the demand in flight catering is important in determining whether a particular airline has the capacity to address the needs of the targeted market segment. Copyright © 2021 - IvyPanda is a trading name of Edustream As establishment not much old just in 1985 ,so it’s young airline. In airline industry threats are low as comparatively barriers are high. Emirates Airlines has a one of the largest number of cabin crews hailing from 95 different nationals. For example it is strongly recommended to new installation of self check service system on all airports. For example people use theirs cars and use trains and buses within the same area or country. 1. Another big factor is rapidly rising in oil prices over the world specially in middle east as well, due to this cost increased of airline industry and in this way profit has been decreased and these losses has been reached round $ 6 billion in 2009 (IATA) 6 billion in 2009 (IATA). The Dubai World Expo further increases the potential for future growth. The study also intends to recommend the best capacity operations to be implemented. Lim Meng Sheng CEB140063 6. The purpose of all changes only become the leader company in over the world in this order enhanced brand name awareness by locally, regionally and also world level and in this way it will increase profit and goodwill as well. Therefore, airline companies should conduct continuous market research in order to understand the passengers’ behaviour. Therefore, the airline company can minimise the cost that it would have incurred by hiring external flight catering services. We're here to answer any questions you have about our services. The pricing strategy in yield management also entails integrating different prices for different products. One of the challenges relates to management of demand and supply, and hence the companies’ capability to sustain their quality standards. Subsequently, the firms can achieve their productivity targets. British Airways). Any of the organization or system that manages its operations and strategies well only able to work with consistency and good efficiency as well. For this purpose the emirates airlines was the 1st Airline in the world who offered TV screen in its all airline and 1st time introduce e-ticketing system in UAE. In order to improve its competitiveness, it is imperative for Emirates Airline to improve its capacity management in flight catering. However, only credible sources such as peer reviewed journals, articles from credible databases, and books were used, thus assuring the credibility of the information collected. 2019. Your privacy is extremely important to us. Industry players are adopting diverse business models in an effort to improve their competitive edge. The level of consumer confidence towards the airline industry has grown remarkably. One of the areas of emphasis relates to the provision of excellent level of service. A, 2008). 2013, Emirates sets out plan to fly 70 million passengers in 2020. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. 6 September. Most consumers consider air travel transport as a safe mode of transport. In a bid to exploit this opportunity for growth, Emirates Airlines should consider the most effective strategy to adopt in order to provide optimal flight catering services. (Economic Development), The latest technology also affected in both ways positively and negatively. CSEB3101 Strategic Management Lecturer: Dr Tey Lian Seng Presented by: 1. Barnhart, C. & Fearing, D. 2012, ‘Demand and capacity management in air transportation’, European Journal of Transport Logistics, vol. I could listen to Clark talk for hours. & Veen, A. Starting a new airline by penetrating into the competitive market would require capital resources… Emirate Airlines is cognisant of the significance of developing a strong level of customer loyalty by providing customers with high quality services. Despite this aspect, airline companies are increasingly using flight catering as a marketing tool (Jones 2004). Recently it made an order for aircrafts worth $ 27 Billion for 45 Airbuses A380, in this way cit become the world’s largest purchaser of Airbus’s super-jumbo. The flight catering production unit may be comprised of more than 800 employees and producing over 25,000 meals every day. One of the areas that airline companies should focus on relates to customer satisfaction. The firm has established a flight-catering department in its quest to improve the customers’ level of satisfaction. This report cites a number of elements that airline companies should consider in the quest to undertake capacity management. The new entrants in any industry face some threats from existing companies because new company offer more attractive product with low cost etc. Sambidge, A. Free resources to assist you with your university studies! Recently increase in fuel prices which is also cause of high operations cost. Over 250,000 Australians visited Dubai last year, largely reflecting the convergence of both airlines’ networks. Another way for reduction of cost is advancement in its technologies by investment in technologies and in this way cut of labour cost. On the other hand positive impacts of e-booking system make reservation system very easy and accessible to any one and it has very good impact on the sale of the company. This is another fundamental and very important strategy of the company for development of its e-business system, self check services system and also maximize the profit through its advancement in Information technology system in this way it make a lot of contracts with very big companies of the world. This study intends to identify the gap within capacity management of flight catering at Emirates Airlines considering the expanding capacity of aircraft and other services over the few years.