Competitive Dynamics in Emirates Airlines Quest for Global Expansion

2687 Words 11 Pages
Competitive Dynamics in Emirates Airlines Quest for Global Expansion
Paul Mugendi MBA 604
Embry Riddle Aeronautical University
May 2014

Executive Summary
In an industry beset by unpredictable geo-political factors and cyclical crises, only one international carrier has consistently managed to increase revenue and report a profit for the last 25 years. This carrier is Emirates airline (Riva, 2013). Emirates has managed to achieve in less than three decades what giant and well established global carriers like British and Lufthansa managed in about five decades, and that is to serve all five continents without any alliances or partnerships. The objective of this term paper is to analyze some of the competitive dynamics that Emirates,
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Fast forward to 2014, Dubai is a total contrast of its old self with a skyline that rivals major European and American cities like New York and London. Emirates airline has a network extending to all five continents and is now the world's fourth-largest by international traffic. (IATA, 2012) By 2012, Emirates was serving over 100 cities in over 60 countries, and had a fleet of 138 planes and 140 more on order including 50 of the spectacular Airbus A380, of which it is the largest operator and also the largest customer (over 100 and counting) for the Boeing 777 long range super jet.(Riva, 2013) The location of Dubai is both a curse and a blessing. The United Arab Emirates' backyard is the Middle East, a region in the headlines for violence, terrorism and anti-western ideological states like Iran, Iraq and Afghanistan. The Israeli-Palestinian conflict has raged for generations and the end is nowhere in sight. (Mouawad, 2011)
Geographically, Dubai's location is a blessing. According to Peng, (2014) Dubai International airport may be regarded as the center of the world and Peng goes on to refer to Dubai as the world's natural "pinch point". Over two billion people live within four hour flight and four billion within an eight hour flight of Dubai. (Peng, 2014). Dubai is also strategically located in between the two major emerging economies of Africa and Asia and within an eight hour flight of most financial and industrial cities of Europe, Asia and Africa. Under

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