Emirates Airlines: SWOT And PEST Analysis Of Emirates Airlines

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SWOT & PEST Analysis - Emirates Airlines

SWOT

As Emirates Airlines plans to increase there revenue by launching a new project, it needs to create a framework and analyse it throughly, with the help of SWOT analysis this can be achieved.
SWOT - Strength, Weakness, Opportunities and Threats

Strength

The most important strength, some may even consider it an asset, for emirate airlines is its brand awareness among the consumers. The Chairman of the airline - Sheikh Ahmed bin Saeed Al Maktoum is also the president of the Department of Civil Aviation which gives the airlines strong backing from the government which enabled them to create a strong hub in dubai and also other benefits such as subsidised fuel rate, premium air space,etc(——). Furthermore,
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The Airlines Hub, dubai is consider as a booming tourist destination which attracts potential customers to visit the city using emirates , also dubai’s strategic location lures transit passengers.
Since the aviation industry contains large number of airline companies, it provides an opportunity for emirates to codeshare (partnership) with various other airlines to increase its network and gain new customers. The airlines network consists of international destination which are popular among customers.

Threats

The airline faces immense competition from other airlines companies, especially from the increase in competition within the Middle Eastern region. There is not yet an alternate for Jet fuel , the fuel prices are increasing causing a threat for the airline. Emirates is considered as a government subsidiary company, an instability in the government may propose a threat for the airline. Since the airlines is in the hospitality industry, recessions may pose a
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The Department of Civil Aviation has plans to invest in developing its main airport. Dubai’s total investments on airport development over coming 20 years will exceed Dh 45 billion.(——)

Social factors

Due to the increase in world population, especially in UAE which consists expatriates.As the number of expatriates is increasing, airlines firms' profits will increase, because those expatriates need to travel to their homeland sometime. Also the boom in tourism industry increases the demand for airlines.

Technological factors

Technological advancement has a negative & positive impact on airline industry. The technology of teleconferencing reduced the need for face to face business meetings which affects on the number of business travellers and on the sales of business tickets. However, e-booking system makes the reservation easier and save many expenses such as reducing the printed tickets.

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