Академический Документы
Профессиональный Документы
Культура Документы
MOHAMMED EJAS
DEPARTMENT OF MANAGEMENT
DECEMBER 2016
Submitted to
Kavita Shukla
1|Page
In partial fulfilment of the requirements for the award of the Degree of
Bachelor in Business Administration
Department of Management
By
MOHAMMED EJAS
Kavita Shukla
Department of Management
DEPARTMENT OF MANAGEMENT
Annexure -D
2|Page
DECLARATION
Dubai
Annexure -E
3|Page
CERTIFICATE
To the best of my knowledge this work has not been submitted in part or
full for any Degree or Diploma to this University or elsewhere.
Dubai
Department of Management
4|Page
ACKNOWLEDGEMENT
I would also like to thank Dr. Narayanan Ramachandran, our Pro Vice
Chancellor for his vital encouragement and support.
I would also like to thank my parents and my friends for their constant
encouragement without which this report would not be possible.
And finally, to The Almighty God, who made all things possible.
5|Page
ABSTRACT
6|Page
Annexure F
CONTENTS
Certificate iv
Acknowledgements v
Abstract vi
Contents vii
Introduction 1
Literature Review 2
Conclusion 17
References 18
7|Page
Introduction:
If man could fly, hed have wings used to say the sceptics of the yesteryears.
Man certainly is born without wings but what he does possess is the mind to
defy the perceived limitations set on human capabilities. When the Wright
brothers first took flight in their plane over a century ago, it laid the
foundations for engineers to not only replicate their work but to make it bigger
and fancier. From this arose perhaps one of the greatest marketing strategies of
the 20th century. Marketers offered the public the fantasy to sore among the
clouds and visit exotic places which they had previously only heard of. Now,
fast forward to the 21st century the number of airline companies have grown
exponentially. Airlines such as Qatar Airways, Emirates, Etihad and many
others, each delivering the basic idea of taking you places and each trying to
outdo their competition in hope of attaining customer value. In this respect
various airlines have stood out amongst the competition over the past decade.
There is a constant supply and demand in this sector as the world population
demands it and the airline economy are hands down ready to provide whatever
is required of them, which in turn makes it a lucrative sector to be in.
Literature Review
Today it is unquestionably the airline sector which is booming to be the
liveliest and rising enterprises on the planet prompting to monetary
development, global venture, as well as tourism. The Middle East remains the
quickest developing air transport advertise on the planet, with its activity
expanding over 2013 at a rate of 11.2% compared to 2012, representing 9% of
worldwide RPKs.
8|Page
any other advanced medium. The path in which advanced advertising has
developed since the 2000s has changed the way organizations use innovation
and computerized showcasing for their advertising and marketing techniques.
Computerized advertising effort are turning out to be more predominant and
also effective, as advanced stages are progressively joined into promoting
plans and regular day to day life.
Each airline, and airplane terminal, has a responsive, online business stage that
coordinates the most recent UX intuition to get clients rapidly to the point of
inquiry, select and purchase. These advanced developments bring positive
effects on everybody in the business - the Airplane sector, the air terminals, the
framework organizations, outsiders feeding off of the development in travel
and, of course, the clients.
Often, there is likewise the opportunity to bundle, and as we've seen with some
suppliers, giving a cell number for the purpose of booking and reconfirming at
check-in and check-out can take into account focused on offers and data
alarms all through the journey.
9|Page
1. Environment Scanning And Competitiveness Of The Airline
Industry
In the previous decade, air travel has developed by 7% every year. Travel for
both business and recreational purposes became firm around the world.
Scheduled aircrafts conveyed 1.5 billion travelers last year. In the leisure
advertise, the accessibility to large aircraft, for example, the Boeing 747 made
it advantageous and reasonable for individuals to venture out further to new
and intriguing places. Governments in developing nations understood the
advantages of tourism to their national economies and impelled the
advancement of resorts and framework to draw travelers from the prosperous
countries in Western Europe and North America. As the economies of
developing nations develop, their own nationals are as of now turning into
international tourists of the future.
The Asia/Pacific region remains the worlds biggest air transport sector based
on the 2013 figures, with a 31% share of total traffic representing an increase
of 7.2% over 2012. Despite a better economic climate in Europe and North
America, the traffic of the European and North American airlines increased
less than the world average, growing at 3.8% and 2.2%, respectively. The
Middle East remains the fastest growing air transport market in the world, with
its traffic expanding over 2013 at a rate of 11.2% compared to 2012,
accounting for 9% of global RPKs1. (statistics via airline trends)
Aircraft Industry being the one of the integral part in UAE's economic
development, United Arab Emirates (UAE) carrier Emirates Airlines is the
biggest administrator in the Middle East by flight situates inside and from the
district. Right now the second biggest air terminal in the United Arab Emirates
(UAE) and one of the fastest growing airport hubs globally, Abu Dhabi
International Airport (AUH) serves more than 94 destinations in 56 nations. So
as to provide food for the developing air traffic, the emirates of Dubai plans to
expand its second airplane terminal, Al Maktoum International at Dubai World
Central, to handle 120 million travelers within six to eight years
10 | P a g e
1.2. Industry Size And Growth Of The Airline Industry
In 2009, the business flight industry entered a golden age. Between 2009
and 2014, revenue in the global flight industry developed at a compound
yearly growth rate of around 9.5 percent, achieving 751 billion U.S. dollars
in 2014. The area's enhanced financial execution is the after-effect of a
rising number of air cargo and traveller figures, which thus are driven by a
world that is progressively turning out to be increasingly well-to-do and
interconnected.
According to the CAPA research, Air travel was seen as the key pillar to the
citys development. In the mid-1980s, petrochemicals had accounted for
50% of the tiny emirates GDP, but it lacked the large reserves of many of
its neighbors in the UAE and elsewhere in the Gulf. With the oil certain to
run out eventually, Sheik al-Maktoum sought to ensure a future
for Dubai by developing it into a global hub for trade, travel
and tourism. To do this, Dubai needed its own airline. With a modest state
investment of USD10 million and two leased aircraft, Emirates was born.
The carrier was entrusted to a group of Gulf and British aviation veterans,
led by the remarkable Sir Maurice Flanagan and more than ably followed
by Tim, now Sir Tim, and Clark. Emirates Airline launched on 25-Oct-1985
with a single route to Karachi, Pakistan
11 | P a g e
When Emirates operated that first flight, Dubai International Airport had just 3
million passengers annually, almost all of it origin and destination traffic. By
2000, passenger numbers at Dubai had grown to 12.3 million, with better than
1.2 million transit passengers shuttling via the rapidly growing hub. In 2014
there were over 70 million passengers, half of them in transit and two-thirds
flying Emirates.
More broadly, aviation has taken centre stage in the economic development of
the Gulf region. The growth in international passengers at Dubais main airport
over the past decade has also given other industries from tourism to retail a
boost, and they are expected to continue to thrive on the aviation sectors
expansion.
The aim for Emirates was to compete, on a commercial basis, with the best
airlines in the world. Commercial sustainability was a key element of its
growth: in its 30 years of operations, Emirates has reported 28 years of profit
(graph below in AED) and returned more than USD2.5 billion back to Dubai.
Few, if any, other airlines can boast a similar record.
12 | P a g e
Figure 2 Sources CAPA-Centre for Aviation and Emirates
The contribution of the aviation and tourism sectors to the GDP of Dubai is
expected to reach 47 per cent in 2015.This is equivalent to AED 196 billion,
compared to AED188bn last year.
13 | P a g e
According to Al Bayans economic analysis, the emirates GDP will reach
nearly AED415bn, a growth of 4 per cent compared with last year, according
to government statistics issued by the Department of Economic Development.
The contribution of the aviation sector is estimated at 27 per cent of Dubais
economy this year, which is equivalent to AED113bn, according to the latest
data from Dubai Airports. This is compared to AED101bn, the contribution of
the aviation sector to the local economy of Dubai in 2014.
The contribution of the tourism sector to the local economy of Dubai accounts
for about 20 per cent or AED83bn in 2015, compared with AED80bn, the
sectors contribution to Dubais economy last year, according to statements
released by the Department of Tourism and Commerce Marketing (DTCM) - ,
reports UAE-based Al Bayan
1.3.1 Primary Activities relate directly to the physical creation, sale, maintenance and
support of a product or service. They consist of the following:
14 | P a g e
Inbound Logistics: These are all the processes related to receiving, storing,
and distributing inputs internally. In case of an airline sector, the activities
included are aircraft acquisition, fuel, flight scheduling etc.
Operations: These are the transformation activities that change inputs into
outputs that are sold to customers. It ensures the smooth running of the airline
industry. It involves activities such as ticket counter operations, gate
operations etc.
Outbound Logistics: These activities deliver your product or service to your
customer. Like storing and distribution of product and service combinations
and they may be internal or external to your organization. The activities with
regard to airline sector involve baggage system, flight connections
Marketing and Sales: Works as a median by which consumers are made aware
of and can purchase products and services. The activities include promotion,
advertising, group sales etc.
Services: These are the activities that enhance the value of a product or
service. Such as lost baggage service, complaint follow up.
15 | P a g e
1.4. Market Structure Of Airline Industry
The Airline companies that deals with or provides similar service in the same
geographical area is called Airline market structure. Two popular Airline
companies are listed below:
Emirates Airlines
Emirates Airline is the national airline of the emirate of Dubai, United Arab
Emirates. It is one of the largest airline companies in the Middle East including
in the Persian Gulf and it operates more than 2400 passenger flights
per week from its hub Dubai international airport terminal 3 to worlds 105
cities in 62 countries across six continents (iata, 2011).popular airlines was
launched in 1985 with just two aircrafts nut now is one of the major players of
Dubais airline industry with a fleet of more than 230 aircrafts that fly to more
than 150 destinations to more than 80 countries around the globe. Recently, it
won the Skytrax World Airline Awards in the year 2016. Emirates have
focused its differentiation in a legacy airline of luxury, high tech, state of the
Art and its excellent quality. It has been very successful in its operations, it is
gulfs largest carrier, and one of the worlds largest airline company
Etihad Airways
Etihad the national airline of the United Arab Emirates was established in July
2003 by the Royal Decree, and embarked on commercial flight operations in
November 2003. Etihad meaning unity in Arabic, aims to build a symbiotic
relationship between the East and the West by echoing the characteristics of
Arabian hospitality such as culture, consideration, warmth and generosity.
Etihads fleet of 122 aircrafts operates more than 1000 flights per week
from its hub in Abu Dhabi. It serves an international network of 120 passenger
and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and
North America. It also owns nearly 30 percent of Air Berlin, Europes sixth
largest carrier and 40 percent of Air Seychelles. (Etihad, 2016). Since its
commencement in 2003, Etihad Airways has gone on to become the fastest
growing airline in the history of commercial aviation. The airline has received
numerous awards reflecting its appeal in the global aviation market. It has been
16 | P a g e
named as Worlds Leading Airline at the World Travel Awards for seven
years in succession from 2009 to 2015. On October 12, 2016 it received a 5-star
rating by Skytrax- a U.K. based consultancy that runs an airline and airport
rating site. (Etihad, 2016)
17 | P a g e
1.5 SWOT Analysis Of Emirates Airline
1.Tourism :
18 | P a g e
2. Globalization
Globalization is the opening up of world economies and market for the foreign
industries, goods and integrating the world market. So due to globalization,
there is a rapid increase in the movement of people, goods and investment
across the nations. It presents the people to travel to other market, explore
wide variety of goods and culture. These possibilities involved transportation
and gence, the airline industry was a major source. Globalization gave a rapid
boost to airline industry. The process of connecting markets r still ongoing and
thereby could state that globalization influence airline industry.
UAE too opened up its gates for globalization, and the integration required
its airline industry. The movement of human resources, goods and resources
were made vast with its airline industry. In fact the remotest nation could be
easily connected with UAE with the help of airline
In UAE, almost all the products r imported due to its desert topography.
Thereby airline industries r depended heavily for the transfer of perishable as
well as durable goods. Many airlines like Emirates, Etihad etc have their own
portals for facilitating imports and exports of goods easily
Competition increases when new airlines enter the market or when existing
airlines expand services to new markets. Existing airlines benefit, however,
from economies of scale and rights on airport slots, and hence, expansion into
new markets has fewer entry barriers compared to new airlines.
19 | P a g e
The capital requirement for aircraft acquisition is high and can deter new
airlines from entering. However, the impact of this is reduced due to the
availability of leasing options and external finance from banks, investors, and
aircraft manufacturers.
Switching cost is low for customers. Although loyalty programs are useful to
retain customers across alliances, theyre not very useful in retaining
customers between airlines within an alliance.
Value chain improvement
Strong Management:
Creating Awareness:
The Dubai Government readily demonstrates awareness about the importance
of the airline industry so as to enable growth in some of the key sectors of
Dubai economy.
Openness:
Dubai has a very liberal aviation policy which has helped all the airlines to be
able to operate without much restrictions on their decisions. Dubai favors open
competition among the airlines.
Capable workforce:
Highly qualified and competent workforce is a very essential part for the
success of any service-oriented industry. They must have strong
20 | P a g e
communication skills and soft spoken with customers coming from various
parts of the world. As per reports, around 416500 jobs are taken up at the
airline industry in Dubai and all these positions are filled after many levels of
interviews, which assures highly competent workforce.
In flight services:
The in-flight services such as booking ease, aircraft type, aircraft seating
space, class of service also chances the success of the airline industry.
Emirates Airlines, being one of the Dubai based airlines, provides first class in
flight services which includes entertainment, food, gifts and so on
Financial Management:
Thriving management of this factor facilitates airlines to regulate investment
for growth. There is accountability of unit revenue to compute the profitability.
Route System:
An airlines route organization is the most reliable factor. Where to fly and
how frequently success factors are that must be harmonized to demand and
simultaneously planned to increase aircraft utilization
21 | P a g e
1.8.2 Risk Factors
Fuel prices:
All Airlines are inherently dependent on fuel to operate. Lately, the prices of
fuel have been largely fluctuating unexpectedly. While there can be a profit
with a drop in fuel, there can also be immense loss with the increase in fuel
prices
Security concerns:
Airlines face one many security concerns on a day to day basis. This is
considered one of the major risk factors related to the airline industry.
Global conditions:
Adverse weather conditions, outbreaks of diseases in one of the destinations or
the based country can lead to delay or cancellation of flights which leads to the
airline industry incurring losses
22 | P a g e
2. DIGITAL MARKETING STRATEGIES IN AIRLINE SECTOR
2.1 Digital Marketing Strategies in Airline Industry
The use of digital technology (both web and multimedia) and also processes,
in the development, distribution and promotion of products and services.
Digital technologies include Internet media such as websites and e-mails as
well as other digital media, such as wireless or mobile, and media for
delivering digital television, both cable and satellites. Also known as web or
online marketing. As coined by the Oxford dictionary of marketing (edition
4) by Charles Doyle.
MIND MAP
i) Social Media: Some of the biggest airlines in the planet are immensely
active on social media platforms. Huge amounts of effort are put into
develop top of the line campaigns in order to create a feeling of strong
presence on social media, and usually it results in surprisingly well results.
This includes starting Instagram accounts, paid advertisements powered by
Facebook, the new and improved explore tab and a more effective search
which provide brands an opportunity to reach out to a new audience with a
reactive content strategy. Social media consolidates various computerized
activities and tools that support sharing and correspondence over the
web. Efficient utilization of social media is made by various segments of
the society. It is beginning to be perceived as a critical tool for marketing
and advertising.
23 | P a g e
Top usage of social media data (via linked.in)
iii) Mobile Applications: As people are being more dependent and reliable
over their smart phones, there is no better way to reach, connect and
communicate with ones consumers than mobile apps. They are very
convenient, user-friendly and provide information and clear other queries
at a much faster rate. With mobile apps, passengers can receive flight
updates at any given time. They can get alerts regarding flight changes or
boarding details. It is imperative for the aircraft business to stay aware of
the travellers pace. By advancing the utilization of a versatile system,
transporters can expect their client reliability rate to take off alongside the
expanded revenues it brings.
24 | P a g e
2.2 Digital Influence In Airline Industry
i) Online Reservations: Every airline and airport have a responsive
online/digital platform or mobile apps which help customers get answers
for their queries and also for searching, reserving and booking flights.
ii) Digital Displays: Airports and suppliers have identified that digital
displays just like other personal devices do help the passengers to be kept
up to date about flight timings and boarding details, they also help people
that are tech illiterate be informed at airports and flights.
iii) Smart watches and Google glasses: Both these devices have begun to gain
popularity in the Airline Industry. It is said to be an experience of the
future. Smart watches will soon be able to carry boarding passes that will
help passengers check-in and check-out with ease. Google glasses help
with photo-facial recognitions.
Conclusion
After performing the researches, it can be concluded briefly that the aviation
industry in the UAE has been recording an impressive growth over the years.
The UAE has made significant strides of growth in the aviation domain in the
past few years. Role of Digital marketing in the airline industry is so
unavoidable that these digital innovations bring positive impacts on everyone
in the industry - the airlines, the airports, the infrastructure companies, third
parties feeding off the growth in travel and, of course, customers. The sample
surveys and mind maps explain the role of technology plays at airline sector
and enables the incredible growth in Digital Marketing in the Airline industry.
25 | P a g e
https://www.scribd.com/doc/23940073/Swot-of-Emirates-Airlines
26 | P a g e