developing

management
approaches for
the
corresponding
factors, and
considering the
impact
andpotential
consequence
chosen
approaches will
have on other
industry
factors. This
case
requiresyour
team to gain a
better
understanding
of
the importance
of
understanding a
specific
airline—
Emirates
Airline—and its
surrounding
business
environment to
create a viable
strategy,
competitiveadv
antage, and
long-term
corporate
value.
Your objective
is to thoroughly
analyze
Emirates
Airlines based
on your work in
the previous
caseand the
information in
this casebook.
Your advisory
services firm
has been
engaged
to analyzeEmira
tes Airlines and
provide
its Board of
Directors with a
professional ser
vices
presentation
onhow your firm
can enhance
organizational
value.
Emirates
Airlines—
Background
and Strategic
Priorities
An important
player in the
luxury airline
market,
Emirates
Airlines was
founded in
1985 and
servesapproxim
ately 142 cities
in 80 countries
from its hub in
Dubai, United
Arab Emirates
(UAE).Emirates
Airlines has
grown to its
strong position
in a relatively
short period of
time. Prior to
1985,the
Middle East
was served
primarily by
Gulf Airlines,
which
distributed
earnings to
respectivecoun
tries in the
region based
on each
country’s
relative
percentage of
oil. Since Dubai
hascomparative
ly less oil—it
relies on trade,
travel, and
tourism
for much of its
GDP—the
countryprovide
d a US$10
million infusion
of seed funding
to launch
Emirates
Airlines. The
governmentissu
ed three
conditions for
Emirates
Airlines: (1) the
airline must
operate
independent
of thegovernme
nt and generate
a positive
profit, (2) no
additional
governmental
funding will be
provided(i.e., no
government
subsidies), and
(3) Dubai will
operate
under an “open
sky”
competitiveenvi
ronment,
meaning that
the government
would not
decide
which airlines
can or cannot
fly inand out of
Dubai (or how
often). Accordi
ngly, unlike
most
traditional
legacy carriers
around
theworld,
Emirates
Airlines was
born into and
has “grown up”
in a competitive
environment,
which
hastaught the
airline to be
adaptable to
various
challenges. For
example,
Emirates
Airlines is able
toestimate its
GDP economic
impact on new
markets within
twelve months
of entering
them,
whichhelps
achieve buy-in
from
new markets by
showing the
benefits of
“open
skies.”Emirates
Airlines ranks
as the fourth
top airline in
2014 (according
to World
Airline Awards)
and isthe
world's most
valuable airline
brand with a
net worth of
US$5.5 billion.
Its values
emphasize
theCompany’s
commitment to
providing the
highest
standards of
quality in every
aspect of
thebusiness.
Specifically,
Emirates
strives to be
agile; go the
extra mile to
excel in all
areas;
significantlyinv
est in products,
people,
infrastructure,
and technology;
deliver the
best value to
customers;
andstrike the
right balance
between
achieving
immediate
business
priorities and
planning ahead
to