Etihad Airways Passengers - Literature review Example

Name Class Unit Etihad Airways passengers Etihad Airways is one of the fastest growing airlines in the industry according to study “Etihad plots growth after milestone” by Thomas (2012). The research by Thomas shows that since the airline was started in 2003 through a royal decree, the airline has seen a tremendous growth in the number of passengers. This article can be supported by the fact that with its hub in Abu Dhabi, the airline has been able to operate an international network of 87 passenger and cargo destinations in over 55 countries. In 2011, the airline saw their number of passengers rise to 8.3 million. This was a 17% increase from 2010. In 2014, 14.8 million passengers used the airline. This is a 23% rise on the 2013 levels. The passengers’ growth has been outstripping the airline capacity increase which requires a long term growth strategy (Al-Ali & Ahmad, 2014). According to Ttn worldwide.com (2016), Etihad Airways have been able to carry about 74% of all passengers who travelled through the Abu Dhabi International airport. Combined this figure with the equity partners, it rises to 82% of the passengers’ traffic at the Abu Dhabi international airport. In 2015, the airline saw an increase of 17% of the passengers based on 2014 levels. This was through a total of 17.4 million passengers. In the same year, analysis shows that the airline was able to operate 97,400 flights and carrying more than 75% of the total passengers in Abu Dhabi international airport. The percentage rises to 84% when the equity members are factored in. it is possible that the airline strategy of organic and inorganic growth has been able to work and attract more customers (Ttn worldwide.com, 2016). Use of codeshare and equity partnership has also played a major role in passengers increase. For example, an increase of 43% which represent over 3.5 million passengers was seen in 2014 through partnership. Ttn worldwide.com article “Aviation Etihad targets 25m passengers by 2020” supports Al-Ali & Ahmad (2014) and shows that airline growth is achievable. This is through doubling the number of cities served from 50 to 100. This is a great increase prospects considering that the airline had only 6 million passengers in 2008 with 48 destinations (Buyck, 2008). Destinations According to Buyck (2008), it is clear that expansion in aviation industry is based on the number of destination served and the total number of passengers. Etihad destinations have been expanding over the years with the opening of new routes. From the research, it is evident that Etihad wants to increase their global reach through opening new routes and destinations. In 2015, the airline announced six new routes with an aim of increasing the number of connections worldwide. Etihad currently serves 87 destinations spread over 55 countries. The number of destinations keeps on growing annually as the airline expands it reach. The destinations include Cairo, Casablanca, Addis Ababa, Beijing, Damascus, Brisbane, Brussels, Athens and Baghdad among others. The new destinations include Hong Kong, Entebbe and Algiers. Through the new destinations, it is evident that the airline will strengthen their positions in the strategic markets in Asia, Africa and Europe (Haider, 2016). When an airline increases its destinations, it is able to enhance market relations between countries. This implies that it will be possible for UAE to trade easily with new destinations. Fleet, partner and codeshares Research shows that Etihad works with the most recent and environmental friendly fleet of airplanes. Based on the “factsheet” of 2012, the airline had 66 aircrafts which consisted of airbus A 319s; 15 A320s, 4 A340-500s and various models of Boeings. During the same year, the airline announced the largest commercial aircraft order in the aviation history. This included up to 205 aircrafts where there was 100 firm orders, 50 purchase flights and 55 options (Etihad, 2012). By the end of 2015, the airline had 121 aircrafts. This is a growth of 9% in every year. In the same year, the airline had received a delivery of 4 A380s, 6 A321s and 1 A320, 4 Boeing 787-9 Dreamliner. The airline also utilised leased capacity. Further research shows that the airline is keen to expand their fleet. The factsheet is supported by an article “Etihad passenger traffic up 17%” written by Haider. The article shows that there are plans to receive 10 aircraft deliveries for 2016 which will include 2 Boeing 777-200, 3 A380s and 5 Boeing 787-9s (Haider, 2016). Based on Etihad “factsheet”, the airline has 35 existing codeshares in place. The agreements are aimed at building the airline international network. It is evident that most of the codeshares are established airlines such as Air New Zealand, virgin Australia, American Airlines, Brussels Airlines and Cyprus Airlines among others. Etihad has been increasing their codeshare and equity partnerships. The study about “Etihad Airlines: growth through successful strategic partnerships” by Al-Ali & Ahmad (2014) is very correct as proved by the factsheet. Through partnership, the airline is able to increase the number of passengers. For example, in 2014 codeshare and partnership led to over 5 million passengers increase. The partnership network has been growing at a fast rate with Alitalia and Air Berlin being among the latest additions (Al-Ali & Ahmad, 2014). Safety and quality According to the article, “Etihad Airways: reputation management-an example of the Eyjafjallajökull Iceland volcano” by Stephens Balakrishnan (2011), Etihad airlines have one of the best safety and quality in the industry. This has enabled the airline to outdo their competitors. With the ambitious growth plan, airlines across the world have their profitability eroded. Most of the airlines perceive the emirates based carriers as a threat. This is due to fact that airlines such as Etihad have a great safety record and quality services offered at competitive prices. The airline quality experience can be explained through the guest experience. This is where the airline ensures that customers are given quality service from the moment of booking to the ground inflight elements. Rodrigues, Cusick & Wells (2012) supports the fact that airline safety boosts its success. From the article, airlines with great safety records have more customers. The airline has a great safety record over the years. With the current modernisation and purchase of new fleet, one can agree with Stephens Balakrishnan (2011) article that the airline has great safety prospects for future. Employment Mayo (2012), states that “Human resource is the key to business growth”. This implies that for a business to grow, they have to invest in human resources through training and development. Etihad “factsheet” shows that Etihad airlines have over 17,593 employees globally. The employees come from over 140 nationalities hence acknowledging cultural diversity. Cultural diversity in the workforce enhances diversity. This is attained through looking for the right people, tutoring and training them (Mayo, 2012). It is important to note that business reduces the levels of unemployment in home country. Due to low number of UAE nationals in the airline, Etihad has been training UAE nationals through the emiratisation programme. This will enable Etihad to increase the number of UAE professionals in future. Customer service Lucas (2009) explains how customer service serves a very vital function in business success. For Etihad to succeed in future, they must continue with their excellent customer service. This is through acting on customer feedback, listening and managing complaints. Research shows that when business fails to listen to customers issues, they lose them. Sheridan (2014) in the article “Take a flight of fancy” proves the excellence customer service offered by the airline. The airline has to ensure that they enhance and provide high quality services to customers in order to retain them. Sheridan shows that customers in Etihad are well looked at from the time they book to the ground inflight elements. Customers are provided with the latest inflight entertainment, dining and impeccable service. The customer service ensures that the travel experience is smooth, fast and enjoyable. In the ground, there are first and business class lounges as well as family rooms. Customer service employees ensure that customers are well catered for and complaints addressed. With the advancement in technology, the airline has been working to ensure customer service is improved for future (Sheridan, 2014). Flight operations According to Sheridan’s article, “Take a flight of fancy”, flight services are expected to be the best for award winning airline. The airline inflight operations determine the flight services offered. Etihad Airlines dedicated customer service staffs ensure that customer relations are well managed. Customers in an airline expect high class services. This can only be attained through use of enhanced flight operations (Sheridan, 2014). Technology With the advancement in modern technology, most of the business has been adopting modern technology to enhance efficiency, save time and costs. A book by Gelinas, Sutton & Fedorowicz, (2008), shows that management, business processes, information systems, and information technology are all interconnected for business success. This conclusion made by the book lacks adequate support from evidence. Despite this, it is clear that there is connection between modern business success and adoption of technology. For Etihad airlines, technology has been given a major priority. The airline has one of the most modern technologies in their operations. The airline was among the first to modernise their daily operations such as sale of tickets and other business areas (Jones, 2015). IT makes it possible for the airline to attain high efficiency and increase revenue as the airline strives to attain sustainability. It is evident that the airline has recognised the importance of modern technology and hence has continued to invest highly on the digital channels. This includes a comprehensive digital strategy. Innovations are continually rolled out to ensure that there is superior experience for the airline passengers (Gelinas, Sutton & Fedorowicz, 2008). An article “Etihad Airways Signs $700 Million Deal with IBM” by Jones (2015) explains the Etihad Airways IT deal with IBM. According to the article, this is information technology deals that will ensure that the airline future operations are highly efficient and cost effective. The main aim is improving the airline security and operations while cutting costs in the whole network. When a firm invest in modern technology, they invent in innovation. This will ensure that customers are rarely delayed. The article clearly shows that by investing in technology, the airline will be able to lead others in the industry (Jones, 2015). Conclusion Finally, various researches show that for the business to survive in future it must be sustainable. This research shows that Etihad business is sustainable and has the capability to survive in the future. The number of passengers on the airline keeps on growing from its humble beginning making it one of the most successful airlines. The airline has been increasing its destinations globally with the number of passengers increasing. The increase in destinations also helps the airline in connecting UAE with new trade partners. Etihad Airways has been increasing the number of their fleet with new orders. This makes the airline to have one of the newest and environmental friendly fleet. There is also an increase in partnerships and codeshares which has helped in increasing the number of passengers. Etihad has one of the best safety and quality standards in the industry. Through adequate and diverse human resource, the airline has been able to meet their customer needs and enhance innovation. The customer service offered is one of the best in the industry and high quality inflight operations. With the airline investment in modern technology, it will be possible to continue offering quality service in the industry. The future of Etihad airlines is bright as evidenced by their efforts in, expansion, modernisation and investment in human resource. References Al-Ali, H. A., & Ahmad, S. Z. (2014). Etihad Airlines: growth through successful strategic partnerships. Emerald Emerging Markets Case Studies, 4(5), 1-17. (JOURNAL) Buyck, C. (2008). Etihad's Global Ambitions. ATW: Air Transport World, 45(4), 42-44. (JOURNAL) Etihad, (2012). Factsheet, Etihad guest.com, Retrieved 31st January 2016 from, https://www.etihadguest.com/Documents/PDFs/Corporate%20profile/Etihad%20factshee t/may-2012-en.pdf (WEBSITE) Gelinas, U. J., Sutton, S. G., & Fedorowicz, J. (2008). Business processes and information technology. [Gainesville, Fla.]: Orange Grove Texts Plus. (EBOOK) Haider, H., (2016), Etihad passenger traffic up 17%, Khaleej Times, Retrieved 31st January 2016 from, http://www.khaleejtimes.com/business/aviation/etihad-passenger-traffic-up-17 (WEBSITE) Jones, R., (2015). Etihad Airways Signs $700 Million Deal with IBM, Wall Street Journal, Retrieved 31st January 2016 from, http://www.wsj.com/articles/etihad-airways-signs- 700-million-deal-with-ibm-1444732657 (JOURNAL) Lucas, R. W. (2009). Customer Service: Skills for Success. McGraw-Hill. (EBOOK) Mayo, M. A. (2012). Human Resources Or Human Capital?: Managing People as Assets. Gower Publishing, Ltd.. (EBOOK) Rodrigues, C. C., Cusick, S. K., & Wells, A. T. (2012). Commercial aviation safety (5th ed.). New York, NY: McGraw-Hill. (EBOOK) Sheridan, A. (2014). Take a flight of fancy. Management Today, Issue: 2014(Aug 2014), 40-43. (JOURNAL) Stephens Balakrishnan, M. (2011). Etihad Airways: reputation management-an example of the Eyjafjallajökull Iceland volcano. Emerald Emerging Markets Case Studies, 1(4), 1-17. (JOURNAL) Thomas, A. (2012). Etihad plots growth after milestone. Airline Business, 28(3), 19-19. (JOURNAL) Ttn worldwide.com, (2016). Aviation Etihad targets 25m passengers by 2020, ttn worldwide.com, Retrieved 31st January 2016 from, http://www.ttnworldwide.com/Article/8208/Etihad_targets_25m_passengers_by_2020 (WEBSITE) Read More