Aviation Transport Services In The United Arab Emirates - Research Paper Example

Aviation Transport Services In The United Arab Emirates Introduction Emirate Airline is based in Dubai and is owned by the Dubai government. Emirate Airline was launched to boot airline services that were progressively declining in Gulf Air. During this period, airline services to Dubai were significantly cut back in spite of its growing demand, in the mid 1980s. The Dubai royal family conceived the idea of Emirate Airline in 1985. It is a constituent of the Emirate Group (Wilson 2007, p.96). The Emirate Airline has currently been recognized as the leading airline in the Middle East and has average flights of at least 3500 flights per week to six continents, which is almost equals to seventy-eight countries and 142 cities. The airline is among the leading air carriers internationally in terms of passenger-kilometres (Etheredge 2011, p.93). It has also managed to stand out as the leading airline in Asia and the Middle East, and this has led to its success in terms of biggest revenue base, passengers carried, and fleet size (Etheredge 2011, p.93). By 2014, it had been announced as the fourth largest airline internationally in terms of passengers ferried and the third largest in respect with kilometres covered for both passenger and freight services (Eriksson-Zetterquist et al. 2011, p.234). Emirate Airline operated the longest non-stop commercial flights to San Francisco, Houston, Los Angeles and Dallas from Dubai (Eriksson-Zetterquist et al. 2011, p.234). Emirate Airline manages a mixed fleet of Boeing w-body aircrafts and Airbuses. This is one of the few airline companies that manage an all wide-body aircraft fleet in the world (Plunkett 2009, p.43). Emirate Airline is among the leading airlines in airbuses purchases having placed an order for more than 140 of this, in 2013 alone. It has also managed to create a strong brand name as the leading airline company in Asia in terms of excellence, profitability and profit margins (Plunkett 2009, p.43). The aviation consultancy group known as Skytrax rates Emirates Airlines as a four-star airline. In 2013, Emirate Airline was voted as the most successful airline of the year 2013 (Al-Romaithi 2006, p.46). Background/Modern History In the year 2012, Emirate Airline purchased a new Boeing jet, which became its 102nd airplane to join the Emirate Airline’s Boeing 777 fleet (Plunkett 2009, p.43). Cities that join the Emirate Airline’s network in 2012 include Seattle, Buenos Aires, Lusaka, Dublin, Harare, Rio de Janeiro, Dallas, Barcelona, Washington Lisbon and Ho Chi Minh City. In one of Emirate Airline’s biggest transactions, Dnata acquired a controlling stake in Travel Republic Limited. Statistics shows have shown that this was the leading privately owned online travel agency in the United Kingdom in that year (Al-Romaithi 2006, p.44). Additionally, Emirate airline sponsored the Unite States’ cricket in India for the Deccan Chargers in the same year. In 2011, Emirate Airline made a bold statement by making the largest order in Boeing’s history (Al-Romaithi 2006, p.44). The Emirate Group’s financial statements indicate that the company averagely records net revenue of US$1.6 billion in every financial year (Etheredge 2011, p.27). Over the past years since its launch, there are new additions, which have been made to the Emirate Airline’s network and these include Copenhagen, Geneva, Baghdad and St Petersburg. The company also has setup a cargo-only service in Erbil. In the Emirate airline’s network, Rome Shanghai, Munich and Johannesburg, have also been included in Emirate airline’s’ A380 network (Etheredge 2011, p.27). With respect to organizational culture and community development, the Fly Emirates is the official partner and sponsor of several football teams, which include Arsenal and Real Madrid. The company was also an official sponsor in the South Africa’s FIFA World Cup. Additionally, Emirate Airline, in partnership with Victoria Racing Club, have announced a fresh five-year sponsorship agreement (Etheredge 2011, p.29). In order to expand its freight volume, Emirates SkyCargo has currently completed its first 100 percent paperless freighter flight between Amsterdam and Nairobi (Al-Romaithi 2006, p73). In tracking and appreciating its growth and success, Emirate Airline celebrated its 25th anniversary, which marked its quarter of a century of remarkable growth success (Al-Romaithi 2006, p.81). During this celebration, new networks to Prague, Dakar, Amsterdam, Tokyo, Madrid and Al Medinah al Munawarah were launched (Al-Romaithi 2006, p74). Additionally, Cargo-only services to Almaty, Campinas and Bagram were officiated in the same year. The inclusion of these destinations into Emirate Airline’s network increased the airlines’ operations and profit margins. For instance, profit margins hiked to US$1.1 billion for the financial year ending 31st March 2010 (Al-Romaithi 2006, p84). In its expansion policy, the company also purchased 32 additional A380s along with GP7200 engines at the Berlin Air Show (Al-Romaithi 2006, p84). Emirates Group has also been in the forefront of innovative projects and this has significantly improved and revolutionized the airline industry in the whole world. For instance, Emirates SkyCargo conducted its first paperless flight between Dubai and Mauritius with all shipments carried made electronically. This department also made a new record when it operated the first longest ever non-stop freighter flight of 17.5 hours between New York and Sydney (United Arab Emirates 2011, p.29). Products The services offered by the Emirates Airlines include the aero mobile, which is an in-flight mobile service. It also offers access to internet capabilities such as Wi-Fi. Airport aviation services, offered through the Emirate Airline’s owned firm known as Dnata, is divided into Dnata airport operations, Dnata agencies and Dnata cargo. Emirates Engineering is charged with the responsibility of ensuring innovation and expansion of Airbus and Boeing fleets operated that the company operates. This department also manages and maintains other Airbuses and Boeing fleets that are contracted through third party maintenance (United Arab Emirates 2011, p.59). Emirates Flight Catering Company is responsible for providing in-flight catering services for all airlines at the Dubai International Airport (United Arab Emirates 2011, p.24). This department has approximately 5,400 employees. In 2009, Skytrax voted Emirates Airlines’ catering services as the fourth best in the world for the business class. In the same survey, it was voted second best in-flight catering in Economy class. Mercator is the IT department of Emirates Group. This division was created in 1985, and it offers business technology services and innovation. It currently operates as a full-time worldwide provider of airport and airline solutions (United Arab Emirates 2011, p.59). In addition, to these services, the company also provides retail services like Emirates High Street that is an online retail store, which stocks and sells over 400 products like luxury holiday packages goods and electronics products (United Arab Emirates 2011, p.59). Customer loyalty is also recognized and rewarded through Skywards Miles. This package is only available for Emirate Airline’s frequent flyer loyalty scheme (United Arab Emirates 2011, p.61). The other sector is the Emirates Leisure Retail’s core business, which franchises, establishes and manages a number of restaurants, cafes, bars and leisure facilities at the GCC (United Arab Emirates 2011, p.63). Emirates Group and Heineken International also have a joint venture known as Sirocco that manages the sales and marketing of a wide flavour of beverage drinks across Asia United Arab Emirates 2011, p.99). Emirates Airlines also offer security services for all its airlines. The Gulf ventures and the Congress Solution International manage emirate’s events management and tour operator services. On the other hand, the Arabian adventures manage tourist administration, accommodation and their general welfare. Emirates Holidays is the department of Emirates concerned with tours and tourist travel to destinations such as Malaysia, Sri Lanka, Mauritius, Dubai, Maldives and Thailand (United Arab Emirates 2011, p.60). Emirates Airlines offers Air cargo support services through Calogi, which is a secure internet service portal that provides a number of air cargo businesses across the globe. This platform allows interested buyers and sellers to buy and sell products and services through the Internet. Calogi’s secure portal connects all the interested parties from the airfreight community like government authorities, freight forwarders, and airlines agents to a global network of firms (United Arab Emirates 2011, p.60) Emirate Airline offers accommodation in its hotels and resorts residences for passengers who utilize their services. This also includes tourists who visit United Arabs Emirates. Such passengers have access to Emirates Loyalty Services, which is a consultancy subsidiary of Emirates' Skywards frequent flyer programme (United Arab Emirates 2011, p.62). This programme provides a number of loyalty and CRM solutions. The company also supports education programmes through its Emirates Aviation College. The college was established in 1991, and it has been offering a number of professional training programmes (Jones 2012, p.23). Since its establishment, more than 2000 air traffic controllers and 1700 aerospace technicians and engineers have graduated from the college (Jones 2012, p.23). The number of full-time students has also been increasing progressively, and this has increased from 300 to 1100 between 2004 and 2009 (Jones 2012, p.23). Organizational Culture The Emirates Airlines has over the years taken up various forms of organizational culture. How it has related to its employees has changed continuously. This change, for instance, has been from hierarchical, team-based or people oriented. Emirates Airline was initially formed to serve the Arab nations only, but after its success in the Middle East, it branched out to other countries. Today Emirates employees are a good mix of all nationalities and cultures in the world (Jones 2012, p.51). This variety helps to establish a balance in the organization such that the services and facilities of the airline are available to be enjoyed by all. The employees of the emirates are united by the fact that they share common values, and this makes it easier for them to work as a team (Al-Romaithi 2006, p.73). Emirates airline has shifted its corporate culture over the years to reinvent itself and keep abreast with the changing times. It has changed from soliciting other nations to come to the UAE to being an international Organization that serves the needs of various nationalities (Wilson 2007, p.56).The airline serves not only the needs of the Arabs, but also those of the rest of the world. The airline is not as aggressive as it was towards the western airlines in terms of unhealthy competition. The company has tried to reduce its dependence on machines by increasing its human resource in order to be people-based. Other changes in its organizational structure and culture include shift from quality being solely the responsibility of the managers to being the task of the organization as a whole. In addition, change from basic Control to Task-based commitments and change from discrimination based origin to tolerance and accepting attitude (Jones 2012, p.67). This shift has significantly ensured the expansion of the company’s operations in almost all countries across the world. Additionally, cross-cultural management and hiring has also ensured that the company’s staff uses the local languages; something that has improved the company’s relevance across different cultures and regions. These factors have ensured the company’s progress and success. Reference List Al-Romaithi, S. A. K., 2006,. An airline ab initio flight training program in the United Arab Emirates (UAE): an analytical approach toward Emiratization. Thesis (M.S.A.)--Embry-Riddle Aeronautical University. Eriksson-Zetterquist, U., MüLlern, T., & Styhre, A., 2011, Organization theory: a practice- based approach. Oxford, Oxford University Press. Etheredge, L., 2011, Persian Gulf states: Kuwait, Qatar, Bahrain, Oman, and the United Arab Emirates. New York, Britannica Educational Pub., in association with Rosen Educational Services Jones, P., 2012, Flight Catering. Hoboken, Taylor and Francis. Plunkett, J. W., 2009, Plunkett's transportation, supply chain & logistics industry almanac 2009: the only comprehensive guide to the business of transportation, supply chain and logistics management. Houston, TX., Plunkett Research Ltd. United Arab Emirates, 2011, Aviation transport services : agreement between the United States of America and the United Arab Emirates; signed at Abu Dhabi, March 11, 2002, with annexes. [Washington, D.C.], U.S. Dept. of State. Wilson, G., 2007, Emirates: the airline of the future. London, Media Prima. Read More