Environment Scanning Report for Etihad - Assignment Example

Etihad Airlines: Growing Air Industry of Etihad Airlines: Growing Air Industry Summary of Issues The UAE Aviation Industry is to contribute $53bn by2020. The organization has a plan to expand the capacity of the airline. By 2020, the air industry if UAE create more than 75,000 jobs. The growing air industry may exacerbate the already existing problems such as the safety, airspace management, infrastructure, finance, and human skills. In addition, the air industry of UAE is already having wide-reaching accident rate of 0.

33 per million at the time of departures and the expected growth of the air industry would be critical in the sense of regulating the industry. In order to tackle this possible issue, the government, the air industry and other teams that are related to the regulation of the air industry must take actions in advance. In addition to above, the number of airplanes is thought to be double by 2030 and the General Civil Aviation Authority will be tackling the movement of more than five thousand per day.

It will not be an easy task for the UAE air industry to handle such a large number of movements of airplane and therefore the government should take some action in advance either by dividing the industry into further branches to meet the challenges or putting new institution for the regulation. The UAE’s aviation sector is one of the booming air carrier fleets. It has taken a great part in expanding UAE’s economy by generating huge revenues as well as creating lots of opportunities in the sector.

These endeavors are very important in when UAE is making strenuous effort to free itself from dependence on diminishing oil reserves (broadening Economic base). Etihad also has to face severe competition with rival regional competitors of neighboring countries and also with the global competitors. In a case of inability in meeting the expected demands, UAE’s aviation agency will not be able to sustain its growth and market share. The huge contributions to the country’s economy every year will be put into halt resulting bad impact on the overall growth of the country.

Other competing aviation agencies in the region, which include Qatar Airways and others, are also expanding their business, which will result in loss in regional and global market share. In order achieve the objective, huge skilled human resource of 55,000 pilots, and 62,000 technicians are needed along with a fleet of 3000 airplanes. In order to meet the goal of the industry-government, industrial stakeholders, and regulators to work together to ensure that Etihad meet the expected growth rate.

Similarly, air traffic problem is a growing concern in the Middle East. For this reason, Etihad and UAE should work in close collaboration with neighboring partner countries to make air traffic more harmonious and smooth in the region by upgrading the air traffic system (Gulfnews.com, 2015). 2. Impact on Etihad Etihad is one of the leading airlines in the UAE and its business is directly proportional to the increase in the air traffic coming in and out of the UAE. The growing demand for travel will put pressures on the company to increase its fleet size.

Moreover, the growing business will have implications in terms of high demand for human resource, and the company will also have to deal with the issues of accidents possible at the time of airlift and landing of airplanes. It will have a direct effect on the company’s ability to manage its fleet and its current air operating systems. 3 Impact of the Issue: Issue(s) Impact Rating Weight Growing aviation industry Huge positive impact H 4 Safety issues Negative impact on the issue M 3 Human resource Shortage of HRs may result into failure H 4 Air traffic management May restrict the expansion strategy M 3 Urgency of the Issue: Issue(s) Urgency Rating Weight Growing aviation industry Urgent H 4 Safety issues Mild M 3 Human resource Urgent H 4 Air traffic management Urgent t M 3 3.

Recommended Actions Issue(s) Impact (R+W) Urgency (R+W) Strategic Operational OP (R+W) Threat (R+W) Strength (R+W) Weakness (R+W) Recommended actions Growing aviation industry H4 H4 H3 H4 Expand investment and handle all related issues Safety issues M3 M3 M2 M4 Coordinate with other stakeholders to ensure safety Human resource H4 H4 H3 H3 Develop and recruit human resource Air traffic management M3 M3 M4 H4 M2 Manage air traffic with governmental agencies and other countries . Recommended Actions It could be stated that the airline would have tremendous opportunities to expand its fleet size and expand its operations to cover more destinations in the years to come.

The company will have to purchase new planes and improve passenger experience by chancing its customer service. The company will have to invest in training programs to ensure that its ground and air staff continues to meet the international standards of quality and safety. Therefore, it could be stated that the company’s air management capabilities will have to be expanded and improved to deal with the increase in its fleet size and business. The company will have to invest in newer and better technologies to upgrade its air management systems to ensure that accidents could be minimized.

References List Gulfnews.com. (2015, January 18). Retrieved from Gulfnews.com: http://gulfnews.com/business/aviation/uae-aviation-industry-to-contribute-53b-by-2020-1.1443145