Cases Emirates & Air Arabia Cunanan, K.
Cases Emirates & Air Arabia Cunanan, K.
Cases Emirates & Air Arabia Cunanan, K.
Marketing Management
MBA-1A
Emirates Case Study
80/100 = 90%
Submitted by:
Kim Arrianne A. Cunanan
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Submitted to:
Dr. Jess Panlilio
Introduction
During the mid-1980s, Gulf Air began to cut back its services to Dubai. As a result,
Emirates was conceived in March 1985 with backing from Dubai's royal family, with
Pakistan International Airlines providing two of the airline's first aircraft on wet-lease.
With $10 million in start-up capital it was required to operate independently of
government subsidy. Pakistan International Airlines provided training facilities to
Emirates' cabin crew at its academy. The airline was headed by Ahmed bin Saeed Al
Maktoum, the airline's present chairman. In the years following its founding, the
airline expanded both its fleet and its destinations. In October 2008, Emirates moved
all operations at Dubai International Airport to Terminal 3.
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Emirates operates a mixed fleet of Airbus and Boeing wide-body aircraft and is one
of the few airlines to operate an all-wide-body aircraft fleet (while excluding Emirates
Executive. As of February 2019, Emirates is the largest Airbus A380 operator with
112 aircraft in service and a further 11 on order. Since its introduction, the Airbus
A380 has become an integral part of the Emirates fleet, especially on long-haul high-
traffic routes. Emirates is also the world's largest Boeing 777 operator with 144
aircraft in service.
Case Study
1. How has Emirates been able to build a strong brand in the competitive
airline industry worldwide?
The airline has a younger fleet compare to the industry which portrays
them as stable yet competitive airline in the world. Emirates also form
an excellent business relationship from established aircraft makers
Boeing and Airbus and currently the biggest Airbus A380 and Boeing
777 aircraft operator in the world.
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2. What are some of the apparent weaknesses with the company’s
strategic direction? How can the airline address them?
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Air Arabia Case Study
76/100 = 88%
Introduction
Air Arabia is an Emirati low-cost airline with its head office in the A1
Building Sharjah Freight Center, Sharjah International Airport. The airline operates
scheduled services to 151 destinations in the Middle East, North Africa, the Indian
subcontinent, Central Asia and Europe to 22 countries from Sharjah, 28 destinations
in 9 countries from Casablanca, Fez, Nador and Tangier, 11 destinations in 8
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countries from Ras Al Khaimah, and 6 destinations in 4 countries from Alexandria.
Air Arabia's main base is Sharjah International Airport. There is also a hub in Ras Al
Khaimah and focus cities in Alexandria and Casablanca. Air Arabia is a member of
the Arab Air Carriers Organization.
History
Case Study
Other rivals targeted comfort and luxury driven consumers and shifted
their focus to hybrid model. But Air Arabia has always been keen on
serving people who can’t afford to pay high prices for travelling via air.
This makes Air Arabia to provide lowest cost prices than anyone else.
Also other companies might be hesitating in applying same business
model as Air Arabia because then they send bad message to its target
segment that they lack innovation and creativity.
2. What challenges does Air Arabia face? What will happen if other airlines
apply the same business model as Air Arabia?
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There is always threat from new entrants and other low-priced airlines
as they may decrease its sale rates. Also if Air Arabia expand to bigger
airports then it may suffer problem due to large pressure on cost. But
still concerning to its present growth late in innovation and managing
capabilities no other companies stood against it in the field of low cost
carriers (LCC).