MEMORANDUM

To: Anthony Chan

From: Phoebe Zhang Date: May 28, 2015 Subject: Memo#2 -------------------------------------------------------------------------------------------------------

In only twenty-five years of progress, Emirates has become one of the biggest airline companies in the world, and it keeps growing. What made Emirates such profitable and standing out in this competitive industry is its foresight. Unlike other airlines who are perusing immediate interests by offering lower price or join into organizations, Emirates pay more attention to the future plan and long-term payoff. Instead of decreasing the services to maximize revenue, Emirates emphasis on premium services by building largest duty-free retails and ordering advanced new planes to enhance in-fight experience. Also, Emirates keeps developing and manage routes in uncovered region to open the new market, while innovated new technologies and new plane trying to increase flight hours and reduce fuel cost. Therefore, Emirates avoided confrontation with existing head airlines as well as increased their competitive advantage. Furthermore, Emirates knows the pith of resource management, they built their brand equity by sponsoring sports teams to increase the marketing, meanwhile, Emirates offer the best fitted and satisfied benefits for their crews. In this way, Emirates not only increase their awareness among the world but also increase their reputation and brand image.

Dubai plays an irreplaceable role in Emirates’ success. Since it locates at the global transit routes, has relatively good weather and with the support of the government, Dubai became the hub of the most routes. The Emirates’ Dubai-based hub-and-spoke model needs a strong hub airport and access to new destinations, which enhanced Emirates to provide more services around the