Background of Emirates Airlines

History:
In 1974 after its independence, DUBAI along with the other Emirates was served in the airline service market by a major airline player GULF AIR. Although there were growing tensions in the relationship of the airlines and DUBAI from the beginning due to some inflexible protocols pertaining to sky policies. Due to these reasons GULF AIR in 1985 reduced the number of flights to and from DUBAI by two-third thus straining the relations furthermore. The ruling elite at this time realized incepting an exclusive airline for DUBAI, hence Emirates airlines was born with an initial investment of US $10 million sponsored by the government. Emirates flew its first routes out of Dubai (to Karachi) with just two aircraft—a leased Boeing 737 and an Airbus 300 B4. In 1987 Emirates started venturing into European market with flights for London and Frankfurt. The airlines since then have a come a long way from a regional airlines to evolving into a globally recognised travel and tourism conglomerate known over the globe for its commitment to the highest standards of quality in every aspect of their business. Emirates airlines line has proved to be a perfect example of a success story, almost doubling its business every three years and maintaining an average growth rate of 25% annually. The airline has been able to achieve an annual profit in every year since its third in operation.
Emirates success is largely due to their service which is considered as one of the best in the industry. Their business includes: * An award-winning international cargo division. * A full-fledged destination management and leisure division. * An airline IT developer
Parent Company:
Emirates airlines, is a part of the bigger conglomerate Emirates group, which has wide range of companies under it that are serving numerous verticals of international travel and tourism industry. Some dominant subsidiaries under the Emirates group are: Emirates airlines-the biggest airline of Middle East, Dnata- an aviation service company offering ground handling services and Emirates holidays- provides tailor made holiday packages to over 100 destinations. Besides these Emirates group also runs various joint ventures under its name like Emirates Flight Catering, MMI, Oman United agencies, Emirates Leisure Retail, etc. The group currently has more than 40,000 employees from 160 nationalities and is being managed by Dubai Investment Holding.

Strengths of the Company: * Political Support * Strategic location * Indirect Subsidies * Top class service and high labour productivity * Tax free regime

Corporate Strategy: * It focuses upon a healthy mix of origin and destination as well as transit travellers. * The company largely focuses upon its cargos division as 20% of the revenues comes from cargo for Emirates Airlines. * Stake in other major airline, for example 43.6% stake in Srilankan Airlines. * It provides high quality services in all classes. * It has cleverly made its entry into the underserved markets such as Glasgow, Newcastle, Manchester, Kolkata, Cochin, etc.
Areas of Concern: * Politically unstable Middle east * Tough competition from emerging carriers such as Qatar Airways and Etihad Airways.