Factors that have enabled the company to deliver strong performance in the past
There are several strategies that Emirates Airline has employed to ensure an exemplary performance compared to other airlines. From the financial statements that the company releases yearly, it is evident that it is making many profits. It is estimated that emirates airline makes around 50 percent annually despite the political and economic issues in most countries it operates. The number of passengers and cargo has recently gone up steadily to an estimated 57 billion Available Tonne Kilometers (ATMs). The company has strategized in the following essential factors to realize the goal.
Firstly, the airline increased the number of aircraft, including the Airbus A380s and a good number of Boeing 777-300ERs. As a result of the number of passengers and the overall capacity it almost doubled leading to a generation of high amounts of profits. Besides, the company increased the number of passenger destinations up to around 34 cities around the globe. It has led to the service delivery of the airline to many parts of the world hence enlarging its existing route network.
Besides, Emirates Airlines is dedicated to gaining loyalty from its passengers, making it easy to win new customers. It does this by spending a considerable amount of time training its employees to deliver services to the best level. It has invested in more than 18,000 flight attendants from different countries who speak more than 50 languages. It is possible to be served in your local language while boarding Emirates Airlines. The airline has one of the best salary packages for its employees around the globe. Also, the airline has continually exhibited diversity through the introduction of new products and technology. The entertainment systems fitted in the business and economic classes are considered the best in the industry. Passenger review rates Emirates at the top of the other airlines globally (Redpath et al., 129).
Important issues confronting the company and the external developments and internal actions that might have caused the issues
Several political, economic, and social factors are currently confronting the company. The company operates in an environment where there is political instability. It hurts its operations. Political instability causes cancellation or rescheduling of flights hence breaking the company in terms of profits. In some situations, the company is forced to undertake costly security mechanisms to retain its position in the market. Besides, there have been economic challenges in most of the countries it operates. Such fluctuations lead to losses as the number of passengers reduces to some percentage. Some external challenges, such as oil prices going high, have resulted in low profits also. Socially, some people tend to use other airlines to avoid the people who are affiliates to Emirates. It has a negative impact in terms of acquiring new customers.
Addressing the issues as a CEO
As a CEO, I would implement new mechanisms to ensure that the aircraft fly to the areas of high political stability hence minimizing the risks that result from political threats. In terms of economic problems, I would talk with the governments of the countries in which Emirates operates to develop new mechanisms of risk management that ensure the economic fluctuations do not harm the operations. The social problem would be easy to deal with because of the rapid globalization. People are rapidly becoming modernized and hence embracing the need for interactions and air transport.
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Redpath, N., John F. O'Connell, and David Warnock-Smith. "The strategic impact of airline group diversification: The cases of Emirates and Lufthansa." Journal of Air Transport Management 64 (2017): 121-138.