Study On Etihad Airlines

Study On Etihad airwaysEtihad air powerways was recognized in 2003. It is the national or says the flag holding carrier passenger air service of Abu Dhabi, the capital of unite Arab Emirates (UAE). The airline is headquartered in Abu Dhabi, the capital of UAE as mentioned earlier.In 2007, it passed additional than 6 one thousand thousand clients, contrasted with approximately 340,000 in its very 1st full time mould in the year of 2004. The keep political party has more than than 8000 employees working in numerous divisions corresponding finance, marketing, flying, sales etc . Currently Etihad is operational its services in regions like Indian subcontinent, North America, Europe, Far East Middle East, Africa and Oceania. Its major base or platform is Abu Dhabi International Airport. (Delfmann, 2005)Etihad Airways is the representative air carrier of Abu Dhabi, offers planned air transportation system for incumbrance and nodes. partnerships sole sh beholder is the govern ment itself of Emirate of Abu Dhabi, was been extracted from its combined venture in disconnectedness Air in the year 2005 and preserved its spotlight on Etihad Airways. persistenceThe airlines business of UAE is huge if we look at the quantity of service providers. The sector is filled from telephone number of hapless cost airlines. State airlines of UAE other than Etihad include Gulf Air, Emirates and Air Arabia. Gulf air started operations in 1950. It provides a quantity of facilities to its clients. Initially it has provided many involved facilities to kids below the age of 10. It in any case provides spited dinning for its passengers. It is delectated as a standard nationalized flight for the majority of the purposes. Next, Emirates airlines were initiated after Gulf Air in the year 1985. (Vedder, 2008) It is overly measured as a state flight. The airline has won numerous awards for its extravagance services. This airline comprises of many aircraft both for private and pu blic issues. Etihad airline is the most spick-and-span one and was launched after Air Arabia in the very same year. It had also become fairly accepted but could not battle with Air Arabia on concern of low cost. Kam air fare is similarly considered as 1 of the stumpy cost airlines in United Arab Emirate. Among all the existing national air services till date, the Air Arabia is supposed to be the cheapest among all. It is not recognized to be an airline with the finest ability on board but of course it presents a cheap fare to its clients. The facilities offered by these public airlines to their clients set out drastically from each other. All the mentioned airlines have great contribution to the nationalized economy of the UAE. (Group, 2006)ETIHADS BUSINESS DESCRIPTIONThe Etihad airline was started in the year 2004 or say started operating in 2004, but was established earlier in august 2003. The airline carried over 4.5 million travelers, an boost of about 65.7% over the figure of year 2006 In addition with this, Etihad also gained 175,000 tons of cargo in year 2007, an adjoin of over 70% from that of year 2006 .In 2008, the airline placed a destiny for over 190 planes, which would be of worth AED157.9 billion or approximately USD 40 billion. The order is composed of about 95 Boeing airplanes and 100+ from Airbus. Tentative inventory for release of order is between 2011 and 2020. (Vedder, 2008)Etihad Airways possess complete stocks is its 2 subsidiaries, Etihad Crystal Cargo, which offers cargo handling facility and Etihad Holidays, a travel group and vehicle renting party. The Etihad Airline owned a group of 37 traveler and cargo airplanes, as depicted by the data of January 2008 and it plan is to increase its aircraft group to ccc by the year 2020. The company is also planning to fly with over 25 million travelers per year by 2020 and to dual the number of destinations served from 48 to pay back it close to 100.The principle business activity is to provide scheduled air transport services for customer and freight travel agents etc.VISION AND missionary stationMISSIONThe mission of the Etihad airline is to make the most of profitability by applying effectual business practices for best yield, maximum load factors, minimum transit times, circular-knit and instant information to the flying community, management and increase clients service. (Delfmann, 2005)VISIONAs the public sector Airline of the United Arab Emirates, the company, Etihad seek to replicate the best of countrys hospitality cultured, warm, considerate and generous in totaling to get better the status of Abu Dhabi, the capital Emirate as a center of hospitality between West and East. (Delfmann, 2005)STRATEGIES AND VALUESNorms in that respect are few norms popular in Etihad One is the dress of employees in the company. It is expected in the company that mickle will wear traditional UAE cloths. In office, female employees are not allowed to wear short skirt or a ny other type of clothing considered un social in the UAE culture.Values some values prevailing in the company areNo one here complains for other employee in the team in the case he or she fail to timely accomplish the delegate assign to him or her. His is a very nice practice in terms of team culture as it stops any disunity in the team and promotes unity and working together.The second one is especially for foreign employees. The company use to pay the tri yearly application license required by the government to work in the country.Assumptions There are few assumptions also considered in the company. For example, the people here consider that the task is assigned only by the senior and they are required to work only after the assignment of the work providing a very mechanistic modelling of work in the company.BUSINESS STRATEGIES FOR ETIHADSome strategies of Etihad for future few years are as follows Expanding its aircraft range One important constraint in companys enlargement plan is the limited number of cargo and passenger planes available to the company. The company will place periodic orders for new aircrafts to support its expansions plans. To provide service on more number of routes The company would like to serve in European countries and other untouched destinations in North and South America. The expansion will roll a vast increment in companys present market size. To enhance efficiency of operations As a long term strategy, the company would like to implement TQM strategies in its operations. Increase its revenue maintaining high and quality structure of luxurious aircraft effort Another one is Emiritization and advancement of UAE people. The company has a number of plans in this direction with long term interest which are mentioned as followsUAE home(a) Cadet Pilots Training or UNCPT The company invites aspirants who what to become a fender with a statement like We are giving wings to your dreams. Its pilot training program is one of th e finest in the nation.The company states that as the public Airline of the United Arab Emirate, it has a immense vision. To see further Emiratis taking their correct position as pilots in lone of the fastest mounting airlines on the planet. (Bilimoria, 2006)UAE National Graduate Entry Management Programme The public airline of the UAE, Etihad, is investing in its outlook and would consequently like to spend in people by giving them the chance to be 1 of the privileged students chosen to join its UNGEM program.It states that by this program, graduates will develop sturdy leadership abilities and form a aggregation of professionals who are organized to meet quickly expanding and developing leadership wants in various branches within the company. (Bilimoria, 2006) Enhancing the cargo carriers flights As shown from the contribution of profit from the cargo and customer units, the cargo unit contributes around 65% of the companys turnover, which depict the clear dominance of cargo unit over the customer unit in terms of profit. The company would like to utilize this faith of people in Etihads cargo unit to gain additional market share. Thus as an expansion plan for cargo unit, the company is ordering more share of cargo planes as compared to that of passenger planes.BUSINESS SERVICES AND CUSTOMERSThe company mainly focuses on ii streams of services passenger service and fright carriers. Few highlights areInternational flight connecting Abu Dhabi to more than 45 international destinations in USA, Indian subcontinent etc. Etihad carried over 4.6 million passengers, an augment of approximately 65.8% over in 2006.Along with this, it also griped 175,000 tons of freight in 2007, which is an increase of over 75% than the year 2006. (Group, 2006)Etihad Airways owns complete share is its two subsidiaries, Etihad Holidays, a travel group and vehicle rental company and Etihad Crystal Cargo, which provides freight handling services.Etihad had a 24 hour help line for its cus tomers. Etihad also provide hospitality services by providing temporary accommodation in hotels. (Group, 2006)The Etihad Airline owned a group of 37 traveler and cargo airplanes, as depicted by the data of January 2008 and it plan is to increase its aircraft group to 300 by the year 2020. Etihad is also planning to fly over 25 million customers per year by 2020 and to twofold the number of metropolitans served from 50 to make it near 100.MARKET SEGMENTSThe key market segments been served by the company is the corporate cargo and low and medium earning customers for passenger carriers. COMPETITIVE POSITION IN THE INDUSTRYCOMPETITORS analysisTHE MICRO ENVIRONMENTAL ANALYSISThe micro environment analysis is a structure for outlining marketing strategies of a company and also conducting an industry review. It is governed by Porters five force analysis. They are as followsThe threat of reliever products In case of Etihad, the substitute product is actually similar services present in the gulf. For example there are number of companies providing similar air travel services like the company under consideration like Easy spout, Air Arabia etc.The threat of entry of new competitors The aviation market in gulf is going by a boom. Many new investors including both domestic and foreign firms are seeking an opportunity to fly in this gloomy aviation market. (Delfmann, 2005)The threat of warlike rivalry Aviation is a field where competition doesnt just come from price dimensions but also from innovation and advertisement. Etihad should realize the number of competitors it has and the diversities in which they exist. The negociate power of customers Etihad like other airlines had a fixed cost service. The cost of any travel is predefined. However, due to costumers reaction toward any particular price frame, the company needs to bring variation in the cost of travelling.The bargain power of suppliers Etihad is an airline company, so it owes much of its pricing to its suppliers. The raw materials and small services that it uses, tally the costs of its service. So, it is highly beneficial to have suppliers who are good at bargaining to keep the cost of the service low. Major intake of aviation industry of Etihad includes high quality fuel, packers and movers, transportation and hospitality partners. Competitors There are number of other airline services which create market saturation for Etihad. Easy Jet is an example of such service which provides competition to Etihad. (Vedder, 2008)MAIN COMPETITORS OF THE ORGANIZATIONAir Arabia, Aerovista Airlines, Abu Dhabi Aviation, Air Cess, Kang Pacific Airlines, Falcon Aviation Services, RAK Airway, Flydubai, Dolphin Air, Palm Aviation, Emirates, Airlink, Dubai Air go and Eastern SkyJets etc.MARKETING ACTIVITIES OF COMPETITORSTalking about Airlink, which is a major competitor of Etihad, the number of jets possessed by the company is much higher than Etihad. Airlink and similar airways like Air Arabi a believes in cheep service providing and better market capturing. Etihad on the other hand believes in capturing luxury market sharing. Air Arabia has 5 times aircrafts than Etihad. It has more capacity aircrafts too.Palm aviation is much concerned towards long distance comfortable tour packages. For promotional activities, bigger firms like Air Arabia, Aerovista use television ads while smaller firms uses print media for promoting their services. Institutional marketing and collaboration with other firms is also employed as a marketing tactic. (Vedder, 2008)muller ANALYSISPolitical Etihad, like other aviation firms, has to follow strict government regulations. Any small incident derriere result in to a great extent burdens in terms of rules and possessing aircrafts. EconomicalEconomical problems are an obvious outside factors for Etihads. As the company is trying to increase its span, namely in Russia, it needs more Aircraft and investment.SocialThe Company also has some social responsibilities to follow. The company has to take serious steps in order to meet the social responsibility towards its people and towards the nations culture. The reason is as Aviation co exists with countrys hospitality industry, it has to make sure that hospitality industry does not get suffered. (Delfmann, 2005)Technological As the technology changes, the employees who can deal with new technology are needed in every aspects of work. Also there arises a need that the existing employees must also be re engineered so that they can cop up with new style of work.Legal Aviation laws, labor laws, governments rules form the legal periphery for Etihads.SWOT ANALYSISSWOT is an acronym of Strengths, Weaknesses, Opportunities and Threats. This is a marketing analysis that helps a company understand its competitors. A brief discussion of SWOT analysis of Etihad is as followsStrength The Company has strong brand image Cargo units. The company already has 12 jets including 5 Boeings other w orld class luxury aircrafts like Learjet 35, Learjet 55, Avro RJ70 and Avro RJ80 etc to support its luxury market. The companys hold on this segment is increasingly growing too. (Delfmann, 2005)Weakness Because of work in luxury segments and passenger unit is down, the companys market scope is limited, any new competitor and launch of new luxury aircraft can force the company to drastically change is market statistics. Also the desired costumer volume is also limited. Opportunities Recently the company is exploring opportunities to invest in Eastern Europe including Russia. The company is looking constantly for new markets apart from Gulf region.Threats the main threats to the company are form increasing number of aviation services in luxury class. Another threat is from economic crises that is indirectly affecting the end customers of Etihad.FUTURE egression PERSPECTIVEThe company has immense outgrowth opportunity in both its passenger and cargo units. Few of these are mention ed as followsNew business opportunities in Russian and European market.Acquisition of new and small business possible in many areas including international markets.Buying of new aircrafts will facilitate the growth and increased number of routes as planned by the company.REFERENCES1. Oxford Business Group (2006), Emerging Abu Dhabi, Published by Oxford Business Group, ISBN 1902339428, 97819023394292. Delfmann, Werner (2005), Strategic management in the aviation industry, Published by Ashgate Publishing, ISBN 0754645673, 97807546456723. Vedder ,Hendrik (2008), Strategic Alliances in the Aviation Industry An Analysis of Past and Current Developments, Published by GRIN Verlag, ISBN 364023037X, 97836402303724. Bilimori Sandy Kristin, Piderit (2006). Handbook on women in business and management. Published by Edward Elgar Publishing. ISBN 1845424328, 9781845424329