Abstract
This paper details the industry of travel by air. The content focuses on analyzing the services offered by Emirates Airlines in comparison to British airways. Emirates airlines are currently rated as the best airline in the world and this paper focuses on its services outlining its historical background, a PESTEL analysis, a SWOT analysis, and its operational and financial management as well as its leadership style. From analysis, we can conclude that the Emirates airline has a stable centralized governance structure as the Dubai government solely owns it and its management capitalizes on its good reputation for quality services.
On the other hand, British Airways is ranked twenty-seventh according to the global airline services statistics. This paper also gives a brief historical background of the airline, and the kind of environment it operates in terms of legal, social, economic, and political environment. The strategies being implemented to improve the services of the airline are also explained in this paper. The paper points out that the organization follows a flat organizational structure and a democratic leadership style. The employees’ contribution to making the airline reputable is important. Although the SWOT analysis shows that the company has been going through challenges in the industry due to competition from the other prominent airlines, the management is working on restructuring and rebranding strategies.
In conclusion, this paper compares and contrasts the strengths and weaknesses of Emirates airlines and British airways as the two four-star airlines that operate in different environments yet they fall under the same industry of air travel.
International Airlines Services Analysis
Traveling in comfort is very important, especially for long-distance journeys. People cross from one continent to another by use of airline services. Different people choose to use different airlines for reasons like customer satisfaction, affordability, and comfort among many other reasons. In my research, I have chosen to focus on the airline industry. Many airlines strive to upgrade their services to match world-class standards. In my research paper, I have chosen to discuss the operations and management of Emirates airlines in comparison to the operations and management of British airways. The common business element for the two airlines is that they engage in ferrying customers as well as cargo.
According to the World Airlines Rewards of 2013, the Emirates airline was ranked as the best airline to travel with, while British Airways was ranked at number twenty-seven. These awards criteria considered on-time check-in schedules, passenger satisfaction, cabin crew courtesy and cleanliness, seat comfort, in-flight entertainment, and food and drinks offered to the passengers on board during their flights. The Emirates and British Airways are both four-star airlines according to world rankings. The Emirates airline has capitalized on classy customer lounges, good entertainment, and catering services as well as safety precautions for secure traveling arrangements.
Each airline has a brief historical advantage. British Airways is the largest airline in the United Kingdom and it is a major player in the one world airlines alliance. Its main hub is at Heathrow airport in London. It was established in 1974 and presently the airline plies many routes in the world covering more than eighty countries the world (Woodley, 2006). It has more than five hundred and fifty destinations. Its direct flights cover more than one hundred and seventy destinations. It focuses on customer comfort through having high-class in-flight entertainment and high-quality culturally sensitive food offered to the passengers on board. On the other hand, the Emirates airline is the largest airline in the Middle East. It is based in Dubai and it belongs to the government of Dubai. It was established in 1985 and presently it covers seventy-four countries on six continents of the world. Its main hub is Dubai International Airport in the United Arab Emirates. It is presently ranked as the best airline globally and thus it has capitalized on this competitive edge to market its services to the wider global population (Mobile reference, 2010).
British airways operate in a highly competitive environment and its operations are guided by a well-researched strategic plan. It has fulfilled all legal conditions to ply all the routes under its licenses. In the recent past, the airline was sued by a customer for price fixing complications. The airlines settled a claim of eighty-nine million dollars to the affected customers. The social environment surrounding the airlines is termed by many customers to be friendly. The cabin crew ensures that passengers from all destinations are comfortable with the services they acquire from British airways. The British social structure depicts a large population of old people who are retired and frequently travel for vacations around the world. This brings in good revenue for the airline (Woodley, 2006). The economic environment of the airline was affected by the 2008 global economic collapse and its revenues diminished. However, the airline has worked on some strategies to resolve this problem and has incorporated mergers and air trade policies into its operations. The airline has also improved on cost-cutting strategies to sustain considerable profits for the company.
On the other hand, the Emirates airline works in a different environment altogether. The legal environment of Emirates Airlines is highly affected by the political environment globally. Despite having a stable political atmosphere in Dubai, the airline has been affected by terrorism threats, which resulted in limited routes plied by the airline. The social environment is highly defined by the friendly cabin staff working with the airlines. The United Arab Emirates consists of a large population of people who work in various industries and the wages paid to the workers is lower than that paid to workers in the United Kingdom. This reduces the operation costs for Emirates Airlines. The airline also concentrates on marketing Abu Dhabi as a favorite tourist destination site for holidays. Further, the economic environment is highly influenced by oil prices. The ever-escalating fuel prices have favored the revenues realized by the airline over the past years. With the growing economy in Dubai, the airline has been enjoying growing revenues as the general cash flow in the nation is increasing (Mobilereference, 2010).
The management strategies used within the Emirates airline is critically defined. The airline is a subordinate of the emirates group and it belongs to the Dubai government. The government receives a big chunk of the dividends paid to owners. The government has also diversified its business into the related industries in engineering, tourism, and hospitality industries under the parent company known as the Emirates group. The management structure is centralized but there are different departmental managers who head different airline departments. The operation management focuses on fleet efficiency while the financial management wing focuses on maximizing the revenues to earn more profits for the company. Further, the organizational culture is characterized by teamwork, professionalism, visionary planning, friendly travel prices, good entertainment, and high-class customer lounges.
British Airways use a strategic mix of management to manage its operations. The organization has employed the flat hierarchical structure of management. There is a free flow of communication from top to bottom and vice versa in the organizational structure. The organization is headed by a chief executive officer and departmental managers run the affairs of each core business area. The operations management focuses on fleet management as well as quality services offered to the customers. The organization’s management style is shared with all employees and this makes the management process less bureaucratic. The company is trying to rebrand because in the past the organization’s culture was not friendly to many people. There was poor treatment of employees, the recruitment process was unfriendly, and customers complained of high traveling costs. However, presently, British airways are implementing strategies to correct the skewed organizational culture. Currently, it has cheaper traveling costs packages as compared to the past.
Furthermore, the two organizations have current strategic plans focusing on maximizing on SWOT analysis strategy. British Airways focuses on maximizing its strengths, improving on its weak points, approaching its opportunities with optimism, and working on strategies to counter the threats brought into the industry. The identified strengths of the airline revolve around its major brand name and the largest airline plying several direct routes globally. Thus, the airline has a competitive edge over many other airlines in the industry. It also has strong partnerships with other world superpowers and Heathrow airport offers complete comfort to customers (Woodley, 2006). Their weakness revolves around bad employee relations and high operational costs and they have strategies for improving this. The airline is also foreseeing several future opportunities to include proper marketing strategies and rising up the statistics to become the best airline. Threats faced include environmental awareness and security threats from terrorism. The emirates airline also outlines its SWOT analysis. Its strengths include government support, fuel availability, a good reputation with customers, a good workforce, and wide area coverage. Its weaknesses include limited market share and reliance on international air traffic flow operations. Its opportunities include the newly branded fleet of planes and the possibility of adding more international destinations. Its threats revolve around competition from new entrants and changing government policies.
In conclusion, analysis shows that British Airways and Emirates airlines operate differently. The Emirates runs from a central decision-making organ and dictatorial leadership style as it is controlled by the government. Presently, the airline is making huge profits from good services, customer preference, and affordable flight fares. It is the reigning best airline and it has capitalized on this strength to earn more revenues. On the other hand, British Airways has decentralized decisions making structures and the leadership style employed involves a democratic mode. Furthermore, the external environment is critical to the operations of British airways and presently, the organization is not doing so well. It is in the phase of restructuring, rebranding, and employing new strategies that will earn more revenue for the company.
References
MobileReference, (2010). Travel Dubai, United Arab Emirates: Illustrated Guide, Phrasebook and Maps. Boston: MobileReference.com.
Woodley, C. (2006). The history of British European Airways. Barnsley: Pen & Sword Aviation.