Emirates Airlines
Emirates Airline:
Penetrating the North American Market
Emirates Airline is known for going against conventional thinking when running its business. Thus far, this strategy has been profitable for the company. In November 2001, the airline announced that it would begin a 13 ½ non-stop flight from Dubai to New York starting in June of 2003. However a postponement in the delivery of the Airbus A380-800 aircraft that would service the new route has caused a delay. This will be Emirates’ attempt at penetrating the North American market. In the current politically charged climate there is debate as to whether or not it will be profitable to expand service to this new route from Dubai to New York. Tensions between Washington and the Arab world create restraints as to when Emirates will be able to expand service. However, the main question currently facing Emirates is whether it should expand to New York at this point in time.
Unlike many other airlines, Emirates sees no threat surrounding the tensions in the Middle East.
The climate has been this politically charged for the past ten years. In fact, during the first Gulf War in
1991, Emirates Airlines was the only airline that did not cancel any of its flights. They continued flying to
Kuwait when a majority of its competitors stopped. Emirates continued business as usual and picked up additional business from those airlines that downsized and stopped flights in the region. This strategy exemplifies how Emirates has gone against conventional thinking and come out ahead.
Country Risk Analysis
Middle East Region Overview
The Middle Eastern region is characterized by economies that are over-dependent on oil; however, they differ on size, wealth, and political agendas. A few of the key players in this region include: Iran, Iraq, United Arab Emirates, Qatar, and Saudi Arabia. Of these countries, the United Arab
Emirates is quite comparable in many aspects to its neighbors.
The UAE and
Penetrating the North American Market
Emirates Airline is known for going against conventional thinking when running its business. Thus far, this strategy has been profitable for the company. In November 2001, the airline announced that it would begin a 13 ½ non-stop flight from Dubai to New York starting in June of 2003. However a postponement in the delivery of the Airbus A380-800 aircraft that would service the new route has caused a delay. This will be Emirates’ attempt at penetrating the North American market. In the current politically charged climate there is debate as to whether or not it will be profitable to expand service to this new route from Dubai to New York. Tensions between Washington and the Arab world create restraints as to when Emirates will be able to expand service. However, the main question currently facing Emirates is whether it should expand to New York at this point in time.
Unlike many other airlines, Emirates sees no threat surrounding the tensions in the Middle East.
The climate has been this politically charged for the past ten years. In fact, during the first Gulf War in
1991, Emirates Airlines was the only airline that did not cancel any of its flights. They continued flying to
Kuwait when a majority of its competitors stopped. Emirates continued business as usual and picked up additional business from those airlines that downsized and stopped flights in the region. This strategy exemplifies how Emirates has gone against conventional thinking and come out ahead.
Country Risk Analysis
Middle East Region Overview
The Middle Eastern region is characterized by economies that are over-dependent on oil; however, they differ on size, wealth, and political agendas. A few of the key players in this region include: Iran, Iraq, United Arab Emirates, Qatar, and Saudi Arabia. Of these countries, the United Arab
Emirates is quite comparable in many aspects to its neighbors.
The UAE and