Harvard Business School – Case Study
Pradeep Bhat
Strategy Assignment
MIP – Politecnico di Milano
1. In an industry where profitable firms are scarce, Emirates has delivered solid growth and solid financial performance for years. Why? What is behind Emirates’ success?
Ṝecently, on May 20th 2014, the Air French – KLM announced their results showing record losses. The strategy of alliance between two struggling airlines is yet to prove its success. Meanwhile, in a complete contrast, The Emirates Airlines have passed a massive order of 32 Airbus 380 super jumbo jets at the Berlin Air show 2010.
Today, Emirates has a total of 140 orders for the Airbus 38010 and is the largest operator of A380 crafts around the world. Emirates is an industry bellwether for aircraft purchases, having purchased a whopping 200 aircrafts in 2013 alone.
In over a period of 29 years, Emirates has grown to be one of the biggest players in the airlines industry. This solid growth and an impressive financial performance over the past years is the proof of an invincible business strategy adopted by the company. We can link its success to the leadership of the company and to the Dubai Government’s support.
Leadership Strategies
The Emirates Airlines success has been the continuity of its management team, many of whom have been with the airline since its start of the company. The leadership team has 23 years of experience inside the company. HH Sheikh Ahmed bin Saeed Al
Maktoum, Chairman and Chief Executive, Maurice Flanagan, Executive Vice Chairman and Tim Clark, President of the Emirates Airline.
The major contribution on each of the below mentioned fields has taken the airline and the aviation industry, far from where it started.
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Realising the Advantages: The government-owned Dubai carrier has lower personnel costs than much of the industry, in part by drawing many workers from the nearby lowwage nations of Pakistan and India1.
Emirates has other