Study On Etihad Airlines Aviation Essay Example For Students

Study On Etihad Airlines Aviation Essay Etihad Airways was recognized in 2003. It is the national or says the flag keeping bearer rider air service of Abu Dhabi, the capital of United Arab Emirates ( UAE ) . The air hose is headquartered in Abu Dhabi, the capital of UAE as mentioned earlier. In 2007, it passed extra than 6 million clients, contrasted with about 340,000 in its really 1st full clip procedure in the twelvemonth of 2004. The company has more than 8000 employees working in legion divisions like finance, selling, winging, gross revenues etc. Currently Etihad is runing its services in parts 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 bearer of Abu Dhabi, offers planned air transit for lading and clients. Company s exclusive stockholder is the authorities itself of Emirate of Abu Dhabi, was been extracted from its combined venture in Gulf Air in the twelvemonth 2005 and preserved its limelight on Etihad Airways. Outline1 Industry:2 ETIHAD S BUSINESS Description:3 VISION AND MISSION4 STRATEGIES AND VALUES:5 Business STRATEGIES FOR ETIHAD:6 Business SERVICES AND Customers:7 COMPETITIVE POSITION IN THE INDUSTRY:8 COMPETITOR S Analysis9 PESTLE Analysis:10 SWOT Analysis:11 FUTURE GROWTH PERSPECTIVE:12 Mentions: Industry: The air hoses concern of UAE is immense if we look at the measure of service suppliers. The sector is filled from figure of low cost air hoses. State air hoses of UAE other than Etihad include Gulf Air, Emirates and Air Arabia. Gulf air started operations in 1950. It provides a measure of installations to its clients. Initially it has provided many involved installations to childs below the age of 10. It besides provides spited booming for its riders. It is delectated as a standard nationalized flight for the bulk of the intents. Next, Emirates air hoses were initiated after Gulf Air in the twelvemonth 1985. ( Vedder, 2008 ) It is besides measured as a province flight. The air hose has won legion awards for its luxury services. This air hose comprises of many aircraft both for private and public issues. Etihad air hose is the most new one and was launched after Air Arabia in the really same twelvemonth. It had besides become reasonably recognized but could non conflict with Air Arabi a on concern of low cost. Kam air menu is excessively considered as 1 of the chunky cost air hoses in United Arab Emirate. Among all the bing national air services boulder clay day of the month, the Air Arabia is supposed to be the cheapest among all. It is non recognized to be an air hose with the finest ability on board but of class it presents a inexpensive menu to its clients. The installations offered by these public air hoses to their clients vary drastically from each other. All the mentioned air hoses have great part to the nationalized economic system of the UAE. ( Group, 2006 ) ETIHAD S BUSINESS Description: The Etihad air hose was started in the twelvemonth 2004 or state started runing in 2004, but was established earlier in grand 2003. The air hose carried over 4.5 million travellers, an encouragement of approximately 65.7 % over the figure of twelvemonth 2006 ; In add-on with this, Etihad besides gained 175,000 dozenss of lading in twelvemonth 2007, an augment of over 70 % from that of twelvemonth 2006. In 2008, the air hose placed a demand for over 190 planes, which would be of deserving AED157.9 billion or about USD 40 billion. The order is composed of about 95 Boeing aeroplanes and 100+ from Airbus. Tentative agenda for release of order is between 2011 and 2020. ( Vedder, 2008 ) Etihad Airways possess complete stocks is its 2 subordinates, Etihad Crystal Cargo , which offers lading managing installation and Etihad Holidays , a travel group and vehicle rental company. The Etihad Airline owned a group of 37 traveller and lading aeroplanes, as depicted by the information of January 2008 and it program is to increase its aircraft group to 300 by the twelvemonth 2020. The company is besides be aftering to wing with over 25 million travellers per twelvemonth by 2020 and to dual the figure of finishs served from 48 to do it shut to 100. The rule concern activity is to supply scheduled air conveyance services for client and cargo ; travel agents etc. VISION AND MISSION Mission: The mission of the Etihad air hose is to do the most of profitableness by using effective concern patterns for best output, maximal burden factors, minimal theodolite times, seamless and instant information to the winging community, direction and increase client s service. ( Delfmann, 2005 ) Vision: As the populace sector Airline of the United Arab Emirates, the company, Etihad seek to retroflex the best of state s cordial reception cultured, warm, considerate and generous in numbering to acquire better the position of Abu Dhabi, the capital Emirate as a centre of cordial reception between West and East . ( Delfmann, 2005 ) STRATEGIES AND VALUES: Norms: There are few norms popular in Etihad One is the frock of employees in the company. It is expected in the company that people will have on traditional UAE fabrics. In office, female employees are non allowed to have on short skirt or any other type of vesture considered un societal in the UAE civilization. Space Exploration EssayValuess:Few values predominating in the company are: No 1 here complains for other employee in the squad in the instance he or she fail to seasonably carry through the undertaking assign to him or her. His is a really nice pattern in footings of squad civilization as it stops any disunity in the squad and promotes integrity and working together. The 2nd one is particularly for foreign employees. The company usage to pay the tri annually labour licence required by the authorities to work in the state. Premises:There are few premises besides considered in the company. For illustration, the people here consider that the undertaking is assigned merely by the senior and they are required to work merely after the assignment of the work supplying a really mechanistic model of work in the company. Business STRATEGIES FOR ETIHAD: Some schemes of Etihad for future few old ages are as follows: †¢ Expanding its aircraft scope: One of import restraint in company s enlargement program is the limited figure of lading and rider planes available to the company. The company will put periodic orders for new aircrafts to back up its enlargements programs. †¢ To supply service on more figure of paths: The company would wish to function in European states and other untasted finishs in North and South America. The enlargement will give a huge increase in company s present market size. †¢ To heighten efficiency of operations: As a long term scheme, the company would wish to implement TQM schemes in its operations. †¢ Increase its gross keeping high and choice construction of epicurean aircraft industry: †¢ Another one is Emiritization and promotion of UAE people. The company has a figure of programs in this way with long term involvement which are mentioned as follows: UAE National Cadet Pilots Training or UNCPT The company invites aspirers who what to go a pilot with a statement like We are giving wings to your dreams . Its pilot preparation plan is one of the finest in the state. The company states that as the public Airline of the United Arab Emirate, it has a huge vision. To see farther Emiratis taking their right place as pilots in lone of the fastest mounting air hoses on the planet. ( Bilimoria, 2006 ) UAE National Graduate Entry Management Programme The public air hose of the UAE, Etihad, is puting in its mentality and would accordingly like to pass in people by giving them the opportunity to be 1 of the privileged pupils chosen to fall in its UNGEM plan. It states that by this plan, alumnuss will develop hardy leading abilities and organize a aggregation of professionals who are organized to run into rapidly spread outing and developing leading wants in assorted subdivisions within the company. ( Bilimoria, 2006 ) †¢ Enhancing the lading bearer s flights: As shown from the part of net income from the lading and client units, the lading unit contributes around 65 % of the company s turnover, which depict the clear laterality of lading unit over the client unit in footings of net income. The company would wish to use this religion of people in Etihad s lading unit to derive extra market portion. Therefore as an enlargement program for lading unit, the company is telling more portion of lading planes as compared to that of rider planes. Business SERVICES AND Customers: The company chiefly focuses on two watercourses of services: rider service and fright bearers. Few high spots are: International flight linking Abu Dhabi to more than 45 international finishs in USA, Indian subcontinent etc. Etihad carried over 4.6 million riders, an augment of about 65.8 % over in 2006. Along with this, it besides griped 175,000 dozenss of cargo in 2007, which is an addition of over 75 % than the twelvemonth 2006. ( Group, 2006 ) Etihad Airways owns complete portion is its two subordinates, Etihad Holidays, a travel group and vehicle rental company and Etihad Crystal Cargo , which provides cargo managing services. Etihad had a 24 hr aid line for its clients. Etihad besides provide cordial reception services by supplying impermanent adjustment in hotels. ( Group, 2006 ) The Etihad Airline owned a group of 37 traveller and lading aeroplanes, as depicted by the information of January 2008 and it program is to increase its aircraft group to 300 by the twelvemonth 2020. Etihad is besides be aftering to wing over 25 million clients per twelvemonth by 2020 and to twofold the figure of metropolitans served from 50 to do it near 100. Market Sections: The cardinal market sections been served by the company is the corporate lading and low and medium earning clients for rider bearers. COMPETITIVE POSITION IN THE INDUSTRY: COMPETITOR S Analysis THE MICRO ENVIRONMENTAL ANALYSIS The micro environment analysis is a construction for sketching selling schemes of a company and besides carry oning an industry reappraisal. It is governed by Porter s five force analysis. They are as follows: The menace of replacement merchandises:In instance of Etihad, the replacement merchandise is really similar services nowadays in the gulf. For illustration there are figure of companies supplying similar air power services like the company under consideration like Easy Jet, Air Arabia etc. The menace of entry of new rivals:The air power market in gulf is traveling through a roar. Many new investors including both domestic and foreign houses are seeking an chance to wing in this glooming air power market. ( Delfmann, 2005 ) The menace of competitory competition:Aviation is a field where competition does nt merely come from monetary value dimensions but besides from invention and advertizement. Etihad should recognize the figure of rivals it has and the diversenesss in which they exist. The bargaining power of clients:Etihad like other air hoses had a fixed cost service. The cost of any travel is predefined. However, due to costumer s reaction toward any peculiar monetary value frame, the company needs to convey fluctuation in the cost of going. The deal power of providers:Etihad is an air hose company, so it owes much of its pricing to its providers. The natural stuffs and little services that it uses, find the costs of its service. So, it is extremely good to hold providers who are good at dickering to maintain the cost of the service depression. Major consumption of air power industry of Etihad includes high quality fuel, baggers and movers, transit and cordial reception spouses. Rivals:There are figure of other air hose services which create market impregnation for Etihad. Easy Jet is an illustration of such service which provides competition to Etihad. ( Vedder, 2008 ) MAIN COMPETITORS OF THE ORGANIZATION: Air 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 Wing and Eastern SkyJets etc. Selling ACTIVITIES OF COMPETITORS: Talking about Airlink, which is a major rival of Etihad, the figure of jets possessed by the company is much higher than Etihad. Airlink and similar air passages like Air Arabia believes in peep service providing and better market capturing. Etihad on the other manus believes in capturing luxury market sharing. Air Arabia has 5 times aircrafts than Etihad. It has more capacity aircrafts excessively. Palm air power is much concerned towards long distance comfy circuit bundles. For promotional activities, bigger houses like Air Arabia, Aerovista usage telecasting ads while smaller houses uses print media for advancing their services. Institutional selling and coaction with other houses is besides employed as a selling maneuver. ( Vedder, 2008 ) PESTLE Analysis: Political: Etihad, like other air power houses, has to follow rigorous authorities ordinances. Any little incident can ensue in heavy loads in footings of regulations and possessing aircrafts. Economic: Economic jobs are an obvious outside factors for Etihads. As the company is seeking to increase its span, viz. in Russia, it needs more Aircraft and investing. Sociable: The Company besides has some societal duties to follow. The company has to take serious stairss in order to run into the societal duty towards its people and towards the state s civilization. The ground is as Aviation carbon monoxide exists with state s cordial reception industry, it has to do certain that cordial reception industry does non acquire suffered. ( Delfmann, 2005 ) Technological: As the engineering alterations, the employees who can cover with new engineering are needed in every facets of work. Besides there arises a demand that the bing employees must besides be re engineered so that they can hook up with new manner of work. Legal: Aviation Torahs, labour Torahs, authoritiess regulations form the legal fringe for Etihads. SWOT Analysis: SWOT is an acronym of Strengths, Weaknesses, Opportunities and Threats. This is a selling analysis that helps a company understand its rivals. A brief treatment of SWOT analysis of Etihad is as follows: Strength:The Company has strong trade name image Cargo units. The company already has 12 jets including 5 Boeings other universe category luxury aircrafts like Learjet 35, Learjet 55, Avro RJ70 and Avro RJ80 etc to back up its luxury market. The company s clasp on this section is progressively turning excessively. ( Delfmann, 2005 ) Failing:Because of work in luxury sections and rider unit is down, the company s market range is limited, any new rival and launch of new luxury aircraft can coerce the company to drastically alter is market statistics. Besides the coveted costumier volume is besides limited. Opportunities:Recently the company is researching chances to put in Eastern Europe including Russia. The company is looking invariably for new markets apart from Gulf part. Menaces:the chief menaces to the company are form increasing figure of air power services in luxury category. Another menace is from economic crises that is indirectly impacting the terminal clients of Etihad. FUTURE GROWTH PERSPECTIVE: The company has huge growing chance in both its rider and cargo units. Few of these are mentioned as follows: New concern chances in Russian and European market. Acquisition of new and little concern possible in many countries including international markets. Buying of new aircrafts will ease the growing and increased figure of paths as planned by the company. Mentions: 1. Oxford Business Group ( 2006 ) , Emerging Abu Dhabi , Published by Oxford Business Group, ISBN: 1902339428, 9781902339429 2. Delfmann, Werner ( 2005 ) , Strategic direction in the air power industry , Published by Ashgate Publishing, ISBN: 0754645673, 9780754645672 3. Vedder, Hendrik ( 2008 ) , Strategic Alliances in the Aviation Industry: An Analysis of Past and Current Developments , Published by GRIN Verlag, ISBN: 364023037X, 9783640230372 4. Bilimori ; Sandy Kristin, Piderit ( 2006 ) . Handbook on adult females in concern and direction . Published by Edward Elgar Publishing. ISBN: 1845424328, 9781845424329