EMIRATES AIRLINES A380 (FIRST AND BUSINESS CLASS PRIVATE SUITE)

“Looking for comfort and travel privacy at its best, Fly Emirates A380” It creates a private jet like environment!

“Hello Tomorrow, Wake up to flying as it should be”

The company I have chosen to analyze as the next social epidemic in business world from the Aviation Service Industry is the Emirate Airline A380 (First and Business class). Emirates Airline provides air transportation services to people travelling around the world for business, leisure, education, medical, and for any other personal reasons.

Before I discuss Emirates A380, There will be need to discuss in great detail Emirate Airline as a whole as well as the airline’s SWOT and TOWS because based on this lies the future success of Emirate A380.

Emirates Airline is based in Dubai, United Arab Emirates, It is a subsidiary of the Emirates Group, which is wholly owned by the government of Dubai's Investment Corporation of Dubai; it is the world’s biggest international carrier and the largest airline in the Middle East.

Emirates Airlines is one of the youngest and fastest growing airlines, its core mission is providing passengers a comfortable travel flight experience

The history of Emirates dates back to the mid-1980s, when Gulf Air cut back its services to Dubai as it was concerned that it was providing regional feeder flights for other carriers, this action led to plans for Dubai to have its own small local airline independent of government subsidies and in March 1985 the Dubai's royal family backed it and Dubai government contributed $10 million start-up capital. Pakistan International Airlines played a large role in establishing the Emirates airline through leasing out two of its used airplanes Airbus A300 and Boeing 737, as well as providing technical and administrative assistance to the new carrier. Also the airline leased two new aircrafts Boeing 737–300 and Airbus 300B4-200 from Pakistan International Airlines as well as two more used Boeing 727–200 Adv aircrafts donated by Royal Family's Dubai Royal Air Wing giving the airline a total of 6 aircrafts.

The airline's first flight, flight EK600, was Dubai–Karachi on 25 October 1985 and in its first year of operation, it carried about 260,000 passengers and 10,000 tons of freight, which grew positively over the years as its destinations and fleets increased for example, in the early 1990s, Emirates was among the world's fastest growing airlines; revenue increased approximately US$100 million each year, approaching US$500 million in the year 1993. The airline carried 1.6 million passengers and 68,000 tons of cargo that

same year and in 2000 the skywards membership incentive was launched resulting in more demand for Emirates and by October 2008 it moved all operations at Dubai International Airport to Terminal 3 to sustain its rapid expansion and growth plans. Emirates airline operation managed from inception by Maurice Flanagan as CEO and recently is under the management of Sheikh Ahmed bin Saeed Al Maktoum with Tim Clark as Emirates president.

Its revenue ranks seventh in the world among large airline carriers, The Emirates Group reported passenger, cargo and profit for the last 10 years is shown below:

Emirates Financial and Operational Performance[D][98][99]

Year Ended Passengers Flown (thousand)

Cargo carried (thousand tonnes)

Turnover (AEDm)

Expenditure (AEDm)

Net Profit(+)/Loss(-) (AEDm)

31 March 2005 12,529 838 17,909 15,290 (+)2,619

31 March 2006 14,498 1,019 22,658 20,006 (+)2,652

31 March 2007 17,544 1,156 29,173 25,834 (+)3,339

31 March 2008 21,229 1,282 38,810 34,359 (+)4,451

31 March 2009 22,731 1,408 43,266 40,988 (+)2,278

31 March 2010 27,454 1,580 43,455 39,890 (+)3,565

31 March 2011 31,422 1,767 54,231 48,788 (+)5,443

31 March 2012 33,981 1,796 62,287 60,474 (+)1,813

31 March 2013 39,391 2,086 73,113 70,274 (+)2,839

31 March 2014 44,537 2,250 82,636 79,382 (+)3,254

Emirates Financial and Operational Performance[D][98][99]

Year Ended Passengers Flown (thousand)

Cargo carried (thousand tonnes)

Turnover (AEDm)

Expenditure (AEDm)

Net Profit(+)/Loss(-) (AEDm)

31 March 2015 49,292 2,377 88,819 82,926 (+)5,893

With a fleet of more than 245 aircrafts, Emirates currently flies to over 140 destinations and has been to more than 80 countries from the six continents it operates and over 1,500 Emirates flights depart from Dubai International airport weekly with cargo activities undertaken by Emirates SkyCargo. It has over 1165 pilots with more than 15463 crew members as well as 44. 9 million customers worldwide, its fleet consist of the following aircrafts:

Boeing 777-200, 777-300, 777-200LR and 777-300LR Airbus A380-200, A340-300, A340-500 Emirates A380 Emirates Executive A319 Emirates A380 Hub

Emirates Airline is known for providing exceptional services to passengers because it pays great attention to their unique needs prior to booking flight, onboard flight and after-flight destination has been reached. These exceptional services creates a stickiness factor in the memories of its passengers and allows it to generate more repeat business, return flights from satisfied passengers as well as generate new flyers when the satisfied passengers share their wonderful and relaxing inspirational flight experience with others. Satisfied customers are the most important connectors as well as mavens for Emirates and this is why it keeps improving on the quality of service it provides regularly. Emirate Airline cosmopolitan nature appeals to many people around the world because of its appreciation for different cultures and non discriminatory services.

Its flight cost are affordable and one of the cheapest despite the excellent services it provides and the best part is that passengers need not be wealthy to fly its business or first class because the airline offers passengers numerous flying packages and services for its different classes of flyers – Economy, Business and First class under different packages or programs like the Frequent Flyer; Skywards reward program that allow for earning miles on trips based on membership tier - blue, silver, gold and platinum cards with each offering unique benefits, rewards and sequential graduation from blue to the next higher card. Each new tier brings inviting benefits that increase in value, such as dedicated check-in, priority boarding, and lounge access. Once you have been promoted to a new tier, you enjoy membership privileges for 14 months, even if you don’t earn enough miles or take enough flights to retain the tier status in your annual review.

Also recently added is the Business reward program for small and medium scale companies, clubs and charity organisations with benefits like miles earned given to business(one mile earned per dollar spent) as well as individual employees(skyward miles) whenever they travel with Emirates, access to a range of booking options via emirates.com, emirates contact centers, or your nominated travel agent, competitively priced fares for all classes across the Emirates network, use of Miles for flight rewards and upgrades,

exclusive special offers and discounts from its Business Rewards partners and Emirates High street, easy-to-use online tools for seamless booking and managing travel itineraries.

Skywards and Business rewards have stickiness factor like benefits of earning miles as you fly that can be redeemed to pay for future flight once sufficient mileage is available or book hotels, purchase items at a cheaper rate anywhere in the world from its Emirate partners. Each reward program and card colour has been personalised to meet each flyers budget and passengers can pick suitable prices from its price options; special fares, saver, flex, flex plus, best price, and flexible dates. Also additional benefits below apply to both Skywards and Business reward member.

Emirates also has Skysurfers program for younger travellers (Aged 2-16), it treats children as royalty always and unaccompanied children who are without guardians travelling are safely gotten to their destination. The special treatment given to children makes the long trip comfortable and interesting like children meals, toys, and entertainment from cartoons to Disney channel, as well as brochures to inspire them to explore the greater outdoors. The children are always happy flying Emirate and request their parents to always the airline whenever they are travelling, which the parents always do because they see the joy in the children’s faces and always want to keep them happy.

Skysurfers get a special membership card that can redeem miles for treats like free flights, Apple iPods, games and the latest fashion accessories also miles don’t expire for three years so one can save up miles to purchase stuff in the future. Skysurfers earn miles at the same rate as Emirates Skywards ® members, and can graduate to Silver or Gold membership just like the rest of the family by quoting membership number at the time of booking with a parent or guardian’s signature is needed to join and to redeem miles for rewards.

Based on all the exceptional services, skyward packages and associated benefits of flying Emirates Airlines highlighted above, I now focus on the main topic of interest Emirates A380 First and Business class private

suites and demonstrate how it would be the next big buzz in the world and generate more revenue for Emirates. The unique features of A380 differentiate it from the rest of the Emirate fleets and other Airlines.

The future of air travel has arrived and with the A380 “the sky is yours”. Designed for the 21st century aviation industry, its unique size allows airlines to maximize their revenue potential through an optimized, segmented cabin – boosting their contribution to profit by up to 65 per cent per flight.

The jetliner’s standard four-class cabin arrangement includes more high-yield seats with a premium economy section, additional seats in business class and an even more luxurious first-class layout. Airlines can gain a revenue boost approximately equivalent to a 50 per cent saving in fuel burn through applying this market-matched cabin segmentation and the latest cabin innovations. The A380 cabin is the quietest and most spacious in the sky.

Emirates A380 is currently the only commercial airline with shower spa on board. On this plane, there are actually two showers for exclusive use of those seated in the 14 first class seats onboard. Showers last five minutes, with a full stream of hot water for four minutes and a pulsating warning stream for the last minute, passengers get to indulge in a refreshing shower at 40,000 feet to reawaken their senses with luxury Bvlgari toiletries and signature Timeless Spa products and arrive at their destination look fresh after a long flight, and head off to the place of purpose for their travelling. Most first class passenger use the shower spa on A380 long haul flights and also say after the shower they were given detoxifying fresh juices to replenish their energy to take on the day.

Emirates A380 Shower Spa versus other Fleets and Airlines

Versus

Emirates A380 business class comes in a 1-2-1 unlike the seven-across (2-3-2) Boeing 777s layout, providing each passenger with direct access to the aisle. Its business class seats go fully-flat and transform into a bed with a padded mattress, a full-sized pillow and sometimes blanket (if required) for a more relaxing sleep than the angled lie-flat beds on the Boeing 777s.

Step aboard the upper deck of Emirates' flagship Airbus A380 aircraft, It has a private mini-suite unlike other typical business class seat: complete with a sizeable side table and also a room temperature mini-bar with a full bottle of water for you to drink to your satisfaction without you requesting from the crew a swig from the bottle before heading to the on-board bar and lounge for a cocktail with fellow business class passengers.

The seating area interior design has a mix of faux wood used in luxury cars making its passenger have an opulent and royal-like feel on their seats unlike the normal all-plastic design on most airlines, no stretching to reach light switches when you want to read, work, and sleep. It has leg room space with an adjustable foot rest and compartment to keep your shoes and or valuables, seating for too long during flights reduces blood circulation, but with the footrest and flat bed provided on the A380 helps passengers stay healthy. Also you have a 17-inch touch screen TV, packed with over 2,000 'channels' of movies, TV shows and audio to entertain passengers.

The royal lifestyle does not stop there, once seated after boarding A380 First class and Business are welcomed with a glass of Moët & Chandon Champagne, the in-flight menu and a wine list, Also passengers have a royal feast from champagne to snacks to appetizer to main course to desert to pre-landing meal.

Everyone wants comfort and personal space while travelling, but not until now has an airline made this desire a reality, Emirates A380 Private suite fulfils this desire to make its passengers feel at home while travelling. Stretch out and unwind on A380 convert seats into a flat bed, choose your entertainment and relax in your own private cinema.

A380 gives its First and Business class passengers a close to owning their own private jet feeling because it offers private suite with sliding doors to give a personal space to work, entertain yourself and relax like you are at home and forgetting that other people are around you

.

Versus other Fleets and Airlines

When you are done with your personal stuff you can take a break to stretch your legs and walk to the onboard lounge area and go join the conversation, meet interesting passengers who could probably share one or two things in common with you personally or in business, thereby leading close relationships and more business connections. Meet the world at 40,000 feet while sipping a selection of canapés, premium spirits, exclusive wines, champagne, cocktails, and beers alongside hot and cold beverages.

Versus no bar on other Fleets and Airline

Also, First and Business class passengers board the plane via an underground train that takes them directly to their departure gate unlike the other aircrafts that passengers have to walk and use either one or more of jetways, escalators and elevators to get to their departure gate.

First and Business class travellers wait in a private room at the Emirate hub till departure, there is an Air-side hotel near the A gate with a timeless spa to pamper you.

In totality the A380 cabin features lets one stretch out to relax, fly and feast like the royals and meet the world at 40,000 feet

Its first and business class creates the law of the few and power of context, since they are pricy thus

portraying a wealthy image and instantly identifies you as an upper class group especially in the society we

live in where “image is everything. Planes are places of class distinction. Money, rather than lineage,

divides the line between gentry and nobility, upper and middle classes.

Currently, Emirates has 65 A380 fleets, that flown to 35 destinations and been to over 55 airports worldwide and Its Connectors and Mavens are Google Map Business View Virtual Tours has been a connector in promoting Emirates A380 to the world through videos showing the plane’s unique features and this drew lots of attention because it is the first aircraft ever featured on the prestigious Google View, also CNN Business Traveller hosted by Richard Quest has helped to inform people about Emirate A380’s uniqueness as well as influential celebrities like Jennifer Aniston, Cristiano Ronaldo and Pele have been some of the mavens that have helped advertise Emirates A380 Private suite to the world. Bloggers and customer reviews are mavens that help connect Emirate to the world and increased it service demand via write ups and word of mouth respectively.

Emirates Crew and customer service representatives are the Internal connectors to the world about Emirate airline based on how well they treat passengers who are in fact the real mavens and the breakers or maker of any business.

SWOT THREATS:Emirates threats are majorly due to it expansive growth than its competitors and now its competitors claim, it has unfair advantages like getting loans at favourable rates from its government and secretly receiving subsidies from its government in the form of low tax rates and shiny new facilities like Terminal 3, where another expansion is under way to accommodate Emirates’ growing fleet of A380s. The likely threats the Emirates will be facing are as follows:

Aero political Risk where some competitor countries may stop, limit or deny it from operating flights to and from their country.

Geopolitical risk, the political instability and war in neighbouring countries might prevent it from flying over them for fear of being shot down.

Huge Investment loss in A380’s higher than its high positive growth, if it does not get passengers to occupy all classes of seat.

Regional Competitor’s Etihad Airline and Qatar Airways forming alliances through mergers to counter Emirates Airline dominance in the Middle East.

New generation quality carriers like Kingfisher Airlines and Jet Airways, now offers some appealing domestic alternatives for India’s vast expatriate population.

Sustaining its momentum without jeopardizing quality and service.

SWOT STRENGTHS:

Emirates Airline aims at providing best in class service, in all classes. It emphasises high quality standards and not quantity puts its passengers first by paying close attention to detail and passenger needs; it closely monitors how to improve on passengers comfort by focusing on what airlines are lacking to provide comfort and its crew are professional and friendly. This mission has resulted in its evolving into globally influential travel and tourism conglomerate; more of its strengths are as follows:

Pacesetter and risk taker in technological advancements e.g. It first introduced an in-flight mobile phone service, on-flight fax facility, and video systems in seats for all classes throughout its fleet; its good business acumen, ambition and savvy investment has propelled Emirates to become one of the most respected and recognised brands in the world.

Emirates is always a class apart from the rest in terms of the quality of its in-flight cuisine, the breadth of its in-flight entertainment, which is an integral and incredibly popular part of the Emirates passenger experience and the excellence of its overall service.

Ability to expand airport to meet high demand for A380 an expansion to the new concourse 3 in 2011 exclusively for the A380- 800 which has helped it generate more revenue.

Sports serves as a connector for Emirates airline and it sees sponsorship of different sporting events as crucial marketing strategy because by these sponsorships it connects with sport fans who feel that Emirates share and support their passion and this motivate the fans to fly Emirate to go watch these sports around the world.

Social Responsibility towards needy children in different parts of the world is a key emirate mission and by doing this it indirectly promotes its business because by helping these needy children people see a more humane side to the company and this creates a sense of belonging and thus foster better business environment for Emirates operations.

Mix of quality service, operating efficiency and low costs from its high fuel efficiency aircrafts result in lower prices of it flights compared to other Airliners.

Dubai's geographical location is pretty much in the middle of the world; roughly four billion people live within an eight-hour flight from here an ideal transfer point between many of the fastest-growing markets. This is one of factors contributing to Emirates Airline success; its greatest strides have come from building routes to developing countries long neglected by traditional carriers and providing an alternative to local airlines. Instead of connecting through European hubs like London or Frankfurt, all of these new routes run through Dubai.

Emirates Airline has emerged as a formidable player on the international travel scene. Its innovations, including private suites in first class and individual entertainment screens in the coach cabin, have been

copied by many other airlines; its emphasis on quality has forced traditional legacy carriers to pay more attention to their own products.

Emirate has a good working environment for it employees, it pays them well , gives bonuses, shopping discounts within Dubai, travel discounts as well as full medical coverage. It cares for their families and this generated the dedication and professionalism it staff exude to passengers.

Emirates marketing strategy is aggressive and is taking other airline passengers, it is literally eating all the other airlines passengers for lunch, because it recognized the value of a global hub and If you want to go from Africa to Asia, or from South America to China, the straight line is through the Middle East. Advertising of Emirates is done through its In-flight Media offers a unique "single-cell" environment, giving a distinct advantage over other forms of mass media by offering an effective way to reach millions of people.

Government support has also been essential. From the start, Emirates was seen as integral to the government’s ambitions of building Dubai into a commercial, financial and tourism center in the Persian Gulf.

TOWS:

Strengths and Threats:

Emirates does not have any weakness and for the opportunities it is an airline that always watches out for new opportunities constantly, so my TOWS will be based on only its strengths and threats

Continue sourcing for new opportunities and maintain the best services always in the industry this would help it generate more revenue

To generate more demand for the A380 First and Business class seats, it can give special discounts to it life time value economy class passengers to encourage them to fly those classes.

Sponsor more events and advertise to Athletes and Celebrities, who most times always want privacy when travelling and also use them as Mavens to advertise airline more.

Continue with its pacesetter innovative technological development trend, but ensure that it adopts technology that would be of optimal benefit for all its fleets and be relevant and useful for at least 4-6 years.

Aim to find more external connectors to advertise its airline as well as mavens that are influential and know a lot of people to spread the word about the airlines world class services.

Continue making its employees happy as they are it internal connectors to the world about Emirate airline based on how well they treat passengers who are in fact the real mavens.

Emirates group by utilising the proposed TOWS strategies, Emirates A380 would have a very good ride to become the next business epidemic because all the special features is found nowhere else except on Emirates A380 as well as Emirate Airlines exceptional customer service, the A380 First and Business class private suites will be generate the highest demand wave in the next few years in the aviation industry. Also meet the airline’s goal to win over customers by bringing a bit of glamour back to air travel.

References

1. "Emirates – Our Destinations". Emirates.com. 2015. Retrieved 23 May 2015.2. http://content.emirates.com/downloads/ek/pdfs/report/annual_report_2015.pdf3. GulfNews.com – Emirates and Dnata now under ICD4. http://content.emirates.com/downloads/ek/pdfs/open_sky/Open