1 comparison with global alliances * sky team not including klm, northwestern and continental 0 100...
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Comparison with Global Alliances
* Sky Team not including KLM, Northwestern and Continental
0
100
300
500
700
Destinations * RPK *billion
Passengers *million
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• A Government Tool
• Regional Competition in Saturated Markets
• Hi-Tech Development
• Lower Fuel Price
• Government Strategy for Tourism And Conventions
SWOT-Opportunities
Business… Leisure… City Life…
Symbol of the Developing Dubai
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• A Government Tool
• Regional Competition in Saturated Markets
• Hi-Tech Development
• Lower Fuel Price
• Government Strategy for Tourism And Conventions
SWOT-Opportunities
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Back up from the Government
First Expansion : 1997-2000 US$ 540 million
Second Phase : 2003-2006 US$ 4.1 billion
0
20
40
60
80
2003 2006 2010
Dubai AirportAnnual Arrivals
Dubai AirportCapacity
million
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• The Worldwide Political Issues Affecting the Industry
• A Noticeable Competitor
•Competition From South East Asian Airlines
SWOT-Threats
7Skyrax Survey 2003, World Top Airlines
Runners-up
4+2 Formula for Success
Fundamental Categories:
Clearly Stated, Focused Strategy
Performance-oriented Culture
Fast, Flexible, Flat Company Structure
Flawless Operation Execution
Additional Categories:
Develop Innovations
Hold on to Talented People
Keep Leadership Commitment
Make Growth with Merger & Partnership
9/10
9/10
9/10
9/10
9/10
9/10
9/10
7/10
Core competences &Competitive advantages
Core Competencies
SUCCESSSUCCESS
people
Human Resources
Benefits •Development Centre•Training College•Other programs
•Broad Search•Candidate Survey
•Personal insurance •Annual leave ticket
•Exchange rate protection
•Utilities allowance
•Furnished accommodation
•Educational support
Innovation
INNOVATION
OUTSIDE BOARD
IN B
OA
RD
MA
NA
GE
ME
NT
Competitive Advantage
HomogeneousAircrafts
Quality
of
Services
IT
Infrastructure
Homogeneous Aircrafts
TYPE OF PLANEBOEING B777-300 B777-200
AIRBUSA340-500A340-300A330-200A380
•SAME QUALITY •SAME EQUIPMENT•FOR LONG DISTANCES •NON STOP ROUTES•AVERAGE AGE :36 M
TYPE OF PLANEBOEING B777-300 B777-200
AIRBUSA340-500A340-300A330-200A380
•SAME QUALITY •SAME EQUIPMENT•FOR LONG DISTANCES •NON STOP ROUTES•AVERAGE AGE :36 M •FIRST MOVER
•ECONOMIES OF SCALE•USED FOR LONG/NON STOP ROUTES•MORE PASSENGERS, LOW COST
Homogeneous Aircrafts
Passion for Quality
AWARDSINNOVATION INSIDE
TRAINING CENTER
IT infrastructure
Forecastmanagement
E-gate E-booking
CargoProcurement
ERP
MERCATOR
Recommendations
• Maintain the direction
• Compensate for alliance
• Leverage A380
Recommendations
Maintain the direction Success is an on-going process…– still improvements and revolutions to be done– difficult to maintain through time high level
standard,– fuel their growth
Minor changes…– Increase the no of business seats on new aircrafts– Don’t deviate to frontal competition
Compensate for allianceBroader market requires broader offer…– increase their presence in the regions they
target – improve its strategy to reach its potential
customers
– Distribution– Awareness
– modify their Frequent Flyer program.
Leverage A380New concept aircraft generates a lot of
attention
– layout to provide upscale service
– momentum by organizing events
