Gulf Air Essay

Gulf Air was the major airline service Dubai and other Middle Eastern cities have prorio to the Emirates. With the government open skies policy, gulf air started to cutting down its service to the Dubai since they were not given government protection and it was the cause to give birth to the Emirate.

Emirate is the private airline of UAE which have its separate terminal in Dubai. In 1985, Emirate starts it service in aviation industry with the two airplanes as Boeing 737 and Airbus A380. The main service provide by emirates are cabin, cargo and ground service. The primary focus is to deliver superior customer service. The target of the emirate is to cater to high ranking executives and businessmen who are looking for luxury and comfort in travel

Due to Dubai’s liberal aviation policy, the competition in Dubai airlines industry is high so that this challenge has encouraged Emirates to serve its customers in diversified ways. In order to face with this completion in the market, Emirates have found strategies to take competitive advantage such as diversified services according to their different types of passengers.

Strengths and weakness of Emirates’ Dubai based hub-and- spoke model

Emirate airline use hub and spoke model which flights go to Dubai first and then from there go to other destinations. They get more benefit by using Hub to spoke model rather than using point top point model. Some of them are as follows,

1. They can utilize the resources more by using few planes to cover many destinations.

2. It will help to manage the traffic situations

3. It create many option for passengers to select

4. Complicated operations such as cargo sorting, accounting, and passengers switching can be done at a central airport rather than multiple

They have to obey to regulations. For instance, with the airlines alliances and commercial cooperation agreement allow others to reach any hub. For instance nation such as UAE, US and Netherland have open skies agreements with other nations permitting unrestricted access to their markets by any foreign carrier.

Power of Suppliers

With the available information, there is a less bargaining power of suppliers though there are two main suppliers as Boeing and Airbus. Because there are very few aircraft range and Emirate had requested the design modification requirement and placed a massive order. It has reduce the manufacture’s risk and ability of bargain.

Power of Buyers

There is a low bargaining power of buyers in airline industry in the Middle East.

Availability of Substitutes

In Middle East, there are limited substitutes available.

Competitive Rivalry

The airline industry is a competitive industry. With the agreement such as open skies agreement, airline alliances and commercial cooperation agreement etc competitors also enter into the market. Then, there are more hubs such as London’s heathrow, paris’s Charles de Gaulle and amesterdam’s schiphol which Emirate also can enter as well as others. Accordingly, Emirates also has to face that industry competition by providing high service in innovative