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Airline Industry
By
Swapnil Mali 11037
Overview
• Goals
  • Public Service. (Service to Customers)
  • Return to Investors.
  • Country Strategic Resource.
• World Players
  • Delta Airline (US)
  • United Airlines (US)
  • Lufthansa (Germany)
  • Ryanair (Ireland)
  • Emirates (Dubai)
Airline Profitability
              Profitability = [yield X load factor] - cost

• In order to survive and profit in this tough environment, airlines
  attempt to manipulate three main variables:

• Cost, calculated as total operating expenses divided by available seat
  miles (ASM)

• Yield, calculated as total operating revenues divided by the number
  of revenue passenger miles (RPM)

• Load Factor, calculated as the ratio between RPMs and ASMs,
  which measures capacity utilization.
Emirates airlines
• In 1985, Emirates Airlines was established by Dubai
  Government with just 2 aircrafts.

• Today Emirates has 83 aircrafts files to 78 destinations in
  55 countries worldwide.

• It has a large number of cabin crews from 95
  nationalities.
Marketing Mix
1. PRODUCT
• Travel / Cargo
• Offer the high-quality, latest technologies and services
• Emirates A380
Marketing Mix
2. PRICE




  First Class                 Business Class               Economy Class


• Premium Pricing

• Another factor that determines ticket prices is the popularity of the route
  and the scheduled time for e.g. a 2 AM flight to London from Dubai will
  be cheaper than the morning flights
Marketing Mix
3. PLACE
• 122 Branches in major cities.
• Internet
Marketing Mix
4. PRAMOTION
• The airline promotes it brand through various internet and
   television advertisements along with sponsorship
   programs for major events, especially sporting events.
• It sponsors the annual Dubai Shopping Festival.
Marketing Mix
5. PEOPLE
• The employees go through extensive training programs to
   ensure high quality service and customer satisfaction.
Marketing Mix
6. PROCESS
• First and Business Class Lounges, Special Services like assisting
  disabled passengers and unaccompanied minors, Customer Relations,
  Baggage Services, Check-in and Boarding, and the Millennium
  Airport Hotel.
Marketing Mix
7. PHYSICAL EVIDENCE
•   Own terminal on Dubai international airport.
•   Lounge on most of destination airports.
•   TV screen for all classes.
•   World class food
Quality Dimensions
• Tangibles
Quality Dimensions
• Reliability
   Timely arrivals and departures
   Airbus 380 !
   Baggage insurance

                                     • Responsiveness
                                        Customer Service 24x7
                                        Assured reply for mail


• Assurance
   Trained employees
Quality Dimensions
• Empathy
  Gives individualized attention
  Customer treated with best services
Thank You 

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Airline industry Analysis

  • 2. Overview • Goals • Public Service. (Service to Customers) • Return to Investors. • Country Strategic Resource. • World Players • Delta Airline (US) • United Airlines (US) • Lufthansa (Germany) • Ryanair (Ireland) • Emirates (Dubai)
  • 3. Airline Profitability Profitability = [yield X load factor] - cost • In order to survive and profit in this tough environment, airlines attempt to manipulate three main variables: • Cost, calculated as total operating expenses divided by available seat miles (ASM) • Yield, calculated as total operating revenues divided by the number of revenue passenger miles (RPM) • Load Factor, calculated as the ratio between RPMs and ASMs, which measures capacity utilization.
  • 4. Emirates airlines • In 1985, Emirates Airlines was established by Dubai Government with just 2 aircrafts. • Today Emirates has 83 aircrafts files to 78 destinations in 55 countries worldwide. • It has a large number of cabin crews from 95 nationalities.
  • 5. Marketing Mix 1. PRODUCT • Travel / Cargo • Offer the high-quality, latest technologies and services • Emirates A380
  • 6. Marketing Mix 2. PRICE First Class Business Class Economy Class • Premium Pricing • Another factor that determines ticket prices is the popularity of the route and the scheduled time for e.g. a 2 AM flight to London from Dubai will be cheaper than the morning flights
  • 7. Marketing Mix 3. PLACE • 122 Branches in major cities. • Internet
  • 8. Marketing Mix 4. PRAMOTION • The airline promotes it brand through various internet and television advertisements along with sponsorship programs for major events, especially sporting events. • It sponsors the annual Dubai Shopping Festival.
  • 9. Marketing Mix 5. PEOPLE • The employees go through extensive training programs to ensure high quality service and customer satisfaction.
  • 10. Marketing Mix 6. PROCESS • First and Business Class Lounges, Special Services like assisting disabled passengers and unaccompanied minors, Customer Relations, Baggage Services, Check-in and Boarding, and the Millennium Airport Hotel.
  • 11. Marketing Mix 7. PHYSICAL EVIDENCE • Own terminal on Dubai international airport. • Lounge on most of destination airports. • TV screen for all classes. • World class food
  • 13. Quality Dimensions • Reliability  Timely arrivals and departures  Airbus 380 !  Baggage insurance • Responsiveness Customer Service 24x7 Assured reply for mail • Assurance  Trained employees
  • 14. Quality Dimensions • Empathy  Gives individualized attention  Customer treated with best services