YECYEC, PEARL JADE R.
BSA301-MANAGERIAL ECONOMICS
CASE STUDY 1
How can you categorize Emirate Airline Company as market structure? Explain your
answer.
Oligopoly, Emirates Airlines is one in every of the foremost important competitors within
the industry and is known for very high standards, excellent performance, and never-ending
drive for innovation and improvement. The industry is extremely competitive because the airline
businesses must adjust their prices to all or any or any types of internal and external changes
within the economic system. Additionally, the businesses within this industry face a diffusion of
worldwide, sociocultural, and legal challenges just like the environmental concerns and policies,
the growing risk of terrorist attacks targeting airplanes, and thus the continuing debates over the
rights of the passengers and safety procedures.
How has Emirates been able to build a strong brand in the competitive airline industry
worldwide?
a.) It is the Middle East's largest airline, operating over 3,300 flights a week from its hub
at Dubai International Airport to over 148 cities in 78 countries across six continents. In addition,
it is the world's seventh biggest airline in terms of revenue and the largest airline in the Middle
East in terms of revenue, fleet size, and passengers transported.
b.) It earned sales of roughly AED 89 billion ($24.2 billion) in the fiscal year 2014-2015,
representing an increase of around 7,5% above the previous year's revenues of AED 83 billion.
Over the same time period, the number of passengers grew from 44.5 million to 49.2 million,
indicating an 11 percent rise. The passenger seat factor increased by 0.2 percent to 79.6 percent.
c.) Emirates has made an investment in a concept known as "tailored arrivals." This
enables air traffic control to communicate with airplanes in flight. It calculates the speed and
flight path from the air to the runway. This also allows the crew to adopt and fly a continuous
descent profile, which saves fuel and reduces emissions.
d.) Lean Human Resources, Dubai government backing, high employee satisfaction,
strong customer loyalty, a broad range of commercial activity (80 countries), and innovation
with regard to time are the primary reasons in establishing it as a brand in the aviation sector.
