Must Read: How Sustainable is Emirates business model?

[Trip7]

A couple weeks ago there was a thread that included a discussion about why the US Legacy carriers can't improve service to the level of foreign carriers like Emirates. This article goes in depth about the history of Emirates and the many reasons why it evolved from a $10 million dollar start-up to one of the most successful airlines in commercial aviation history.

http://www.aerlines.nl/index.php/2007/how-sustainable-is-emirates’-business-model/

Preview:

This contribution takes a closer look behind one of the fastest growing airlines in the world: Emirates. Despite the success of Emirates so far, there is also a fair amount of skepticism with respect to the commercial viability and long-term sustainability of Emirates’ business model. In this article, the authors provide a SWOT analysis of Emirates’ business model that needs to be discussed in the broader context of Dubai’s overall growth and development strategy into which it is firmly embedded.

 

[typhoonpilot]

Pretty good article. I'd say the biggest threat to Emirates is the other state supported airlines in the Middle East. Qatar and Etihad will probably never make a profit, but their owners have such deep pockets that they'll continue to pour money into expansion plans based on vanity instead of good business sense.

The low cost segment is definitely affecting the shorter haul market. Carriers such as Air Arabia, FlyDubai, Jazeera, Wataniya, and more are taking away regional traffic.

Still, most of our flights are pretty full and the airline is very profitable. If they ever lose money then I'll start to worry. Not too much though since I'm pretty senior



Typhoonpilot

 

[ChasenSFO]

I'm still amazed at what EK has become.

 

[Trip7]

Pretty good article. I'd say the biggest threat to Emirates is the other state supported airlines in the Middle East. Qatar and Etihad will probably never make a profit, but their owners have such deep pockets that they'll continue to pour money into expansion plans based on vanity instead of good business sense.

The low cost segment is definitely affecting the shorter haul market. Carriers such as Air Arabia, FlyDubai, Jazeera, Wataniya, and more are taking away regional traffic.

Still, most of our flights are pretty full and the airline is very profitable. If they ever lose money then I'll start to worry. Not too much though since I'm pretty senior



Typhoonpilot

The article did a great job explaining how Emirates is able to do what they do. I always wondered how Emirates were able to offer lower fares than the European Airlines with much much better service. The economy breakfast on Emirates is twice the size of Business Elite breakfast on Delta! The location of Dubai is Emirates prime advantage, and when I looked at their route map it made ALOT of sense.

 

[PropDriver]

The article was written in October 2007. I would like to see a current SWOT analysis done on Emirates. I'm sure it's not even close to what is written in the article.