1. Who is the best ? Which airline had : Double digit growth for the last 19 years ? Best operating margin ratio in 2003 ? One of the highest load factor in 2003 ?

2. GROUP 12 Section C Chang Jack Dimoka Maria Guibourgé Matthieu Oda Hiroo Zhang Steven

3. Introduction What happened to the aviation industry? World Passenger Demand -5 0 5 10 1994199519961997199819992000200120022003 Annual Percent Growth PassengersRPKs World Air Carrier Profit/Loss -15 -10 -5 0 5 10 15 20 1994199519961997199819992000200120022003 billions of US dollars Operating profitNet profit

4. Change In Industrial Environment How airlines companies reacted to the tough situation? Trends & Strategies –Smaller and faster airlines –Globally strategic alliance Dark Horse

5. Emirates Airlines vs other front runners Emirates outperformed others by high profit margin Total Revenue 0 2 6 10 14 billion euro 2001 2003 Benchmarking (1) Percentage -5 0 5 10 15 Profit Margin 2001 2003

6. Emirates operates outstandingly (cost efficiently) Benchmarking (2) Passenger Load Factor 75 77 70 Revenue / Employee 100 250 0 150 200 50 FY2003 DATA Emirates outperformed others by passenger load factor

7. The Company

8. Emirates Airlines Head Offices located in Dubai Started in 1985 It owns 50 aircrafts No of Employees = 10,500 Ranked 5 th in the industry (Net Profit)

9. Integral Operations Emirates Group Emirates Airlines DNATA Airline OperationsAirport Operations

10. Top Management Structure Chairman Group Managing Director Chief Director Chairman Group Managing Director 2 Chief Directors Chairman Group Managing Director

11. Business Model of Major Airlines Main Hub Regional Hubs Main Routes Making Profits Long-haul Aircrafts Branch Routes Competition from Low-Budget Airlines Short-haul Aircrafts

12. Business Model of Emirates Airlines Main Hub (Dubai) No Regional Hubs Main Routes Making Profits Long-haul Aircrafts No Branch Routes Making Code-Sharing Agreement Code-Sharing 5,000-6,000km No Need For Refuel outside Dubai

13. Business Model of Emirates Airlines

14. Characteristics of the Emirates Model 1. Homogeneous Aircrafts (Long-haul Only)  More flexibility in Flight scheduling, Crew scheduling  Scale merit of Purchasing, Leasing and Maintenance 2. Direct Flights  Less Downtime (High Utilization of the resources)  Reduce landing and Parking Cost 3. Standardized Flight Schedule  Simple Operation with Less Flaws

15.  Top Management from UK and Ireland  Employees from more than 100 countries His Highness Sheikh Mohammad :The “Picture Face” International Culture with Arabic Symbol

16. The SWOT

17. Dubai Hub Financial Results Marketing Strategy Fleet SWOT-Strengths

18. Advanced Fleets Lufthansa: 17 types including 737-300, CRJ 100/200… Emirates: B777-200/300; A330-200; A340-300/500 Fleet Average Age 0 40 80 120 160 month Whole Industry

19. Not Established Brand Name Small Independent Airlines Network SWOT-Weaknesses