Abu Dhabi Aviation Corporate Governance Report (Assessment)

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Updated: Jan 10th, 2024

Introduction

The current world of globalisation and industrialisation is witnessing a surged increase in development especially in the growth of businesses. Businesses and corporations stand out as central factors in propelling the global economy. However, perhaps the most challenging thing in setting up strong organisation is likely to be one of the factors hampering the growth and development of several organisations (European Welding Federation, 2008). With the increasing importance of strategic management as fundamentals of organisations, most of them rarely understand how to manage corporate governance. Therefore, this paper examines organisational fundamentals incorporated at Abu Dhabi Aviation, a leading organisation in United Arab Emirates.

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Strategic Posture

Strategic posture implies the tactical approach that governs an organisation. Strategic posture reveals the management strategies set within a calculated period. Leuenberger and Hoballah (2010) outline basic elements of strategic posture as “vision and mission role and composition of the Board Strategy formulation Control, decide and govern transparency and accountability” (p.10). However, this paper only provides the current mission, objectives, strategies, and policies of Abu Dhabi Aviation Company (ADA).

The current mission is, “To provide innovative solutions globally, while exceeding shareholder, customer, and employee expectations” (ADA, 2012). Abu Dhabi Aviation states its goals as:

Safety is ADA’s top priority & fundamental core value and is never compromised. We value innovative, timely, efficient, cost-effective, reliable, and best quality services. We are committed to achieving the highest levels of customer satisfaction. We value the contribution that our team makes in achieving our mission and we support and encourage teamwork to ensure a high level of competence, expertise, and competitiveness. Trust, responsibility, transparency, commitment and accountability, are the pillars of our existence (ADA, 2012)

In this organisation, objectives serve as strategies and critically assessing the basic elements of the organisation, they do not only involve performance, but also they ensure that all stakeholders are equally important while setting the mission and objectives.

Corporate Governance

For any goal-oriented company to strive towards achieving its stated vision and business target, corporate governance is key in enhancing investment, financial strive, market stability, and economic growth (OECD, 2004). Essentials of corporate governance in an organisation include top management officials to the lower management, which is crucial in ensuring organisational performance (European Welding Federation, 2008). The board of governance at Abu Dhabi Aviation Company includes both internal members and external members, who serve diligently to ensure organisational success.

Internal Environment (Company’s Board Government)

For a company to increase its accountability and competence, external governance forces are imperative. The corporate governance framework should “promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory, and enforcement authorities” (OECD, 2004, p.17). Members of the board at Abu Dhabi Aviation Company include

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The chairperson, H.E. Nader Ahmed Mohammed Al Hamadi, and H.E. SH. Ahmed Mohamed Sultan AL Dhaheri, as his assistant chairperson. The Board members include H.E. Homaid Abdullah Al Shemmari, Mr. Abdullah Sedeeq Mohammed Khouri, Mr. Ahmed Ali Khalfan Al Dhaheri, Mr. Khalifa Yousif Abdullah Khouri, Mr. Saeed Ali Saleh Al Kuwaiti, Mr. Saif Saeed Mohammed Al Dhaheri, Mr. Youssef Abdel Aziz Ahmed Al Harmoudi (ADA, 2012).

One of the fundamental things in an organisation especially within the top management is to identify stock ownership plan. OECD (2004) affirms that corporate governance in a company entails board members and key executives over holding and trading of the stock. At Abu Dhabi Aviation Company, the company trades in fleet management and their services operate publicly though they are privately owned. The contribution of the board of directors remains an important aspect in the management of the company as they form an integral part of the organisation. ADA (2012) reveals that the company is willingly equipped and committed to provide their stakeholders with sustainable growth and return with the board consistently committed to protecting the interest of all shareholders. ADA board of governance harbours proficient knowledge in handling the company’s operations, thus the enhanced financial and economic growth.

Given that Abu Dhabi Aviation Company is an international company with branches in almost all the Arab countries within the continent, the company ensures that members of board of governors chosen are internationally competent (OECD, 2004). Since fleet operation and aviation field requires exemplary skills, knowledge, and experience, the board of governance is set to meet all the set criteria before assigning governorship. The board has served in ADA for over ten years. Throughout the financial years, the board has proven significant in strategic planning of the organisation as it forms the top management team. Sequentially, the board always ensures that the management is working under the terms and conditions established by the board of governance in cooperation with other ADA branches worldwide. The board normally sets the company’s financial strategies, establishes market approaches, and sets organisational goals.

Top Management

The top management team operates below the board of governance and forma a significant management panel in the hierarchical order. At Abu Dhabi Aviation Company, the top management includes the company’s general manager, business development advisor, the investment committee, remuneration committee, and the Audit committee. Sharma (2009) affirms that the top management is quite essential in management of any organisation and must always ensure that the business is operating following its set prospects. The company’s business profile has revealed the competence in its management especially in controlling both national and international activities. The top management has great management skills that contribute to the company’s overall success. Successively, they have been paramount in designing strategic plans with the aid of the board of directors.

In the context of strategic planning, the top management engages in strong debates concerning the plan to develop an excellent strategic plan. Members in the top management propose, discuss, and analyse issues pertaining to corporate governance and strategic management to form a consolidated strategic plan. During strategic planning, organisational management, ethical, and social issues in the code of conduct are inclusive to ensure that a company respects the corporate social welfare of the surrounding committee. The top management is effective and efficient and thus their skills are useful in a company’s operations.

External Environment: Opportunities and Threats

Current Opportunities

Within its operations, the environment provides the company with several opportunities. Abu Dhabi Aviation Company is currently operating in a highly populated region that gives it a chance to dominate the market through a number of competitive advantage strategies established by the company. The area under which the company is operating is still underdeveloped and this aspect gives ADA a chance to expand its services to build a good repute before other investments invade the market. Technologically, ADA is growing exponentially with the management seeking better solutions in providing excellent customary services through technologically enabled services. This move has enabled the company to receive substantial fame and has now become the most preferred aviation company for travel solutions across Arab and European nations.

Current and Future Threats

The greatest hindrance towards organisational prosperity remains a political influence that has led to the incurrence of huge loses especially during international political differences. Arabic countries in the Middle East have been experiencing internal conflicts especially those with huge oil deposits. Due to this aspect, companies situated in or near countries like Iraq, Kuwait, Qatar, and Afghanistan always face this challenge that threaten their commercial operations as well as expansion of services. Socio-cultural issues have been among the threats that subdue the company’s efforts in providing expert services. The issue of land and environmental concerns are becoming notoriously influential to the management as the local communities allege that the organisation is not respecting communal land coupled with spoiling the environment, which presents a serious threat to the company’s operations.

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Conclusion

The Abu Dhabi Aviation Company remains the most reliable commercial helicopter operator across United Arab Emirates with millions of clients depending on its services. The board of directors and the management team have continuously ensured organisational performance through the establishment of a reliable strategic plan that has been paramount to the success of ADA. However, despite having a considerably better economic stability, the organisation faces stiff challenges from the external environment, with international and national conflicts in countries in the UAE being most influential of performance. Nevertheless, the company has several opportunities that it can exploit for better market performance.

References

Abu Dhabi Aviation (ADA). (2012). Abu Dhabi Aviation Company. Web.

European Welding Federation. (2008). Fundamentals of Company Organisation. Web.

Leuenberger, H., & Hoballah, A. (2010). . Web.

OECD. (2004). OECD Principles of Corporate Governance. Paris, France: OECD Publications Service.

Sharma, S. (2009). Business Organisation: A concept based exclusive material. Web.

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IvyPanda. 2024. "Abu Dhabi Aviation Corporate Governance." January 10, 2024. https://ivypanda.com/essays/abu-dhabi-aviation-corporate-governance/.

1. IvyPanda. "Abu Dhabi Aviation Corporate Governance." January 10, 2024. https://ivypanda.com/essays/abu-dhabi-aviation-corporate-governance/.


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