Introduction
Emirates Airlines is one of the leading global airlines. The firm has destinations to various parts of the world and it is currently one of the top regional passenger carriers in the industry. According to Taneja, the airline industry is increasingly becoming competitive because of the emergence of new players and the expansion of the existing players (21). To survive in this competitive market, this firm must come up with ways of meeting the changing needs of the customers. It must be ready to come up with new and better products that outperform that of the rival firms. Chandan notes that the performance of this company has been impressive even when other airline companies were experiencing economic challenges (42). The 2008 global economic recession significantly affected the airline industry and so many airlines were forced to cut down on their operations. However, Emirates is one of the very few airlines that continued expanding its operations during the global recession (Low 41). It was able to embrace changes in the market and redefine its product delivery approach to suit the emerging market forces. Currently, this airline is the fourth largest in the world and the largest in the Middle East in terms of revenues and passengers carried (Ellman 90). In this paper, the researcher will focus on how Emirates Airlines manages change in the current competitive business environment.
Company Background
Emirates Airlines was founded on March 25, 1985, with the backing from Dubai’s royal family (Smith and Warburton 89). The royal family was concerned that the decision by Gulf Air to reduce its flights to Dubai would affect the growing relevance of the city as a global business hub and tourist destination. As such, the idea of starting a local airline flying to regional cities was conceived. The airline registered impressive growth as it focused on flights to major cities in the Middle East and North Africa regions. The firm formed a partnership with major global airlines as it struggled to expand its market share. In the late 1990s, it had started purchasing Boeing 777-300s and A340-500s as it sought to go beyond the regional market. The growing relevance of Dubai city as a major business center and tourist destination has helped in promoting the rapid growth of this airline. A report by Morrell shows that during the global recession of 2008, this company did not reduce its number of destinations or flights (67). This was so because tourists and businesspeople continued to fly to Dubai. The company is currently owned by the Emirates Group. It has about 40,000 employees working as pilots, cabin crew, engineers, flight deck crew, and many other positions within the company. It is a flexible firm that knows how to respond to change whenever it is necessary.
Descriptions of the Change Introduced
According to Taneja, Emirates Airlines has always been keen on introducing new products that meet the expectations of its customers in the most appropriate way possible (78). It has been relying on its innovativeness to overcome competition in the market. One of the new changes that it recently introduced is the layout of the floor of their passenger planes for the first class and business class passengers. The firm has introduced a unique layout that is designed to make passengers more comfortable, especially during long-distance trips. In the first class, the firm introduced an enhanced private bedroom where customers can engage in any private activities without any interference. The business class also has new seats that can be converted into 2-meter long beds with individual overhead reading lights in every bedroom. These are features that are not common in the products offered by other companies.
The introduction of these new services also meant that the crew had to be ready to offer new services to the customers. Customers in the first-class cabin have the privilege of getting service of the flight attendants on demand. All the customer has to do is press the bell and an attendant would respond immediately. It meant that the company had to train these employees on how to respond to the unique demands of the modern-day clients. They also had to know how to work under pressure because the firm did not increase the number of attendants per flight. The employees had to be more efficient and effective in meeting the demands of the customers during the flights. Customers in the business class and economy class were not as demanding as those in the first class, but it does not mean their needs can be ignored. As Morrell observes, in cases where a firm has to meet the emerging needs of the customers, training becomes necessary (18). The management of this firm has been taking its employees through a rigorous process of training to help them understand the new workplace environment.
Justification for the Change
The change introduced at this firm was justifiable. Just like other airline companies, Emirates Airline has been encouraging its customers to identify areas of improvement that the firm should look into to help improve their comfort. One of the major complaints they often received was discomfort among long-distance travelers. Those in the first class and business cabin argued that they are not getting the value they deserve. As such, the management commissioned research to find ways of addressing these complaints. The new floor design for the two cabins was determined to be the most appropriate way of meeting the new customer demands. As Smith and Warburton say, the rich want comfort irrespective of the environment in which they are (69). The firm’s decision has indeed addressed the complaints registered by the customers. The firm is currently looking into ways of improving the comfort of passengers traveling in the economy class.
Implementation of the Change
Implementation of change was the most challenging part after the researchers came up with the design. The new floor plan meant that more space had to be created in these two cabins. It meant that each of the planes could accommodate a lesser number of passengers. The firm had to come up with ways of transferring the additional cost to the customers without making them feel exploited. Ellman notes that every time a firm introduces a new value on a product, it becomes necessary to transfer the additional cost to the customer for the firm’s profitability not to be affected (52). It took a while for this airline to finally find a way of transferring the cost. The next challenging phase was to train flight attendants on how to handle their tasks in an increasingly demanding environment. Training and motivational measures were introduced to enhance their efficiency at work. Currently, these employees are very efficient at working in the newly introduced environment.
Impacts of the Change
The change introduced at the firm has had a major impact on its operations. A report by Smith and Warburton shows that Emirates is currently attracting a high number of passengers using first class and business class cabins (73). The airline has proven its worth in meeting the unique needs of the rich in society. Most of the products offered in these two cabins are premium. Chandan says that customers in the first class have particularly registered satisfaction with the privacy and service delivery method they get when using the services of Emirates Airlines (53). The firm is currently one of the most preferred airline companies not only in the region but also at the global level. Travelers visiting the Middle East or traveling to other parts of the world from the Middle East often consider Emirates Airlines as their priority. The profitability of the firm has improved and its market share is steadily increasing. Ellman argues that if this firm continues to record such impressive results, then it may become one of the top two global airlines in the next decade (33).
Conclusion
Emirates is currently one of the most dominant players in the airline industry, classified as the fourth-largest airline in the world in terms of the number of passengers and revenues generated. The success of this firm is attributed to its ability to understand market forces and develop new products that meet emerging customer needs. The recently introduced changes at the firm that focused on improving levels of comfort of employees have made this firm very popular among global travelers.
Works Cited
Chandab, Taghred. The Perfect Flower Girl. Allen & Unwin, 2012.
Ellman, Louise. Security on the Railway: Fifth Report of Session 2014-15: Report, Together with Formal Minutes Relating to the Report. McMillan, 2014.
Low, Linda. Abu Dhabi’s Vision 2030: An Ongoing Journey of Economic Development. World Scientific, 2012.
Morrell, Peter. Airline Finance. Wiley & Sons Publishers, 2013.
Smith, John D, and Fiona Warburton. Travel and Tourism. Cambridge University Press, 2012.
Taneja, Nawal. Designing Future-Oriented Airline Businesses. Springer, 2014.