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Wednesday, March 6, 2019

How Marketing Strategy Influences Choice of Airplanes- Case Study Emirates Airlines



Emirates is perhaps the only airline in the world whose fleet of airplanes is made wholly of the wide-bodied airplanes. Unlike its American and European counterparts, the Emirates does not use different types of airplanes in its fleet. This has been the prime strategic point in the Emirates plans ever since it incorporated the first wide-bodied A380 in its fleet. These planes have definitely helped the airline in the evolution of its strategy of flying long-haul and also of beating the competition from European and American Airlines on the profitable routes from Asia-Pacific.
The A380s have been the strategic stratagem. In fact, of all the A380 orders worldwide, more than 50% are owned by Emirates. And, among its own fleet, these take a whopping 40% share, the rest being attributable to Boeing planes. There are some very obvious benefits of using these. The first is that it has served the strategic purpose of limiting the role of American and European carrier on long-haul routes. Secondly, there are savings to be made in maintenance costs of the airplanes as compared with those carriers whose fleet uses a mix of different airplanes. Thirdly, these have been able to attain a higher customer satisfaction level and have emerged as frontline companies in global aviation.
However, being large airplanes with more seats, there is a need to get more bookings per flight. For this reason, the airline, operating in a competitive environment, hinges on deals and discounts on Emirates reservations in order to get those bookings. Further, while long-haul strategy has secured the place in global aviation, many other profitable short-haul sectors of flights have been ignored. In order to gain ground there and still earn profits, it has to switch to single-aisle airplanes of shorter dimensions.
There is a consideration going in the Emirates circles that the company might be willing to cancel 20 orders of A380 and to order for the smaller version A350 or Boeing 787.












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