Overview• Goals • Public Service. (Service to Customers) • Return to Investors. • Country Strategic Resource.• World Players • Delta Airline (US) • United Airlines (US) • Lufthansa (Germany) • Ryanair (Ireland) • Emirates (Dubai)
Airline Profitability Profitability = [yield X load factor] - cost• In order to survive and profit in this tough environment, airlines attempt to manipulate three main variables:• Cost, calculated as total operating expenses divided by available seat miles (ASM)• Yield, calculated as total operating revenues divided by the number of revenue passenger miles (RPM)• Load Factor, calculated as the ratio between RPMs and ASMs, which measures capacity utilization.
Emirates airlines• In 1985, Emirates Airlines was established by Dubai Government with just 2 aircrafts.• Today Emirates has 83 aircrafts files to 78 destinations in 55 countries worldwide.• It has a large number of cabin crews from 95 nationalities.
Marketing Mix1. PRODUCT• Travel / Cargo• Offer the high-quality, latest technologies and services• Emirates A380
Marketing Mix2. PRICE First Class Business Class Economy Class• Premium Pricing• Another factor that determines ticket prices is the popularity of the route and the scheduled time for e.g. a 2 AM flight to London from Dubai will be cheaper than the morning flights
Marketing Mix3. PLACE• 122 Branches in major cities.• Internet
Marketing Mix4. PRAMOTION• The airline promotes it brand through various internet and television advertisements along with sponsorship programs for major events, especially sporting events.• It sponsors the annual Dubai Shopping Festival.
Marketing Mix5. PEOPLE• The employees go through extensive training programs to ensure high quality service and customer satisfaction.
Marketing Mix6. PROCESS• First and Business Class Lounges, Special Services like assisting disabled passengers and unaccompanied minors, Customer Relations, Baggage Services, Check-in and Boarding, and the Millennium Airport Hotel.
Marketing Mix7. PHYSICAL EVIDENCE• Own terminal on Dubai international airport.• Lounge on most of destination airports.• TV screen for all classes.• World class food