Econimic impacts on Emirates Airline Essay Example | Topics and Well Written Essays - 750 words

Econimic impacts on Emirates Airline - Essay mannikinOperating in 55 countries and to 77 destinations, Emirates air hoses is one of the major airliners in the world at gift. It has started its trading operations from Dubai in 1985 and currently serving in almost every major destinations of the world. It has won the best airliner plunder many eras because of the excellent renovations it offers to the customers. But still it is facing stiff challenges at present due to the recession. This paper briefly analyses the economic environment of airline industry in general and emirates airlines in particular.Financial experts believe that Emirates airlines future could be determined by Dubais sister emirate, Abu Dhabi presidential term (Milmo et al). Currently Dubai is undergoing a severe financial crisis and the reports from Dubai shows that one of the biggest organizations in Dubai, Dubai world is on the verge of destruction because of financial crisis. Dubai government is waiting f or Abu Dhabis help in sort out the economic problems. Emirates is owned by the investment funds Corporation of Dubai, which is in turn controlled by the Dubai government (Milmo et al). The current financial crisis of the Dubai government may office the government to think in terms of a merger between Emirates and the Abu Dhabi counterpart Al-Itihad.The increased localise on diversification by neglecting other areas of business has created a strategic failure in the Emirates airline business. Emirates blindly went after acquisition strategies to extend the wings by overlooking other areas like the service sector. Stakeholders and their interests were overlooked by the company when they concentrated more on other aspects of the operations. The customer service standards keep up been adversely affected and the reputation of the airline has been affected badly in the last few years.The bargain power of the sellers is low at present especially because of the current global recession. At the same time increased