Emirates Airways in the airplane travel industry

Part
01
of two
Part
01

Emirates Competitors Part 1

Using data leveraged from the company website and other credible databases, we have been able to provide the information in the spreadsheet. All requested information has been entered in the attached spreadsheet. Below is an overview of our findings.

1. ETIHAD AIRWAYS

Overview

  • The airways are wholly owned by the government of Abu Dhabi with a mandate to operate safely, commercially and profitably.

Competitive Advantage

  • From its inception in 2003, the airline has always favored codesharing as an approach in global expansion.
  • The airline's other competitive advantages are shorter connecting time and greater domestic access to key markets such as Europe and India, through its airline partnerships.

Revenue

2. QATAR AIRWAYS

Overview

  • As one of the youngest global airlines, Qatar Airlines serve all six continents, connecting over 160 destinations. The airline has grown to become one of the elite group of airlines worldwide to have earned a 5-star rating by Skytrax.

Competitive Advantage

  • Qatar Airways biggest competitive advantage is its location in the Gulf region.
  • The airways have also won a lot of awards, such as World’s Top Airline during the final Global Airline Rankings in the "World Airline Awards" for the year 2012, among others. These awards have increased customer confidence in their services.

Revenue

3. LUFTHANSA

Overview

Competitive Advantage

  • Lufthansa biggest competitive advantage is its brand.
  • The Lufthansa airline is a member of the Star Alliance. This alliance is one of the biggest alliance, globally.
  • The airline is renowned for its good in-flight customer services. It provides services such as in-flight meals, free check-in, frequent flier points, among others.
  • Judging by seat capacity, the Lufthansa group's has 54% of the European market.
  • The Lufthansa group has five hubs in Europe. These hubs are in Frankfurt, Munich, Zurich, Vienna, and Brussels. The first four of these are operated by the group's fully-owned airlines and are located relatively close to one another in the center of the European continent.
  • Through the coordination of schedules and pricing, the locations of the hubs allow it to offer a wide range of destinations and frequencies. It also allows it to develop its network from each hub with a particular geographic focus where this adds to the overall efficiency of its operations.

Revenue

RESEARCH STRATEGY

We began our research by leveraging information from Emirates competitors' websites. From this search, we were able to gather information on the competitor's overview and capabilities. A search on the website's news section gave us insights into the company's brand strategies. We also searched for information on company profiling sites, among others, to provide the requested information. However, after searching through the press releases on the company websites, we could not find any information on the competitor's ad spend. We looked for this information on the company financial reports, but could not find any actionable data of their total or estimated ad spend. The information available was related to the competitor’s revenue, and so on.
Next, we looked for this information on news media and publications. We felt that information like this may have been published by the company in press briefings. From our search findings, we found no mention of the competitor's ad spends in the news media. The information we found was on the company's revenue over the years. We also searched the social media handles and platforms for this information. We felt that as this information was not available in the competitor's financial report, it could have been put up by each company on their social media handles. Unfortunately, the information found on these handles were related to social media campaigns, shout out post, among others.
We could not also find information on the market share of Emirates competitors. A searc for this information on market research databases such as PR Newswire, MarketandMarkets, among others. We felt information like this could be best found in the market research databases. However, the information found was related to the market size, while information on the market share of Emirates competitors was behind a paywall.
Next, we proceeded to search for the individual airline market share in news and press releases and publications. This search also failed to provide any actionable data. All the information found on Qatar Airways and Etihad Airways directed us to the market research databases which had the information, but was behind a paywall. However, the search on Lufthansa airlines was able to provide us with data on the European airline market share.
Finally, we proceeded to explore annual reports. We felt this was another good place to search for this information because companies normally release this information to shareholders as another criterion to prove that the company is growing and has improved over the past year. However, we could not find information related to the market share of the airlines under this search. The information found were related to the company's revenue over the years. Additional information can be found in the attached spreadsheet.
Part
02
of two
Part
02

Emirates Competitors Part 2

Malaysia Airlines has a market share of 4%, British Airways 18.9%, Qantas 17% and Air France has a market share of 8.8%. The requested information on Malaysia Airlines, Qantas, British Airways and Air France have been provided in the attached spreadsheet.

FINDINGS

MALAYSIA AIRLINES

Competitive advantage

  • The airline provide one of the best customer services by focusing on a customer-centric menu which allows customers to get their meal at their convenience.
  • Malaysia Airlines offers frequent flier programs which have helped in improving customer engagements and connect better with the customers.
  • The airline has been crowned the 'World's 5-Star Airline' by Skytrax multiple times.
  • Malaysia Airlines offers the best connectivity with seamless journeys to more than 1,000 destinations across 150 plus countries and access to over 650 airport lounges worldwide.

Revenue

Marketing and Branding

  • Malaysia Airlines came up with the tagline "MH is Hospitality", the ad campaign showed via newspapers, travel magazines, billboards and social media platforms and received a strong positive brand recall because of the marketing.
  • In order to maintain customer loyalty, the Airline launched a flyer program called "Enrich".
  • One of the ways Malaysia Airlines promotes its brand is by entering into sponsorship deals. Recently, it signed a deal with Liverpool FC as the official global airline partner of the club.
  • Through the deal with Liverpool, the airline will broadcast a six-minute ad video during the club's home games.
  • Malaysia Airlines offers premium services like lounge services, in-flight entertainment, complimentary drinks, meals, and beverages. It has differentiated itself from its competitors by offering various frills and benefits and hence have been able to maintain its pricing policy.
  • The Airline target customers are businessmen, corporate houses, individuals and families from the middle and upper class of society who prefer reliability and comfort in their travels and it has been able to position itself as a trusted carrier serving global destinations with excellent products and impeccable services.

QANTAS

Competitive Advantage

  • The company is well-positioned in Asia through its premier airline partnerships.
  • Qantas has a reputation for its operational and safety excellence, an iconic Australian brand.
  • The airline frequently comes up with innovative loyalty businesses with valuable data insights.
  • It has very strong branding and marketing strategy which includes targeting its services to diverse customer segments, using a customer-first approach.
  • The airline has developed a "cult following" and customers have trust in the brand which is a competitive advantage to the airline.
  • Qantas Airways is one of the top and largest airlines operating in Australia and one of the oldest in the world.

Revenue

Marketing and Branding

  • Qantas spent $108 million for marketing and advertising in 2018.
  • Through segmentation, Qantas has been able to understand various groups of customers based on distinctive population variable.
  • Qantas displays its ad campaigns through print and digital media in newspapers, radio, magazines, television, hoardings, billboards and social media.
  • Qantas offers incentives like Frequent Flier program to lure in new and maintain previous passengers.
  • Qantas supports LGBTIQ community and equality in marriage theme as part of its community services via campaigns and its tagline "The Spirit of Australia".
  • The company is associated with the welfare of the Aboriginal community.
  • The company also maintain sponsorship as a way of marketing its brand and engaging its target customers. They sponsor the Qantas Wallabies.
  • Qantas charges minimum rates for its economy class tickets and provides basic amenities to its passengers and this has helped in capturing the mass market section of the society.
  • The company offers an option of money refunds to its customers.
  • Qantas partners with several others to allow usage of third-party websites and e-portals and booking are possible through mobile apps and SMS.

BRITISH AIRWAYS

Competitive advantage

  • The airline is one of the largest airlines in the world, it operates in over 82 countries with more than 300 aircraft fleet size which has helped in increasing its reach outside the UK.
  • British Airways strategy in acquiring a large fleet seen as a leader in the industry has helped in giving it a competitive advantage over other airlines.
  • The company has alliances with other airlines and is a member of the OneWorld partner alliance.
  • The company utilizes innovative technology to gain a competitive edge as well as provide better customers service.
  • Most of its bookings are carried out via its e-ticket system giving customers the possibility of on-line/Kiosk check-in, getting seats preassigned, making special services request and meal requests.

Revenue

Marketing and branding

  • British Airways as a part of their promotional strategy has been providing special flight tickets at reasonable prices for special occasions.
  • The company promotes its products and services through the use of television channels, internet, magazines, billboards, social media to help create catchy advertisements have helped in maintaining as well as creating a customer base.
  • The company also promotes its brand by partnerships with celebrities as brand ambassadors for the airline.
  • A mobile application was created for the special airline customers allowing them to make reservations easily and to get fringe benefits thereby, saving the tech-savvy customers of the airline time while booking their tickets online.
  • Their main channel of distribution of the products is through the call centres, the online websites and the travel agents.

AIR FRANCE

Competitive advantage

  • Air France utilizes technology to provide excellent customer service to its customers, offering a mobile app in 9 languages which in turn provides convenience to the customer.
  • The company launched a low-cost subsidiary (Joon) which is targeted at younger customers and using technology such as AI to create a tailor-made journey which enhances the customer experiences.
  • Air France is a global player in passenger transport, cargo transport and aircraft maintenance business segments.
  • Air France is renowned for the quality of its offering, the structure and density of its network and its efforts in digital innovation and customer service.

Revenue

Marketing and Branding

  • They offer French-themed services to the passengers in terms of services at the airport and in-flight journey.
  • Air France offers a dedicated 24/7 services for its passengers all over the world, providing utmost facilities in terms of in-flight and at the airport.
  • The company makes use of directly advertising the brand as a part of its marketing mix through media like news, magazine and television advertisement.
  • Air France launched an advertising campaign ‘Air France, France is in the Air’ illustrating the fun and culture of the French lifestyle.
  • Air France offers passengers with some of the best deals in terms of pricing to a different destination as a part of its promotion.
  • The airline offers a frequent flyer programme wherein points are given based on miles travelled by passengers.

RESEARCH STRATEGY

We couldn't provide information on the marketing spend of British Airways, Air France and Malaysia Airlines. We began by searching through each company's annual reports, investor relations, unfortunately, the information was neither published on the companies websites nor annual reports.

Next, we searched through marketing and advertising websites such AdAge, Adsoftheworld, Hubspot, Marketing91, Inbound, MartechToday, Neil Patel, Marketing Land, Chiefmartec, Marketing Interactive, Media Radar, eMarketer, Digitalnewsasia, among others. Through this strategy, we have hoped to find information on the companies marketing strategy and how much they are spending. Although the sources were helpful in providing information on the companies marketing efforts, there was no information on the marketing spend by each company.

Our next strategy was to triangulate the marketing spend of each of the company. The first steps we took in this strategy was to locate the percentage of revenue allocated to advertising and marketing efforts. We conducted a search through press releases from the companies, media sites such as Bloomberg, Forbes, Yahoo, Flight Global, Airways Mag, Skift Airline News etc. This strategy didn't prove productive as the information was not publicly available by the company thereby, making estimations difficult to perform.

To provide the market share of British Airways and Malaysia Airline, we began by searching for the market size of the commercial airline industry. From data provided by The International Air Transport Association (IATA), the airline industry generated a revenue of $812 billion. We calculated the market share of the companies by dividing the revenues of each company by the total market size of the industry multiplied by 100.

We also converted the revenues of Qantas, Air France and British Airways to the USD by using the pounds to dollars, euros to dollars and Australia dollars to US dollars exchange rates.

Formula = (Industry market size / company revenue) * 100

British Airways

Revenue = 12,226,000,000 Pounds, approximately $15,329,056,608
Commercial airline industry market size = $812,000,000,000
%share = ($15,329,056,608 / $812,000,000,000) * 100 = 18.9%

Malaysia Airline

Revenue = $3,926,690,000
%share = ($3,926,690,000 / $812,000,000,000) * 100 = 4%
Sources
Sources

From Part 01
From Part 02