Performance Analysis of Emirates Airlines and Qatar Airways

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Executive Summary

The study shows how Emirates Airlines and Qatar Airways compare. In the study, it can be found that both the airlines are amid the reputed airline organizations in the world and have provided remarkable performances for number of years in the airline industry. Both airlines provide extensive services and are continuously searching for better performance to serve the clients in a superior manner. However, it was concluded that according to the overall performance between the two airlines organization, Emirates Airlines performed noticeably well in certain aspects as compared to Qatar Airways and considerably holds the upper hand.

Letter of Transmittal

Dear Sir/Ma’am,

I present the report of the study of comparison between the two airlines, i.e. Emirates Airlines and Qatar Airways. The report is structured based on the comparison of various activities performed by both the airlines in the global market. A copy of the report is being submitted to you. I highly appreciate the time that you have devoted to me.

Regards

Table of Contents

  • Executive Summary
  • Letter of Transmittal
  • Introduction
  • Analysis
  • Discussion of Findings
  • Summary and Conclusion
  • Works Cited

Introduction

Emirates is a renowned The Emirates Group airline located at Dubai International Airport, Dubai, United Arab Emirates. It is considered one of the largest airlines in the Middle East created in 1985. The airline is headquartered in Dubai. As announced in December 2012 (Emirates, “Our Fleet”), Emirates Airlines comprises about 191 fleets spread across 128 destinations. Emirates has various competitors including British Airways, Qatar Airways, Cathay Pacific and Singapore Airlines among others. It makes diverse cabin features including First Class, Business Class, and Economy Class features. First Class feature presents customers with facilities of Five Star deluxe dining feature and menu on demand along with 1400 channels of entertainment. The Business Class of Emirates also offers flat-bed seats, in-seat phone service and onboard lounge. It also provides the facility of charging laptops in airlines. Emirates ‘ Economy Class offers both comfort and convenience through various facilities such as exclusive meals, email, and telephone services. In Emirates Airlines (Emirates, “Cabin Features”), luxury services such as Shower Spas and Private Suites are also offered to clients. The airline’s first flight named EK 600 started from Dubai to Karachi in 1985. The airline earned its exclusive profits inside nine months of its establishment and since then it has grown considerably and never looked back (Grand 1-100).

Comparison Between Emirates Airlines and Qatar Airways

Qatar Airways has grown to a significant level within a short period of time, serving   more than 120 destinations around the world. The airline offers excellent services which have assisted it to capture award winning position for becoming one of the leading airline companies in the world. It was founded during the year 1993 and started its operations in 1994. The airline company is owned by Government of Qatar, having its headquarters in Doha. The airline company was unable to achieve popularity during the initial period, and was briefly dissolved. During 1997, with its re-launch of airlines, Qatar Airways had earned various awards and was categorized under the elite group for airlines in the world with a 5-Star rating provided by Skytrax. Qatar Airways operates around 230 fleets which operate around the world. Qatar Airways also provide facilities for customers travelling in First, Business and Economy Class including 5 Star dining facilities, entertainment and comfort for customers with luxury products along with amenity kits for customers for their personal comfort. An added facility is provided to customers of First Class for carrying luggage of 40 kg, while it is 50 kg for Emirates (Qatar Airways, “First Class Experience”; Emirates, “Baggage”).

With the due consideration to the above described factors, the paper intends to describe the issue of the comparison between the two airlines between Emirates and Qatar and the facility and services provided by two airlines. The above mentioned information addresses the study of the two airlines in an extensive manner. The study observes an important question by providing a vivid description of two airlines operated in various destinations facilitating comfort for the customers all over the globe through their onboard services and extensive facilities.

Analysis

The comparison between two airlines has been structured based on certain pertinent dimensions that have been illustrated in this analysis section.

Both Qatar Airways and Emirates Airlines can be categorized under luxury airlines. However, there prevail various significant differences in terms of services and amenities provided by both the airlines. In reference to Emirates Airlines, it is observed that the seating facility for customers travelling in Business and Economy Class is quite noteworthy as there is an option for travelers to select their own seat along with additional legroom. The number of destinations Emirates Airlines flies is greater than Qatar Airways. The performance of Qatar Airways is observed to be moderately worse as compared to Emirates Airlines in 2012 and it also possessed limited fleet size. A comparison can be provided between two airlines in terms of destinations served, which according to the report presented in 2012 stood at about 120 for Emirates, whereas for Qatar Airways it was nearly 115. The frequent flyer program for Emirates is named as Skywards and for Qatar Airways it is known as Privilege Club. In terms of fleet size, in 2012, Emirates had 176 as compared to 108 for Qatar. The subsidiaries for Emirates can be identified as Arabian Adventures, Congress Solutions, Emirates Tours and Emirates Holidays. On the contrary, Qatar Airways comprises subsidiaries of Qatar Airways Holidays, United Media International, Qatar Distribution Company and Qatar Executive among others. The on-time performance of Emirates was around 67%, whereas for Qatar Airways it was around 77% in 2012. The weight limit of the luggage carried by the passengers in the economy class in Emirates Airlines was accounted to be 30 kg in 2012 as compared to 23 kg for Qatar Airways (Comparica, “Compare Emirates Airline VS Qatar Airways”). The operating income for Emirates in 2012 was around US$6.7 billion which was much higher as compared to 2011 which stood at around US$ 5.7 billion. The increased ratio was around 17.8%. The margin of profits was also considerably higher by 9.5% i.e. from US$ 1.6 to US$1.76 billion. On the other hand, the total revenue by Qatar Airways was around US$618.02 million in 2012, from US$622.3 million in 2011. The company incurred a minor loss around US$0.7 million. However, the profit margin was around US$16.9 million from US$6.4 million (Tigerairways.com, “Annual Report”).

Discussion of Findings

A discussion of varied crucial findings related to both the airlines i.e. Emirates and Qatar Airways have been discussed on the basis of expansion, operations, management, customer loyalty, quality and services among others.

In terms of expansion, it can be stated that Emirates focuses on establishing flagship service to Glasgow by 2014. The airlines also announced an expansion from Dubai to Glasgow during the initial period of 2012. The aircrafts of Emirates are involved in rendering service to over 126 destinations in 74 countries along with providing 25th Airbus A380 in rapid expansion of fleet. Expansions are planned by Emirates in four points in India including Mangalore, Pune, Trichy and Amritsar, which would be beneficial for the economy of India, resulting in the creation of employment opportunities. Moreover, the expansion of network in areas of Phuket in Thailand as well as the East to West network expansion through Boeing 777-300ER has been planned. Additionally, Emirates also focuses on rapid expansion in terms of docking system (Emirates, “Expansion”).

On the other hand, Qatar Airways is planning for expansion in terms of Cargo Capacity to 40% with 7 aircrafts in 2013. Moreover, two A330 would be supplied within few weeks by Qatar Airways along with another three aircraft by the end of 2013. The organization would also receive Boeing 777 freighter by the second half of the year i.e. 2013 (Tuttle, “Qatar Airways to Expand Cargo Capacity 40% With 7 Planes In 2013”).

In terms of operations, it can be stated that Emirates Airlines enables various operational functions such as rebooking, re-issuance and cancellation charges of tickets along providing safety to the customers during boarding a flight as well as landing. There are 62,000 employees of Emirates manning in over 50 divisions, according to the reports presented in 2012. The operations conducted by Emirates can be categorized by the department of Flight Operations who are responsible for ensuring safety, efficiency and lawful operations of Emirates Airlines. The crew of the Flight Deck is also provided training and scheduling facilities for ensuring proper execution of regulations as well as scheduling for rendering services in an efficient manner. Navigation and solutions in technical aspects are also considered in operational departments. Investigation, disseminating and monitoring are also regarded as key operational facts with regard to obtaining information for accident occurrence and for any other incident.  Moreover, the flight operations focus on various operational functions such as training, operation support and logistics among others (The Emirates Group, “The Emirates Group Careers Centre”).

In terms of operations, it can be stated that Qatar Airways is in search of deploying new forces in existing routes along with launching fresh routes at the same time. Moreover, Qatar Airways is focusing on the operations of cargo fleet for five aircrafts along with four for Boeing 777 freighters (Oxford Business Group 131).

In relation to management, it can be stated that the management group of Emirates is triggered with capable leaders who are able to provide possible solutions to the problems occurred in the organization. Moreover, the executives are also competent pioneers with a vision regarding decision making along with enabling facilities towards services for travel and tourism for customers in an efficient manner. The organization also focuses on encouraging courageous and superlative decisions to make the airline company (Emirates, “Leadership”) the best in the world. Qatar Airways management imbibes seasoned and versatile staff, as well as people who are creative and willing to acclimatize in diverse working conditions. The company provides workers with compensation and benefits packages as well as a number of deductions for tax-free income (Qatar Airways, “Current Opportunities”).

With regard to customer loyalty, it can be stated that Emirates offers comprehensive loyalty and Customer Relationship Management (CRM) solutions that comprise various steps related to conception, manufacturing, designing, deliverance, implementation, management and support. Moreover, the Emirates Group also emphasizes on business and airlines through the performance of varied activities relating to projects for loyalty programs for customers in the telecom sector as well as for the employees in the industry. Furthermore, different strategic services relating to consulting in the organization assist customers to understand and identify various driving and economic factors of existing program performance. It would also help in providing advice in order to maintain growth and meet the requirements in terms of support for operational programs on a regular basis. The customer loyalty service more prolifically aims to focus on every aspect of marketing strategies and innovative thinking through which profitability along with rewards can be maintained (Emirates, “Emirates Loyalty Services”).

Qatar Airways looks for satisfying the demands of the customers through various services provided by the employees and other stakeholders in the organization. The management provides assistance to the customers regarding their requirements for booking facilities, availability of seats as well as various other facilities. The organization has a loyalty program referred as Privilege Club. It is an arrangement that is reciprocally conducted through a number of reward programs of various airline companies that include Nippon Airways Mileage Club, Middle East Airlines and US Airways Dividend Miles. The loyalty programs comprise partnership with various hotels as well as car rental companies. Moreover, the airline also provides extraordinary safety in their operations (Saflights.Co.Za, “An overview of Qatar Airways”).

In terms of quality, Emirates provide comfortable seating arrangements for customers travelling in various classes of flights. The seating arrangements also offer ample relaxation and comforts for customers looking for great traveling experience. The passengers are also provided with extensive dining facilities as well as entertainment facilities. It can be observed that a mini bar is provided in each of the seats along with privacy divider as well as personal storage area. The aircrafts also provide spacious cabins where customers are able to spend some relax hours. Moreover, the economy class offers cabins through which passengers are able to view different television channels relating to entertainment as well as valuable news. In addition, certain other facilities are also provided to the passengers including SMS, telephone and email services at each of the flight seats (Emirates, Seating ‘).

In terms of quality relating to the offerings of Qatar Airways, it can be stated that it also provides ample facilities to customers with regard to seating arrangements in various classes accompanied with other extensive facilities such as mobile handsets for communication in each of the seats, along with facility for viewing of various television channels for all classes of passengers boarding the flight. The seating arrangements along with dining facilities provide comfort and relaxation for the passengers travelling to various places around the world. Moreover, the aircrafts also provide extraordinary cabins where most of the businesses are carried out. The passengers are also facilitated with opportunities of messaging and calling through emails and telephones respectively from their seats. The airline focuses on quality by rendering better connectivity amid the varied places where customers travel extensively. Moreover, the airline is conceivably known for its quality, innovativeness and excellence towards performing the activities in order to enhance greater productivity and gain competitive advantage in the global market. After it’s re-launching in 1997, it transformed itself as one of the rapidly growing and quality airlines, being voted as the airline of the year for 2011 and 2012. Qatar Airways is collaborating with Oneworld, which is the foremost quality alliance in the world (Qatar Airways, “Qatar Airways to Join Oneworld Alliance”).

In terms of services, it can be stated that Emirates Airlines facilitates customers with convenience and comfortable services in terms of seating arrangements, dining facilities, scope for viewing different television channels for all the customers travelling from First, Business and Economy Classes. Various First Class or Business Travelers are also facilitated with Lounge facilities where customers are invited in exquisite lounges. The Lounges also contain the amenities of viewing current news on Plasma Television, taking a shower and relaxing on the said places. Various spa massage and beauty treatments are also provided to the customers in the Lounges. It also offers lavish meals and juice bars for luxury customers (Emirates, “Lounges”).

With regard to services offered by Qatar Airways, it can be stated that it offers various services for the customers in the Premium Terminal, which includes duty free shopping, nursery, rooms for conference, restaurants and sauna rooms. The customers arriving or departing from the Doha Airport can experience the services of Arabian hospitality along with Al Maha Services. The Al Maha Services are essentially meant for First and Business Class customers, which include Lounge facility. It also emphasizes on the services of luggage for customers and well as booking tickets before travelling to take the advantage of vicious services rendered by the organization for the customers (Qatar Airways, “Al Maha Services”).

In relation to the aspect of corporate social responsibility addressed by Emirates Airlines, it can be stated that the Emirates Group is committed towards corporate responsibility and provides great value to the customers and allied business ethics for their continued success. Each of the individuals in the management is responsible and committed towards improving the activities by serving the customers in a better way along with gaining competitive advantage in the global markets through enhanced performance. The management is emphasizing on enhancing the margin of profits by providing innovative services through utilizing limited natural resources and making a creation of limited pollution and waste. The management is also committed towards environmental aspects for protecting the natural resources and cultural heritage of the nation (Emirates, “Responsibility”).

On the other hand, in relation to corporate responsibility of Qatar Airways, it can be stated the management of the airways is committed towards the sustainability of the environment along with fuel management for serving the customers with efficient services. The employees and different other allied staff work effectively with commitment to serve customers and environment in a better way (The Qatar Airways Story, “Corporate Social Responsibility”).

Summary and Conclusion

The overall study has found that Qatar Airways and Emirates Airlines are eminent airline service providers that offer extensive services and facilities to customers travelling in various classes to their desired destinations. In terms of services and quality offered by both the airlines, it is apparent that both the airlines offer almost similar kind of facilities and luxury options to their esteemed commuters. It is also found that the recognized services entail conformable seating arrangements and dining facilities among others. However, from the analysis and discussion of findings of both the airlines, it can be stated that Emirates Airlines holds a slight the upper hand in maintaining its performance as a reputed airlines in the global market context. From the findings obtained for the year 2011, it can also be stated that both in terms of operating income and profit margins, Emirates Airlines held a superior position as compared to Qatar Airways in terms of overall performance. Furthermore, with the application of various on-time services, it would be possible for both the airlines organizations to decipher effective success and compete effectively with various rising competitors in the global markets. This would also assist the organizations to continuously develop their services and serve the customers with efficient and quality measures for gaining greater profitability.

Works Cited
  • Comparica. Compare Emirates Airline VS Qatar Airways, 2012. Web. 04 Apr. 2013.
  • Emirates. Our Fleet, 2013. Web. 04 Apr. 2013.
  • Emirates. Cabin Features, 2013. Web. 04 Apr. 2013.
  • Emirates, Expansion, 2012. Web. 04 Apr. 2013.
  • Emirates. Leadership, 2012. Web. 04 Apr. 2013.
  • Emirates. Emirates Loyalty Services, 2012. Web. 04 Apr. 2013.
  • Emirates. Lounges, 2013. Web. 04 Apr. 2013.
  • Emirates. Responsibility, 2012. Web. 04 Apr. 2013.
  • Emirates. Baggage, 2013.  Web. 04 Apr. 2013.
  • Grand, Kara. How to Become a Flight Attendant for Airlines in the Middle East. Qatar: Flight Attendant Central, 2013. Print.
  • Oxford Business Group. The Report. United Kingdom: Oxford Business Group, 2012. Print.
  • Qatar Airways, First Class Experience, 2013. Web. 04 Apr. 2013.
  • Qatar Airways. Current Opportunities, 2012. Web. 04 Apr. 2013.
  • Qatar Airways. Qatar Airways to Join Oneworld Alliance, 2013. Web. 04 Apr. 2013.
  • Qatar Airways. Al Maha Services, 2013. Web. 04 Apr. 2013.
  • Saflights.Co.Za. An Overview of Qatar Airways, n.d. Web. 04 Apr. 2013.
  • Tuttle, Robert. Qatar Airways to Expand Cargo Capacity 40% with 7 Planes in 2013. News, 2013. Web. 04 Apr. 2013.
  • The Emirates Group, The Emirates Group Careers Centre, 2012. Web. 04 Apr. 2013.
  • The Qatar Airways Story. Corporate Social Responsibility, 2012. Web. 04 Apr. 2013.
  • Tigerairways.com. Annual Report, 2012. Web. 4th Apr. 2013.

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