ted. The UAE airline industry, which includes Etihad and Emirates, was affected by the crisis but has successfully resurfaced at being profitable in the year 2010 and has since contributed effectively to the growth of the country's total economy (Bloomberg Business week, 2010).
Emirates Airline Portfolio
Emirates Airlines is one of the most successful and major airlines in the Middle East, currently operating around 3200 passenger flights per week, from its hub - the emirates of Dubai - to over 110 destinations in 62 countries (Emirates Airlines, 2011). This makes Emirates one of the fastest growing airlines in the airline industry. The Airline Industry is one of the dynamic and fastest growing industries in the world and has influence in the country's economic growth, international investments and in tourism, mainly due to the Airline Deregulation Act of 1978 - which allowed the industry to change its' category of a public utility service to a much market driven industry (Florian, 2010).
2.1.1 Market Demographics and Needs
Emirates Airlines' initial market consists of consumers and businesses located in the United Arab Emirates, mainly the Emirate of Dubai. Emirates' goal is to cater the needs and demands of the ever growing population of the UAE - especially the expatriates residing in the UAE - who are the thriving workforce of the UAE and make up approximately 75 percent of the population of the country (UAE-Economic Development, 2010).
Dubai's and as a result Emirates' spectacular growth in recent has been accentuated by two complementary factors: sound politics and its very favourable geographical location.
Currently the Emirates Airlines market demographics are divided in three sectors, and they are:
2.1.2 Market trends and target market growth
The soaring price of oil and the financial crisis had a tremendous effect on the airline industry. Most of the airlines were suffering from fuel price hikes and were running out of cash. However, Emirates Airlines had proven to be the most efficient and profitable despite the extra costs because of its strategic placement of its products in the market share - by creating separate market sectors. These market sectors are part of Emirates product portfolio and have been divided in product share.
Emirates Airlines current product share is:
(Source: Emirates Group, Annual report, 2010)
The reason for Emirates Airlines to design such a product share was simply to adjust its marketing strategy after the effects of the global financial crisis. The adjustment was made to accommodate factors that were pertaining to the demand (requirements) and supply (drivers) for its customer base who were also affected by this crisis.
The current product share seems to be working fine for Emirates especially after the global economic crisis, which scarred many businesses in the UAE, especially government owned businesses. The crisis, however, has enormously affected its' overall performance rating as a "prestige high class inboard service" that Emirates Airlines previously used to market to clients as a high value service. Emirates had to revaluate its' cost and benefits to accommodate the passenger market needs of a cheaper, faster and safer means of transportation by downsizing its experienced onboard staff members and replacing them with inexperienced workforce and by underplaying the various onboard service options it
