Category: Etihad Airways

Organization’s current situation

Etihad Airways History

Etihad Airways Company is the UAE’s national airline. This company started its operations in the year 2003 and it was established by a “Royal decree”. The company’s hub is Abu Dhabi which is the capital city of UAE (“Etihad Airways Dubai”, Para 1).

This Company is under the governance of a board of directors. It operates in regard to the legislation under which it was set up and in line with the company’s Article of Association. Currently, the board is formed of seven members who are non-executive and independent members.

The board has two sub-committees. One of the sub-committees is the “audit committee” and the other sub-committee is the “executive committee” and each of them has a chairman and a charter (Plunkett 95).

The company is among the airlines that are growing at a very high rate in the world. The company’s destinations are located in various regions in the world. The destinations are found in Africa, America (North America), Asia, Europe and Australasia.

The company serves a total of 61 destinations (“Etihad Airways”, Para 1). Launching of Etihad Airways Crystal Cargo by the company was done in the year 2004. The Etihad Airways Crystal Cargo is a division of the company and this division is expanding at a very high speed.

The company has a goal to turn out to be the preferred Cargo Carrier of each and every company dealing in logistics and forwarding through the provision of air transport solutions which are innovative.

This division serves 14 destinations in a total of forty countries located in Europe, “Africa, North America, Oceania, and Asia from the Abu Dhabi International Airport which is the company’s hub” (“Etihad Airways Dubai”, Para 5).

Etihad Crystal Cargo offers to the clients various Cargo services which are connected to the growing International Route Network.

More so, it carries out the operation of a committed freighter which “operates on the routes that are scheduled to Asia, Europe, as well as Africa” (“Etihad Airways Dubai”, Para 5). The representatives of Etihad are found all over the world and provide services to the customers day and night all through the week.

Beginning from the year 2004 the Etihad Airways Company has never posted a profit. In the year 2010, it was projected that the company would not even break even. This is for the reason that the yields of the company were hit by global economic crisis as well as the problem of the swine flu.

In the month of April 2010, the company made a loss of thirty million US dollars when there was a forced cancellation of the flight. This cancellation resulted from the “cloud of ash” coming up from the Eyjafjallajokull of Iceland.

In the cause of 2008 financial year, the company carried passengers totaling to six million and the cargo whose total weight was three hundred and thirty thousand tones.

The company was ranked among the top ten airline companies in the world in regard to growth and expansion basing on the statistics that were given out by the international Air Transport Association. This company obtained a top award at the World Travel Awards or WTA in the year 2009 (“Etihad Airways Dubai”, Para 8).

Organization’s Vision, Mission, and Objectives.

The vision of the Etihad Airlines Company is “to become the leading and most profitable Middle East airline offering consistently high standards of air cargo through customer service, connectivity, transparency, and technology” (“Etihad Crystal Cargo”, Para 1).

To maximize cargo profitability for Etihad Airways by implementing effective business processes for optimum yield, maximum load-factors, minimum transit times, immediate and seamless information to the shipping community, customer service and reduced administration (“Etihad Crystal Cargo”, Para 2).

Organization’s Products and brands

The core business of the Etihad Airways Company is “international transportation of people” (Rodrigues 6). This company has three different kinds of products which include; “Diamond First Class, Pearl Business Class, and Coral economy Class” (Rodrigues 6).

In addition, the company carries out operations in the tourism sector and it does this through “Etihad Holidays and operates in cargo and logistic with Etihad Cargo and Etihad Express2D” (Rodrigues 6).

For the company’s “product portfolio” of a variety of businesses that it carries out its operations under in regard to product share, the international transportation takes up a larger percentage of 60 percent, followed by the Etihad Crystal cargo which takes up 30 percent and in third position we have the Etihad Holiday which takes up a share of 10 percent.

Basing on the company’s revenue as well as profits in the “International Transportation of Passengers”, the company receives 40 percent of its income from the “Etihad Pearl Business Class, 20 % from its Diamond First Class and 40% from its Coral Economy Class” (Rodrigues 6).

Basing on the market share, the part that has the largest market share is the “Etihad Coral Economy”. This is followed by the “Pearl Business Class” and the “Etihad Diamond First class” comes in the third position (Rodrigues 6).

Considering the company’s products on the basis of the BCG matrix, there can be consideration of the Etihad Coral Economy as being the company’s Cash Cow. This is for the reason that the Etihad Coral Economy has a market growth that is low but on the other hand, it has a market share that is high in relative terms.

The “Pearl Business Class” can be considered to be the “Star Product”. This is because this product’s market share is high in relative terms and it also has a market growth that is relatively high.

Rodrigues points out that the company is supposed “to prioritize what it needs to do with Etihad Express2D and Etihad Holidays as they are both Question Mark Products as they both have a relatively high market growth but low market share” (Page 6).

Actual Customers

There are many international airports in the U.A.E. The Etihad Airways serves customers who are in Al Ain and Abu Dhabi. Therefore, the company’s target clients are those people who travel to the Abu Dhabi international Airport and from the same airport.

The Airline tagline which is “From Abu Dhabi to the World” in the present puts its focus on “outbound holidays and travel from Abu Dhabi” (Rodrigues 10). Therefore, it can be clearly seen that the present target segment are businessmen and women as well as the tourists who come form Abu Dhabi.

In addition, basing on the company’s pricing strategy; the focus of this company is basically on the higher class as well as the middle class people. The target customers are those individuals who have an intention of travelling with high hospitality standards and also with luxury.

Market segments

The Etihad airways company, at the present, has placed its customers in to segments in line with the customers’ purposes of traveling. The passengers are placed in the segments basing on such purposes as; business, tourism, personal reasons, and religious reasons.

Abu Dhabi is a city that is undergoing quick development in line with tourism as well as the business activities. There is anticipation by the “Abu Dhabi Tourism Authority” of the expansion in tourism sector in which the tourists come to the hotels in Abu Dhabi.

There is a projected growth in the tourist arrivals of up to 3 million by the year 2015 (Rodrigues 10). This follows that the Etihad Airways company’s future is supposed not just to target the “outbound passengers” that come from Abu Dhabi but should also target the “inbound passengers” who are the business class passengers as well as the tourists who go to Abu Dhabi.

Organization’s competitors

The company’ main competitors include such airline companies as Air Arabia, Emirates and Fly Dubai. These companies are those found in the United Arab Emirates and are the direct competitors of the Etihad Airways. However, considering the Middle East region, there are other competitors of this company.

These include companies like Oman Air, Qatar Airways, and Gulf Air. Other competitors include Singapore Airline among other international airways. The major competitor of the company is Emirates Airline.

The indirect competitors of the Etihad Airways Company include “the telecom and the Holiday Cruise Industry” (Rodrigues 8). A threat to the company is brought by the Telecom industry because of the “enhancement technology” such as video conferencing.

This causes people to consider it as needless to move from one place to the other to conduct business. Another indirect competitor such as “Holiday cruise line” bring in competition because, on top of people transportation, they as well have “hotel setting” among other activities on board. This allows the people to spend a vacation on board as they move from one port to the other.

The advantages that can be derived from the clients at the time they travel with the Emirates, Etihad’s competitor, are similar ones to those obtained when travelling with the Etihad Airways.

But, when there is consideration in regard to the image, Emirates gives more value to the clients and this is because the company has been in operation for the last 26 years. Basing on the monetary price, Air Arabia stays ahead of the competition because this company charges lower prices as compared to the Etihad Airways.

Current Position in the market

The Etihad Airways Company is a company that can regard itself as the “national carrier of the United Arab Emirates” (Rodrigues 6). The company is located strategically in Abu Dhabi and this is one of the company’s competencies.

It attracts people who are linked for west to east and vice versa by Abu Dhabi. The company is wholly government-owned and is governed by a board of directors whose chairman is HH Sheikh Hamed bin Zayed Al Nahyan (“Etihad Airways”, 1).

According to Saleem, the company plans to “invest in the re-designing of 10 Airbus 320, which will hold 162 seats all belonging to the Etihad Coral Economy Class for short haul flights” (Para, 1). In August last year (2010), the “Etihad Crystal Cargo” got the A330-200 and this was its first “wide body carrier” (“Etihad Airways”, 1).

It can be seen clearly that this company do possess competencies in regard to funding for the organization to realize growth and engage in investing in fresh strategies.

However, this company is experiencing some vulnerability for the reason that it is young on the market and has only operated for a short period of time but it benchmarks itself with major airlines like the Emirates for it to turn out to be the same as the world’s leading airline companies.

The company had made a move to carry out heavy investments in its operations without even,”breaking even”. At this rate, the company may find itself making losses.

SWOT analysis

Strengths

Even if the Etihad Airways company is young, it is realizing rapid growth towards becoming successful and it has “57 wide and medium-bodied air buses in its fleet that were only six in 2003, the point where they started” (AbuShahout, Punnose and Khalifa 5). The company charges lower fare to its customers in comparison to what the competitors in the region charge.

More so, another strength that this company has is that it is under the leadership of a Chief Executive Officer, James Hogans, who is a person that is creative and works with a management team that has high qualifications. In addition, the company has a sponsorship program in which it sponsors activities in sports club and also in sports events.

The company also received the “global award” as being one of the airlines in the world that is leading. The company has also “the great entertainment system on board with USB plug and play feature to connect personal devices to the system” (AbuShahout, Punnose and Khalifa 5).

Etihad Airways has cabin designs that are of their own kind which include “Diamond for first class, pearl zone for business class, and coral zone for economy class” (AbuShahout, Punnose and Khalifa 6). More so, the company offers services that are of high quality and following this, the company has obtained over thirty awards.

The company has also attained success in forming partnerships in order to bring in, new destinations like the one that was formed with the Virgin Blue Australia. Each year, the company has also been increasing the seating capacity.

Another strength that the company has had is being able to wisely diversify its operations through “air transportation” and holiday as well as cargo services. This move enabled the company to raise $2.3 billion in revenue (AbuShahout, Punnose and Khalifa 5).

Another important Etihad’s strength lies in its creativity and innovations. This has been portrayed through ground and onboard services. The company was also able to attain positive EBITDAR with projections to be in a position to break even in this year (2011).

Weaknesses

The company has its own weaknesses which have served to obstruct its operations. One of the weaknesses is that the company has a smaller number of destinations in comparison with its main competitors like Qatar Airlines and the Emirates Airlines.

Another weakness is that the company has “customer service centers” that offer weak support leading to customers presenting complaints that they do not receive the assistance that they may need. More so, there are always delays in the compensation processing. In some cases, customers also raise complaints in regard to having to wait for a longer time in “connection flights” (AbuShahout, Punnose and Khalifa 5).

Opportunities

Since the company is realizing an increase in popularity, this enables the company to gain entry in to fresh markets via “strategic alliances”.

More so, the company is strategically located and this offers promise of being able to attract customers on an increasing basis. The company is also in a better position to become attractive to those clients that love technology and this is because of the innovations the company has carried out in cabins (AbuShahout, Punnose and Khalifa 6).

Threats

One of the threats faced by the Etihad Airline Company is the possibility of new entry by companies in such a rich region. More so, the unpredictable fuel prices that can increase any time is also a big threat.

The natural environmental conditions is also another threat and these always have a negative impact on the aviation sector in general like the one that occurred in the year 2010 in Europe (ash cloud) which brought great losses for the airline companies (AbuShahout, Punnose and Khalifa 6).

Marketing Objectives & Marketing Strategies

Marketing goals and Objectives

The company has put in place both short-term and long-term goals and objectives. The short term goals and objectives were set to be realized by the middle of this year (2011). The long term objectives are set to be achieved in the coming three or four years.

The primary short term objective of this company is to “break even” by the middle of the year 2011. The company intends to achieve this through cost reduction and at the same time increasing the yield. The secondary short-term objective is to hold customer value at the same level while reducing cost. The tertiary objective under this category is to ensure the status quo of the company is maintained as being a company of a luxurious brand while at the same time reducing the cost.

On the other hand considering the long term objectives, the primary objective of the company is to ensure that the airline does not just remain profitable every year but there should be increase in the profits made by between five and ten percent.

The secondary one is to bring up the level of customer value and customer satisfaction by between eight and ten percent by the year 2015. The tertiary objective is to have a fifteen percent increase in “Emirate staff” by the year 2013. The company also intends to create “inbound holidays” to Abu Dhabi by the year 2030 (Rodrigues 11).

Product strategies

The company’s main product component is the “Air Transportation” on passengers as well as goods. “The Airline Actual Product Component comprises of Etihad brand Product Portfolio which has, Etihad Diamond First Class, Etihad Pearl Business Class, Etihad Coral Economy Class, Etihad Holidays and Etihad Express2D” (Rodrigues 11).

It also consists of Etihad Crew and staff. Competitive advantage of the company is mostly offered by the company’s “Augmented Product Components”.

This has competitive advantages in regard to the product strategy where the airlines is the carrier of the Abu Dhabi region on top of being the national carrier of the U.A.E. Abu Dhabi is rapidly undergoing development and heading towards the direction of becoming the hub in the middle of tourism and business.

This implies that, with Abu Dhabi as a hub, this offers the company a competitive advantage. The company also has another competitive advantage by virtue of it having its own private terminal that is found at the Abu Dhabi International Airport and this makes it to be in a better position as compared to its competitors that operate to and from Abu Dhabi.

Just as it is not the case with some of the airlines, the Etihad Airways Company makes it possible for its passengers to check in 24 hours before the time of departure and this enables the passengers to be able to save time because they are just supposed to come to the airport one hour before the time of departure unlike the normal three hours before departure.

More so, the “Etihad Crystal Cargo” with the Express2D service to such regions as North America as well as Europe is “a service from shipments airport to the customer door” (Rodrigues 11) and this is also a competitive advantage the company has.

Pricing strategies

At the present, the company does have a “market penetration” pricing strategy which is intended to enable the company to have a market share in the U.A.E.

In addition, by engaging in the delivery of almost similar service as those delivered by the Emirates Airways and British Airways, the company may be seeking to ensure having more passengers and therefore generating more revenue in order to break even because the company targets to break even this year (2011).

Promotion strategies

Looking at promotion, this is a means through which any business organization can encourage the capability and desire of buying in to a potential client. The Etihad Airways has put in place several promotional strategies that help it in attracting customers.

One of this is sales promotion. This company has coupon and bundle offers that they issue to the clients. In addition, the company’s webpage provides the lowest prices in comparison to the sales agents. This implies that the company boosts direct promotion to airline instead of the “general sales agents” (Rodrigues 13). More so, the company engages in promoting itself through taking part in a number of sweepstakes.

Another promotional strategy that is used is direct marketing. The company’s employees and staff are used to market the company’s products and services in a direct manner through oral communication. The company also participates in a number of tourism and travel activities as well as exhibitions. The company also uses sponsorship as a promotional tool.

The company takes part in sponsoring sporting activities. Some of the programs put in place include “Ferrari F1 team” and “Abu Dhabi Grand Prix” aimed at promoting sports festivals (“Etihad Airways” 1). The company is also a sponsor for the “U.K Premiership rugby team known as harlequins RFC and Manchester City FC” (“Etihad Airways” 1).

The company also engages in advertising as a way of promoting its products and services. It advertises its products through all forms of media including radio, TV, newspapers and magazines.

Currently, 20 percent of the company’s advertisement is done on TV, print advertisements is also 20 percent and the leading newspapers in the region take up ten percent and also the travel magazine forms 10 percent of the advertising.

Prints promotions are another strategy that is used by the company. The company makes many posters and also brochures that are issued out to the clients either directly or indirectly via the “general sales agents”. Another form of promotional strategy is giving out gifts to the customers and especially those customers who are loyal. The gifts that are given have the brand name of the company.

Distribution strategies

At the present, the company engages in the distribution of the tickets in the company’s main office as well as its branches. On top of this, it also distributes the tickets through the general sales agents in various parts of the world.

The distribution of the tickets is also carried out by the company online through its company website. A person can be able to book and make a choice of fares on the company website basing on the budget the person has. In addition, the company has “Customer call centers” where a person can book for a specific flight and also seat whenever it is available.

Recommendations for Change

The company should seek to improve its operations in order to break even and even start making a profit. The company is supposed to make necessary changes in order to operate on the same level as other major airline companies that have been in operation for a long time such as the Emirates Airlines and British Airways among others. It should seek to move from a position it can be perceived as a low value brand company by he customers.

Tactical Program

The Etihad Airways Company is targeting to break even by mid this year (2011). The moment the company has broken even, it can be recommended that it brings up the level of its prices by ten percent. In this manner, the company would be able to come to the same class of the major competitor, Emirates Airlines, basing on the price factor as well.

Following this, the customers will no longer look at the company as it being a low value brand in comparison to the big companies such as the British Airways and the Emirates Airlines. There will be a rise to a higher degree of the “luxury high quality image” of this company.

It can also be recommended that the company maintains its present distribution strategy but ensure addition of several branches as well as the general agents to the list of the company. In addition, it can be recommended that the company could set up stalls that are not big at the “leading mall” where the customers could as well go to book their flights.

The company has people who have a good education working in it. However, the company should take an initiative to engage in investing more in offering training to its staff to ensure they have appropriate skills to carry out their duties more effectively and efficiently.

An airline company may take several initiatives such as reducing the price, increasing the fleets, and bringing in new products to the market as a way of seeking to improve its performance. However, this can turn out not to serve the intended purpose in the case where there is no supportive and well-mannered staff. Therefore, it is important to offer adequate training to the company’s employees.

Budget and Implementations

The Etihad Airlines should capitalize on its strengths and the available opportunities in order for it to realize growth. For instance, the company should seek to invest money in training programs.

The budget for staff training should be increased by 20 percent and this program should be projected to go on for the next one year. Implementing such a program will serve to increase the employee competence and this will help the company to meet the customer needs in a better way to have less or no customer complaints that makes them to prefer travelling with other airlines.

The company should seek to increase the number of branches as well as the general agents through which there will be more distribution of the company’s tickets. This will require an additional budget. The company needs to increase the distribution budget by 10 percent and this will serve to increase the number of customers. This can also be implemented within a period of one year.

Monitoring & Control

In order to implement the plan for the improvement in the company’s performance, there is need to carry out monitoring and controlling with an objective of ensuring that everything goes as planned.

The management of the Etihad Airways Company should take up necessary steps in order to come up with a plan to ensure effective implementation of the planned activities aimed at bringing the company to a whole new level.

People should be assigned tasks that they have to carry out according to plan and to be completed within time. Targets need to be set that need to be met within specified time periods and there is need for performance measurement in order to determine whether or not the actual results have been achieved.

If there are any deviations appropriate actions need to be taken in order to ensure things run smoothly.

Works Cited

AbuShahout Razzaq Abdel, Punnose Abraham Fibin and Khalifa Khalil. Etihad Airways marketing strategy, 2011. Web.

“Etihad Crystal Cargo”. Vision and Mission. Web.

“Etihad Airways Dubai”. Corporate Profile, 2008. Web.

“Etihad Airways.” Hoovers., 2010. Web.

Plunkett Jack, Plunkett’s biotech & genetics industry almanac. New York: Plunkett Research, Ltd., 2005.

Rodrigues, Gwendolyn Joyner. Etihad Airways – Marketing Plan, 2010. Web.

Saleem, Nadia. Gulf news – Etihad to reconfigure up to 10 A320s in to economy jets 2010. Web.

Introduction

This report aims to analyze the challenges and opportunities, faced by such a company as Etihad Airways. This organization was founded in 2003 and since then it has passed through a period of rapid growth; its operational capacity as well as its revenues have increased by many times. At the moment, its fleet numbers 54 airplanes which operate approximately 1000 flights per week (Etihad Airways, 2010, p 2). Etihad Airways does not have to withstand fierce rivalry of local or foreign airlines since it is a flag career or the company, protected by the state. However, the recent changes in global economy have demonstrated that even such organization is exposed to many external risks. In this report, it is necessary to assess the core competencies of this company and weaknesses, if there are any. For this purpose, we will need to use SWOT analysis, as it can throw some light on many of the problems, encountered by the company and help us identify the solutions to these problems.

SWOT analysis of the organization

• Strengths
  • Safety record: the first competency that we need to mention is the impeccable safety record. Since the time of its foundation, Etihad Airways had no fatal or technical incidents, and this reliability definitely produces a favorable impression on domestic and foreign customers.
  • Flexible pricing policy: the services of Etihad Airways are affordable to the clients of various income levels. It should be noted that the company offers three types of services: “diamond” or first class, “pearl” business class, and “coral” economy class (Etihad Airways, 2010, p 8).
  • The wide range of destinations. At the given moment, the company operates flights to more than forty countries in Europe, Asia, Africa, North America, etc.
  • The quality of customer service. Etihad is famous for the politeness, efficiency, and courtesy of its personnel.
• Weakness
  • Increased dependence on the governmental support. One should take it into account that in Etihad Airways is a national or flag carrier airlines which means that it is protected from external competition by governmental regulations, preventing foreign airlines from accessing the UAE market.
  • High spoilage rate. Unfortunately, Etihad Airlines has a very high spoilage rates which means that very often their airplanes are not filled to their full capacity. This eventually results in substantial decrease in the profitability of the enterprise and unnecessary expenses.
  • Small cargo fleet. The company has only six freighter airplanes, and this amount is insufficient, especially given the fact that the imports in the UAE continue to increase.
• Opportunities
  • The increasing importance of tourism for the economy of the UAE. Over recent year the number of people, who visit the country for the purposes, unrelated with commercial activities, has dramatically increased. This factor can beneficially impact national airlines.
  • The growing imports of products into the UAE. The company should make more use of the economic situation in the country. A great number of products and services are imported into the country, and this eventually creates opportunities for those airlines that have the resources for cargo transportation.
• Threats
  • Deregulation of airline industry. As it has been noted before, Etihad Airways is a state-owned organization and the government pursues a policy of protectionism toward it, for example, by setting low tax rates. The thing is that foreign airlines that try to operate in the UAE market, are denied the right for competition on equal terms. If the government of the UAE decides to participate more actively in free trade agreements, Etihad Airways will have to compete with other companies in terms of price and services.
  • Environmental Threats. This group of risk is very diverse and continuously changing. First of all we need to speak about the possibility of epidemic outbreak that can easily disrupt air traffic. The most notorious example is the epidemic of avian influenza. Secondly, one should not forget about the possibility of natural disasters that may occur far away the country. The eruption of Eyjafjallajökull significantly decreased the revenues of many airlines, including Etihad Airlines because virtually all European flights were cancelled (Wearden, 2010, unpaged).

Overall, this analysis shows that there are many factors which are out of the company’s control. Its management cannot impact the foreign and domestic policies of the country, let alone the forces of nature. However, there are some aspects of performance that can be managed. In particular, we need to speak about the arrangement of flights and great spoilage rate. For this reason, we need to speak more about the load factor in Etihad Airlines.

The allocation and use of resources in Etihad Airlines

Judging from the load factor report, issued by this company, one can argue that the resources of this organization are not used to their full capacity. Namely, the majority of outbound passenger flights do not generate even fifty percent of the expected profit. The flights that go to such destinations as North America, Europe, Australia, or Far East are filled at approximately 42 percent, while inbound flights are filled at 44 percent. These data indicates that passenger flights give a very low return on ratio. In sharp contrast, freighter flights are much more profitable, especially when we are speaking about those flights that come from Europe, North America, India, and China. In part, these data can be explained by the fact that the majority of manufacturing facilities are located in these areas. Therefore, it would not be an exaggeration to say that the allocation of resources in Etihad Airlines is not efficient.

Recommendations

At this point, it is necessary to map out those strategies that may help the company increase its profitability and reduce operational costs. One of the possible solutions is to allocate more airplanes to charter flights. The thing is that in this case, the company would not have to worry about the number of passengers because they will receive the payment beforehand (Lubbe, 2005, p 10). On the whole, the great number of the so-called “empty” legs is one of the reasons why charter flights have become so popular among airlines. More importantly, charter flights will enable the company to cut the expenses on fuel and workforce. Under circumstances, the key customers of Etihad Airlines will be travel agencies and holiday customers. The tickets will be sold to them, rather than to directly to passengers. Moreover, we should not forget about various governmental organizations such as Ministry of Foreign Affairs, Abu Dhabi Heritage and Culture Authority, Central Bank and so forth. The representatives of these organizations frequently make international business trips and they may certainly use the services of Etihad Airlines.

The second strategy is to increase the cargo or freighter fleet. In the previous section of the report we have already mentioned that freighter flights usually give a higher return on investment. This argument is particularly relevant if we refer to the inbound flights from North America, Europe and India. Overall, it is possible to say that domestic and foreign private companies can greatly increase the client base of the organization. The key task of Etihad Airlines is to convince them the company provides the best price-quality ratio. However, at first it is necessary to identify those regions from which the majority of exports come. Overall, these strategies will enable the company to achieve several objectives in 2011 and in the year to come. These objectives are as follows

1. to increase profitability of the enterprise and reduce the operational costs;
2. to establish long-term partnership with private institutions both in the UAE and abroad;
3. to decrease the company’s dependence on governmental support;
4. to insure oneself against vis major circumstances such as the eruption of volcano or epidemics of avian influenza;
5. to strengthen its competitive position abroad; and 6) to better adjust itself to the forces of globalized economy.

Conclusion

The challenges faced by Etihad Airlines are very much similar to those ones of European or American companies. One of them is the growing necessity to predict the demand for the services. The airlines have to estimate at least the average number of customers who will buy tickets, and sometimes it is rather difficult to do, because load factor greatly depends on political, economic, cultural, and even environmental forces. This is why the organization of charter flights seems to be the most viable option in this case.

Reference List

Etihad Airways. (2010) “Etihad Airways Factsheet”. Web.

Lubbe. B. (2005) Tourism management in Southern Africa. Pearson South Africa.

Wearden. G (2010) “Ash cloud costing airlines £130m a day”. Guardian. Web.

Exhibition I. Education in the UAE

Title

Education in the UAE: Then and Now

Developing education in the UAE over Centuries

From Religion Classes to Hi-Tech Universities

Theme

The history of education in the United Arab Emirates is an essential part of the country’s development, which is the main idea of the exhibition. The system experienced significant transformations over the past several decades, and the UAE has now become one of the most advanced places for studying in the world. These changes have occurred due to the historic decision that drew together the seven emirates. The Etihad Museum in Dubai, which specifically pinpoints this event, is a perfect place for exhibiting the past and present education institutions in the country.

Before the discovery of oil, there was little progress associated with education on the Arabian Peninsula. Only the male population had access to learning since girls were expected to get married and manage household tasks. The system was based on the traditional model that focused on studying the Quran. A group of male students was led by a teacher who ensured a high level of discipline. Learning facilities were far from being comfortable, as classes often took place in tents on solid ground in the midst of the desert heat.

Everything has changed with the creation of the United Arab Emirates. The new government proclaimed education as one of the top priorities for the country’s development. The most significant progress has been made in providing studies for women who currently even outnumber male students. Modern schools and universities now use technologies to enhance the learning process. Finally, English has become one of the most important subjects since it is a tool for international cooperation among young specialists.

Collaboration

The primary institution that will collaborate with the exhibition is the UAE Ministry of Education. It would be a great opportunity to showcase the results of this organization regarding the progress made in their sector of responsibility. Besides, the exhibition is a perfect tool for describing the future goals for the country’s education system development. The Ministry of Education will work as an information partner, spreading the news about the event through its official channels. Online platforms, including social media and the official website, can draw the attention of many people to the exhibition.

The second organization that will become a partner for the event is the National Museum of Dubai. The institution is chosen due to its rich collection of items that characterize different periods of the emirate’s history. The museum will share some of the photographs that show how learning processes were organized in the past. Moreover, some of the old objects that were essential in classes will be used for setting up a part of the exhibition. Finally, the museum will provide guidance on how to best organize the items to reflect the atmosphere of education in the past.

Finally, Zayed University, the higher education institution funded by the government, will become the third partner of the exhibition. It has shown excellence in providing high-quality education that is currently recognized abroad. The university’s success in creating curricula and facilities that can satisfy the modern need for hi-tech research will become the essence of the exhibition’s part where the current state of the system will be displayed. Zayed University may provide some of the most noticeable items that its students developed over the past years. Besides, the institution may provide materials regarding their future projects and research activities that will be accompanied by links that will offer visitors more information associated with education goals and strategies of the UAE.

Mission

The exhibition aims to show the great progress made by the UAE in the educational sector in just several decades, underlining the country’s value for young professionals and their future careers.

Description

The exhibition will be constructed in the form of a timeline, allowing visitors to move along the winding corridor. The main part of it will consist of items like images, photographs, posters, infographics, and other material objects that will provide visual information regarding the topic. A special place will be taken by the corner showcasing the classroom of the past, having the figures of a teacher and his students as its center. It will be accompanied by a voiceover that will describe the harsh conditions that were a part of the learning process in the old days.

The final part of the exhibition will have the spot with the latest technological devices created by students of the UAE secondary schools and higher education institutions. Zayed University will be the leading member of the exposition, having several students showcasing their works. Any visitor will be able to ask questions associated with devices and try to operate them under surveillance. Making the process interactive allows creating more interest in the topic than it can be with static objects. It may be especially interesting for children who have the need to explore and to gain first-hand experience rather than receive information from stands.

Collection

• An old-fashioned corner serving as a classroom model
• Models of a teacher and students
• Old Quran books
• Wooden writing panels
• Inkwells
• Audio tracks describing old learning processes
• Photos of old and new classes
• Video clips about schools of the future
• Development infographics
• Student-made devices: robots, VR technologies, project presentations.

Images

Exhibition 2. Transportation

Title

The Long Road: Transportation Development in the UAE

From Camels to Chrysler: Transport Switch

Routes Connecting the United Arab Emirates

Theme

Before the discovery of oil in the XX century, the territory of the modern United Arab Emirates was not developed regarding its infrastructure. The geographic position of the region did not provide conditions for easy road construction. Besides, the cities were underdeveloped, and trading with foreign countries used to be the primary activity of their citizens. Camels were the main transport for people during that time due to their ability to carry heavy bags with trade items and to cover long distances in the hot climate.

Everything changed in the 1970s as the region gained independence from Great Britain and started to invest money gained from the oil trade into building infrastructure. The governmental politics of redirecting budget into the country’s development has caused the tremendous growth of cities. Nowadays, the Internet is full of pictures comparing places like modern Dubai to what they used to be just several decades ago. New shining skyscrapers, one of the tallest in the world, are surrounded by intertwined overpasses.

The new roads soon became filled with automobiles and public transport. Navigation inside cities became easy and comfortable for locals and visitors. Moreover, the government has built extra-class highways to connect different parts of the country, which has increased the number of internal tourists. Traveling from one city to another is currently fast and comfortable. All these achievements are to be displayed in the temporary exhibition in Etihad Museum as a part of the country’s history that has caused its growth and rapid development.

Collaboration

The Roads and Transport Authority will be the first organization to collaborate with the exhibition. This is an institution that has the most expertise in the discussed topic. Firstly, the Authority will work as an informational partner and use its channels to spread the word about the event. Secondly, it will provide visual plans on the transportation industry’s development in the future. Finally, the RTA can support the exhibition by offering models and schemes of new buses and trams that will become a part of the UAE’s public transportation system in the nearest future.

The second participant will be the Al Naboodah Construction company. This organization is one of the country’s leaders in civil engineering that has worked on such projects as the Dubai Water Canal and the emirate’s airports. The benefit of collaborating with this company is that its specialists may give an insight into the topic and share details that are not obvious to designers of the exhibition. Al Naboodah Construction is expected to provide 3D models of the projects they are currently working on. Besides, the company will offer its view on sustainable construction principles, which becomes more significant each year.

Finally, the National Museum of Dubai will become the third collaborating party for this exhibition. The historical insight into the topic is very important since visitors should feel the tremendous difference between the past and the modern ways of traveling across the country. The museum will provide objects that were essential for people who used to ride camels long distances long before the creation of the UAE. Collaboration is also expected between the museum’s historians and the exhibition designers. The latter will be creating a video clip focusing on details of old traveling methods, and specialist help is required to present facts accurately to the audience.

Mission

The exhibition should leave visitors with a feeling of how easy and comfortable it currently is to travel in the UAE, compared to the hardships of people in the past.

Description

The main idea of the exhibition is to show the transition between the past and present means of transportation in the UAE. The exhibition will start with a small cinema-like room, where visitors will be able to watch a short movie about crossing the desert as camel riders in the past. The corner will have dim lighting and comfortable sitting spots. The next section will showcase items that were a part of the luggage carried by those travelers, including food and water containers, bags, trade goods, clothes, and other things. The spot will also contain the map that will show the most popular routes across the desert, along with stops like wells and oasis places for rest.

The transition point of the exhibition will show the infographic of the region’s transportation system development. It will be accompanied by the GIFs displaying changes that occurred year by year to the UAE’s largest cities. Finally, the third part of the exhibition will consist of 3D models that will represent projects regarding the future development of UAE cities, including roads and highways. Some of the latest transportation projects will also be presented in this part, displaying various design schemes for new buses and trams.

Collection

• Video clip about traveling by camels
• Trade products and items for the personal use of camel riders
• Desert routes map, infographics, and GIFs of urban development over time
• Interactive boards showing time for traveling now and then
• Models of the future urban infrastructure development
• Schemes of new transport and its features

Images

Exhibition 3. Communication

Title

Developing Communication in UAE

Connecting Citizens of the UAE with Technology

Building Bridges Between People of the United Arab Emirates

Theme

The development of the young nation is impossible without communication technologies. Etihad Museum, which focuses on the creation of the UAE, is a perfect place for showcasing the long path the country has taken to become one of the most advanced technological states in the world. The recent effort of the government to develop its Internet sector has created the opportunity for the nation to bring communication to the next level, making it international.

In the past, there existed different ways of sending and receiving information in the Arabian Peninsula. They included, for example, letters carried by pigeons and signals given with the help of smoke or fire that could be seen over long distances. In the XX century, progress made it possible to use such technologies as telephones and radio, later followed by television. Nowadays, it is impossible to imagine life in the UAE without the Internet and electronic devices like smartphones. Various platforms like social media and e-mails allow people to instantly send and receive information, share their thoughts and plans and perform many other activities.

The exhibition will support the main collection of the Etihad Museum by giving answers on how the country became united with the help of modern technology. In the 1970s, the newly formed state had a goal to give people a feeling of belonging to a single nation, which was not an easy task. Nowadays, it has become possible with services that allow reaching friends, relatives, and colleagues instantly on-demand.

Collaboration

The Ministry of Culture, Youth and Community Development will become the first institution for collaborating on this exhibition. The choice is explained by the organization’s focus on social projects. Besides, young people are the most active Internet services users, spending a great amount of time on platforms such as Facebook and Instagram. Besides, the ministry governs the project about preventing cyber blackmailing, which will be an important part of the exhibition associated with network security. Specialists will be sharing strategic plans on preventing information theft and hacker attacks as a part of safe communication practices.

The Ministry of Foreign Affairs will be the second partner organization. The Internet has opened many opportunities for UAE businesses and individuals to go international. Modern technologies allow people to share their experiences abroad and let the world know about their progress. The ministry will offer information regarding the international image of the UAE as a result of the positive agenda translated over the Internet. Finally, the MFA will provide statistics such as the proportion of the most popular online platforms users from the UAE. In general, the collaboration will be targeted at uncovering the international dimension of the country’s development in communication technologies.

Finally, the third collaboration member will be the Telecommunications Regulatory Authority. This is the organization that stands behind regulating and maintaining all of the country’s digital infrastructure. Besides, the Authority promotes IT development, which is crucial in the world, where communication is becoming an online activity. The essence of collaboration with the TRA will be based on informational support. The organization will spread the news about the exhibition through some of its official channels to attract the audience. Moreover, it will include some of the exhibition’s spotlights to its brochures highlighting the development of communication in the UAE over the years.

Mission

To highlight the growing number of social connections between citizens of the UAE and to underline the importance of communication technologies for national growth and prosperity in the long run.

Description

The main idea of the exhibition is to show how the methods of communication between people of the UAE have changed over time. The set will contain spots associated with the particular type of media devices – telephones, TV sets, radio, computers, and others. The starting point will feature old letters and the ways that were used to send them. The room with telephones will showcase both old and new models. There will also be an interactive station where visitors will be able to use an old phone. The idea is to set up two interconnected devices and show how they used to work with the manual connection.

Other corners will have radio and television devices, ranging from retro models to the newest technologies. Some of the TVs will be translating old films and programs. For instance, there will be the first message from the government given on television nationwide, as well as the first news program. The next room will have computers, with one of the machines imitating the process of Internet search from the 1990s. There will also be a separate stand dedicated to social media with infographics showing the percentage of users for each of them.

Collection

• Letters
• Newspapers
• Old and new telephone models
• An old telephone as an interactive station
• Radio
• Television (from old to modern models with Wi-Fi connection)
• Old films and TV programs
• Old and new computers
• Internet user experience interactive corner
• Social media infographics
• Household items reflecting different time periods – posters, photographs, furniture.

Images

Exhibition 4. Trade

Title

Developing Trade in the UAE

The History of Trade in the United Arab Emirates

Trade Through Centuries in the UAE

Theme

Trade is one of the primary things that allowed a young country of the United Arab Emirates to reach the modern level of prosperity. Oil as its top export product has become the source of financing all the ambitious projects that the Etihad Museum is now showcasing as the state’s history. However, the region used to be a very important place for trade even before the creation of the UAE.

Fishing used to be one of the main sources of products for trade. The Arabian Gulf always had a perfect ecosystem for many marine species that served as food for the local people. However, the most important export product was pearls. There were numerous boats that roamed the coastline searching for these precious items. One of the most peculiar facts is that women often participated actively in the pearl trade, which destroys the stereotypical image of them cultivated in Western countries. Unfortunately, the business experienced a severe decline by the middle of the XX century.

Nevertheless, oil is currently the only resource that keeps the focus of the UAE’s administration as it is the source of the country’s budget. Since most of the social sectors and activities are funded by the government, the prices of this product draw the closest attention of everyone in the state. While there is still enough oil to support the UAE in the nearest future, the country has already started to develop other industries to prevent the economic crisis when the resource is over.

Collaboration

The National Museum of Dubai will be the first organization to collaborate with. It is explained by the historic scope of the topic, which requires theoretical and practical support from specialists in this field. Firstly, the museum will support the exhibition with some of its collection items, including old photographs, scales and balances, money, and other items necessary for old trading activities. Besides, the museum’s specialists will provide guidance regarding the accuracy of facts presented by the team. For instance, they will comment on the video clip about pearl hunting that will be designed specifically for the event.

Another important organization for this exhibition is the UAE Ministry of Foreign Affairs and International Cooperation. Firstly, this is the institution that has the most precise information about the current state of the international trade activities performed by the country. Thus, it may provide numbers for creating infographics for the exhibition that will be associated with the modern state of the economy in this sector. Secondly, the ministry is able to share plans and strategies regarding the future direction and perspectives of the oil trade.

Finally, the Ministry of Petroleum and Mineral Resources will become the third participant to collaborate on this project. Specialists from this institution may work together with those from the Ministry of Foreign Affairs and International Cooperation to predict the future of oil trade for the next several decades. The numbers will be used for the analytical infographic displaying the perspectives of the UAE’s forthcoming development based on this and other sources of budget income. Some of the most important ideas behind this collaboration are to provide an analysis of whether oil was the only thing that drew the United Arab Emirates towards the creation of modern, prosperous society. This is the question essential to the Etihad Museum as a place celebrating the rise of this country as an independent state.

Mission

The exhibition will give visitors an opportunity to compare how the country has changed due to the discovery of oil and how it lived before this turning point in history.

Description

The main idea of the exhibition is to give visitors the opportunity to feel the difference between the two epochs divided by the discovery of oil. That is why it will be separated into two sections, namely the old and modern trade scenarios. The sets will be facing each other to create more contrast and to show the tremendous changes that have happened in a relatively short period.

The first row will display trade activities as they used to be hundreds of years ago, up to the middle of the XX century. There will be pictures of old markets, figures of sellers and buyers, scales and balances used in the process, and other items. A special place will be given to the corner showcasing pearl trade as one of the most significant economic sectors of the past. There will be video clips describing the whole process, from material gathering to transporting. Posters, photographs, and balance sheets will also be a part of this exposition. The second row will be associated with the oil trade and its transformation from the 1960s to modern times. It will include statistical information, pipeline schemes, and maps showing top country importers of this resource.

Collection

• Maps showing ancient trade routes
• Video clips about pearl hunting
• Photographs of market trade (fish, pearls, camels)
• Old scales and balances used in the markets
• Figures of people engaged in a trade process
• Money from different epochs
• Modern oil pipeline images
• Infographics about oil trade numbers
• Oil resources left in UAE

Images