Service Marketing Strategies Emirates and Etihad

Services Marketing Strategies:

Emirates Airlines & Etihad Airways

Dated : December 12, 2010

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Table of Contents

Management Summary.................................................... 4

Aviation Industry, Aviation Sector.................................... 5

History of the Airline Industry ........................................ 5

Demand and Supply Drivers of the Airline Industry ...... 5

Airline Industry: Major Players ..................................... 6

In-flight entertainment system ...................................... 9

ICE (Information, Communication, Entertainment) is the

In-Flight-Entertainment system operated by Emirates. 9

Ground services ........................................................... 10

Etihad Airways ................................................................ 13

Services .......................................................................... 14

In the air: ...................................................................... 14

On the ground: ............................................................. 16

SWOT: ETIHAD AIRWAYS ................................................ 17

Service marketing strategy: Emirates vs. Etihad ............ 18

Conclusion ...................................................................... 23

Reference ....................................................................... 24

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Management Summary The Airline Industry encompasses a single aircraft conveying cargo articles and mail to

different places to the numerous aircrafts carrying passengers to the different parts of

the world. Services of the Airline industry can be segregated as domestic, regional,

within the continent or travel between continents. A thorough analysis of the Airline

industry will essentially comprise all of the above. Records show that the demand for

airline travel has been increasing. 1950 through 1960 manifested a trend when the

yearly growth was consistent at approximately 15%. Airline industry showed yearly

growth ranging between 5% to 6% consistently in the 80s and the 90s. However, rate of

growth cannot be expected to remain same throughout due to several factors.

Deregulation is being one of the reasons. Deregulation in the Airline industry led to

flexibility in the prices of the airline tickets. Consequently, the airfares nosedived at

times escalating the airway traffic.

In some countries the Airline industry is regulated by the Government. In countries,

where the Airline industry is privatized, many norms and regulations as laid forward by

the Government has to be complied with. These norms and regulations have been

framed keeping in mind the safety, political as well as economic aspects. The Airline

industry trend shows that during the period 2000 through 2002, 6% profit was enjoyed

by the Airline industry, as much as 10% to 13% was gained by companies in the catering

sector, manufacturers of aircraft gained by 16%, airports gained by 10% etc.,. The Airline

ticket costs are inclusive of the taxes, different kinds of fees and surcharges wherever

applicable.

In this Report, we have tried to explain the services and the differences that the modern

airlines are providing to their customer and how they are differentiating themselves by

the service marketing strategies. We have chosen to analysis to giant airline service

companies Emirates Airlines and Etihad Airways. In this report we have discussed the

company, the regulations, product and features, service quality, SWOT and other

comparison factors. Moreover in this report we tried to explain the strategies of

marketing themselves and differentiate their market identity.

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Aviation Industry, Aviation Sector

The airline industry provides transportation services for passengers as well as cargo

through scheduled air routes. The aviation industry derives its revenues from regular

ticket fees and freight charges. Other major components of the aviation sector include:

• Air traffic control

• Helicopter and private charter services

• Airport management

• Express delivery service

History of the Airline Industry

The pioneers of the airline industry, the Wright Brothers invented the first airplane in

1903. The first modern airliner, Boeing 247, was launched in 1933. It traveled at 155

miles per hour and had a capacity of ten passengers. Boeing 747 was launched by Pan

Am in 1969. This highly sophisticated aircraft had four engines and a seating capacity of

450. The airline industry initially fell under the category of a public utility service, with

government agencies establishing the air routes and prices. However, with the Airline

Deregulation Act of 1978, the industry became market driven.

Demand and Supply Drivers of the Airline Industry

The demand drivers of the airline industry include:

• Ticket prices

• Passenger income levels

• Access to and suitability of other modes of transportation

• Frequency of services

• Safety

• Random factors such as terror threat

The supply drivers of the aviation industry are:

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• Behavior of competition

• Government regulation

• Cost of resources (fuel, labor, maintenance, technology)

Airline Industry: Major Players

The European airline giants dominate the aviation industry. British Airways reported

annual revenues of GBP 8,593 million in 2008. Lufthansa reported annual revenues of

Euro22.4 billion in 2007. Qantas, Australia’s largest airline, reported annual revenues of

A$12.6 billion for 2007. The other major passenger airlines include Cathay Pacific, the

Emirates, US Airways, Japan Airlines, Air France-KLM and Southwest Airlines. Cathay

Pacific won the 2009 Airline of the Year title in the famous World Airline Awards,

replacing Singapore Airlines as the 'world's best airline.' Among the freight carriers,

FedEx is the world’s largest, with total revenues of US$ 37.953 billion in 2008.

Some of the major airports across the world include:

• London’s Heathrow Airport

• Los Angeles International Airport

• Frankfurt International Airport

• Tokyo International Airport

The global aviation sector generated revenues of $430 billion in 2007, with over 2,076

million passengers traveling by air. According to the US Bureau of Labor Statistics, the

airline industry provided employment to around 487,000 people in 2006 in America

alone.

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Emirates Airlines

Emirates (Arabic: رات �������ان ,Ṭayarān al-Imārāt) is a major airline in the Middle East ا��

and a subsidiary of The Emirates Group. It is the national airline of Dubai, United Arab

Emirates and operates around 2200 passenger flights per week, from its hub at Dubai

International Airport Terminal 3, to 106 destinations in 60 countries across 6 continents.

The company also operates four of some of the world's longest non-stop commercial

flights from Dubai to Los Angeles, San Francisco, São Paulo and, Houston all on the

Boeing 777-200LR. Emirates is a subsidiary of The Emirates Group, which has over

50,000 employees, and is wholly-owned by the Government of Dubai directly under the

Investment Corporation of Dubai. Cargo activities are undertaken by the Emirates

Group's Emirates SkyCargo division.

The airline ranks amongst the top 10 carriers worldwide in terms of revenue, passenger

kilometers, and has become the largest airline in the Middle East in terms of revenue,

fleet size, and passengers carried as of 2007. In 2009 the airline was the seventh-largest

airline in the world in terms of international passengers carried, and fourth-largest

in the

world in terms of scheduled international passenger-kilometers flown.

Emirates has built up a strong brand name as a trendsetter in the aviation industry,

particularly in terms of service excellence, coupled with consistent profitability. In 2009,

Emirates was voted the fifth best airline in the world by research consultancy firm

Skytrax.

Services

First Class

First class passengers have a full suite, complete with closing doors to ensure privacy, a

mini-bar, a coat rack and storage. They also feature the ICE system on a 23 in (58 cm)

LCD screen. The seat converts into a 2 m (6 ft 7 in) fully flat bed. Private suites are being

introduced on the latest B777-300ERs, the B777-300s and B777-200LRs. They are

already installed on all ten of Emirates Airbus A340-500 aircraft, and on all of the Airbus

A380-800 aircraft.

The older Boeing 777-300ERs, Boeing 777-200s and selected Boeing 777-300s feature

flat beds with integrated passenger seat control, along with the ICE system and a 19 in

(48 cm) screen. First class seats may also include a personal mini bar. On its newly

delivered A380-800, first class features private suites, two shower-equipped lavatories

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and spa, and access to the first/business class bar area and lounge. Premium class

seating is located on the entire upper deck of A380-800 aircraft.

In 2009, Emirates was voted the second best First Class by Skytrax. Skytrax had said that

the Emirates A380-800 product greatly helped influence its position.

Business Class

Business Class cabin on the Airbus A380-800

Business class on Boeing 777-200LRs, 777-300s and Boeing 777-300/ERs feature seats

with a 60 in (150 cm) pitch that recline to 79 in (200 cm)-long, angled lie-flat beds.

Amenities include massage function, privacy partition, winged headrest with six-way

movement, two individual reading lights and an overhead light per seat, in-seat power

supply, USB Ports and an RCA socket for laptop connection, over 600 channels of

entertainment on ICE, shown on a 17 in (43 cm) wide TV screen.

The A340-500s have deeply reclining sleeper seats which have a 60 in (150 cm) pitch and

are 18 in (46 cm) wide. All A340-500 aircraft feature the ICE system in all three classes.

The Boeing 777-200s have deeply reclining seats which are almost lie-flat. They have a

58 in (150 cm) pitch and are 20.5 in (52 cm) wide. The Boeing 777-200s also feature the

ICE system. On Airbus A330 aircraft and A340-300s, the seats are standard business

class recliners and feature a leg rest and seat back screens. These business class seats

are smaller than other business class seats in the Emirates fleet as these aircraft are

used predominantly on short-medium haul routes. On Airbus A380-800 aircraft, the

seats recline to form a fully flat bed and are equipped with personal mini-bars. Business

class passengers also have access to an on-board bar at the rear of the aircraft. Business

class passengers have the ability to customize and save seat and in-flight entertainment

settings to a memory key for re-use on future flights.

Economy class

Emirates Economy Class offers a 32-34 inch seat pitch (81–86 cm) and standard seat

width (except on the Boeing 777 fleet). The seat features adjustable headrests, a 600-

1000 channel ICE In-Flight-Entertainment and in-seat laptop power-outlets on newer

aircraft and laptop recharging facilities in galleys in older aircraft. There is additional

recline on A380 Economy Class seats.

Emirates is unusual in that it operates a ten-abreast, 3-4-3, seating configuration on its

777 fleet (rather than the customary 3-3-3 configuration). Other airlines with this layout

include Air France-KLM (on selected 777-300ER aircraft), China Southern Airlines,

Philippine Airlines and two Japanese airlines in domestic services (All Nippon Airways

and Japan Airlines).

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In-flight entertainment system

Emirates became the first airline in the world to introduce a personal entertainment

system on a commercial aircraft after introducing the world’s first seat-back screens in

1992. All three classes feature a personal In-Flight-Entertainment (IFE) system on

Emirates aircraft. There are three types of entertainment system on Emirates: ice; ice

Digital Widescreen; and Emirates tv &radio.

Emirates has won the award for best In-Flight-Entertainment from Skytrax for their ICE

system every year since the systems inception in 2003. At present, almost 70% of the

fleet has the ice in-flight entertainment and by 2011 the entire Emirates fleet is set to

have the system. ICE offers more channels than any other in-flight entertainment

system.

Emirates tv& radio, is also offered mainly on short haul routes, and 30% of the Emirates

fleet, offers passengers with 15 video and 26 audio channels, as well as 50 video games.

Also available are BBC headlines, an Air show and external cameras giving a bird’s eye

view from the plane.

ICE

ICE (Information, Communication, Entertainment) is the In-Flight-Entertainment

system operated by Emirates.

Introduced in 2003, ICE is available on all new aircraft and features between 600 and

1000 channels to all passengers. ICE is found on the airline’s Airbus A380-800, Airbus

A340-500, Boeing 777-300ER and Boeing 777-200/LR aircraft. It is also available on all

Boeing 777-300 aircraft which have all been retrofitted.

In July 2007, Emirates introduced ICE Digital Widescreen, an updated version of ICE. It

offers over 1000 channels of entertainment (up from 600) available to all passengers.

ICE Digital Widescreen is available on all new aircraft.

Information

The system is based on the 3000i system from Panasonic Avionics Corporation. ICE

provides passengers with a direct data link to BBC News. ICE is the first IFE system to be

connected directly to automatic news updates. This is complemented by ICE's Airshow

moving-map software from Rockwell Collins. Exterior cameras located on the aircraft

can be viewed by any passenger, through the IFE system, during takeoff and landing.

Emirates was also one of the first airlines to introduce high-speed, in-flight Internet

service along with Singapore Airlines, by installing the Inmarsat’s satellite system and

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became the second airline in the world to offer live international television broadcasts

using the same system.

Communication

ICE also contains a link to an in-flight email server which allows passengers to access

send or receive emails for US $1 per message. CE also contains a seat-to-seat chat

service. In November 2006 the airline signed a deal with mobile communications firm

“AeroMobile” to allow in-flight use of mobile phones to call or text people on the

ground, on selected 777s. The service was first introduced on a commercial service

between Dubai and Casablanca on 20 March 2008. E

Entertainment

The ICE system includes movies, music, and video games. ICE offers over 130 on-

demand movie titles and 15 video on demand channels, 60 prerecorded television

channels, 350 audio channels, and around 50 video-game titles. ICE can also be accessed

in 10 languages such as English, French, German, Spanish, Arabic, Korean, and Japanese.

Since 2003, all entertainment options are available on-demand to all classes with

options to pause, forward, and rewind them.

Emirates now features docking capability for Apple Inc.'s iPod portable music and video

player as of mid-2007. This allows the device's battery to be charged, but also allows

integration with Emirates' in-flight entertainment (IFE) system. This also enables the IFE

system to play music, television shows, or movies stored on the iPod, as well as function

as a control system.

Ground services

Passengers may check-in between two to 48 hours prior to flight departure. This may be

done over the counter or at the lounge within the airport. Self-service kiosks are also

available at Dubai International Airport.

Alternatively, they may check-in through the Internet or by short message service.

Online printing of boarding passes is available through Internet check-in. Passengers on

short trips may also check-in on their return flight upon departure from the city of

origin.

Lounges

First and business class passengers, as well as Skywards Gold members, have access to

Emirates Lounges. The airline has 27 lounges in 23 cities, with plans for 12 more.

Skywards Silver members can use the lounge in Terminal One at Dubai. At airports in

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which Emirates does not operate a departure lounge, a third party departure lounge is

usually provided for First and Business class passengers as well as Skywards Gold.

Chauffer-drive

First and business class passengers can make use of complimentary chauffeur-driven

airport transfers in selected cities.

The Frequent Flyer Program

Emirates uses Skywards as their Frequent flyer program.

Skywards

Skywards is a three tier frequent flier program operated by Emirates. It is used by over

5.72 million customers. The three tiers are Blue, Silver which requires 25,000 tier miles

for entry, and Gold, which requires 50,000 tier miles for entry.

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SWOT : EMIRATES AIRLINES

Strengths

1. has the advantage of size

2. decision to focus on diversified market

3. entering the cargo shipping

4. top global brand.

5. a strong corporate culture

6. continuously renew and improve their

service in the airline and aviation

7. effectively managing the needs of their

target audience

Weaknesses

1. Not all of diversification and approach

have been successful

2. Does not cater a lot of places in US

3. Does not cater to middle class &

budget traveler

4. focusing too much on their high-end

acquisitions and diversification

Opportunities

1. to develop continuously new

generations of more advanced airline

and aviation services

2. tap into more markets as a result of

the innovations being introduced in

the aviation

3. penetrate new growth markets where

internet adoption still has room

4. Leveraging Emirates Airline’s

infrastructure business to get first

choice

5. Innovation

6. Personalized services

7. Budget travelers

8. Tie-ups

Threats

1. Rival companies are major threats –

Gulf Air, Etihad.

2. The firm’s inability to keep up with

innovations, or recognize its demand

3. Their apparent complacence could be

used by their rival companies to their

advantage

4. Rising fuel costs.

5. Low cost carriers - Air Arabia, Jazeera

Airways.

6. Major competitors : Gulf Air Company

GSC; British Airways Plc; Air France-KLM

S.A.; Deutsche Lufthansa AG; Qatar

Airways Group.

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Etihad Airways Etihad Airways, the national airline of the United Arab Emirates, has in just over six

years established itself as the world’s leading airline.

Set up by Royal (Amiri) Decree in July 2003, Etihad commenced commercial operations

in November 2003 and has gone on to become the fastest growing airline in the history

of commercial aviation. Abu Dhabi, the capital of the United Arab Emirates, is the

airline’s hub. Etihad’s fleet of 54 aircraft operates close to 1000 flights per week, serving

an international network of 64 destinations in 42 countries. The airline seeks to reflect

the best of Arabian hospitality - cultured, considerate, warm and generous - as well as

enhance the prestige of Abu Dhabi as a centre of hospitality between East and West.

Etihad has received a range of awards that reflects its position as the leading premium

airline brand in the world, including „World’s Leading Airline‟ at the World Travel

Awards in 2009.

Etihad’s main business is the international air transportation of passengers. Etihad also

operates Etihad Holidays, Etihad Crystal Cargo and a global contact centre organisation

as part of its commercial group. In 2009, Etihad saw passenger numbers rise from 6.0 to

6.3 million and revenue passenger kilometers (RPKs) report a 15.2 per cent growth.

Etihad’s revenue exceeded US $2.3 billion in 2009.

Etihad is committed to providing guests with a superior travel experience both inflight

and on the ground. Etihad has recently upgraded a number of its aircraft in the Business

Class and Economy Class cabins, and its new First Class suite is expected to be available

on all three-class aircraft by the end of 2010. Etihad took delivery of the first of its six

A330-300s with all cabins upgraded in December 2009. The airline also offers a range of

convenient ground services, including chauffer pick-up in 19 destinations globally and

premium lounges in Abu Dhabi, London and Frankfurt.

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Services

In the air:

Diamond First class: In August 2009, Etihad introduced its new First class suite,

featuring a luxurious Poltrona Frau leather seat that converts to a fully flat bed, a large

wood-finished table, Arabic-styled sliding doors offering complete privacy, a 23 inch

personal entertainment screen, a personal wardrobe with mirror, and four individual

lighting options with dimmers, in-seat power points and USBs. The First class cabin also

includes a spacious and comfortable changing room with a leather fold down seat and

full length illuminated mirror. The new First class product is currently available on Abu

Dhabi-London services, and is being rolled out progressively to Australia, Europe, the

USA and the rest of Etihad’s three-class fleet this year. Etihad's First class was awarded

“Worl’s Best First Class” in this year Skytrax awards, as voted for by over 18 million

passengers worldwide.

Pearl Business class: Etihad’s Pearl Business class, featuring a seat that converts to a

fully flat bed, won the World’s Best Business class award in 2009, as voted for in the

Skytrax annual poll. New advanced Business class seats, which are longer and wider in a

1-2-1 configuration, are now being introduced. The seats will include larger meal and

cocktail tables, luxurious leather headsets, armrests and ottomans upholstered by

Poltrona Frau, ambient lighting with dimmer settings, and a state-of-the-art Panasonic

eX2 in-flight entertainment system with a 15.4 inch personal screen.

Coral Economy class: Etihad has rolled out a new service style in Economy class. An

extension of the inspired service philosophy already embedded in its premium cabins,

the new service delivers greater levels of personal attention, touches of luxury and

greater choice and flexibility. It includes extra support for families at the airport and

during boarding; entertainment packs and IFE assistance for children; new menus,

including hot desserts; and a hot and cold café service offering a range of beverages

from cappuccino to green tea.

New advanced seating for the Economy cabin was introduced in December 2009 and is

now available on all A330-300 aircraft. The new Economy cabin offers a new Interior

finish. Each seat has between a 32-33 inch pitch with a USB port and a controller and

power sockets underneath the 10.4 inch personal entertainment screen. A large pillow

is provided. Small touches on the seat such as coat hooks and cup holders make the

space more individual.

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Dining: Dining is an inspiring experience in Etihad’s Diamond First class and Pearl

Business class cabins. Guests can dine when they like, choosing from an extensive á la

carte menu or “Kitchen Anytime” menu. Dedicated Food and Beverage Managers, hired

from leading establishments worldwide, are available to help guests find the right dish

to suit their mood and the perfect accompaniment. Exclusive boutique wines are

served, specially selected from the world’s best vineyards.

In the Coral Economy cabin, customers can choose from up to three main course

options, one of which is always inspired by the destination. Guests can indulge in a

selection of complimentary drinks, hand-picked from around the world.

In-flight entertainment: All Etihad flights are fitted with state-of-the art, on-demand

entertainment systems, available in a wide choice of languages. Guests can enjoy over

600 hours of movies, TV shows, music and interactive games, including a kids only

channel. Etihad is progressively introducing one of the world’s most comprehensive in-

flight entertainment systems, a Panasonic eX2 system, on a number of its aircraft.

Customers can also recharge their laptop or mobile phone, or connect personal devices

to the system.

Amenity kits: First class customers receive a valise containing luxury products from

Salvatore Ferragamo, and a sleeper suit for maximum comfort. In Business Class, guests

receive a valise containing designer skincare products from Aigner. In Coral Economy

Class, all guests receive an amenity kit containing comfort items in a handy travel pouch.

Travelling with families: Etihad has paid particular attention to ensuring that the needs

of families with children are met. Parents can keep children busy and creative

with the airline’s family pack, available on all flights, which is full of fun activities,

stickers, pencils and games, and treat their child’s taste buds with special kids‟ menus,

available on request at the time of booking or at least 48 hours before departure.

In-flight Duty Free: Etihad offers all guests the opportunity to shop in-flight from the

airline’s exclusives range, featuring more than 170 products. The program provides

travelers with a convenient, hassle free, unique shopping experience while onboard. The

range is perfect for selecting last minute gifts for family and friends as well as

showcasing many products that are either available exclusively to the airline industry or

designed specifically for Etihad‟s guests.

Customers also have the opportunity to pre-order items via email to ensure their

requested products are available onboard their next flight.

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On the ground:

Lounges: Etihad offers access to luxury lounges to the airline’s First and Business class

guests at all destinations, in conjunction with its airline partners. In Abu Dhabi, the

airline’s signature First class lounge offers guests a range of luxury services, including a

complimentary Six Senses spa, cigar lounge, champagne bar, and à la carte fine dining.

In its Pearl Business class lounge, guests can enjoy a complimentary spa treatment from

Six Senses spa, international buffet cuisine, business, rest and relaxation and

entertainment options. In both lounges, children can be kept entertained by nannies in

a family room, and for the business traveler, meeting rooms are on offer. Prayer rooms

are available, as well as quiet rooms for long-transiting guests.

Etihad also operates its own lounges in Frankfurt and London, with new lounges

planned at other key destinations across the airline’s growing network, including

Manchester and Dublin later this year.

Etihad Chauffeur: Etihad Chauffeur is a premium limousine service that creates a unique

door-to-door experience, complete with a personal chauffer, for Diamond First class and

Pearl Business class guests, at 19 Etihad destinations globally. Additional destinations

will be added throughout 2010. In Abu Dhabi, the airline offers a dedicated lounge for

those passengers awaiting the Etihad Chauffeur service.

Check-in, Abu Dhabi Airport: Etihad provides porter and concierge facilities and a

separate check-in desk with spacious surrounds for First class and Business class

customers, and Gold and Silver Guests. For Economy passengers, there is a separate

check-in area for families.

Luxury coach Service: Passengers travelling to and from Abu Dhabi can enjoy luxury

coach transportation to and from Al Ain and Dubai to and from the airport. The air-

conditioned coaches include refreshment packs and onboard entertainment.

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SWOT: ETIHAD AIRWAYS

Strengths

1. They have most lucrative &

posh Interior

2. The fare is less compared to

Emirates

3. Their service quality is one of

the best in recent market

4. Their career is more spacious

Weaknesses

1. They have very few destination

2. Their packages are not well defined

3. They are very new to market

4. As they are using boing bus they

have more oil consumption & their

cost is comparatively high

Opportunities

1. They have the potential to

attract technology loving

market as their suits are very

latest

2. They can improve in flight

service: better related service

as emirates has this weakness

3. They are capable to enter new

markets as they have became

very popular in a short time

Threats

1. As the other airlines are having huge

number destination it might create

some problem for them in future

2. Major competitors : Gulf Air

Company GSC; British Airways Plc;

Air France-KLM S.A.; Deutsche

Lufthansa AG; Qatar Airways Group.

3. Rising fuel cost.

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Service marketing strategy: Emirates vs. Etihad Services are usually defined with reference to a particular industry. In air transportation

service it bases on the core benefits and solutions delivered to the customers. Delivery

of this core product is typically accompanied by a variety of other service related

activities what we refer collectively as supplementary services. This is the field were all

the marketing strategies are implied to vary itself from other competitors. Emirates

Airlines and Etihad Airways are two major rivals of the same industry from the same

country of origin. So moreover services are relatively same in the core benefits. But both

of the companies have successfully defined their service level in different manner.

In the basis of taking and implying the strategies of the both of the companies their

major field in service marketing are as follows:

� Revenue management through highly defined and classified rate fencing

� Supplementary service innovations

� Service improvements

� Style changes

� High trained and satisfactory service people

These factors are differentiating the whole aviation industry and these two companies

are not different. Above factors are services marketing strategies to manage, retain,

solve and increase the customer as well as the customer level of satisfaction. Emirates

and Etihad both companies have successfully created a difference in providing the air

transport service making their customer more comfortable and delightful with this

service innovations and improvements.

In Aviation industry the business of passenger transportation is a highly defined high

contract service business where the organization need to frequently interact with the

customer directly. For this reason the service quality and delivery of the service meets a

lot challenges and opportunities to increase the customer satisfaction level. Capitalizing

these factors Emirates and Eitihad has become one of the top air line service company.

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Price Baskets

Price baskets are the process of revenue management trhough fencing the rates of

charging by segmenting the level of customer. This is the process where the whole

market is sub segmented based on its customers demand, service supply and the

purchasing power.

Emirates strategy is moreover the same for a long time in rate fencing. From the

beginning Emirates has provided the same class difference on their flights. But they

have successfully improved the service by providing:

� One stop quality

� Frequent update of the infrastructure

� Diversification in class luxury

� Diversified flight attendance

� Up gradation in in-flight food provisioning.

� In-flight entertainment improvements by updated devices

Considerably, emirates price fencing have not changed. In this case the management

have taken strategies to develop the passenger class services.

On the other hand Etihad has provided an inspiring model of classification of the

customer through rate fencing. Etihad Airways have segmented their flight services

based on the customer profile and their frequency of flight. In revenue management

Etihad applied a number of passenger classes to diversify more the service experience.

As per Etihad has taken major strategies, the points are as follows:

Delightful service quality

Bold Namely defined passenger travel class

Luxurious dining and in-flight entertainment service

Providing customized service based on the class of passengers

Fancy in-flight comfort and perceived risk reduction strategy providing solution

package like Amenity kits, family packages, kids entertainment, extra safety

programmes, in-flight developed medical care and other psychological risk

reduction tools.

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Supplementary service difference

The core product of the both company is to transport the passengers to their

destinations. But the core product is augmented by other supplementary products

which are involved with the total service process. These services are creating better

customer experience and increasing the loyalty.

Emirates Airlines is one of the major airlines of the world. To make their service better

to the customers, Emirates has enhanced its supplementary services to add extra value

for its customers. In facilitating the service Emirates has developed:

� A rich internet website where all the information regarding the service is

described.

� Both manual automatic and e-order process through directly, agents, Online

order service

� A payment system where customer can pay both in cash, credit and in other

tailored manner based on the customer category

� A fully computerized detailed transactional billing system for the transparency of

their charging.

In enhancing the service:

� Service desk in every airport of country of operation’s airports and regions to

consult and provide travelling solutions to the prospects

� Highly involved agents and frontline service people to feel the customer at home

� Emirates has the most improved safety management system in airlines. They

provide and assures the safety of the passengers as well as their luggages by

proper ticketing and address tracking systems

In competing with Emirates, Etihad Airways has been successful in their creativity in

service providing. Etihad provides the most diversified services in the industry. Etihad

has bothly enhanced and facilitated its services to the augmented level of their core

services. In facilitating:

Eitihad Airways has an advanced website where customer can have information

about the proper flight time and class and also can check the availability of flights

It has managed and developed an order taking system where customer can order

their tickets by phone also.

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Billing system is fully transparent and detailed. Etihad also provide the bill’s

softcopy to the customer through email to help customer take further decisions

about flying.

Payment system is traditional by cash or credit card service.

In Enhancing:

Eithad directly consult with their corporate clients about the travelling time and

period

Highly hospitality facilities are provided with highly trained professionals to make

the experience of travelling with Etihad more delightful.

Safekeeping of Etihad airways is average but totally maintained and monitored

Etihad is the leader of providing customized service. Even the planes have

customized seats according to the need of the customers. Etihad also provides

luxury ground services, hotel reservation aid, airport transportation and loungue

service.

Service and Style

Emirates Airlines always maintained a continued trend of improving the service. They

always use the latest technologies and gadgets to make their customer’s flight more

comfortable and satisfying. Emirates’ airplanes are the most beautifully designed. The

interior is highly technofied with lights, entertainment systems like LCD TVs, qualityful

headphones, leather coated seats and other things. Emirates Flight staffs are known as

the smartest and well dressed in the industry. The design of the uniform of them

changes frequently by mapping the basic. The style, the atmosphere Emirates provide

are not equal in the industry.

Etihad is a very new company in the Aviation industry but the development it has made

is truly inspiring. It has happened only for the continuous service improvement and

brand positioning through unique style of service. Eithad provides the most luxury

travelling. It has cabins and cubicles for business customers with customizing service

orders. In present this company is working for the better economy service in their flight.

The staffs of the flight of Etihad are highly presentable and trained to provide an

experienciable service to its customers. The Etihad uniform is designed by Italian Haute

Couture fashion designer, Ettore Bilotta. Bilotta’s philosophy is to communicate the

welcoming and hospitable values of the Arabian culture in an international,

cosmopolitan context, while at the same time designing for the comfort of the crew in

the air and the airline’s ground staff.

22

Marketing and Sponsorship

Airlines Industry is an industry where communicating with the world is a significant

factor to inform and involve the customers with it. Most of the airlines sponsor events

and purposes to introduce themselves globally. By sponsoring airlines get a lot of

benefits in their business. These are:

• Less regulations in sponsoring countries

• Sponsorships contracts on travelling

• Mass people communication facility

• In depth understanding of diversified customers

• Brand value increases as well as market skimming possibilities

Emirates is a sponsor of sports clubs and events, both at its home base and in its

overseas markets. It sponsors the annual Dubai Shopping Festival, the Dubai Summer

Surprises and the West Australian Symphony Orchestra as well as the Melbourne

Symphony Orchestra. As of April 2009, Emirates spends 2.7% of its of its total budget on

Marketing and Communications. For Emirates, marketing expenses account for a far

greater share of its total costs than for most of its competitors. In the English-speaking

world the sponsorship always carries the words "Fly Emirates". Its directly positioning

Emirates Airlines in the whole world.

On the other hand, Etihad is proud to support a range of sporting and cultural events in

the United Arab Emirates and worldwide. These sponsorships are consistent with

Etihad’s values of hospitality, team spirit, and helping bring Abu Dhabi to the world and

the world to Abu Dhabi. Etihad’s major sponsorships include Etihad Stadium, Ferrari

Formula 1TM Team, F1 Etihad Airways Abu Dhabi Grand Prix, Sport Australia Hall of

Fame, GAA Hurling All-Ireland Senior Championship, Harlequins Rugby Football Club and

Manchester City Football Club. All these sponsorship is creating a value among the

customers and their experience about Etihad.

23

Conclusion More than $21.3 billion in new orders announced at last fall's Dubai air show

underscore the dramatic growth in Middle East aviation. Oil wealth and a favorable

location between Europe and Asia help, of course. Moreover, deregulation and start-up

carriers are increasing the supply of low-fare services and encouraging legacy airlines to

spread their wings wider. Maintenance facilities in the Middle East are bound to grow.

Major carriers are achieving the scale necessary for more complete in-house work,

although they still will need global partners.

Emirates Airlines and Etihad Airways are from the same country cultured in the same

corporate values. For this reason the differentiation in service is narrow. Bt the

difference in marketing strategies are huge between the companies. In one side

Emirates has an age old experience of business and Etihad has the ability of service

innovation. Emirates’ success is clearly not built on sand. In fact, it is based on a hard to-

emulate mix of an excellent geographic location and outstanding management,

embedded in an ambitious, Visionary development master plan. Nor is it unique. In

many respects, strong similarities exist between Emirates’ approach and Singapore

Airlines’ rise from a small regional player to a global powerhouse in the airline industry

only a few decades ago. It therefore seems reasonably safe to conclude that Emirates is

writing another of the very few success stories in the history of civil aviation.

Considerably, from the context of service marketing concept in airlines business; the

difference of service is created mainly in the service delivery of the frontline employees.

Their hospitality, in-flight comfort, and real time service modules are the main factors

where difference can be created. Though it is a high-contact service the involvement of

the service provider with the customer is very important. This level of involvement and

effort to augmenting the core product decides whether the customer is satisfied or not.

The more the customer is satisfied the more the loyalty increases. And the loyalty of the

customers means a lot to increase the revenues in terms of maximizing the profit.

24

Reference

• Free World Economy Report. © Stanley St Labs. Aviation Industry, Aviation

Sector. Retrieved December 12, 2010 from

http://www.economywatch.com/world-industries/airline-industry-aviation-

industry.html

• Christopher H. Lovelock. Jochen Wirtz.(2007). Services Marketing, people,

technology, strategy. 6th

edition. USA: Pearson Prentice Hall.

• Emirates. (2010). © 2010 Emirates. About Emirates. Retrieved December 12,

2010 from

http://emirates.com/bd/English/about/about_emirates.aspx

• Etihad Airways. (2010). © 2010 Etihad Airways. Factsheet. Retrieved December

12, 2010 from

http://www.etihadairways.com/sites/Etihad/Etihad%20Images/Resources/Fact%

20Sheet%20Complete%20Set%20FINAL%20June%202010.pdf

• Wikipedea.(2010).© 2010 wikipedea. Emirates (airlines). Retrieved December

12, 2010 from

http://en.wikipedia.org/wiki/Emirates_Airline