For the last decade, Emirates Airlines (Emirates) has been moving forward with an energized and aggressive expansion into multiple markets. They have also experienced steady financial growth in that time. Currently, the Middle Eastern airline has dominated the Near East air travel business and has secured a strong market presence in India and Eastern Asia. While their movement into Europe has been steady and systematic they have been met with resistance from regional airlines and large trans-Atlantic flight alliances. These organizations have thus stymied Emirates’ penetration into the European market. Emirates also has a burgeoning presence in North America and a fledgling venture in South America. However, due to stiff international competition and a business model that relies heavily on local government subsidies, Emirates will need to secure its business within new markets in order to maintain its current financial growth. For this reason this report will propose and evaluate Miami International Airport as a new destination for Emirates Airlines to add to its travel portfolio. This recommendation is made in the belief that the local market in the Miami-Dade metropolitan area will help Emirates Airlines gain access to new markets.

1. ALEX RANGEL & ROBERTO GUDIÑO
View more work at: www.robertogudino.com

2. Emirates Airlines was founded in 1985 and is fully owned by the United Arab Emirates
(UAE) government of Dubai through the Emirates Group. The birth of Emirates Airlines came
about from a dispute between Dubai’s rulers and the owners of Gulf Air (Gulf), a regional
airline, as Gulf was reducing its flights to Dubai in the early 1980s.
Emirates Airlines is an independent and self-sustained company within the Emirates
OVERVIEW
Company Synopsis

3. Business Model
Emirates flies to over 120 destinations in over 70 countries. The airline’s global reach has helped
turn Dubai into a commercial and aviation hub. From its base in Dubai, Emirates
operates over 1,200 flights per week across six different continents and has over 170
aircraft in its fleet with plans to add additional large capacity Airbus and Boeing aircraft.
Destinations
120
Countries
70
Flights
1,200
Continents
6
Aircraft
170
OVERVIEW

4. Destination MapOVERVIEW

5. Business Model
An integral part of Emirates Airlines business model is the company’s strategic use of its
operational base in Dubai; a large portion of their current flights center around Dubai
International Airport (DIA) which allows the company to experience certain cost benefits. Since
the government of Dubai owns the airline, Emirates profits from heavy government
subsidies, government regulated labor costs and fuel prices below typical market value which in
total help the airline maintain a positive earning year to year.
OVERVIEW
Subsidies Fuel PricesLabor Costs

6. Branding - LogosOVERVIEW
1999, English serif typeface, Dubai roots
1985, Arabic calligraphy

7. Branding - SlogansOVERVIEW
“Dubai ... The Perfect Holiday Blend.”99
“Hello Tomorrow.”12
“Fly Emirates over 100 Destinations.”02

8. Branding - Sponsorships
To expand their international brand
appeal, Emirates began sponsoring
multiple sport franchises and
cultural events which included:
soccer, rugby, sailing, horse racing,
cricket, symphony orchestras as well as
film and jazz festivals.
Two of their most notable and highly
visible sponsorships came when Emirates
Airlines helped finance both the 2010 and
2014 FIFA World Cup Finals.
OVERVIEW

9. S
Size, spread operations across markets
Diverse portfolio with 132 destinations
Substantial brand awareness
Strong backing from UAE and Dubai Gov’t
W
TO
OVERVIEW
Substantial amount of indebtedness
Lease liabilities approximately $9.7 million
Difficulty entering developed regions
Not a member of any aviation alliance
Developed substantial global partnerships
60 country agreement with the UAE
Opportunity to expand its operations
Americas lucrative new area for growth
Competition in low cost carriers
Carriers such as China Airlines, Etihad
Airlines and Qatar Airways
Volatility in aircraft fuel prices

10. Government Ownership
Because of government ownership interest in Emirates, the government can artificially
manipulate fuel and labor prices as well as wave airport fees in order to help
streamline production costs. By repressing operating costs and having a commercial fleet that
can service most of Europe, Asia, Africa and the Middle East without refueling has
given rise to Emirates Airlines success.
OVERVIEW

11. MarketsOVERVIEW
MIDDLE-EAST INDIA EUROPE

12. CompetitionOVERVIEW

13. Growth Factors
Emirates’ success has been spurred by three independent factors:
First is their favorable geographical location which places over four billion
people within an eight-hour flight from their central hub in Dubai.
Access to cheap fuel through subsidies.
Emirates is owned by Emirates Group which is state property of the UAE allowing the
company to receive subsidies which help keep operating costs low.
In order to continue its growth, Emirates needs to rely less these factors and find new markets.
OVERVIEW

14. New Markets
Emirates Airlines has a notable presence in Africa but has been reluctant to grow its
presence there due to practical concerns regarding financial return on investments when dealing
with a politically unstable African market.
Europe has been a practical market to expand into because of its wealth and geographic
access, it comes with heavy regulation and competition from legacy airlines that have a
well established presence. To continue their financial growth Emirates needs to penetrate
into new markets that have a fiscally viable consumer base.
OVERVIEW

15. Target Summary
Emirates currently targets both upper-middle class
and upper class business and leisure travelers with incomes
over $75,000. Emirates’ business and leisure travelers
expect both world-class service and accommodations across
various touch points including lounges, airplane seating,
and in-flight services.
Our proposed target market for expanding into a new region
falls within this socio-economic range. Because
Emirates Airlines has a small presence in Latin America
relative to other destination regions in its portfolio we are
OVERVIEW

16. Current TargetOVERVIEW
VALS Categories Claritas/PRIZM Categories
Innovators Wealthy Older Family Mix
Innovators are typically wealthy, mature,
commanding individuals with strong
self-esteem. They are very engaged
consumers, and their purchasing
behavior reflect sophisticated tastes for
upscale, specific products and services.
This is a very affluent group that typically
have a wide range of social, economic and
lifestyle achievements such as high income,
advanced degrees, and complex and
sophisticated tastes. A majority of the
members of this group reside within large
metropolitan areas and are typically
married with few children. Their age ranges
from 45-64 and they have an average annual
household income of $88,837.

17. Proposed TargetOVERVIEW
VALS Categories Claritas/PRIZM Categories
Achievers Upper-Middle Younger with Children
Achievers have goal-driven behaviors
and a profound sense of responsibility
toward their family and career. Their
social lives are structured around family,
religion, and success at work. Achievers
like to live ordinary lives and are not as
quick to adopt new trends as Innovators.
These individuals serve as the midpoint on
the socioeconomic scale. This group is very
representative of the stereotypical
American household from past generations.
They are frequently upper-middle-class,
young married couples with children.

18. Analysis

19. Solution
Emirates Airlines has only twelve destinations in North
and South America with only three of those terminals
being in South America. This represents an opportunity
for Emirates to continue expansion into North America
with long-term potential for expansion into key South
American markets.
North America is the next logical step in expansion
for Emirates because of its current market presence in
the region. In addition, North America has substantial
purchasing power and a demographic that does extensive
international traveling.
Current
Destinations
ANALYSIS

20. Gateway to South America
Miami has a vibrant economy that centers on
international finance, commerce and trade. According to
the Globalization and World Cities Study Group &
Network, Miami became listed in 2010 as an “Alpha”
city which indicates its status as a global center that
links major economic regions into the world economy.
The 2010 US Census reports that 61.7% of the city of
Miami is of Hispanic or Latino origin and that 59% of
the residents are foreign-born according to the United
Nations Development Program.
Proposed
Destination
Miami
ANALYSIS

21. Gateway to South America
This local market receives both heavy domestic and international traffic due to it’s perception
as a subtropical vacation and holiday destination. It receives an exceptionally high number of
Hispanic and Latino travelers coming from South America.
While the city of Miami has a rich cultural and historical tie to Latin America it also benefits
greatly from its status as a domestic market within the United States. Miami is an ideal
location for expansion for Emirates Airlines because of its diverse international traffic flow, the
potential to gain access to key South American travelers while also profiting from a wealthy
American target consumer.
ANALYSIS

22. Primary Research
• Business people from the Miami-Dade metropolitan area
• Online survey distributed to local business workers
• “Audience” feature to customize research respondents
• Sampled 51 respondents living within Miami-Dade
• Self-identified as business and financial operation occupants
• Fifteen survey questions regarding behavior & preferences
51Respondents
15Questions
ANALYSIS

23. Findings: Destinations
51%
Asia
Middle-East
Europe
Latin-America
Pacific
35%
53%
2%
4%
6%
International Travelers
ANALYSIS

24. Findings: Amenities
Gourmet Dining Walk-up Bar WiFi Lie-flat Beds In-Flight Entertainment Seat Comfort
59%
24%
10%
8%
0%0%
ANALYSIS

25. Findings: Brand Awareness
Magazines
Newspapers
Television
Blogs & Online Articles
Billboards
Social Media
Word of Mouth
Google Search 10%
27%
10%
6%
33%
4%
10%
ANALYSIS

26. Findings: Tone and Lifestyle
Competency Sophistication Sincerity
16%
29%
35%
ANALYSIS

27. Findings: Tone and Lifestyle
Adventurous Independent Family Oriented
49%
29%
14%
ANALYSIS

28. ANALYSIS

29. Messaging
Because Emirates is a luxury brand with a relatively high purchase value the messaging will also
have to reinforce the merits behind purchasing such a high valued choice. This is where
accommodation and inflight service will need to be highlighted and represented as the superior
choice compared to the competition. Features such as comfort and inflight entertainment will be
very important to appeal to family dynamics.
It is advisable that Emirates Airlines uses the luxuries and accommodations of their economy class
as a focal point since this is the likely choice of the target demographic. The brand personality
should come across as being skilled and qualified as well as having a sense of sophistication.
ANALYSIS

30. Channels
For distribution, Emirates Airlines should begin with a traditional media strategy. Television is an
effective way of targeting large amounts of people as well as easily portraying the values
mentioned above. Television also allows marketers to specifically target the Hispanic and Latino
components of the city by placing advertisements on Latino channels.
This is an expensive endeavor but we believe the cost advantage of acquiring an international
consumer base with ties to Latin America is worth the investment. This will provide Emirates with
substantial long-term growth in a new market.
ANALYSIS

31. ExecutionsANALYSISANALYSIS

32. ANALYSISANALYSIS

33. ANALYSISANALYSIS

34. ANALYSISANALYSIS

35. ExecutionsANALYSISANALYSIS

36. ANALYSISANALYSIS

37. ANALYSISANALYSIS

38. ANALYSISANALYSIS

39. Conclusion
Emirates Airlines is in a position to secure their financial growth if they make the right market
decisions now. Even though Emirates has a modest presence within North America they need to
continue their growth while also laying the foundation for further expansion into South America.
South Florida and specifically Miami can be a critical strategic location to secure that growth for
the coming years.
ANALYSIS

40. Thank you
View more work at: www.robertogudino.com