Etihad Airways

The report deals with the marketing plan audit which critically analyzes the
Etihad Airways in terms of different aspects. Initiating with the PESTEL
analysis it examines the Airways macro environment on Political, Socio-cultural,
Ecological, Economical, Technological and Legal factors. It also surveys the Etihad
Airways social responsibility, its key target markets, and the major competitors
Emirates and Air Arabia airways were also analyzed. A SWOT and A SWAN
analysis as well as the positioning will incorporate the marketing plan audit.
The main results that emerged were that Etihad Airways is operating in a highly
competitive market. Where emerging stiff competition emanating from the aviation
sector particularly from the development of the first class services provided by
the others is affecting its growth rate and in turn its profitability. The Company
must consider in strengthening its other services, to maintain a sound and proper
cash flow which will result in having enough liquidity for further development.
The analysis of the positioning of Etihad with its other competitors has brought a
conclusion that the Company needs to intensively focus on identifying the global
market, its expansion policy in reaching new destinations and targeting more
passengers on Diamond First class services. On its expansion strategy the CEO
James Hogan says. There is no tougher business than aviation, but we have the
ability to build forward. Etihad airlines does not have an exit strategy
It is strongly recommended that Etihad should focus on the following: Continue with the expansion strategy
Tapping new business opportunities in the International Market (Russia ,
European market)
Increase number of routes as planned by the company.

INTRODUCTION:-

As far as the concordant opinions within the business press are concerned, the
core factors why Etihad Airways is yet to strongly assert its position in this sector
have been identified as, firstly of their need to maintain market share growth due
to intense competition levels. Secondly heavy modernization and expansions taking
place in aviation industry along with a low cost strategy leading to reduction in
revnue generation per airline.
This report is a critical analysis of the Etihad airways. Its Market analysis
includes Product, Price, Promotion, Place, People strategy. Countries in which the
Airways operates are Africa, North and South America, Asia , Australia and
Oceania . The airline is headquartered in Abu Dhabi, the capital of UAE. In 2007,
it passed additional than 7 million client, contrasted with approximately 340,000 in
its very first full time process in the year 2004. The company has more than 8000
employees working in numerous divisions like finance, marketing, flying , sales etc.
Its major base or platform is Abu Dhabi International Airport. (Delfmann, 2005).

Etihad Airways is the representative air carrier of Abu Dhabi, offers air
transportation for cargo and customers. Companys sole shareholder is the
Government itself of Abu Dhabi, was been extracted from its combined venture in
Gulf Air in the year 2005 and preserved its spotlight on Etihad Airways.
The focus of the analysis will be on assessing the companys macro environment by
means of a PESTLE analysis, determining marketing strategies and objectives as
well as undertaking the SWOT, SWAN and competitor analysis. In addition this
report will also focus on the differentiation and positioning, the target market and
its social responsibility. The Service which will be critically analyzed will be the
Diamond First Class , its positioning , its competitors and its market share in the
UAE Aviation industry.
In the following part, Etihad Airways is being analyzed in terms of political,
Economic, social, technological and legal factors.
Political

ORGANIZATIONAL OVERVIEW

. Etihad today is considered as one of the most rapid growing airlines, with a fleet
of 57 aircraft operating about 1000 flightsa week to 66 destination in 44 countries
from its hub in Abu Dhabi. As the national airline of the UAE, Etihad always looked
for reflecting the Arabian hospitality and culture, as well as t r y i n g t o p r o m o t e
Abu Dhabi as an attractive business centre in the Middle East.
W i t h international air transportation as its main business, Etihad also runs Etihad
Crystal Cargo, which offers cargo services throughout its global network, and
Etihad holidays, which offers a wide range of holiday programmes. Etihad is
constantly working hard to provide guests w i t h a n i n c r e d i b l e t r a v e l
experience, through upgrading its aircraft, in Business Class,
Economy Class, and First Class cabins, as well as offering some ground
services such as limousine pick-up in 19 destinations, and high quality
lounges in Abu Dhabi, Frankfurt, M a n c h e s t e r , D u b l i n , a n d L o n d o n .
W i t h l e s s t h a n 1 1 y e a r s i n o p e r a t i o n E t i h a d A i r w a y s received many
global awards such as Worlds Leading Airline at the World Travel Awards in
2009 and 2010 (Etihad Airways Website 2011)

Etihad Airways is one of the worlds most famous airline carrier based at the Abu
Dhabi in the United Arab Emirates. This organization is well known for its quality
cabin crew services it provides to its clients. The cabin crew is made up of highly
qualified beverage and food managers, cabin mangers, cabin seniors and cabin crew
who are dedicated to providing quality services to its clients, hence the
organizations top reputation globally. The airline operates in various destinations
globally including Africa, Asia, Americas, Middle East and Europe. Alongside the
airline services, Etihad airways operate other services including Etihad Cargo and
Etihad Holidays (Saleem, 2010).
The organization has its head office in the Khalifa City in the Abu Dhabi
international airport where the organizations corporate activities are controlled
at. The organization is governed by the board of directors consisting of seven nonindependent executive members, an audit committee and an executive committee.
The boards of directors are responsible for coming up with legislations, rules and
policies which govern the organization. The winning of the World Travels award is
one of the contributing factors among other wards which have contributed to this
organizations excellent performance and positive public picture (Lastrou & Oretti,
2007).

This airway carrier operates in a total of 86 destinations globally. These

destinations are located in a total of 42 countries distributed across Africa,
Americas, Europe, North America, Asia and Oceania. Etihad provides quality inflight entertainment services to its clients meeting their comfort. The
organization has partnership agreements with other airline companies which
promote the companys operations. These include the Aer Lingus, Bangkok Airways,
Jet Airways and American Airlines among other airlines. Therefore, this paper will
analyze in detail this airline operation including its marketing strategy, objectives,
flyer programs, and its membership ties among other organizations operations
(Vedder, 2008).
Etihads Objectives and Purposes.
One of the objectives of the Etihad airlines is to provide airline carrier services to
its esteemed customers globally with the dedication of meeting their clients
expectations. Additionally, the airline was established in the United Arab Emirates
to bear the flag globally. The acts of the airline were to carry the organizations
flag globally to its guests and express their level of hospitality to these nations.
Furthermore the airline company wanted to provide the most modern flights to its
customers hence, creating a competitive air transport market for its competitors
(Ramavarman, 2010).
Furthermore, the airline was established with the core objective of ensuring that
it unified the Eastern countries and the Western countries through the provision
of its air services with the Abu Dhabi being the core Centre of all of these
business operations. The organization aimed at providing luxurious tourism airline
services to its clients and quality air cargo services to its clients alongside its
other airline services. The airline cargo is handled with the responsibility of
transporting precious cargo, goods and pets among other products. The
organization operates in a system of products share to ensure that it maximizes
the profits acquired from the sale of their products and services (Lastrou &
Oretti, 2007).

CORPORATE SOCIAL RESPONSIBILITY:-

The Corporate Social Responsibility is focused under the together strategy,

Growing , Working, Giving , Greener. The following section, analyses the economic ,
legal ethical and philanthropic responsibilities. (appendix attached 6.2)
Economically , Etihad Airlines is operating to progressively give momentum to its
expansion strategy and promoting its luxury brand Diamond First class services.
Next to it E.A. (2014) purses to be as profitable as possible and maximize its
earnings through its vision of Abu Dhabhi 2030, and also for its stake holders
which incorporate , employees, guests, industry, association, partners and various
groups. According to James Hogan CEO Eithad Airlines As a company the airline
has a to-day operations. With the continuing experience we must be prepared to
play a part in the sustainability challenges that lie ahead.
E.A. operates in compliance with the legal and regulatory requirement. Apart
from complying to the requirements of disclosing its renumerations and economic
proceses. The Company adheres to the legal norms as structured by the Abu Dhabi
Govt. It refrains from any unethical practices in relationships, actions and
communications, refrains from offering any business favours to its suppliers or to
the employees.
Ethically, E.A. seeks to operate in the moral manner and norms to prevent any
misconduct. In the light of the cultural values , change is inevitable. It supports
change but within the cultural parameters of UAE. The company promotes many
organizations and environment groups , initiates many recycling programmes. It also
uses its channelizing the research to find an alternative to substitute fuel
development which could benefit the aviation industry.
E.A. has a strong commitment to its philanthropic responsibility to realizing the
vision of Abu Dhabhi 2030. It started the first Bio- Jet Flight , Reducing carbon
emissions. The concern for print spirit In 2012 the Save Water Campaign.
Humanatarian activities through sponsoring various competitions at various levels .

Appendix 6.1
Pyramid of Corporate Social Responsibility

Corporate Social
Responsibility
Economic
Mission and objectives
Ongoing commitment to their
Seeks to reflect the best of Arabian hospitality
stakeholders
To be the best airline in the world.
Strengthen the shareholder earnings
Aims to fly 20 million passengers a year to atleast 100 and build long -term associations.
destinations across the world by 2020
Create tools & intiatives that allow
core stake holders to participate in the
reange of activities and initiatives

Legal
Confirms with the legal
and regulatory norms.
It maintains the legal
norms set by the aviation
Governance framework
Functions under the Abu
Dhabhi Govt. Structure

Ethical.
Operates in the moral
and ethical norms
estabished by the E.A.
First Bio-fuel flight
Reduce carbon-dioxide
emissions
Launch of Print Smart
Save Water Campaign

Philanthropic
E.A. has won the CSR
award in Pakistan 2012
Special sponsorships
programes for handicaps
Distributed blankets in
Nepal and other
improvished countries.
Commitment to promote
Arabian hospitlity world
wide.

5.

Competitor Analysis

The section deals with examining the companys key target market and
product category Diamond First Class, assessing the three major competitors,
Emirates and Air Arabia .
Etihads Product Market:The author has chosen to further investigate Diamond First Class as one of the
key products of Etihad Airlines. The CCO Peter Baugarnter, chief commercial
officer Eithad Airwayswho was voted as the sales and marketing manager of the
year 2009, Aviation Business Awards says that there are four marketing Principles
that Eithad functions on, the first principle is to avoid undifferentiated
superiority., Second principle is to be inspirational to individual. ,Third principle is
to behave like a luxury brand but dont lose sight of entire spectrum., We are a
luxury brand and position ourselves as a luxury brand, but everybody has a right to
fly and experience a touch of Etihad luxury , fourth principle is promoting and
initiating Abu Dhabis new image with Etihad Airways through slogan, From Abu to
the World.
Keeping in mind its position as a luxury brand ,The Diamond first class assures
scaling new heights with the significant luxurious customer care. It maintains a
strong bond maintaining that when people fly this class they are not mere
passengers but honored guests on flight. Secondly it has recruited so many
individuals of different nationalities speaking different languages to enable
greater stability in customer care.
For customers five-star hospitality, is offered. The UAE aviation industry has
ranked Etihad airways as the first luxury airliner of Asia.. The success mantra of
this airline is not dependent on its price line but on the customer satisfaction and
care which Etihad airways adhere to. The staff makes the guest feel like a royalty
, the pinnacle of luxury commercial airline travel. The company offers comfortable

travel catering to all ages, satisfying quality, luxury and style at every step of
their journey.

Emirates
Emirates is the worlds largest international airline. In 2014-15, carried 49.3
million passengers and 2.4 million tonnes of cargo. This was 11% more passengers,
and 6% more cargo than the previous year, keeping pace with the airlines 9%
growth in capacity.
But these numbers only present one view of our year. What Emirates really did,
across our global network of 144 cities on six continents, was connect people to
places, and businesses with opportunities.
The first class services of Emirates is successful because of its brand portfolio,
strong marketing strategy with the customer care at its core.
A strong weakness that has made Emirates take a backseat where luxury airline is
concerned is that the Emirates service is very friendly,kind and professional, but
not personal ad Etihad scores in their customer care.
Despite being a leader in the UAE airliners , it needs to be alert on improvising,
innovations to lure the customers to them.
SWOT Analysis:
Strengths:Fast pace growing fleet, from 6 aircraft in 2003, to 57 modern aircraft in 2011,
which needsless time for service and maintenance, hence more time in the
air, and more profit(Etihad Website 2011).
Lower fares compared to main competitors in the region, such as
Emirates Airlines.
Headed by a creative, well known, and experienced CEO James Hogans,
with a highlyqualified management team.
-

Globally recognised sponsorships with sports clubs and events.

One of the worlds leading airlines in 2009 and 2010, through the global awards
received.
The great entertainment system on board (E-Box) with a USB plug and
play feature toconnect personal devices to the system (Etihad Website 2011).
The unique design of cabins, Diamond zone for first class, pearl zone for business
class, andcoral zone for economy class (Etihad Website 2011).
High service quality, more than 30 awards received for service by the World
Travel Awards(WTA) (Etihad Website 2011).
Successful partnerships to add new destinations, such as the partnership
with Virgin BlueAustralia.
Increased seating capacity every year.
Wise diversification through cargo and holidays services, in addition to air
transportation,which resulted in total revenue of 2.3 billion dollars.
Creativity and innovations in both onboard and ground services, such as limousine
pick-upservice.
Achieved positive EBITDAR (Earnings before Interest,
T a x a t i o n , D e p r e c i a t i o n , Amortization, and Rentals), with
expectations to break even in 2011 (E-travel Blackboard Website 2010)

Weaknesses:Fewer destinations than major competitors, Emirates more than a hundred

destinations, andQatar Airlines more than ninety destinations.
Weak support by customer service centres, as many customers complained that
they didntget the help they needed.
Delayed processing of compensations.

Some customers complained about longer waiting time in connection flights

Opportunities:The increasing popularity of Etihad allows it to enter new markets
t h r o u g h s t r a t e g i c alliances.
The location in one of the most promising business districts in the Middle East will
attractmore and more business travellers.
A good chance to attract technology loving customers, due to innovations in cabins.
Threats:Entry of new rivals in such a wealthy part of the world is relatively easy.
Fuel cost might face an increase.
Terrorist threats towards airlines in general.
Natural environmental conditions that might affect the aviation industry as a
whole, such asthe 2010 ash cloud in Europe, which caused airlines huge loses.

Positioning:-