Emirates: A Different Kind of Airline
Azim Barodawala, WG'07
Issue date: 10/10/05 Section: Insider
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Given the current state of the U.S. Airline industry - with four of the six major airlines in bankruptcy, losses exceeding $35 billion over the last 4 years, an increase in long term debt of $30 billion - few Wharton students are considering a career in the industry. However, the presentation this past Tuesday by Nigel Page, the Senior Vice President of Commercial North American Operations for Emirates Airlines, might convince some students otherwise.
Mr. Page has enjoyed a long and varied career in the airline industry, with over 37 years of experience. He started out with British Airways' predecessor (BOAC) in 1968 as a reservations agent, and over the next 25 years worked his way up the organization to manage BA's operations in the Middle East and Africa. In 1993, Emirates, based in Dubai, recruited him to manage the airline's European and North American operations.
Mr. Page's presentation focused on Emirates' history and growth over the past 20 years, the "secrets" to its success, its future strategy, and the growth of Dubai as a center for world commerce.
Emirates started operations in 1985 with two Boeing 727s, $10 million in capital, and three routes. The airline turned a profit in its first year, something unheard of in the industry. Today Emirates serves 77 destinations in 54 countries across the globe, including the recently inaugurated New York-Dubai service.
Mr. Page emphasized that the Dubai government (the airline's owners) have taken an "on your own" position towards the company. It gave them no subsidies, no discounts on fuel, and no "free" landing rights at the Dubai airport. Mr. Page credited the airline's success to five main factors: Dubai's position as a strategic hub between Asia and Europe, management's strict control of costs, easy and quick communication between management levels, continuously improved productivity, and meticulous attention to quality.
Page also stressed the importance of job security for its employees, highlighting how layoffs lead to a vicious cycle of low morale, poor service, and decreased profits.
Mr. Page has enjoyed a long and varied career in the airline industry, with over 37 years of experience. He started out with British Airways' predecessor (BOAC) in 1968 as a reservations agent, and over the next 25 years worked his way up the organization to manage BA's operations in the Middle East and Africa. In 1993, Emirates, based in Dubai, recruited him to manage the airline's European and North American operations.
Mr. Page's presentation focused on Emirates' history and growth over the past 20 years, the "secrets" to its success, its future strategy, and the growth of Dubai as a center for world commerce.
Emirates started operations in 1985 with two Boeing 727s, $10 million in capital, and three routes. The airline turned a profit in its first year, something unheard of in the industry. Today Emirates serves 77 destinations in 54 countries across the globe, including the recently inaugurated New York-Dubai service.
Mr. Page emphasized that the Dubai government (the airline's owners) have taken an "on your own" position towards the company. It gave them no subsidies, no discounts on fuel, and no "free" landing rights at the Dubai airport. Mr. Page credited the airline's success to five main factors: Dubai's position as a strategic hub between Asia and Europe, management's strict control of costs, easy and quick communication between management levels, continuously improved productivity, and meticulous attention to quality.
Page also stressed the importance of job security for its employees, highlighting how layoffs lead to a vicious cycle of low morale, poor service, and decreased profits.