This study provides a survey around the air power and air hose service supplier industry and besides looks at the house concern line of Dnata which is the air service supplier arm of the Emirates group. Methods of analysis include the survey of the construction & A ; concern line of the company with particular attending given to the fiscal political, societal, legal, economic and technological environment of the United Arab Emirates where the company operates in. It besides provides services in assorted states across the universe. Consequences of informations analyzed show that although the planetary economic system is traveling through a ambitious stage with slow down in the growing rate but relatively UAE has shown the marks of growing due to good set up oil industry and touristry industry. It clearly reveals that Dnata is runing in a favourable concern environment of air hose service supplier with Dubai being the precursor followed by Abu Dhabi and other provinces of emirates.
UAE Profile 5
Economy in UAE 9
Political and Legal Situation in UAE 10
Cultural and Social Situation in UAE 11
Technology in UAE 12
Fiscal Situation in UAE 13
Aviation sector is comprised of two different activities: Airlines that transport riders & A ; goods. Ground-based substructure that includes service suppliers for riders like luggage, fining, providing & A ; other airdrome installations.
Initially land handling services at airdromes were purely conducted by the air hoses themselves. In order to concentrate on their nucleus concern and cut down labour and equipment costs, a figure of air hoses started to contract with 3rd parties to supply the service. However, as the industry has evolved, there have been a figure of airdromes that have considered traveling into the land managing service industry for the air hoses, demoing similarity with the concern theoretical account of many in private operated airdromes around the universe. Airports need to see the advantages, disadvantages and other factors. Supplying land managing service to air hoses for a net income is an advanced thought to bring forth gross.
Air service development is one chance that needs to be explored. There are many planetary participants that provide land services on airdrome. Advantage of supplying land services is their ability to command client service. Such companies work in synergism with the Airport governments. Airports that do make up one’s mind to join forces will likely see some bonding, since sections such as accounting, vehicle care and human resources are already in topographic point to back up land managing operations. Even direction may elect to develop employees to diversify the duties of each new employee. For illustration, during slow periods, employees hired for land handling could assist with particular undertakings in care. Although assorted sections could efficaciously back up the new venture, direction must see the consequence on the employees in respects to the excess work load and duties of runing a fast-paced concern.
One facet of land managing concern that needs to be analyzed is the labour pool and the turnover that occurs with the low-paying occupations. Some of the analysis includes the labour market, barriers of entry, civilization traits, turnover rates, net income borders and other informations to help the air hose in doing an informed determination.
The successful land managing concern theoretical account chiefly involves the sum a company pays in rewards and the quality of service.
Some of the booby traps that should be examined in the concern include reduced terminal rental infinite gross, no flight privileges to offer employees, uninterrupted preparation cost and if the airdrome loses money in the venture so would it set up the fund cover the losingss. For illustration, if an airdrome attempted to cover up the lost financess with landing fees under, non many air hoses would be at that place to lade any luggage.
Trucial States after independency from Britain formed a federation of seven provinces in 1971 & A ; named it as The United Arab Emirates ( UAE ) . The seven provinces are Abu Dhabi, Dubai, Sharjah, Umm, Ras al Khaimah, Fujairah and Ajman. Although each province is independent but UAE is governed by a Supreme Council of Rulers dwelling of the seven amirs. They appoint the Prime Minister & A ; The Cabinet.
Prior to the find of oil in 1950s, the economic system of UAE was dependent on angling & A ; pearl concern. But since 1962, the economic system of the state got transformed as Abu Dhabi became the first of the emirates to get down exporting oil.
Ruler of Abu Dhabi, The late Sheikh Zayed and president of the UAE took the advantage on the potency of the oil industry. He sanely looked after the development of all the emirates and directed oil grosss into national substructure, health care and instruction. More than three quarters of the population is engaged into the oil industry as of now in The UAE. Due to over dependence of the population in one sector, the governments tried to diversify themselves & As ; their economic system into other sectors like touristry & A ; building sectors. Due to high reservoirs of oil in Abu Dhabi remained conservative to travel into other concern lines but Dubai which has highly low oil militias welcomed new policy of variegation. Particularly after 2000, Dubai leaped towards increasingly and became the fiscal gateway and multidisciplinary hub of the Middle East. This besides led to immense sums of foreign investings in the field of building. Among all the universe ‘s current tallest man-made skyscraper, the Burj Khalifa, is one of the many undertakings. In future assorted landmark undertakings are in waiting line of which building unreal thenar islands is one.
Dubai received a major set back by the planetary fiscal crisis of 2009 due to which building & A ; belongings sector went down. Even though retail, trade and touristry have remained floaty. Although Emirates are traditionally conservative, within the Gulf states, the UAE is one of the most broad states, particularly Dubai.
In the Middle East, UAE has ever been a favourite tourer finish for both concern and leisure travellers. Recently touristry in UAE has got a encouragement due to development of different manners of transit. The proliferation of air hoses in recent times has made UAE tours convenient and easier. Due to traditional Arab cordial reception and extremely developed substructure UAE has become a favourite finish for man of affairs to form international conferences. Leisure travellers are flooded with tonss of options for recreational activities in UAE. UAE has besides become a favourite locale for athleticss events.
( Beginning: Airlineupdate.com )
Airline service Provider is the major sector back uping the economic system of the state. Airlines that are registered in the UAE conveyance about 38 million riders and 2 million dozenss of cargo every twelvemonth to and from the UAE. Peoples and concerns use air conveyance for many grounds. Tourists enjoy it for vacations and sing friends and household. Businesss use air transit for run intoing their valuable clients and for the speedy and trust worthy bringing of mail and goods over great distances.
Year Ending 31st March 2012
Gross and Other Operating Income
7,000 AED m
Operating Net income
793 AED m
7,119 AED m
Average Employee Strength
( Beginning: Annual Report 2011-12 ) Dnata is the largest travel direction services company in the UAE and the 4th largest combined air services supplier in the universe. Its chief activities include catering, information engineering services, land handling and lading services and the sale of air tickets on behalf of air hoses.
Emirates and Dnata are under common direction and therefore referred as the Emirates group otherwise both of them are the separate entities.
Dnata operates in 30 seven states across five continents and employs about 20,000 employees. It came into being in 1959, in Dubai, UAE.
The name Dnata originates as Dubai National Air Travel Agency. First of all it expanded internationally in 1993 through a joint venture with Gerry ‘s International in Pakistan. It expanded globally in 2008 through the acquisition of 49 % interest of the planetary outsource supplier, Mind Pearl and a 23 % portion in world-wide corporate travel company, Hogg Robinson Group. It acquired Alpha Flight Limited in December 2010 and expanded the company to cover 62 airdromes in 12 states.
Dnata is majorly into four concern lines:
Land Handling: Dnata employs more than 6,500 people who handle lading, incline, rider, and proficient services for air hoses at Dubai International Airport. It besides provides airdrome services to 19 airdromes globally. It besides provides technological solutions and services through its IT arm named Mercator to aviation industry in the Middle East, Asia Pacific, Africa, the Americas and Europe. Mercator is headquartered in Dubai and besides has an office in Thailand.
Cargo: For the Dubai International Airport Cargo Gateway, Dnata maps as the lading handling operator. Servicess of lading are provided both regionally and internationally, managing over 3 million dozenss of lading yearly. An on-line communicating portal was set up in 1991, for the lading community by the name Calogi. It was the first of its sort in the Middle East leting land managing agents, air hoses, cargo forwarders and shippers to manage concern all across the universe.
Travel: Corporate and Governments are being assisted by Dnata Travel for their luxury vacations, travel, events, , marine travel, retail, groups and inducements, . There are about 202 locations across the GCC with its active presence in Bahrain, Oman, Afghanistan, Qatar, the Kingdom of Saudi Arabia and Kuwait. Hogg Robinson Group has Dnata Travel as the regional managing spouse in the Middle East and West Asia.
Flight Catering: Dnata operates an international flight catering service after geting Alpha Flight Limited in 2010. It provides its services across 62 airdromes and 12 states. The company serves about 120,000 repasts on a day-to-day footing.
Economy in UAE
In the Middle East, United Arab Emirates ( UAE ) is one of the richest states. It possesses one of the highest per capita incomes in the universe that is estimated to be Dh 61,000 ( $ 16,610 ) in 2005 as per the UAE Federation of Chambers of Commerce and Industry. It has a broad and an unfastened economic system with no revenue enhancements on net incomes or incomes, 100 per cent foreign ownership allowed within free zones and complete freedom of capital motion. The UAE Gross Domestic Product ( GDP ) stood at $ 358 billion in 2011, with GDP growing rate at 3.1 % in 2012. Oil and gas contributed approximately 30 % of GDP, while nonoil sector has shown a growing making upto 70 % of GDP. UAE economic system is now less affected by the fluctuation in oil monetary values as compared to other Middle Eastern states.
In order to develop options to the oil industries, the UAE Government has made successful attempts. Policies have been made for the development of industries, touristry, refinement of oil, land renewal, every bit good as making international free trade zones. Tonss of money has been invested into infrastructural development and opening up its public-service corporations to private sector by the UAE Government. There are equal chances for making concern in the UAE. Thus, all these factors combined with an easy available transit and pleasant and safe on the job civilization attracts foreign investing in the state.
Political and Legal Situation in UAE
The UAE being a federation of seven independent emirates is ruled by local amirs. The state although does n’t hold democracy but citizens enjoy an highly high freedom of address. Still they do n’t hold any state on political issues. The Supreme Council of Rulers is the highest federal authorization comprising of the amirs of the seven Emirates. Any policy implemented demand to hold an understanding of at least five members out of which Abu Dhabi and Dubai are the must. President elected by the Supreme Council serves a five-year term.
The UAE besides has 40 members Federal National Council, appointed from each of the seven emirates. Each emirate besides has its ain local authorities that comprises of municipalities and sections. Local amirs are provided important powers such that each emirate retains a good trade of fiscal and political liberty. It is a fact that has significantly contributed to the tremendous success of the federation. An independent Federal Judiciary that consists of the Courts of First Instance and Federal Supreme Court besides exists. Currently, Sheikh Khalifa bin Zayed Al Nahyan of Abu Dhabi is the President f UAE and Dubai ‘s Sheikh Mohammed bin Rashid Al Maktoum is the Prime Minister and Vice President of the UAE.
Cultural and Social Situation in UAE
The UAE ‘s civilization has its roots in the traditional desert and mobile people. UAE came into being in 1971 due to the fusion of seven autonomous sheik-ruled emirates- Dubai, Fujairah, Ajman, Abu Dhabi, Ras al-Khaimah, Umm al-Qaiwain, and Sharjah has developed its ain alone civilization over the old ages. As the critical civilization of a state plays a really of import function in the development and advancement of different industries like touristry it becomes highly of import to cognize the civilization of UAE.
96 % of the population in UAE is Muslim, therefore its civilization is influenced by Islamic beliefs and traditions. Even though it does non intend that the UAE ‘s civilization is determined by Islam. UAE upholds the broad value of “ Tolerance ” and cherishes. Many Hindu temples, churches and a Sikh Gurudwara exist in UAE. “ Al Jawaher wal lali ” is the first written manuscript in UAE. There are besides many European and Asiatic influenced schools and eating houses, which have significantly contributed to do the UAE civilization progressive. Urban population counts to 88 % of the sum but the Government still has its committedness through the Abu Dhabi Cultural foundation to conserve the traditional art and civilization of UAE.
Technology in UAE
Spending on information engineering ( IT ) globally has reached to US $ 1.5 trillion ( Dh5.51tn ) last twelvemonth. The UAE has recorded 15 per cent year-on-year growing in IT sector. The growing offers diversely sized IT companies in UAE a opportunity to restart gross addition. The strong growing of the IT sector in the UAE nowadayss important chances for occupations growing. IT outsourcing is already a important country for making work and is predicted to spread out rapidly over the following few old ages.
Return to economic stableness in Dubai after the fiscal crisis of 2009, a belief that the banking sector has stabilized and the turning demand for tremendous storage capacity for digital information has added growing in the IT sector. Business Intelligence is besides dependent on IT enabled services which is besides dining in the UAE.
Outsourcing services, besides referred as “ operations direction ” , is forecasted to turn to about 21 per centum in the UAE this twelvemonth. The UAE ‘s packaged package market is besides forecasted to turn by 11 per cent. The mentality for IT growing across the part is predicted to turn continuously, with operations direction in the UAE go oning to bubble up by 21.6 per cent following twelvemonth, making to 22.3 per cent following twelvemonth, in 2013.
Fiscal Situation in UAE
The fiscal place of UAE is more sulky in 2012 as compared to 2011 but still its growing will be stronger than the states that are fighting in the ‘fragile ‘ West, as per a new study by Standard Chartered. Abu Dhabi ‘s oil industry and turning trade, touristry and retail sectors in Dubai, helped the UAE to turn at a 3.8 % cartridge holder in 2011, the bank stated in its latest economic prognosis. Although same factors are go oning to drive the state ‘s economic system in 2012, growing is likely to decelerate down to 2.4 % in 2012 due to a more ambitious planetary environment. Expected growing rate in Abu Dhabi is 3 % this twelvemonth while that of Dubai is 2.4 % as compared to last twelvemonth. Average rising prices in UAE would be 1.6 % in 2012. Housing makes up the maximal basket of rising prices as 39.3 % .
Although growing in the UAE is forecasted to be at a slower gait in 2012, its mentality is more positive than other states in the West. The planetary economic system has got a hit this twelvemonth, particularly in Europe and North America, as compared to a more robust Middle East, Latin America, Asia and Africa. The universe economic system slowed down from 4.3 % growing in 2010 to around 3 % in 2011 and reached to 2.2 % growing for the whole twelvemonth of 2012. Still the parts of MENA part, particularly those of GCC economic systems are in strong place.