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VIDEO INTRODUCTION:
We all know what Richard Brandon meant when he said, ‘If you want to be a Millionaire, start with a billion dollars and launch a new airline.’ This is because the aviation business in one of the most expensive and yet one of the least profitable businesses in the world!!! The Aircrafts are very expensive, labor costs are very high and most importantly, even with a slight change in oil prices, your profits could either skyrocket or nosedive!!
This is because, in the aviation business the fuel alone costs 30–40 % of the revenue and profit margins are barely 10%. So if your fuel cost shoots up by 30% due to a geopolitical event, unless you increase the prices, your airline will start bleeding losses!!
This is the reason why airlines go out of business not just in India but all across the world.
But while 100s of airlines have gone bankrupt all across the world, the leaders of Dubai built such a legendary airline that this airline has been profitable for 35 *out 38 years of its operation!!**! Infact, before covid from 2018-2020, this airlines generated an average revenue of 16.5 billion dollars and an average profit of 428 Million dollars!!!* This is airline is none other than the legendary emirates airline!!! and if you are a business owner or a leader, this story of emirates, has some very very important business lessons for you!!!
So in this episode, today, lets do a deep dive and understand,
What is the story of emirates airlines??
In a world where airlines are going bankrupt every year, how is emirates so profitable??
And most importantly, what are the lessons we can learn from the legendary emirates airlines?
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✅Study Materials:
On Emirates Business Model:
1. https://aerlinesmagazine.wordpress.com/2007/10/01/how-sustainable-is-emirates-business-model/
3. A thorough history of Dubai: https://www.researchgate.net/publication/238717653_The_Blueprint_A_History_of_Dubai’s_Spatial_Development_Through_Oil_Discovery
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