The Prime Airline Segment

Bargaining Power of Buyers: The Emirates 2020 schedule for aircraft production calls for 09 A-380 to be deployed intensively to North America, Latin America, Western Europe, and several major East Asian points, according to RBS (2011), and Airbus has won the contractual rights to deliver these products as ordered.Emirates traditionally are expected to retire its in-service fleets after twelve years, but in light of its new competitive thrust market analyst are not certain that this will be the case this time, because they could use their leverage status with the suppliers to reduce the delivery time for the A-380 and retain as much of its present fleet on the market to be able to successfully dump capacity on the market, and capture as many passengers as possible.The fact that the A-380 are wide-bodied, has the largest passenger capacity, attracts low or economical price passengers, and are used on long routes, gives the Emirates substantial advantage to succeed on the prime market if it decides to use its bargaining power as a buyer to pressure Airbus to deliver.The Emirates faces intense competition from Lufthansa, BA, American Airline, Continental Airways, Air France, Elitad, Qatar, Virgin Blue and Asiana among others, but it can develop strategic alliances with those competitors, base on industry analysis, that are operating sub-optimally, and achieve win/win solutions which enable it to capture higher market shares in the prime markets.However, it will have to overcome strong and persistent lobbying strategies engineered by its European competitors, to restrict its traffic rights, the ease of availability of EXIM financing from Europe, national aviation taxation, and the forthcoming emission trading schemesEmirates is advantageously placed in comparison to its European competitors in particular, due to the fact that information on its modus operandi is not available to the public, and analyst will always find it difficult.