Managing Operations comparing Emirate Airlines and Cathay Pacific Essay

Managing Operations comparing Emirate Airlines and Cathay Pacific AirLine - Essay Example (Doganis, 2001) Emirates airline is an airline company which is based in Dubai, united emirates (UAE) in the Middle East. The company is the biggest airline in the region operating passenger service. It has more than 2,350 flights per week flying to more than 91 cities in over than 61 countries located in six continents. It offers cargo services by use of its Emirates Sky cargo name. The company is based in Dubai international airport. Over 50 % of flights movements in and out of the Dubai airport are carried out by Emirates airplanes, and it is projected that by 2010 the figure will increase to 70%. The airline was established in 1985 by the government of Dubai and it has had a phenomenal growth to be among the largest airline not only in Asia but in the whole world. Emirates has a very strong brand image has been able to get various international wards, and it is set high standards in the industry of aircraft purchasing, service, safety and innovation. In Asia it is ranked as the tenth largest ai rline, and it is ninth in terms of international passenger volume. (Directory, 2007) The airway company was formed way back in 1946 by an American pilot and business man Roy Farrell and an Australian pilot named Sydney de Kantzow. The two entrepreneurs started by operating in Shanghai, then they moved to Hong Kong and registered the company. The company carried out it services for a long time until it merged with BOAC in1960 and continued carrying out it service in Asia though many companies wanted to make an alliance with the company it has managed to run by itself. However the company had its share of problems brought about by Asian financial crisis and government policies. (Directory, 2007) How the wider economic environment impacts on their operations Various economic factors are indicators of the changing industry environment. These economical factors include; Fiscal policy rates, interest rate policy, currency exchange rates, consumer factors, quotas imposed on the product , import tariffs, inflation rate and national interests, expenditures, consumer wealth, etc. It is possible that the climate economy of the world dictates how the consumers of the aviation industry behave. Emirates airline has created an international fleet and increase its number of flights and destination in line with improved macro economy being witnessed in globally. However, the Cathay airline has been slow in changing it operations in relation to the wider economy. Cathay operations due they have been changing in response to the wider economy it is slow in doing so. (Doganis, 2001) What you consider the operations management issues facing the organizations Organizational effectiveness can be defined as the extent to which an organization has achieved its set objectives. Emirate Airline management effectiveness is reported to be high and it is argued that the main reason to its success is because of the measures taken by the entire management in response to changes in contemporary world of business. Emirates Airlines has been credited with building a strong human resource relationship which has enhanced the success of organization. The company recruits its employees based on their qualifications and their competence. Emirates Airlines have embarked on recruiting professionals that produces global culture. (Doganis, 2001) Emirates Airlines has also responded well in terms of new technologies that come up