Al Maktoum International Airport Analysis
Al Maktoum International Airport Analysis Research Paper
Dubai World Central’s Al Maktoum International Airport is a significant air transport facility in Dubai, United Arab Emirates. The airport is comparatively new, having been commissioned in October 2013. In this paper, the author is will critically review this essential fixture of global commerce in Dubai. Among others, the mission assertion and strengths of the organization will be analyzed on this essay. The writer of this paper holds that the airport is essential to the area’s participation in worldwide commerce.
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Mission and SWOT Analysis of Al Maktoum International Airport
A Review of Al Maktoum’s Mission Statement
The mission of this organization is to be a major participant sooner or later growth of Dubai. It intends to achieve this role by turning into a hub of international commerce (Sinclair par. four). The company’s mission statement is according to Dubai Airports’ objective of making world-leading air transport amenities. The goal of such developments is to enhance the prosperity of this area.
Dubai World Central goals at turning into the focus of aviation and logistics in Dubai. In addition, the airport seeks to serve the broader Arab world, including the whole Middle East, Africa, the Indian sub-continent, and the Commonwealth of Independent States (Hypanchal par. 2).
Al Maktoum International Airport exhibits a number of internal strengths. Such attributes have influenced the success of the company in spite of the fact that it is a younger business organization. Chief among the many strengths of this firm is the strategic location of the airport. As a rustic, Dubai is strategically located on the earth’s geographical outlay. Consequently, the location of Al Maktoum Airport in relation to its operations falls within a competitively strategic location. Dubai is a crucial connection level between the West and the East (Dubai World Central par. three). The strategic location is significant on condition that a lot of international commerce is conducted via Dubai. The location is particularly essential to the rising economies of the Middle East, South Asia, and North Africa.
Al Maktoum has a few of the finest airport fixtures and amenities in the world. The complete first phase of the ability has the capacity to handle 600,000 tons of products per annum. It has a four.5 km runway that may accommodate the latest mannequin of A380 aircraft. It additionally operates 24 hours a day (Dubai World Central par. 6). In addition, the airport has state-of-the-artwork communication towers. The management has additionally made preparations for line maintenance services. It has totally outfitted hearth stations and different ultra-modern airport services.
The airport provides passengers with more schedules and route choices than different amenities in the region and in the world. Such services make it the favourite of international passengers. In addition, the purchasers are supplied with complete journey bundle companies. The combination of facilities, location, and high quality of providers offers the airport an unprecedented aggressive edge over regional and world air transport facilities.
Al Maktoum International Airport operates in a cross-board domestic and worldwide market. To this end, the company is competing with different world main international airways, as well as with small native operators. Lack of readability in the firm’s strategic path could critically dilute its varied capabilities. It may result in brand confusion given the many firms operating on this market (Afshin 106). The weak point is, however, addressed by the carefully designed and future-oriented master plan put in place by the airport. The grasp plan is a part of the overarching framework for Dubai’s financial future.
The alternatives related to Al Maktoum International Airport are immense. The airline business is growing quickly in Dubai, especially contemplating the strategic location of the country as earlier indicated. The number of visitors in the area is increasing. The rise within the variety of travelers passing by way of the city is related to the central location of this nation. It is estimated that greater than 50% of individuals on the planet reside “inside eight-hour flight of the country” (Dubai World Central 5).
Nataraja and Al-Ali (474) postulate that Dubai hosts nearly six million frequent-flyer clients. It also operates the ten longest non-cease flights on the planet. Al Maktoum International Airport is planning to exploit this huge market. According to Ahrens (576), the federal government of Dubai operates an excellence program initiated in 1997. The program aims at selling performance in governance and commerce within the region. Al Maktoum International Airport can benefit from this government intervention to boost its providers and foster future growth.
The global business demands are continuously growing. For instance, the demand for speedy supply of products and services is on the rise. There can be elevated connectivity in the world at present. Consequently, the demand for airports and airline services has increased tremendously. An estimated 35% of world trade worth relies on air transport (Ahrens 580). Such views are an indication of the high demand for air transport, a chance that can be exploited by Al Maktoum (Dubai World Central 5).
Despite the various opportunities that can profit Al Maktoum International Airport, the group faces some threats from the external environment. For occasion, bus and prepare corporations are increasingly improving speeds and the quality of companies in relation to lengthy and brief distance routes (Hypanchal 12). As a result, these sectors are drawing customers from the air transport industry. The improved rail and road transport is providing the shoppers with alternative forms of transport.
Increasing costs of air transport constitutes one other main menace to Al Maktoum’s operations. Airline charges are influenced by the excessive working prices brought about by the rise in gasoline costs, airplanes, and airport maintenance charges (Spong 16). As a result of this rise, clients are likely to opt for different comparatively cheaper and more handy types of transport.
According to Rugh (23), international airlines are continuously monitoring the progress made by Emirates and Dubai Airport and Civil Aviation Authorities. The issues of those airways are related to unfair competitors from Dubai airports and airlines. The reason is that the government owns some of these airports and airways. Such companies can entry sponsored services from the federal government, resulting in unfair competition. Such claims of unfairness may discourage international airlines from investing in Al Maktoum International Airport, negatively affecting enterprise for the corporate. Most international airlines are reluctant to spend money on government-controlled airports (Ahrens 588).
Other problems going through this air transport firm embrace fierce competitors and economic recession (Guy and Savoie16). The components constitute some of the determinants of future success in the aviation business. Failure to take into accounts these external environmental factors might lead to failure of an organization operating within the industry. Al Maktoum airport should be aware of these threats and cope with them appropriately.
Operations Management Decisions at Al Maktoum International Airport
Operations administration at Al Maktoum International Airport is a serious undertaking. The airport is working at an unprecedented scale in comparison with different services on the planet. The following represent a number of the operations management determination elements in relation to Al Maktoum International Airport:
As mentioned earlier, Al Maktoum International Airport is strategically situated. Dubai is a significant buying and selling location within the Middle East, and particularly within the United Arab Emirates. One of the major apparent factors in relation to operations management at Al Maktoum International Airport is the situation of the facility, which was a significant consideration when plans to ascertain the ability have been made. The airport is a major side of aviation in the Middle East and neighboring areas.
The airport enjoys many advantages in terms of operations. For occasion, the facility is related to the most important container port between Rotterdam and Singapore (Jebel Ali Port). The port is seamlessly linked to Al Maktoum International Airport through the Dubai Logistics Corridor (Hypanchal 4). The connection constitutes a unified custom-bonded zone. It leads to decreased ground time and enhanced flow of cargo (Dubai World Central 6). In addition, Dubai World Central is a multiple logistics platform. Major trans-emirate roads are simply accessed from the airport. As such, one can argue that the location of the airport results in increased connectivity, efficiency, and velocity.
According to Dubai World Central (par. 5), main gamers in the logistics enterprise are already exploiting the strategic location of the airport. Such businesses embody Panalpina, Aramex, and Kuehne Nagel. As a result, Dubai, a number one tourism destination in the Middle East, is the right location for an airport.
Process Capacity at Al Maktoum
Process capacity is a vital consider operations administration of any given enterprise organization. It entails the throughput of the organization (Raynor 9). It is the variety of units a given facility can produce and hold within specified durations of time.
Process capacity in relation to Al Maktoum International Airport entails the amount of passengers, airplanes, and cargo that may be dealt with by the ability. Hence, the capability of the airport is a significant determinant of its operations management. One of the driving elements behind the development of Al Maktoum International Airport is the growth of Dubai as a hub of international trade and a major vacationer destination in the area. The development led to increased volumes of cargo and passengers. Airliners came in to cater for this development. Al Maktoum is designed to satisfy the outstanding requirements and projected wants of the aviation business in this market. According to Sinclair (par. 2), Al Maktoum can cater for as much as 7 million passengers yearly. The airport complicated supplies the clients with catering companies given the number of meals outlets in the facility. Such provisions increase the airport’s course of capability.
Forecasting at Al Maktoum
According to Sinclair (par. 3), forecasting entails the prediction of future occasions or wants of a business. It is a crucial element of operations management. It influences the production capability of a enterprise, personnel, and facility necessities. One of the goals of Al Maktoum airport is to foster economic progress in Dubai. The organization targets the bigger Dubai market. Its focus just isn’t restricted to the aviation trade (Dubai World Central 6). Operations administration at Al Maktoum International Airport takes into consideration these future requirements, particularly in relation to the capability of the power. For occasion, when accomplished, the capability of the airport complicated will improve to160 million passengers. It can be projected to handle 12 million tons of cargo every year (Dubai World Central 5).
Al Maktoum International Airport is a crucial element of Dubai World Central broader financial hub. The hub incorporates a extremely developed aviation district and numerous instructional establishments. It additionally contains a variety of aviation-associated businesses and different services. In the recent previous, worldwide aviation services have increased quickly in the region. The progress has made the region the center of this international business.
Such airlines as Qatar, Emirates, and Etihad are shaping the global aviation trade. The success of these corporations has attracted global investors to the region. As talked about earlier, Dubai is a important location to many rising economies. Such economies embody the Middle East and South Asia. Consequently, the operational and capability projections of Al Maktoum International Airport purpose at exploiting this rapidly rising market.
Design of Goods and Services
Every enterprise organization strives to align the design of its items and providers to the needs of the customers (Raynor eight). The aviation business is not any exception. Customers in this industry exhibit a variety of wants and desires. Airports, airlines, and other stakeholders strive to satisfy these needs. An analysis of the capability of Al Maktoum International Airport reveals that the group has aligned its companies to the necessities of the regional aviation trade. In addition, Al Maktoum’s major goal is to develop the largest airport facility on the planet (Bemadette 10). The goal is designed to satisfy the rising demand for aviation services in the Arab world.
The airport is aiming at accommodating the super progress in the variety of passengers within the Middle East. It also aspires to address the need for fast cargo delivery in the world. The continued financial and social development in Dubai constitutes an financial need that the airport seeks to satisfy. The country’s economic development revolves round commerce, tourism, transport, and communication. Al Maktoum is designed to satisfy these current and future wants within the trade.
Operations Quality and Reduced Costs
Enhancing the standard of a given enterprise course of can substantially cut back the cost of enterprise operations. Reduction of the fee is achieved in numerous methods. For instance, improving the standard of operations enhances effectivity of the varied processes. The improvements translate to lowered wastes and elimination of production of substandard goods and providers (Akao 20; Oakland 532).
By enhancing the quality of operations, Al Maktoum can cut back operating prices. For instance, the power can provide extra space for passenger and cargo freights. Such provisions may improve customer satisfaction, attracting more business in the long run. In addition, the prices of maintaining the airport can be catered for by the booming business.
Structural Effects in Supply Chain Management and Technological Innovation
Supply chain administration entails the process of dealing with the move of goods or supply of companies (Mentzer three). On the opposite hand, technological innovation focuses on the development of latest (or enhancement of already current) technologies (Raynor 7). The supply chain and technological elements of a company could also be affected by the structure of organizational operations (Daekwan, Cavusgil and Calantone 52). For instance, Al Maktoum possesses state-of-the-art gear. As a end result, the effective operation of the airport complex relies on regular updating of the equipment to replicate technological changes within the business.
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