Executive summary
The airport industry has experienced a tremendous growth in the recent past, especially due to the increase in demand for the air travel. The impact of the growth has affected most airports management’s decision-making process whereby they have to identify and resolve various issues affecting their organization. This is a similar case experienced at Dubai international airport that faces major issues including that of congestion, national and international competition as well as dealing with customer service. The increase in traffic in the airport has made DXB the fifth busiest airport in the world and this also comes with a challenge that requires the management to constantly come up with ideas and strategies that will enable the airport resolve these issues. In spite of the challenges, DXB has brought about economic and social impacts to the people of UAE. The positive impacts includes creation of jobs to the people thus improving their living standards as well as improving the country’s economy through boosting trade, tourism and reduction in the level of unemployment. The airport has however increased the concern for environmental sustainability as the operations in the airport has largely contributed to pollution and congestion in the city.
Introduction
Dubai international airport, also known as DXB is an important infrastructure in Dubai, UAE. Recently, the airport has experienced a massive increase in traffic, placing it among the world leaders in terms of visits. The reason behind this is mostly because DXB serves as a connecting hub for passengers traveling to Europe, Australia and North America in addition to handling clients travelling to Dubai for leisure and business activities. This busy operation within the airport raises various issues especially in management of the airport. The management has applied strategic measures to ensure smooth functioning and retain the global pride of being among the best airports in the world. In addition, increased demand for the air transportation has resulted in the need to innovate a new model of aircrafts that either requires specialized runways for safe landing and departures.
Regardless of having to deal with issues such as that of capacity and competition, DXB has made tremendous contributions to the economy and general development in the city of Dubai. Below is a clear analysis of the issues that the management of DXB faces in the process of ensuring the smooth operation of the airport. The paper also outlines the social, economic and environmental impacts that Dubai international airport has on the City of Dubai and the entire UAE.
Issues faced by the airport management
Despite the successful operations that have earned the airport a remarkable acknowledgement, Dubai international airports management has experienced various challenges that call for tough decision-making process. The increase in air traffic and passenger traffic has resulted to the airport having to modify their services and equipment to cater for the need of the industry. Such modification involves that of the Airbus A380 that has made the airport have to expand the runways so as to accommodate the huge aircraft. These emerging air transport modifications and the subsequent increase in human and cargo traffic have presented the airport management with various challenges that need to be continuously monitored for the airport’s operations to run smoothly. Some of the challenges that the management of Dubai international airport has to deal with including handling the increasing capacity, coping with competition and balancing the service quality and airport operations. Other minor issues that affect the daily decision making process of the airport management include adjusting to evolving policies by the government and the air transport organizations as well as incorporating environmental sustainability in the company’ corporate strategy.
Managing the airport operations and service quality
Airport industry is one of the most sensitive organizations in terms of quality service delivery, similar to that of the hotel industry. Passengers checking in expect to be served with charisma and friendliness in addition to speed in the check-in and checkout procedures. Due to the rising concerns of insecurity and the routine airports procedure, the management is faced with a challenge of adopting the appropriate technology that will ensure that security at the entrance and at the airport is observed while ensuring that the clients receive the best service compared to other international airports. This involves investing in sophisticated technology that calls for the management to allocate large sums of money in upgrading the technology used within the airport.
The airport has in the past years won awards for being the best airport in the Middle East, thus raising people’s expectations. In addition, the high traffic requires the staff to be more lenient in handling the travelers and at the same time ensure efficiency in ground operations that involve clearing off the airplanes for taxiing and taking off. Currently, the airport handles approximately forty-five arrivals per hour and these calls for an efficient ways of clearing of taxiways and runways so as to accommodate the traffic. As a result, airport management has experienced a challenging issue of improving efficiency and quality operations aimed at reducing instances of delays, incursions or customer dissatisfactions. The need for quality operations and customer service calls for the airport management to come up with strategic plans aimed at improving the employee’s efficiency through training, motivation strategies as well as constructing more efficient infrastructure that ease check-in and check-out and also handle flight operations.
Handling issues of airport capacity
The demand for international travel is steadily increasing and this indicates a massive congestion at Dubai International airport in addition to the fact that the airport is at the fourth position in the world’s busiest airports. A report by the International Air Travel Association (IATA) report indicated that the airport traffic had handled approximately thirty-five million passengers in the first six months this year before the airport stated its runways repair project. This capacity is equivalent to 64 percent of the total travelers in the United Arab Emirates’ airports. This means that the annual capacity is likely to increase as compared to the 3013 capacity of 40.7 million passengers. The airport is also the fifth busiest in the world in terms of cargo handling and sevenths busiest in air traffic.
Currently, the airport admits over a hundred and thirty five airlines from the six continents and this number is likely to increase as new airlines are constantly emerging as well as the rise in leisure and business travel needs. In addition, during the normal season, the airport’s runways are always occupied by departing or landing aircrafts mostly belonging to the Emirates, which is the major airline company operating at DXB. The number of air traffic and passengers is set to increase with the Dubai Air Navigation Services (DANS) indicating a likely increase of the annual total passengers by 6 to 7 percent within the airport. This has posed a challenge of having to expand the airport which is already at full capacity in addition to expanding the runways now and then so as to cater for the growing air traffic (Department of Civil Aviation, 2014). In addition, this results to increase in expenditure, which is likely to affect the airport’s financial returns (Dempsey, 200, pp. 132).
Coping with competition
Dubai international airport currently enjoys a competitive advantage in the region for being the main international airport in the UAE handling over twenty-five percent of the total flights in the region. This benefit is achieved due to the airport’s proximity to the major city of Dubai which is the leading hub in major business and leisure operations. In addition, the airport serves as a connecting hub for connecting flights in Europe, Australia and North America. However, the airport faces some sort of competition from the regional airports mainly Abu Dhabi and Doha airports as well as minor airports in the region. In addition to facing competition for the national flights, international competition also affects the operations of the airport (Starkie, 2002). The airport is also likely to face competition from international airports such as Singapore and Heathrow airports that handles connecting flights to North America, Australia and the rest of Asia.
Handling such national and international competitions is under control at the moment especially due to the diversity of the travelers’ needs that can be served by different airports. However, this is bound to change in the near future mainly due the increase in air travel. As a result, the airport management has to come constantly up with plans aimed at improving the equipment, service delivery, and marketing strategies that will make the airport become overcome the national and international challenge.
Impact of Dubai International Airport
Direct effects
The tourism sector in the country draws it success on the countries massive aviation system and especially the Dubai international airport. The country’s economy is constituted of among others the tourism and general service industries. There are numerous world class hotels and other leisure activities resulting from the growing number of international tourists visiting the country. Recently Dubai has recorded amicable growth in the tourism industry with the numbers of foreign travelers increasing yearly. Most of these travelers use air transport and access the country through the airport. This has created a spillover effect in the economy by acting as a catalyst for the growth of other industries.
The airport is home to the emirates airline which is Dubai’s national carrier and a world leader in the aviation sector. The airline uses the airport as the connecting center for its operations around the globe. This result to an increase in the flow of passengers using the airport and millions of dollars are collected in airport fees, visa charges and taxes (Airport International, 2008). Countries such as Australia, Brazil, United States, China, France, Germany, India, Mauritius, South Africa, and the United Kingdom depends greatly on the airport making it one of the most important infrastructures in the world. A strategy used by the emirates to fly to destinations that are less frequented by other major airlines has succeeded in connecting the whole world to Dubai. The city is also strategically positioned making it an ideal place for business and leisure travel.
The airport not only acts as an entry point to Dubai and the United Arabs Emirates but also provides a wide range of choice to business and leisure travelers. Using of the airport as a connection ground to major destinations around the globe has led to the opening and positioning of the country as a tourist and business hub. Numerous multinationals have set camp in the country to tap on the huge number of people visiting the country. Leading hotel brands in the world such as Marriott and the Hilton have branches in the country. The huge investment made by the government in infrastructural development attracts the people who use the airport and, as a result, boosts foreign and local investment. Currently, the airport handles about sixty-six million passengers annually, which is an increase from the previous forty-six million in 2011. The airport has seen an infrastructural development such as the opening of a new terminal dedicated for Emirates, the national carrier in preparation for the anticipated growth of passenger numbers to one hundred million by the year 2020.
Dubai international airport and the aviation industry in Dubai is one of the leading employers in the country. Collectively, the aviation provides close to sixty thousand direct employment opportunities and boosts other industries such as the tourism, transport and logistics which provide more employment opportunities. This contributes immensely to the GDP of the country. According to the oxford economics, the aviation industry including the Dubai international airport contribution to the country’s GDP amounted to more than six million US Dollars. The value addition for every individual employed in the industry amounted to ninety-three thousand seven hundred. The airport is home to a three hundred and ninety-two rooms five star hotel, the Dubai international hotel which also contributes to employment in the country. Similarly, the logistics companies who depend on the airport as well as other hospitality companies contribute in job creation and the GDP of the country.
Indirect and induced effects
The country is also popular as a shopping destination. The famous Dubai mall is one of the largest in the world based on the numbers that frequent the busy center or the number of shops and the area it covers. Similarly, the Dubai duty-free is also one of the busiest in the world as it is frequented by the people who visit the country primarily to shop. These achievements are attributed to the huge number of people who visit the country through the Dubai international airport. The facts make Dubai a popular destination for shoppers and further attract more travelers. The effect of these is a stable economy that has sparked development in real estate, as well as other sectors. Surprisingly, Dubai’s major infrastructural developments end out becoming tourist attractions. For instance, some landmark developments such as the world’s tallest building, the Burj Khalifa attract many tourists who visit the country. Although it was not constructed for that purpose, the building indirectly contributes to the economy through the tourism sector.
Another indirect contribution of the Dubai international airport to the economy of the country is through other aviation related industries. For instance, running an airport and the aviation sector incorporates other service industries that supply the manpower and goods that run the operations. In this case, the Dubai international airport collaborate with and stimulates the growth of the oil and gas sector as well as other production industries which provide goods used at the airport. This includes the food items consumed by the airport staff as well as the airlines and other non-consumables such as cleaning agents supplied in the airport. These firms that are affiliated to the airport support more job creation as well as contributing to the economy through payment of taxes and value addition. Further effects on the economy are felt through induced factors whereby money earned in the facility and related sector is spent in other businesses such as restaurants, real estate among others leading to growth.
Conclusion
The Dubai international airport is one of the busiest in the world as it acts as a connecting hub to major destinations in the world. Airport has boosted trade and tourism in Dubai as many travelers visit the city for shopping as well as leisure activities. Its contribution to the economy is felt through all sectors of economy and it is among the leading employers in the country. It also promotes other aviation related industries as well as the production sector locally. Being among the best provides a number of challenges to the airport because the expectation of the people increases. DXB handles about 45 landings per hour and the management has to be keen to avoid delays or incidents that could portray the airport negatively. It is through proper management and infrastructure development that the airport has become among the leading in the world with effects trickling down to the economy.
References
- Airport International, January, 2008-last update. Dubai International World's Fastest Growing Airport. [Homepage of Airport International Magazine], [Online]. Available: http://www.airport-int.com/news/
- Button, K., & Taylor, S. 2000. International air transportation and economic development.NY: Ashgate.
- Daragahi, B. 2004. In Mideast aviation, vying to be new global hub. New York Times, April13, W1.
- De Barros, A.G. And Wirasinghe, S.C., 2002. Designing the Airport Airside for the New Large Aircraft. Journal of Air Transport Management, 8, 121 -127.
- Dempsey, P. 2000. Airport planning & development handbook. New York: McGraw Hill.
- Dubai Airport Guide (DXB). worldairportguide.com.
- Flouris, T.G. And Oswald, S.L., 2006. Designing and Executing Strategy in Aviation Management. Journal of Air Transport Management, 6, 209–222.
- Oxford Economics. 2011. Explaining Dubai’s aviation model. Retrieved November 30th, 2014 from http://www.dubaiairports.ae/docs
- Zawya. Dubai Airports wins best airport award. 2009. Press release, dated February 23, 2009. Retrieved November 30th, 2014, from www.zawya.com.
- Starkie, D., 2002. Airport Regulation and Competition. Journal of Air Transport Management, 8 (1), 63 -72.
- Wells, A.T. And Young, S.B., 2004. Airport Planning & Management. New York: McGraw-Hill.
