Impact of marketing costs on Airline profits between limitation and risks Emirates Airline Case Study
Abstract
This study aimed at finding out the effect of marketing cost on the profit of Emirates airlines, using multiple regression models and taking the profit as a dependent variable, marketing cost, fuel cost and number of passengers as explained variables during the 1993-2019 period.
The study found that there is a significant positive relationship between marketing cost and profit of the company, the cost of fuel has a significant negative impact on profit, while the number of passengers have significant positive effect. The study recommends the company do not exaggerate in marketing cost, because it established an excellence brand in the world and channeling funds to others uses to face increasing competition.
Keywords: Marketing cost, Profit, Emirates Airlines, Multiple Regression Model.
Jel Classification Codes: L26, L93, M31.
References
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- حامد، محمود.(2017). اقتصاديات النقل واللوجيستيات، دار حميثرا للنشر والترجمة.
- رجب، عادلة.( ديسمبر2005). تحرير قطاع النقل الجوي: الفرص والتحديات، ورقة عمل رقم 109، المركز المصري للدراسات الاقتصادية.
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- يونس،كوبي.(2012). مجلة الإداري http://www.alidarimagazine.com/article.php?categoryID=39&articleID=1283
- ALAFCO Aviation Lease and Finance Co. K.S.C.P.( July 2016 ). Impact of low oil prices on the aviation market, Special Report.
- Bijan Vasigh,Reza Taleghani,Darryl Jenkins, Aircraft Finance: Strategies for Managing Capital Costs in a Turbulent Industry, J.ROSS publishing, 2012.
- Cento, Alessandro.(2009). The Airline Industry: Challenges in the 21st Century, Physica -Verlag, pp.14-16.
- Dauda, Abdullahi.(2014). Assessment of Advertising on the Sales Revenue and Profitability of Nigerian Bottling Company Plc, European Journal of Business and Management, Vol.6, No.37, 144-154.
- Delfmann, Werner, Baum,Herbert, Auerbach, Stefan α Albers, Sascha.(2017). Strategic Management in the Aviation Industry, Routledge, pp. 28-29.
- Hertwig,Paul α Rau, Philipp.(2010). Risk Management in the Air Cargo Industry: Revenue Management, Capacity options and financial intermediation, Diplomica Verlag, pp.9-12.
- http://www.airbus.com/content/dam/corporate-topics/publications/backgrounders/Backgrounder-Airbus-Commercial-Aircraf-price-list-EN.pdf.
- http://www.boeing.com/company/about-bca/
- https://www.emirates.com/ae/arabic/about/
- The International Air Transport Association (2020). Airline business confidence index, April 2020 survey, https://www.iata.org/en/iata-repository/publications/economic-reports/business-confidence-survey---april-2020/, 11/05/2020.
- Jomo, Enos Bernabas Anene, Oloko, Margaret α Orwa, George.( May 2017). Determinants of Profitability of Airlines in the Aviation Industry in Kenya, International Journal of Scientific and Research Publications, Vol7, Issue 5, 261-263.
- Lucuis, Harold w, .Giorgis Berhe Habte and Lee, Jooh.(2008). Empirical study of the strategic impact of major marketing factors on firms accounting performance in the pharmaceutical industry, 2008.
- Mantin, Benny α Wang, Jen-Hung Edward.(2012). Determinants of profitability and recovery from system-wide shocks: The case of the airline industry , Journal of Airline and Airport Management 2(1), p.3.
- Miranda,Ubirathan.(2015). The Relationship Between Terrorism, Oil Prices, and Airline Profitability, doctoral study, Walden University ScholarWorks.
- Oloko, Margaret, Anene, Enos Bernabas , Kiara, Patrick Gitonga, Kathambi, Irene α Mutulu, Japhet . (May 2014). Marketing Strategies for Profitability: A Case of Safaricom Ltd in Kenya telecommunication Industry. International Journal of Scientific and Research Publications, Vol 4, Issue 5, 1-5.
- Powell, Guy R. (2002). Return on Marketing Investment: Demand More from Your Marketing and Sales, Albuquerque Atlanta Boca Raton, pp.25-26
- Senguttuvan,P S.(2006). Fundamentals of Air Transport Management, first Edition, Excel Books, pp.55-57.
- Vasigh,Bijan, Fleming,Kenneth α Humphreys,Barry.(2014). Foundations of Airline Finance: Methodology and Practice, second edition, Routledge , p.13.
- Ventoura–Neokosmidi, Zoe September.(2005). Advertising, Market Share, And Profitability In The Greek Consumer Industry. Journal Of Business & Economics Research , Vol3, N 9, 69-76.
- Wensveen, John G.(2016). Air Transportation: A Management Perspective, Eighth Edition, Routledge, pp.6-7
- Yu, Gang. (1998). Operations Research in the Airline Industry; Kluwer Academic Publishers, p.161.
