Environment Scanning Report for Etihad Assignment - 1

Environment Scanning Report for Etihad - Assignment Example In order to tackle this possible issue, the government, the air industry and other teams that are related to the regulation of the air industry must take actions in advance. It will not be an easy task for the UAE air industry to handle such a large number of movements of airplane and therefore the government should take some action in advance either by dividing the industry into further branches to meet the challenges or putting new institution for the regulation. UAE’s aviation sector is one of the booming air carrier fleets. It has taken a great part in expanding UAE’s economy by generating huge revenues as well as creating lots of opportunities in the sector. These endeavors are very important in when UAE is making strenuous effort to free itself from dependence on diminishing oil reserves (broadening Economic base). Etihad also has to face severe competition with rival regional competitors of neighboring countries and also with the global competitors. In a case of inability in meeting the expected demands, UAE’s aviation agency will not be able to sustain its growth and market share. The huge contribution to the country’s economy every year will be put into halt resulting bad impact on the overall growth of the country. Other competing aviation agencies in the region which include Qatar Airways and others are also expanding their business, which will result in loss in regional and global market share. In order to meet the goal of the industry-government, industrial stakeholders, and regulators to work together to ensure that Etihad meet the expected growth rate. Similarly, air traffic problem is a growing concern in the Middle East. For this reason, Etihad and UAE should work in close collaboration with neighboring partner countries to make air traffic more harmonious and smooth in the region by upgrading the air traffic system. (Gulfnews.com,