Historically the Middle East was reputed for holding the reigns of oil power across the globe, more recently the region's conflicts have changed its international spotlight into being an unstable part of the world. However, the airlines of the Arab Gulf region are leading the world in aircraft orders and have also heavily invested in airport infrastructure. This paper examines the changing dynamics of the region's airlines and researches the core principles, why the Gulf based airlines are outperforming the world's airlines. The strategies of Emirates core competencies are examined to access their impact of its continued growth and profitability.
Keywords: Middle East airlines, Gulf carriers, capacity, Emirates airline, Gulf States, key markets, fleet expansion, airport infrastructure, hub development, air travel, differentiating strategies, strategy, brand development, Arabian Gulf, core competencies, intermodal transportation, growth, profitability, investment