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Air Arabia

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by

Xing Ye

on 9 December 2012

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Transcript of Air Arabia

Air Arabia Air Arabia Growth strategy which an organization plans to achieve its objective to grow in volume and turnover.
Increase sales and revenue
Gain more market share
Beat the competition
Develop the existing demand focus on low cost carrier
afforable fares and secondary airport SWOT Analysis Strengths
First Mover
Low cost structure First and largest low cost carrier.
Incorporated on February 2003.
Started operating in October 2003 (Beirut, Bahrain, Damascus, Kuwait and Muscat) (FAQ's,2012) Operates from 3 main hubs in Sharjah International Airport , UAE; Mohamed V International Airport, Morocco and Alexandria Airport in Egypt. (FAQ's, 2012) Type of growth strategy Concentration
Vertical integration
Horizontal integration
Diversification “ concentration focuses on its primary line of business and increases the number of products offered or market served in that primary business."(management 2011) “Competitive advantage is to make the organizatoin distinctive among the competitor” (management,2012) •Pioneer of low cost carrier
•Has more destination around the world
•While FlyDubai is the latest entrant into the Middle East LCC Opportunities
Geographical expansion
Strengthening brand name Weaknesses
Exposure to fuel prices
Hub location Threats
Price of crude oil
Competition Strategic Directions First and largest low cost carrier
low cost
many destinations (65 destinations)
good quality for money
Harmony plays a big role amongst all the departments
offering long term jobs with big career opportunities
Loyal customer base Air Arabia’s Vision
Being one of the worlds largest budget airlines regarding
Profit margin
Innovation
Reputation
Operational excellence In order to achieve this they will Notorious for their low fares
Set the foundations right and grow profitably
Motivate the teams
Make the teams multi functional
Authenticate with highest operational standards
Manage and cutting costs most efficiently Air Arabia’s Financial Results Net profit of AED 226 million during the third quarter of 2012.
126% increase in profits compared to same period last year.
Income has reached AED 836 million in the last three months. Air Arabia’s Performance According to Sheikh Abdulla Bin Mohammad Al Thani the airline is performing outstandingly due to its:
Strong business model.
Prudent growth strategy.
Excellent cost control margins. The airline is willing to develop its services by adding three new destinations; Erbil, Odessa and Uffa.
The airline’s passengers will maintain their loyalty especially those willing to travel affordably. Factors contributing to positive performance Opened City Terminal check-in that allows customers to acquire tickets 24 hours before flight.
Home base is located in Sharjah Airport, it is not overcrowded and price tickets are affordable.
Location of Sharjah is next to Dubai and Ajman. References List Centre for Asia Pacific Aviation, 2007. Who's Who in Low Cost Aviation. [online] Available at: <http://peanuts.aero/low_cost_airline_news/airlineProfile/view/7/Air+Arabia> [Accessed 28 November 2012].

Logan, S., 2012. Air Arabia: Once a Hidden Gem, Now a Rising Star, International Business Journal, [online] Available at: < http://nyuiba.com/ibj/2012/10/air-arabia-once-a-hidden-gem-now-a-rising-star/> [Accessed 28 November 2012].

Air Arabia, 2012. Air Arabia reports third quarter 2012 net profit of AED 226 million, up 126 per cent. [online] Available at: < http://www.airarabia.com/news-details?nid=149> [Accessed on 28 November 2012]. News Details. (2012, July 29). Retrieved from airarabia: http://www.airarabia.com/news-details?nid=132
Awan, H., & Davidson, B. (2008). Air Arabia Growth and turbulence in the desert. The National Investor.
Background. (n.d.). Retrieved from airarabia: http://www.airarabia.com/crp_1/background&stitle=background&pid=126
Riaz, A., & Kapadia, S. (2007). Air Arabia Priced So That You Can Fly. EFG-Hermes (UAE).
News Details. (2012, July 29). Retrieved from airarabia: http://www.airarabia.com/news-details?nid=132
Awan, H., & Davidson, B. (2008). Air Arabia Growth and turbulence in the desert. The National Investor.
Background. (n.d.). Retrieved from airarabia: http://www.airarabia.com/crp_1/background&stitle=background&pid=126
Riaz, A., & Kapadia, S. (2007). Air Arabia Priced So That You Can Fly. EFG-Hermes (UAE). air arabia 2012, strategy, http://www.airarabia.com/crp_1/strategy&stitle=strategy&pid=126

air arabia 2012, know us, http://www.airarabia.com/crp_1/know-more

air arabia, leadership, http://www.airarabia.com/crp_1/leadership&stitle=leadership&pid=125 Reem Abdulla 4152256
Sandunie Wijesekara 4131046
Alessandro Zeki 4218425
Xingchen Ye 4176807 Airbus and boeing aircraft
Service and quality
Full transcript