Air Arabia is the first and the taking low-cost bearer in the Middle East part.It is besides the official air hose of the emirate of Sharjah.Air Arabia was established on 3 February 2003 and is a profitable concern from the first twelvemonth. In, 2007, Air Arabia was transformed from a Limited
Liability Company ( LLC ) to a Public Joint Stock Company ( PJSC ) .
Air Arabia launched its 2nd hub in Kathmandu in 2008 as Nepal ‘s first low -cost bearer. Air Arabia besides established air Arabia Morocco in Casablanca in 2009.It will spread out the house in Europe and Africa.
Air Arabia signed a trade to open two more base at air Arabia Egypt and air Arabia Jordon. This will assist in keep a globally no.1 low-cost bearer. Air Arabia provides services to 46 topographic points in the Middle East, Africa, India, Central Asia and Europe.
Followings are the offerings provided by Air Arabia-
Low air fares – 40 % less so economic menus
Simple and speedy online engagement procedure
Vacations low-cost scope of hotels and suites
Fast cheque in and look into out at Sharjah airdrome
Corporate Mission – To revolutionise air travel across the Earth with an advanced attack that will ensue in a safe and dependable operation.Mission of Air Arabia, “ Our purpose is that we will be known for our profitable concern, low menus, high operational criterions and for multi functional squads work. ” ( Air Arabia Strategy )
Due to no bringings before the terminal of 2010 will supply a strong dividend payout in the short term output of 11 % based on 2008 and 2009 gaining.Opening of other hubs outside Sharjah will supply the necessary variegation and it will assist in giving an border over the turning market.
UAE Population by origin –
UAE Nationals 19 %
ARAB & A ; IRANIANS 23 %
SOUTH ASIANS 50 %
OTHERS 8 %
Population and Demographics plays an of import function as these are the people who are taking its services. Due to such diverse population will assist in giving a encouragement to the new gap house because there is a batch of motion of people to Europe and America. So the execution of new scheme will back up such motions. And with the gap of the new hubs this will add a batch of tourer motion from our flights.
Market Penetration Strategy – By increasing the no of flights on the same path and bettering the quality on the old flights would surely beef up the name in the industry.
Market Development Strategy – The gap of the other hub like one in Nepal, one in Morocco and the others opening shortly, it will supply them opening to the planetary market and will assist viing other low-priced bearer globally.
Diversification Strategy – Start of other installations in the new hub like going system and aircraft care system will assist in pulling more clients in the freshly unfastened country.
There are few LCC which uses other installations like supplying tour guiding and travel bureau, distribution bureau and care industry.
Air Arabia can utilize the growing through the execution of integrative growing by the undermentioned steps. Air Arabia is be aftering to increase its flights to the already bing parts. This will assist in viing with the Indian and other fast traveling low cost bearers in the parts. Air Arabia signed a trade with Travco Group, an Egyptian Tourism and travel bureau to set up Air Arabia as a joint venture. Air Arabia besides signed a trade with Tantash Group to organize Air Arabia Jordon. It will assist in increasing the flights to European, Middle East and North American states.
Other of import joint ventures are –
Informational system associates
Sharjah air power company
Alpha battle services UAE
HAECO sharjah Aircraft Engg Co.
All these joint ventures and trades will assist in incorporating in the country of air power in the low cost bearers. These will assist in making a planetary name of the company. ( Growth Strategy )
Diversification Growth Strategies
Due to low cost flights Air Arabia started supplying services that are antecedently outsourced such as catering services, managing services, IT services with the aircrafts care. Air Arabia is non merely want to go a LCC flight but besides want to diversified its country into other sectors and increase its overall net income as there is really less border in the low cost bearers and company besides wants to minimise hazard.
Important sectors are
Travel bureau – Air Arabia will wish to offer the travel agent service besides to assorted tourer topographic points in the state and besides to assorted of import tourer topographic points across its flight paths
Tourist related services -Tourist related services include pickup from the hotels, hotel reserves and other of import demand to the tourers.
Passenger conveyance services –
Air lading services – It can besides get down the lading services that has a enormous good concern in the nearby part. It will be a new market but provide a extra gross to the company
Document transportation services- It will include courier and other housing services.
For such diversified, it is required to specify some strategic concern units that will assist in specifying the end easy. ( Air Arabia Strategy )
Strategic Business unit –
Hotel reserve and other smaller installations.
Other installations apart from client going like
Cargo and papers transportation services
They can step in the travel bureau industry
Brand consciousness as it is the first low-cost bearer in the part
It has got plentifulness of support from Sharjah and UAE authorities
Cost effectual distribution system
Online engagement system
Strong Middle East traffic due to tourist and other people.
Strong balance sheet and gross borders
High operating purchases
Fuel is the chief factor in the operating cost includes 30 % in it.
Sustainable burden factors may be one of the ground
Low rates of LCC ‘s in the part
Recent rise in the economic systems in the part
Fleet enlargement programs and important path
Collaborations with new ventures
Political hazard in the in-between East
Poor perceptual experience about Low cost as hapless quality flights
Opening up of more LCC near the part
Competition from the other planetary LCC from south east states like India and other European states
Till now LCC incursion in the Middle East is merely 2 % in comparing to the other part like America -25 % and Europe -16 % so there is batch of range of development in this part. Air Arabia ‘s chief base is Sharjah International Airport, ideally situated for clients to bask the benefits of speedy entree to Dubai, fast check-in procedures, low congestion, friendly airdrome staff, every bit good as entree to many other commercial bearers served at the airdrome. The in-between East totaled 46 mn international tourer reachings in 2007 with Saudi Arabia and Egypt among the taking finishs in term of growing in 2007. So Air Arabia is taking the industry in the part but they will necessitate to work it out at the planetary degree.
After all the above treatments, it can be concluded that Air Arabia adopted mixture of growing schemes to accomplish its mission and vision. Air Arabia comes among the top picks in low cost air hoses. Air Arabia introduced different merchandise and services to increase its client base.