Date post: | 12-Apr-2017 |
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Upload: | akshay-mahajan |
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Pay-less, fly more
Took off in 2003 with only two leased Airbus A320 jets
Today fly over 150 destinations using 44 A320 aircrafts
Become the Middle East and North Africas first and largest low cost carrier (LCC)
Great Flying Experience
Affordable Price
Good Customer Service
Plan was to target 85% potential regional customers who cannot afford normal flying experience
Prices are on an average 40% cheaper than the regular economy fare
Offering one of the most And all are fitted withspacious economy cabin world-class comfort seats
Ready to serve its customers FlytivitiesSpecial assistance to pregnant women and passengers with special needs Airport Activities
Flytivities
Airport Activities
How do they do it?!
Cost Cutting Strategies
Opting for brand new planes has reduced fuel costs and environmental impact
This is your captainspeaking. Welcome aboard!Using a universal aircraft model lowered their training expenditure.
In 2012, Air Arabia smartly equipped its fleet with sharklet technology to reduce emissions by upto 4% on fuel-burn
Air Arabia foresaw the inevitable fluctuations of fuel price and dealt with them ahead of time by a fuel hedging strategy to constantly maintain its low prices and thus preserve customer loyalty
CSR(emotional bonding)Online booking app(Manage Booking)Airewards(Customer Loyalty)
Price Cutting Traps Air Arabia dodges all the price cutting traps. Unlike many other low-priced airlines, Air Arabia has consistently kept its vision customer oriented : its crew members are dedicated and view passengers comfort as key to the companys success.
Value Pricing
Provide great flying experience with good customer care at low cost Loyal Customer
Cost cutting strategy accompanied by customer oriented vision
AWARDS
Stood as the most admired airlines in the Middle East
EXPANSION
5 HubsAir Arabia growing foot print based in UAE, Morocco, Egypt and Jordan
AED 11 billionAir Arabias total assets
Over 116 Global routes
Over 55 millionPassengers till date
AED 531 millionAir Arabias net profit in the year 2015
Lets try to answer some questions regarding the Case Study on Air Arabia Airlines in Marketing Management by Philip Kotler and Kevin Lane Keller
Why dont all other airlines apply the same business model as Air Arabia?
Other rivals targeted comfort and luxury driven consumers and shifted their focus to hybrid model. But Air Arabia has always been keen on serving people who cant afford to pay high prices for travelling via air. This makes Air Arabia to provide lowest cost prices than anyone else. Also other companies might be hesitating in applying same business model as Air Arabia because then they send bad message to its target segment that they lack innovation and creativity.What challenges does Air Arabia face?What will happen if other airlines apply the same business model as Air Arabia?
There is always threat from new entrants and other low-priced airlines as they may decrease its sale rates. Also if Air Arabia expand to bigger airports then it may suffer problem due to large pressure on cost. But still concerning to its present growth late in innovation and managing capabilities no other companies stood against it in the field of low cost carriers (LCC).
DisclaimerCreated by Akshay Mahajan, IIT Kanpur, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow.