Air Arabia Case Study Analysis

693 words - 3 pages

Introduction
Individuals have an intuitive desire to stand out among others. They constantly strive to attain wealth, position and honor through their work. However, running a successful business nowadays is a very hard goal to achieve especially for individuals that work in the airline industry due to its natural competitive environment. There are numerous airlines that are struggling to survive. It is very unlikely to hear about young airlines achieving success at an early stage of their operations. Nonetheless, Air Arabia, a young airline that started operations in 2003, shows promising results that predict its success in the future and its ability to be competitive airline in the GCC ...view middle of the document...

By doing so, the airline increases its sales to generate more revenue and thus gains a greater market share, which leads to the airline’s ability to beat potential competitors in the airline market both globally and domestically.

Air Arabia SWOT Analysis
Like any other airline, Air Arabia has its strength, weaknesses, opportunities, and threats. One of Air Arabia’s strengths is that it offers cheap tickets to 82 different destination 24 hours a day, 7 days a week. The price ranges that the airline charges satisfy people from all social classes within the gulf region including the foreign labor force that benefits from the airline’s offer by easily going back and forth to their countries without suffering from major losses. Another strength of Air Arabia is that it is considered to be the first low cost carrier in the GCC region and due to the huge amount of investment required to setup an airline, competition will need time to compete. Fuel prices and political instability in the Arabian region can be listed as weaknesses to the airline. “With all the political happenings in the region, it is no...

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