The Marketing Strategy Of Air Arabia Tourism Essay

The company Air Arabia which is chosen in this study is a public company. This study besides gives information about how the company works internally and externally. The chief hub of the Air Arabia Company is in Sharjah, U.A.E and Mohamed V Airport in Casablanca, Morocco. This study will besides give you the fiscal Information of the company and besides about its rival ‘s fiscal position like its gross revenues, net income, and market portion. Air Arabia is universe ‘s First and Largest Low Cost Carrier ( LCC ) to run in Middle East and North Africa. It operates in more than 40 states worldwide and has segmented its mark market in Middle East, Indian Subcontinents, South and Central Asia, Africa and Europe. The study besides gives complete information about the company ‘s Strength, Weakness, Opportunities, and Threats and besides about its Product ( Services ) , Price, Place and Promotion. Last but non the least, the study has showed the place of the company in the current market, grounds of the company ‘s success and chances for future growth/success.

Air Arabia

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Introduction

Air Arabia is the first & A ; largest Low Cost Carrier ( LCC ) to run in Middle East and North Africa. Air Arabia started its operation in October 2003 and holds a portfolio of successful business.The Main Hub of Air Arabia is Sharjah Airport, UAE and Mohamed V Airport in Casablanca, Morocco and subsequently on announced its 3rd hub in Egypt. The current CEO of Air Arabia is Adel Ali who was named as ‘Airline CEO of the Year ‘ for 3 old ages. Air Arabia is named as Best Low Cost Carrier at many Airline Awards. Air Arabia is a listed company on the Dubai Financial Market. The current Air Arabia motto is “ Air Arabia, Pay Less Fly More ” .

The Market Environment:

Air Arabia has spread it wings from its hubs ; Sharjah Airport, UAE and Mohamed V Airport in Casablanca, Morocco and Egypt to over 65 finishs distributing across Middle East, Indian Subcontinents, South and Central Asia, Africa and Europe.

Air Arabia is in Airline Industry and has maintained a portfolio of successful concern boulder clay now. The Airline Industry provides with Air conveyance services to riders who want to go to different states which are covered by Airplanes in much less clip. It besides provides with air lading installations.

The Competition

The Main Competitors – Air Arabia has many rivals such as Emirates Airline, Etihad Airways, and Air India Express but out of all these the chief rival of Air Arabia is Jazeera Airways.

Gross saless and Profit Trend – Jazeera Airways faced a Net Loss of 8.2 million in the twelvemonth 2009. In the twelvemonth 2010 the company is still runing in loss of 4.4 million in the first one-fourth and a loss of 4.7 million in the 2nd one-fourth.

Market Share – Jazeera Airways caput office is in Kuwait. It besides had its hub in UAE but because of it confronting loss in the old twelvemonth it had decided to shut down the UAE hub. So now it merely controls from Kuwait.

Target Market – Jazeera Airways is a low cost air hose that targets the people with low income.

The Company

Gross saless and Profit Trend – Air Arabia ‘s company net incomes in the twelvemonth 2009 were AED 452 million. In the twelvemonth 2010 the net incomes of the company in the first one-fourth were AED 50 million and in the 2nd one-fourth were besides AED 50 million. The company is constructing up a strong web path which is assisting in turning its gross revenues.

Market Share – The undermentioned graph shows Air Arabia Profit generated worldwide.

GCC – AED 63.28 million

Middle East – AED 63.28 million

North Africa – AED 49.72 million

Cardinal Asia – AED 22.6 million

Europe – AED 94.92 million

Indian Subcontinents – AED 158.2 million

Business Sector – Air Arabia is a public sector company with its portion listed on the Dubai Financial Market ( DFM: AIRARABIA ) .

SWOT analysis –

Strengths –

Air Arabia is the first low cost bearer in the GCC part. Given the immense investing required in puting up an air hose, competition will necessitate clip to be a important menace.

Sharjah Airport gives important releases to Air Arabia in the signifier of landing and parking fees.

Despite a really immature history, net net incomes have been increasing at a CAGR of over 200 % since 2005. The company managed to bring forth its first net net income in 2005 after get downing operations in late 2003.

Failings –

Less figure of planes

Hub location – A hindrance for occupants of other emirates in UAE other than Dubai.

Fuel monetary values account for approximately 38 % of entire operating costs for Air Arabia. The monetary value hiking in rough oil is expected to go on impacting the air hose.

Opportunities –

With a house order for 34 aircraft and an option for 15 more, Air Arabia is poised for growing. The air hose is expected to add more finishs to its portfolio.

Competition is still immature when compared to Air Arabia which gives the company clip to farther solidify its placement as a quality LCC.

The UAE and the GCC as a whole is focused on pulling tourers to the part. As the part grows with the lifting monetary value of oil, the accessible market for Air Arabia besides expands in the long-run.

Menaces –

Bing the most important constituent of operating costs, energy monetary values can earnestly halter Air Arabia ‘s public presentation. Airlines around the universe are fighting because of lifting energy costs.

Low LCC incursion in the part makes the pie really big nevertheless new LCCs are on their manner to do the division more diluted in the hereafter. New LCCs include Sama, Nas, RAK Airways and Fly Dubai.

Due to limited pick in aircraft providers, air hoses are sensitive to bringing agendas of aircraft. The bringing of the 34 ordered aircraft is originally meant to get down in 2013.

The Company ‘s Selling Scheme

Segmentation – Air Arabia has been spread worldwide through three hubs viz. Sharjah Airport, Mohamed V Airport in Casablanca and Egypt airdrome. Air Arabia is in Travel and Tourism industry which is further divided into Travel industry which provides with travel installations to riders who want to go to other states whereas Tourism industry which help with Hotel reserves.

Targeting – Air Arabia targets people with low income who would wish to go the universe which could non be possible as the air cargo is high. But nowadays people with good income have besides started going in Air Arabia as it helps them to salvage for better hereafter.

Positioning – Air Arabia has positioned itself in the market in such a manner that has kept it far in front of its rivals. Air Arabia and Jazeera air passages are in competition but still demand for Air Arabia is high as it provides inexpensive ticket monetary value.

Growth Strategy – Air Arabia has planned to spread out its Sharjah hub by Investing 2.0 billion in new aircrafts which will increase the figure of planes to 34 by 2015.this enlargement will besides increase the frequence of flights on certain paths, i.e. duplicating the figure of day-to-day flights in most instances.

The Marketing Mix

Product ( Service ) – Air Arabia offers many services to their clients harmonizing to the mark section they belong to. They provide with online booking which reduces the clip of a client to travel to any bureau and book a flight. Air Arabia besides provides with hotel-reservation service and recommends the best options for clients harmonizing to their demands and budgets.

Price – Air Arabia is utilizing a low cost scheme, which is to offer lower monetary value than what other air hoses in the market offer. It uses this scheme because it targets people from low to medium-income degree who are willing to pay less in order to wing more.

Place – The chief base of Air Arabia is in Sharjah, UAE. It has more three hubs which are in Morocco, Egypt and Jordon. Air Arabia besides has an Online Website through which clients can book their flights, look into the latest offers and book an adjustment in a hotel during his/her travel.

Promotion – Air Arabia ever advertise in local and international, Arabic and English newspapers and magazines because their mark audience are people from all nationalities. It advertises in concern, household and societal magazines worldwide to make their mark audience who have different involvements. Air Arabia has created a website offers many services such as the online engagement, which allow clients to choose peculiar seats or service from their place. Furthermore, Air Arabia advertises in many web sites from different Fieldss such as the MSN courier and the Gulf News.

Evaluation of the Company ‘s Schemes and Tacticss

Current Market Situation – Air Arabia being the First and largest Low Cost Carrier in the Middle East and North Africa have put themselves in front of their rivals. The company ‘s services are being demanded by many clients due to whom in 2010 the Net Net income of the company in 3rd one-fourth increased to AED 136 million.

Evidence of Company ‘s Success – The Company ‘s net income in the twelvemonth 2009 was AED 452 million which had been decreased from the old twelvemonth. But the company ‘s growing scheme shows that it will be successful in the coming old ages.

Prospects for future growth/success – Air Arabia have invested AED 1.7 – 2.0 billion on new aircrafts to increase the figure of planes by 2015. This investing will increase the frequence of the flights on certain paths.

Decision

Air Arabia has been turning in Travel and Tourism industry with a vision to offer better services and to be the best air hose on every path it flies by bettering a strong web path. Therefore, it has many mark sections of people with low to medium- income degrees that are looking for low air menus. The aspiration of Air Arabia is a swift enlargement of 50 aircrafts by 2015 and besides set uping more hubs to associate the whole Arab universe to Africa and Europe