PowerPoint Presentation

Pay-less, fly more

AIR ARABIA A MINI CASE STUDY

Took off in 2003 with only two leased Airbus A320 jets

Today fly over 150 destinations using 44 A320 aircrafts

Became the Middle East and North Africas first and largest low cost carrier (LCC)

AIR ARABIA ACCOMPLISHMENTS

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 FEATURES

Great Flying Experience

Affordable Price

Good Service UNIQUE SELLING POINTS

Offering one of the most And all are fitted withspacious economy cabin world-class comfort seats UNIQUE SELLING POINTS

Ready to serve its customers FlytivitiesSpecial assistance to pregnant women and passengers with special needs Airport Activities

Airport Activities

How do they do it?!

Cost Cutting Strategies

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)

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. PRICE CUTTING TRAPS

Provide great flying experience with good customer care at low cost Loyal Customer

Cost cutting strategy accompanied by customer oriented vision

CUSTOMER RETENTION

Stood as the most admired airlines in the Middle East

AWARDS AND APPRECIATION

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

EXPANSION

Lets try to answer some questions regarding the Case Study on Air Arabia Airlines in Marketing Management by Philip Kotler and Kevin Lane Keller

QUESTIONS RELATED TO THE CASE

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).

THANKYOU!

Created by Binayjeet Singh, NSIT, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow.

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