Air Arabia is the first low cost company executing in the MENA’S part. It has well developed thanks to strong cost direction. altered concern theoretical account. and intelligent commercial offers.
In an environment which is extremely competitory because the advantages come from low monetary values. where clients and providers have an of import power of dialogue. where new entrants can be both new LCC and bing normal companies which could make sub trade names or all of a sudden propose publicities on specific paths or periods. and where replacements are ever endangering. particularly within a limited geographical country like the GCC. Air Arabia benefits from PEST variables that are rather encouraging.
Furthermore. if Air Arabia benefits from a good image. a innovator placement. creativeness. the fact that people fly more and more. and that hubs provide synergisms. it besides suffers from limited development solutions. compulsion for cost lessenings. PEST fluctuations. possible market impregnation. and monetary value wars hazards. After analyzing assorted elements and suggesting an external and internal diagnosing. we reach the decision that the natural volume market of low cost companies may mutate and finally easy move to necessary little distinctions and specializations on constructions that could be “low-cost-high-positioned” oriented.
So what we recommend to Air Arabia is to stay commercially aggressive and customer-driven but alternatively of seeking merely new cost lessenings. particularly in countries that could be unsafe for the quality of the care and for the safety of the riders ( if a low cost company plane clangs. everybody will state that it is because the compulsion for cost lessening put riders in danger ) . to suggest non-costly distinction offers such as more land services like better fining solutions. and to put in advertisement to inform about those advantages.
We think that being customer-driven agencies developing client trueness and such services are the lone manner to develop trueness in environments where monetary value is ever the first advantage people of course look for. Finally. we recommend Air Arabia to maintain developing new paths and agendas with cautiousness because speedy developments are ever hazardous in extremely competitory environments.
We think that it is so better to procure market portions on the bing and to concentrate probe. investing. and communicating on a comparative distinction that will slowly place Air Arabia on a higher quality / low cost company. increasing entry barriers. and traveling it from a volume market to a light specialized market. We believe that this is the juncture for Air Arabia to re-invent the construct of LCC.