A case study on AIR ARABIA during a Marketing Internship with Prof. Sameer

1. Air Arabia Mini Case Study

2. AIR ARABIA? WANT TO KNOW?
Slogan
• Founded in February 2003 by the Ruler of Sharjah
• Serving 130 destinations using 44 aircrafts
• Headquarters at Sharjah International
Airport

3. WHAT MAKES AIR ARABIA SPECIAL…
FIRST AND LARGEST LOW
COST CARRIER IN
MIDDLE EAST & NORTH
AFRICA

4. BEST CHOICE WITH LOW FARES…

5. MILESTONE ACHIEVEMENTS…

6. BUSINESS PLAN

7. GROUP STRATEGY

8. AIR ARABIA-GROWTH AND
EXPANSION

9. GLOBAL STRATEGIC PLAN…

11. HOW DO THEY SUCCEED WITH LOW COST
FARES…
 FUEL-HEDGING STRATEGY

12. The universal aircraft model lowered their
training expenditure.
Growth in services was made easier.

13. WHAT DO THEY VALUE MOST?
THEIR CUSTOMERS LOVE AND SUPPORT

14. HOW DO THEY MAINTAIN CUSTOMER
SATISFACTION LEVEL
Provide great
flying experience with
good customer care at low
cost
Customer Loyalty
Cost Cutting
strategy
accompanied by
customer oriented
vision

15. PRICE CUTTING TRAPS
 CSR-Corporate Social Responsibility for the Emotional bonding with the people
 Online Mobile Booking App for Manage Easy ticket booking from Home
 Air rewards which will gain Customer Loyalty

16. AWARDS AND ACHIEVEMENTS
 “Best Low Cost Airline” at the Aviation Business Awards 2015
 “Airline of the year-Middle East” at the Aviation Business Awards 2016
 In 2017,Air Arabia has not had any fatal accidents or incidents and has a very good safety record

17. QUESTIONS RELATED TO THE CASE
Answer to some of the questionspresent in the Case Study
on AirArabia Airlinesin “ Marketing Management “ by Philip
Kotler and Kevin Lane Keller

18. Q1. Air Arabia has succeeded in profitably challenging big established air
line companies in the Middle East and North Africa. Why don’t all other
airlines apply the same business model as Air Arabia?
Air Arabia has mastered the act of low pricing since the beginning. It started small and
scaled up intelligently but others are already huge. Air Arabia main aim –affordable prices;
good customer services; its motto “pay less, fly more”. It foresaw issues like fuel hedging.
It is not easy to hedge fuel now. 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 can’t 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.

19. Q2. What challenges does Air Arabia face? Do you think that the company
will be able to maintain its leadership position in the LCC market in? What
will happen if the other businesses apply same model?
There is always threat from new emerging airlines and other low-priced airlines
as they may decrease its air fare rates. Also if Air Arabia expands 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.
Turnaround times can increase if expanded to bigger airports Expected change
from Boeing A320s for expanding.

20. THANK YOU

21. DISCLAIMER
Createdby Venkata Sridhar,
PSG College of Technology,duringa marketing
internship under
Prof.SameerMathur, IIMLucknow.