5. Pricing Objective
● Always catering to low cost market - 40% lower fares than
regular economy fare
● Gain maximum market share - 85% of the regional market
share
6. Quick Accomplishments
● Expansion to nearly 100 destinations with 44 Airbus A320 jets
● Price leadership in Middle East
● First & largest Low Cost Carrier in Middle East & North Africa
8. Airbus A320
● 32- inch seat pitch
● Wider aisle
● Larger cabin space
● Best legroom
9. Choice of Aircraft
● Started with 2 leased A320 jets now has only A320 jets
● Reduced boarding time & flight congestion
● Lowered training expenditure
10. Technological Adaptation
● Equipped jets with sharklet technology
● Results :
- 4% reduction in emissions
- increase in higher takeoff weight
11. Other Smart Measures
● User-friendly online booking service
● Edge cutting mobile Web site
● Reducing turnaround time at airports
● Keeping planes in air
12.
13. Cost Change Adaptation
● Air Arabia foresaw fuel price fluctuation
● Used price hedging strategy
● Continued to present low fares to maintain customer loyalty
15. Expansion
● 5 Hubs - Nepal, Morocco, Jordan, Egypt and UAE
● AED 12 billion - total assets
● 124 global routes
● AED 509 million - net profit for 2016
● 65 million passengers
16. Awards
● Low Cost Carrier of the year for 3 consecutive years
● Airline Business Award
● World Airline Award for best Low Cost Carrier
● Air Arabia Group’s CEO was named Airline CEO of the year
18. Why don’t other Airlines apply the same model as Air
Arabia?
● Other airlines targeted customer luxury hence shifted to a
hybrid business model
● Air Arabia targeted people who cannot travelling at normal
prices
● Other airlines lowering the fares may indicated the negative
image showing their incapability
19. Will the company continue to maintain its position in
the market? What happens if others apply the same
model?
● A possibility of new entrants or lowering of fares by other
airlines always exist
● Air Arabia has brilliantly managed to overcome barriers like fuel
price fluctuations and always adapted new technologies to
deliver best service to its customer
● Seeing this, other airlines might get hesitant to enter the lost
cost market