A Suitable Customer Care Strategy for Air Arabia - Case Study Example

Suggest a suitable customer care strategy for Air Arabia. Your strategy must be intended to give a competitive advantage to Air Arabia. Introduction:- The company was established by an Ameeri declaration announced by His Highness Dr. Sheikh Sultan Bin Mohamed Al Qassimi, the monarch of Sharjah and Member of the Supreme Council of the United Arab Emirates on 3rd February 2003 (Rahman, Saifur. “Gulf's budget airlines rise to the challenge”). Air Arabia, known in Arabic as Al Arabia or Al Arabiya, is the low budgeted state airline of the Emirate of Sharjah, one of the seven autonomous Emirates that combine together to from United Arab Emirates (UAE). It made its maiden flight to Bahrain on the 28th day of October in 2003 (dubaifaqs). It is a joint project linking two administration divisions of Sharjah, the Department of Civil Aviation and the Sharjah Airport. Air Arabia is the most distinctive airline among its kinds in the Middle East and North Africa (MENA) area and is primarily directed on accommodate flights inside the Greater Middle East. It at present has at least 46 flight destinations to over 16 nation (ameinfo). The most recent to Peshawar,Pakistan Ahmedabad,India and to Istanbul, Turkey publicized as the ‘Gateway to Europe”. In publicizing its operation and purpose Air Arabia said it required to transform the way people travel in the region in the region through an ground-breaking and pioneering business model dedicating outstanding importance for cash and a secure and dependable operation. All flights allocated by Air-Arabia are taken to the air onboard a customized Airbus A320, which enclose about 150 seats as an alternative of the highest 189 seats (planespotters.net). Alongside with 21 other associates from the MENA region, Air Arabia is a partner of the Arab Air Carriers Organization (AACO).With its motto of “Be Smart. Pay Less. Fly more,” (virtualtourist.com) Air Arabia stationed itself as the primary and only low cost transporter in UAE. In satisfying the above objectives, it required to comprehend its protracted tenure foresight of turning out to be one of the world’s foremost middle class airline from a view point of profit margin, modernism, repute and functioning excellence. In recent years, the company submit an request to the UAE Ministry of Economy and pertinent regulatory establishment for sanctioning to commence an Initial Public Offering (IPO) in the beginning quarter of 2007. In an additional recent advancement, the Sharjah Department of Civil Aviation proclaimed the formation of Sharjah Aviation Services, a joint enterprise with Air Arabia to sustain the continuing development of Sharjah Airport. With the Sharjah International Airport as the center and H.Q. of Air Arabia, throughout Sharjah Aviation Services, the airline operator desire to fashion the airport as the favored destination as an global doorway to the UAE, Gulf and Greater Middle East. In acknowledgment of its functioning as a middle class oriented airline, Centre for Asia Pacific Aviation (CAPA),a global name as the chief expert aviation consulting services supplier, honored Air Arabia with its primary selection of low cost airline award for the year 2006. (1888pressrelease,“Centre For Asia Pacific Aviation Declares Air Arabia As One Of The World’s Best Lcc In 2006”) “Globalization of trade has paved way for all competitors from all around the world to cross the threshold into industries anywhere they can get some fascination by utilizing their principal capability to collect profits of business’s magnetism (Porter, 1980; Hamel and Prahalad, 1985). On the other hand, a lot of these businesses have strict access barriers occurring out of lofty investment application and the operating costs. Air Arabia is not only dedicated to provide reasonably priced air travel but is also dedicating to inspiring the lives of the people who has had time affording airline travel. Taking accountability and fulfill on societal desires of domestic and global society is what made us triumphant. Up till now, the service has put into practice a corporate social responsibility (CSR) program with a weighing on supplying better tutoring and healthcare for deprived populace of the societal community. Air Arabia stationed itself as a low priced hauler that fulfilled the unfulfilled travel requirements of the region. Its business model has shown the prospect to be distinctive and to pave way for a new market exclusive of stealing on the market sectors of existing carrier companies. Its primary and foremost goal was to make airline travel more convenient and recurrent through the application of internet and to offer the lowest airline ticket rates without forgoing or abandoning the service and security standards. As said by the CEO, superior service went further than merely providing security and safety, security as also staff technical training which was compulsory for every airline but it meant timekeeping of flights, straightforwardness of the utilization of airline and management of all clientele with self-respect and impartiality. The suffering of conventional and full service airlines in the aftermath of rise in energy prices, overloading and optimism of operational effectiveness, their low priced counterparts made earnings even in the nastiest of circumstances like keeping away from losses in the aftermath of 9/11. Not like large carrier companies, they did not decrease their passenger volume or start downsizing their company and in fact sustained to take liberation of latest aircrafts as South West Airlines of US included 11 737-700s in 2002 and 21 in 2003 with an order of further 94 in 2007 (Southwest Airlines Fact Sheet). In Europe, the Ryan Air, Easy Jet and Go were the the low cost operating companies. Further offering no-stopping any where travel, with no flounce, the low budgeted airlines function on a dissimilar company model. These airlines bestowed with travel agents and sold tickets through the Internet. These low priced airlines appeared to modify system of the competition as Easy jet and Ryan air illustrated that 90% of their fares were reserved over the net which at least 10 times the allocation of conventional carriers. (freeonlineresearchpapers, Logistics Issues Facing Both Easyjet and Ryanair) Two aspects appeared to have throw in to the accomplishments of the large airline companies (a) the electronic communication like the internet and (b) altering manners and precedence of traveler. The Internet revolutionized the ways of advertising tickets, their allotment with small circulation cost and abolition of non-partisans that acknowledged a ‘cut’ off the price of conventional paper ticket (e.g. reservation fee, travel agent commission) and expenses associated with printing, dispatching and revenue bookkeeping. In addition the Internet also provided clientele statistics, allowing them to enlarge their travel prospect to new, more thrilling position and savvier in considering their requirement for cost, inexpensiveness and ease met. On the behavioral face, travelling by air had become a mass carrier rather than lavishness. In the Greater Middle East and North Africa region there are over 24 airlines as affiliates of (Aaco). (Aaco members). A number of big multinational airline companies of the area include the Etihad airways, Emirates airlines, Saudi Airways, Jordan Airways, Gulf Air of Oman and Qatar airways. A low cost Airline by the name of Jazeera Airways has been lately been commenced in 2004 as the foremost private budget airline from Kuwait with a subsequent hub in Dubai moreover Kuwait with others predicted from Saudi Arabia. Dubai attained the dissimilarity of the most basic state in UAE to greet ‘open skies’ and create an airline company of its own, the Emirates Airlines in 1985 (FlightCenter, Emirates Dubai). This airline has been a great story of success and ranked among the topmost little full service, lavished airlines of the world. receiver of over 200 global honors of fineness, Emirates functions to more than 100 destinations around the world (Emirates.com). Set up in November 2003, Etihad airway is the executive airlines of Abu Dhabi (Ameinfo. Abu Dhabi connects to the international fashion world). Its primary goal is to meet its objective to offer its ‘guests’, new height of lavishness in the air. Since the launch Etihad Airways attempt has been made to redefine airline conditions by providing unmatched overhaul in the sky. It tender destinations in the ME, Europe, North America and Asia,. Etihad Airways is the receiver of the World’s leading new airline award in 2004 and 2005 consecutively and the World Flatbed Award for 2006.(Johnson, Paul “Etihad Airways celebrating at World Travel Awards 2006”) Air Arabia stationed itself as a low priced hauler that fulfilled the the unfulfilled travel requirements of the region. Its business model has shown the prospect to be distinctive and to pave way for a new market exclusive of stealing on the market sectors of existing carrier companies. The ME region has a large emigrant workforce, coming from neighboring states in the region comprising from , Pakistan, India, Iran, China, Bangladesh etc. and reaching as far as Azerbaijan, Tajikistan, Armenia in Central Asia and to the meeting Euro-Asia meeting point Turkey. Being elements of intimately join family, the socio-cultural requirement of these populace to visit their associations in general and on particular social and family occasions, make probable for travel. This exclusive civilizing requirement for recurrent activities acted as the catalyst for Air Arabia to fill up the slit absent due to the exorbitant charge of air travel in Middle East by the conservative airline companies. Substitute forms of travel by cars in intra-gulf area of Lebanon, Syria and Jordan as also by ship to African and Indian subcontinent were to a certain extent tormenting. Air Arabia required to utilize this new region by offering comfy and quicker travel by air at a a little privileged price and thus generating loyal repeat clientele. The proffer to convince clientele was very easy & to pay 10% additional charge to cut short travel from to as little as from 2.5 hours from 20 hours, and in the soothe of an airplane and the hot and dusty environments of the road. At Air Arabia, the customer driven strategy has always been the reason behind our enlargement. We have bring in the low cost travel concept to the Middle East and North Africa region with the object of helping citizens to take a trip more often. Over the period of six years, our growth has been enormous and prolonged our business to cover broad and wide-ranging network, initiate innovative businesses to balance our air travel services and enhance our travel skill. Your support has played a great role in accomplishing all this, our trustworthy clientele. Our mission is to constantly guarantee we are helping your travel requirements in the simplest, most reasonably charged and in a pleasant manner. It’s by no means our wish to be the basis of any cause inconvenience to while traveling Air Arabia, and if sporadically, for any rationale your flight is postponed, diverted or canceled, we our only rationale will for doing this cause your security matters to us the most, and co compromise on the relative subject can eer be expected from us. Rest assured we by all our means, we will do every thing feasible to minimize your nuisance. The workers or employees of Air Arabia recognize our client ambitious mission and try our best to live up to it everyday and never disappoint our customer base. Our Customer affairs obligation is written to illuminate a lot of most frequently asked queries and present you an insight the luxuries of flying by Air Arabia. We put forward you this information in appreciation of the immense assurance we place on you. Safety While Air Arabia constantly tries to operate its flights as planned, the topmost precedence of the airline is safety and security of our clientele, our workers and the airplane. Since our commencement in October 2003, we have attained the highest records in operational consistency among all airlines in commissioning the Airbus A320 aircraft in the world, these information is published by Airbus. We will constantly do our best to sustain this record. It is imperative that we notify you that for any sporadic rationale, it may be obligatory or us to postpone, divert or rescind flights due to weather, Air Traffic Control, maintenance or field and security conditions, we only do this to promise that your safety is above all, and it’s an area we are sure you don’t want us to compromise on. When such conditions arise, if its under our control we will do our best to reduce your inconvenience. Cabin Service Air Arabia the value of cash. We majored the notion of low priced travel by shortening air transport and proposing within your means flights. We offer the best travel deals and charges in the market by keeping low operational expenses while not finding the middle ground on conveying the premium quality to our clientele. This stands for that we only cost you for the airline fare and you have the liberty to pay for the additional services that you choose. Delays and Cancellations Air Arabia tries its best to be always on time. Sometimes its beyond our power, we don’t meet our flight schedule, we’ll help you by arranging another seat for you in another Air Arabia flight available. Air Arabia functions high frequency on most of its routes; therefore, we usually lodge your inconvenience in a very short amount of time. But if you decide not to utilize this decision; Air Arabia will acclaim the cost of your ticket in your financial credit for potential use in the future. In general, you will be reported by any electronic means like telephone, sms, email etc. for any adjustment to your planned flight. Air Arabia present harmonizing meals and hotel lodging depending on the period of the delay or cancellation. Delays at the airport If, when you check for Air Arabia flight, you came to know that fro operational reasons your flight has to be delayed or your concerning flight is canceled, Air Arabia agent will personally inform you at the gate. If you choose to go by any Air Arabia flight after being counselled of potential delay, diversion or termination; It must be noted that you might bring upon yourself some extra responses. Your Air Arabia travel document comprises your charge of your air travel only. While the idle fraction of your ticket is refundable under these conditions, extra operating expenses connected with tickets for new airlines, ground transportation, hotel accommodation and other amenity operating expense are not incorporated in our ticket value. Delays on the aircraft We always try to avoid to onboard delays. nonetheless, due to climate conditions, landing field conditions, visibility, mechanical problems, ATC necessities or other un-controllable conditions that cause delay for more than two hours, we will make sure: _ Refreshment accessible on request _ Make every rational effort to make sure that lavatories remain functional _ Inform our clientele when and if it is safe to use personal mobile phones, PC and laptops and other electronic devices. _ Make every attempt to reduce an on board postponement. Conclusion:- Air Arabia has a lot of potential to be quality oriented airline. It has been given a three star rating out of five (airlinequality.com) which is quite low as it has not been included in its list of Quality Approved Airline Category. Its understandable that being a low cost airline it cannot afford to give many privileges to its customers, but there still can be many things that can be done. Its ratings in “handling of schedules changes/cancellations” has been given two stars, there is still room for improvement, Its “excess bagage charges” has been given two stars, it can be reduced etc. In this day of age, where we are suffering from recession, Air Arabia can utilize the problems that is posed to it by the recession into an opportunity that can bring great revenues for the company, but they have to adjust the way they offer their services. References:- 1. Gulfnews. October 30 2006. Web. 24th March 2010 http://gulfnews.com/business/aviation/gulf-s-budget-airlines-rise-to-the-challenge-1.262293 2. Dubaifaqs. Web. 24th March 2010 http://www.dubaifaqs.com/air-arabia-flights.php 3. Ameinfo. 26th Sept. 2009 Web. 24th March 2010 http://www.ameinfo.com/210214.html 4. Planespotters. 19th March 2010 Web. 24th March 2010 http://www.planespotters.net/Airline/Air-Arabia 5. VirtualTourist. 8th January 2007 Web. 24th March 2010 http://www.virtualtourist.com/travel/Middle_East/United_Arab_Emirates/Ash_Shariqah/Sharjah-1857352/Sharjah-Flights-1.html 6. 1888pressrelease. 20th November 2006 Web. 24th March 2010 http://www.1888pressrelease.com/centre-for-asia-pacific-aviation-declares-air-arabia-as-one-pr-rs7079a4d.html 7. Hamel, G and Prahalad, C.K. (1985). “Do you really have a global strategy”, Harvard Business Review, Vol 63(4), pp 139-149. 8. Porter, M.E. (1980). Competitive Strategy. Free Press, New York. 9. Southwest. 14th March 2010 Web. 24th March 2010 http://www.southwest.com/about_swa/press/factsheet.html 10. Freeonlineresearchpapers. Web. 24th March 2010 http://www.freeonlineresearchpapers.com/easyjet-ryanair-business-analysis 11. Aaco. Web. 24th March 2010 http://www.aaco.org/agm_members.asp 12. FlightCenter. Web. 24th March 2010 http://www3.flightcentre.com.au/suppliers/emirates.jsp 13. Emirates. Web. 24th March 2010 www.emirates.com 14. Ameinfo. 11th March 2008 Web. 24th March 2010 http://www.ameinfo.com/149657.html 15. Johnson, Paul 21st September 2006 Web 24th March 2010 http://www.aluxurytravelblog.com/2006/09/21/etihad-airways-celebrating-at-world-travel-awards-2006/ 16. AirlineQuality Web 25th March 2010 http://www.airlinequality.com/Airlines/G9.htm Read More