Etihad Airways - Assignment Example

It now has a total of 81 destinations in 50 nations. There are online transactions on paying the fee or ticket. There are also enhancing security systems, which are better than those of its competitors. Every organization has threats and opportunities; in this case, Etihad is not an option. Therefore, the threats that the airline encounter consist of the competition that it faces from its competitors in terms of services they offer to their clients. In addition, the fuel price has gone up for the past few years, and it seems to continue increasing in the next few years (Vasigh, et al.

, and 2012 p.19). The competitors are many in the airline industry they include Emirates, Saud Arabian Airlines, Gulf Air, Oman Air Airlines in UAE as well as other Middle East regions as well as in Qatar especially in terms of their market share. It becomes the largest threat to Etihad hindering its market penetration. These airlines are increasing in line, and the numbers of fleets are also increasing making it more competitive to Etihad (Vedder, 2008 p. 30).Singapore Airlines is a great threat and Emirates is the most major threat that beats them all.

Etihad Airlines have the plans to increase its channels. However, it faces many challenges. One of the major challenges is there is an increase in fuel price that doubles every time therefore making it hard to cope with the trends. Though the airline is located in the oil producing country, the competitors are trying to take control of the prices. The only thing that Etihad can do is also to try and take control of the fuel prices. Secondly, the company is having challenges gaining the operational rights of foreign nations so as to operate in the region.

After the economic crisis, the countries have come up with strict regulation rules for all foreign airlines in order to protect their home carriers. The other challenge that Etihad faces is the expansion of the Far