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Possible Problems in Air Arabia's Future - Essay Example

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With increased competition in world airlines, Air Arabia, the first in the Middle East to offer low fares, has benefited from their decision to enter the low-cost market. However, because of growing competition by other airlines now offering low fares-namely, Jazeera, Sama and Nas Air, Air Arabia must find new ways of decreasing their costs in order to offer the lowest prices (Zawya)…
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Possible Problems in Air Arabia's Future

Download file to see previous pages... and Europe tourist trade, where travelers are more affected by high oil prices than are local travelers. Low-cost airlines have been able to supply routes previously unserved or underserved by traditional network airlines, with local customers taking advantage of low cost. What are the factors that allow an airline to compete successfully with ticket prices It is necessary for an airline like Air Arabia to look to their competition and find ways to offer lower prices than any other airline and still maintain customer satisfaction (Sector; Air).
1. "No frills" services such as not serving food on board or by charging customers for food and drink. Air Arabia maintains competitive pricing by offering a single class with a simple fare structure, and by charging money for on-board food, drinks, and headsets through agreements with various companies to sell consumer items on board, thereby providing a good complimentary income to the low cost model. By focusing on short direct flights, it might not even be necessary to offer food at all (Air 19).
3. Creating package deals through cooperation with hotels and car rental companies. ...Download file to see next pagesRead More
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