Air Arabia Example
Atmosphere Arabia is known as a cost efficient flight that currently operates an overall total fleet of 23 aircraft, offering 65 ways from three hubs in Morocco, UAE, and Egypt. It hopes to expand to pay many regions of the world including Europe as well as the Indian subcontinent and increase its navy to over 55 by 2015 solely with no working with some other companies. It really is obvious that Air Persia is making use of the attentiveness growth strategy; the attention growth technique focuses on its primary line of business and boosts the number of products offered or markets dished up in that main business. As we can see, Surroundings Arabia can be both increasing its products (by increasing their fleet) along with its market segments (by broadening to other locations of the world). Air Arabia has a great advantage in its line of are it employs a cost leadership strategy, obtaining the lowest costs in its sector. It is remarkably efficient as it firmly discover an hostile low cost strategy that aims at controlling costs, enhancing success, and enhancing quality and reliability of operations. Types of its business scheme are the use of one passenger class/single aircraft to reduce training, repair, and multi-cabin costs as well as its optional (paid for) in-flight food and beverage to reduce catering costs. Its general model is based on reducing costs in a clever way to offer better prices. Thus, they have an advantage more than other air carriers that do not really utilize this kind of a low cost technique, who for instance have multi-cabin aircrafts or perhaps who cater food. Atmosphere Arabia is thus in a position to attract more customers through its low prices.