The report is about GMG airline. The first part of this report illustrates problem definition, scope, objective, methodology and limitations. Then the second part of the report which is the major one discusses about the industry first, then overview about GMG, their mission, vision, objective, policies, strategies and organizational structures. According to the data provided by Bangladesh Biman, in 1972 it flew nearly 337,000 passengers in the domestic sector and 367,000 passengers in the year 1998, which is rather a stagnant figure. The domestic aviation industry of Bangladesh failed to gain the popularity or reliability of its passengers, due to infrequent flight, inferior standard of service and lack of supply. Thus people were forced to use alternative forms of transport such as buses, trains and other private transport, which was quite inconvenient, when time security and comfort were considered. But after the introduction of other private sector airlines since 1996 and GMG Airlines in the year 1998, the number of domestic air travelers has increased rapidly, as this company was successful in catering to its customers’ needs. But it still remains a fact that the latent demand for air-travel has not yet reached its full potential. GMG Airlines, which is one of the companies of the GMG group, retained a well-known UK based consultant Neil Hansford to study the opportunity in depth and to help GMG implement the business plan. GMG Airlines also further benefited by the fact that the Managing Director and the Chairman were both trained and well qualified commercial pilots and played a vital role in the formulation of the business plan. After a thorough research and a satisfying and materialistic business plan, attention was diverted to overcome the next crucial step, which was the financing for the aircraft and other infrastructure necessities. GMG Airlines positioned itself as a premium airline with the corporate mission of providing ' First Class all the way' service to its customers. In the phase of tremendous competition in the International Airlines Industry, GMG has to be very careful in choosing its strategies that will give them a sustainable competitive advantage over the other companies. Therefore a survey has been conducted which details are discussed in chapter three of this report. The target group details have been given as well as the findings with numeric figures and possible assumptions of the results. And at the end of the report some recommendation has been given to make its prominence in the International region.
Chapter 1: Introduction
GMG Airlines commenced life in 1997, the idea behind its creation was to take advantage of a specific gap that existed in the Bangladesh Air Transport industry for quality oriented local airline but with a global reach. The repeated failures of the national carrier and the even enhancing shares of foreign air carriers in Bangladesh market only made the country, its intelligentsia and its business community more determined than even before to have an air carrier of Bangladeshi origin, free of state interference that could challenge the hegemony of foreign airlines and help the country to gain its rightful place on the global air transport map.
The economic crisis of 2008-2009 resulted in severe losses for the global airlines industry and Bangladesh was no exception. GMG Airlines however used the opportunity to reinvent itself and learn from the experience. Despite the trail of failed private airlines ventures in Bangladesh, the BEXIMCO Group identified the existence of a gap for a cost rationalized, service oriented airline and decided to financially back GMG Airlines by picking up a majority stake in the carrier.
With the entry of the BEXIMCO Group as strategic investors in June 2009, GMG Airlines’ vision of expanding its horizons to become a global player with a distinctly regional touch started becoming a reality.