Saudi Arabian Airline

Topics: Airline, Delta Air Lines, Flag carrier Pages: 13 (4796 words) Published: December 26, 2011
Saudi Arabian Airlines
In this case study we are going to analyze performance of some Saudi company. The main task of this analysis is to identify the main challenges that a company is facing nowadays in the circumstances of the global financial crisis, economic fluctuations and changes in the global business environment. Moreover, it is important not only to identify these challenges, but also to explain how the company is overcoming them and what it should improve in this context. Every of these items are going to be analyzed in the context of improvement of the company’s provision of services to the customers. For this particular case we have chosen the local company – Saudi Arabian Airlines. It is one of the country’s leading companies. Moreover, it has always played a crucial role in the country’s economy. First of all, we would like to provide some background information about the company. This minimum of required information can be got from the following quote. “Saudi Arabian Airlines is the national airline of Saudi Arabia, based in Jeddah. It operates domestic and international scheduled flights to over 70 destinations in the Middle East, Africa, Asia, Europe and North America. Domestic and international charter flights are operated, mostly during Ramadan and the Hajj season. The airline's main operational base is at Jeddah-King Abdulaziz International Airport (JED). Other major hubs are Riyadh-King Khalid International Airport (RUH), and Dammam-King Fahd International Airport (DMM). Saudi Arabian Airlines is a member of the Arab Air Carriers Organization and IATA” (Saudi Arabian Airlines Company Profile). Nowadays Saudi Arabian Airlines is the national airline of the Kingdom of Saudi Arabia and the largest airline in the Middle East. It is the fifteenth largest airline company in the world. The company has 149 planes, according to the information, provided on the company’s website. It flies 12 billion passengers per year. The main goal of this case is to determine how the trends in the company’s development affect the company’s positions on the market, the way in which it provides its services and the overall brand of the company. For the purpose of better understanding the company’s current positions on the market it is important to study its history. Then we will be able to identify the main trends and patterns that have been influencing the company’s performance. In such way we would be able to understand what should be changed to improve services for the customers. Foundations for the company’s performance were laid down in April 1945, when U.S. President Franklin Roosevelt presented a single Douglas DC-3 to King Abdul Aziz ibn Saud. This plane was quite quickly putted into operation. It was used to transport passengers between the country’s three major cities. By the end of 1945 an additional four DC-3 aircraft had been purchased by the Saudi Arabian government. Saudi Arabian Airlines as the company was formed in September 1946. That year the first international flight took off for Jerusalem. Also, till the end of the year the first foreign branch of the company was established in Cairo. As we can see, the American government has played a crucial role in the establishment of the analyzed company. The reason for such situation is quite simple – the growing American interests in the region. First of all, American government has always been interested in political influence in the region. Second of all, Americans have always wanted their companies to have access to the country’s resources of oil. As a result, the United States of America has always tried to support the Saudi government and economy, in general. For example, in the 1950s management and technical services for the fledgling airline were provided by Trans World Airlines (TWA) of the United States. The other pattern that has usually influenced the company’s performance is its role in the country’s national economy. The company has always played a...
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