The Low Cost Carrier Model - Air Arabia

Topics: Airline, Southwest Airlines / Pages: 25 (6102 words) / Published: Dec 20th, 2012
Multimedia University
BRM8014 Advanced Marketing
Case Writing
The Low Cost Carrier Model - Air Arabia

Student Name: Abdelbaset Queiri
Student ID: 1111800065

1. Introduction

Amidst the global crisis in the airline industry, figures from the International Air Transport Association (IATA) report that actual passenger traffic worldwide has increased 5.9% from the previous year for the period Jan-Sep 2006. Alarmingly, the Middle East has shown the strongest growth with a remarkable 15.4% for the first nine months of 2006 (Fig. 1). Within the Middle East, the GCC (Gulf Cooperation Council) region in particular has seen major developments. New entrants are threatening the existence of long established airlines, while others are going global. This competition has resulted in developing both industry and consumer behaviors. Today, the airline industry within the region has become globally competitive, which in turn brings about a more mature consumer.

|Jan-Sept 2006 over Jan-Sept 2005 |Passenger Traffic |
|Africa |8.7% |
|Asia/Pacific |5.4% |
|Europe |5.3% |
|Latin America |-1.4% |
|Middle East |15.4% |
|North America |5.7% |
|Total Airline Industry |5.9% |

Fig. 1 (IATA, 2006)

This report aims to present an overview

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