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Category: World History

Date Submitted: 05/26/2008 01:42 AM

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Marketing Plan

Phase 1

MKT 4001

Contemporary Marketing Strategy

Kunnath Sekharan Sadheerath


Middlesex University

Word Count: 3200

Air Arabia

Budget airlines revolutionized the air industry with low fares by adopting a completely different way of working to the traditional airlines. By ditching expensive overheads like free food and drink, only using the same type of airplanes to minimize maintenance, training and repair costs, and flying to airports with cheaper landing fees, the budget airlines have passed on huge savings to their customers. This business philosophy has been adopted by pretty much every budget airline around the world.

By selling tickets electronically online or via telephone, the budget airlines’ marketing costs are much lower too – no travel agent commissions to pay or paper tickets to print and post. Virtually all budget airlines use a system of dynamic pricing on their tickets, which means their prices change continually based on demand. Usually the further ahead you book a budget ticket, the cheaper it will be. Sometimes you can get last minute bargains on empty flights, but usually the closer you book to your departure day, the less of a bargain it will be. [1]

Air Arabia’s mission is to revolutionise air travel in the region through an innovative business approach offering superb value for money and a safe, reliable operation. To achieve this they will be known for their low fares, grow their business profitably, build motivated multi-functional teams, demonstrate the highest operational standards and manage their costs ruthlessly.

Air Arabia is the first and only low-fares airline in the Middle East and North Africa region, with a vision to be one of the world’s leading budget airlines in terms of profit margin, innovation, reputation and...