MARKETING OF SERVICES
COMPARITIVE MARKET ANALYSIS
AIR ARABIA & AIR INDIA EXPRESS
DR. ABDUL WAHEED
DATE OF SUBMISSION: SUBMITTED BY:
13.04.11 Reema Badlani
Air Arabia operates one aircraft type, the Airbus A320 and it is one of the few low fares airlines that has a young fleet. Air Arabia’s aircraft are all configured with a single cabin and offer customer comfort with the largest seat pitch in ...view middle of the document...
Air Arabia’s growing fleet will allow us to continue to offer our customers a superior flight experience. Its main base is Sharjah International Airport. Air Arabia is ranked top as world's number 1 Low Cost Carrier for 2009 on the TPC chart by Aviation Week.
AIR INDIA EXPRESS
The Air India Express is the India's first international airline that offers efficient service and good value for money. Their mission is to provide easy connectivity in short routes at most affordable rates and offer maximum customer satisfaction. Their fleet includes the state of the art 24 B737-800 aircraft. All the aircrafts of Air India Express have a single class (Economy) of travel with a capacity of 180 passengers. Each Air-India Express aircraft features a different tail design in keeping with the Indian culture, history and tradition. To its credit, Air India Express has thirteen aircrafts of which 6 are owned by airlines and 7 are leased. The airline is planning to extend its network in abroad and India over next few years. The spectacular design emblazoned on both sides of aircraft tails that portrays different features of colorful and traditional India is possibly the most innovative addition. The most recently introduced aircraft Boeing 737-800 is embellished with splendid artwork of ‘Raja Ravi Varma’. Air India Express is going to lease 8 more B737-800 aircrafts. Out of 8, four will be on dry lease for around 5 years and others will be on wet lease. The company which wet leases the plane pays by the hours it is operated. In dry lease, only the aircraft is leased out. In wet lease they will lease out the aircraft, maintenance, cabin crew, pilots and insurance. It is always costly than the dry lease.
Air-India Express is one of the most profitable ventures of Air India family so far. After a successful trial, this wing expanded its services to Europe and The Americas. They have been making huge profits on most of the routes. Many airlines are following their footsteps such as Air Arabia and Jaseera Airways have entered the India - Persian Gulf market and many others such as Jetlite might enter.
Arabia managing to cut costs
They have low distribution costs.
They do not offer any frills. Air Arabia is one such airline which offers no free catering on board. If any passenger needs any food or drinks, they have to pay for it. This helps Air Arabia to reduce their costs. They have all economy seating configuration, so no special needs or requests are to be fulfilled as in case of a business class passenger. Sharjah has a much shorter taxi-way. It saves fuel, and gives a quicker turnaround time. Quicker turnarounds are one such reason that helps them to cut the costs. They had frequent flights, which gives an advantage to the customers not to wait for their next flight. As the more they fly, the more revenue they will be able to generate and pay less for waiting at the airports. All the Air Arabia bookings are done by website. E-ticketing is one such way by...