Volume 2 (2006)

Low-Cost Strategy in the Air: Air Arabia - First in the Middle East

Amitabh Upadhya, Associate Professor, Travel & Tourism Studies, Skyline College, Sharjah, UAE

Abstract

This paper studies the impact of Air-Arabia, the first low-cost-carrier in the region. Being the first of its kind in the entire Middle-East North Africa (MENA) the e low-cost-model was on test. The study compares the low-cost-carrier model I as developed in the western world with the Air Arabia model. The study also evaluates the plausibility of the low-cost-model as a viable strategy for airlines operation in this region which is growing at a very fast pace, it was difficult to obtain vital information on 'operational costs and actual market share of the airline but a few written interviews with airline officials helped in analysing the 'model' in the current scenario of (growing air travel. In conclusion it is observed that short-haul journeys by air have been significantly impacted upon by the 'price factor in the region which has a large expatriate working class population.

Suggested citation

Upadhya, A. (2006). Low-Cost Strategy in the Air: Air Arabia- First in the Middle East. Skyline Business Journal, Volume 2, No. 1, pp 27-32.