StudentShare solutions
Triangle menu

Etihad Airways - Case Study Example

Not dowloaded yet

Extract of sample
Etihad Airways

His major aims were to increase the profitability and the yield by 2010. In order to satisfy this condition, James came up with a second bag charge to be imposed on the customers. The case also gives out certain aspects of the future plan of the airline. The airline has placed an order for 205 aircrafts for $43 billion. This will increase the fleet size to 100 in 5 years. This move will generate more revenue as the capacity of the airline will increase. The case says that Etihad Airlines gives much importance to customer value. They have a loyalty program for their customers which is called Etihad Guest. It includes features like, immediate rewards, no black-out periods, anytime availability, widest choice, miles plus cash, miles that are worth more and family membership. They had high end redemption awards. The case further says that the Indian market shows much stronger signs of improvement. Given, the current scenario, a passenger seat load factor of 76-77 percent is being expected.
The Etihad Airlines is under a major issue of profitability and yield. James was hired to take the airline to profits by the year 2010. However, the chances seem to be slim. The International Air Transport Association has showed concern and has estimated that the global aviation industry will show a global net loss of $5.6 billion in the year 2010.
To face the problem, James has ann...
However, the chances seem to be slim. The International Air Transport Association has showed concern and has estimated that the global aviation industry will show a global net loss of $5.6 billion in the year 2010.
To face the problem, James has announced the charging of second baggage to customers to increase revenue. However, the major question which it posses it is, whether such a move is profitable I the short run as well as the long run. And also what are the other options to achieve the target as well while maintaining the customer value or adding it.

Literature Review

Profitability is the term used to describe the ability of a company to earn profit (profitability definition).
Passenger seat load factor is the measure of the airlines passenger carrying capacity being used.
Second Baggage is the fees charged by an airline for carrying excessive baggage.
Value proposition states that the functional and emotional benefits attached with a product or service is communicated in such a way that it appears higher than the cost of the product or service to the customer (Philip Kotler, 2009). A tool to identify ways to create more customer value is the value chain (Philip Kotler, 2009). The value chain shows the primary activities and the supporting activities of the business which together create value for the customer.

Source: (Philip Kotler, 2009)


Etihad Airways Strategy (Hogan, 2008)

Etihad Airways does a lot of innovation to keep up the standards realistic to the market place. It has a clear policy of providing the customer with the best that there is. They have been using the below mentioned techniques:
To reduce the costs they have been reducing space within the aircraft by maximizing the number of seats to the extent possible.
They have been trying ...Show more

Summary

Based in Abu Dhabi, Etihad Airways was established in 2003 and is the flag carrier of Abu Dhabi, United Arab Emirates (Etihad Airways). It operates services to the Middle East, Europe, Indian Subcontinent, North America, Far East, Africa, Central Asia and Oceania (Etihad Airways)…
Author : chanelle48
Etihad Airways essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Etihad Airways"
with a personal 20% discount.
Grab the best paper

Related Essays

E-commerce organization: Background, Business Processes Analysis, Security features, Recommended overall improvement
The clients of the company belong to diverse countries of the world and are used to travel by air internationally as well as nationally. The company has a huge number of employees in different departments, which are increasing day by day; hence, the size of the company does not limit to the UAE – it has outlets all over the world.
9 pages (2250 words) Case Study
Qatar Airways Marketing Strategy

This same study aims to improve on the research results of the two previous studies cited above which are a decade apart. It is worth mentioning that after almost a decade also, this particular study on Qatar Airways’ nation and tourism branding will add up to the body of knowledge in marketing for the airline industry.

11 pages (3500 words) Case Study
Business analysis (British Airways)
British Airways Chief Executive Willie Walsh unveiled the British Airways Business Plan Year 2006-2008 in 2006. So now in 2008 February , this statement have to be seen in the context of the goals which were made back in 2006. Let us start with looking at British Airways themselves , So that we get to know the Airline.
10 pages (2500 words) Case Study
JetBlue Airways
The company went public or began carrying out public functions in the year 2002. Most of its executives were former employees of southwest airlines which saw the airline adopt the approach of southwest airline of low-cost maintenance. It is relatively smaller than the southwest airlines but most recently it has posed a major competitive threat to southwest airlines.
14 pages (3500 words) Case Study
British Airways Case Study
It is first of all necessary to understand the factors that determine long term financing and how this could impinge operations of BA. It is seen that, by and large, there are a number of determinants that constitute the pattern of financing that needs to be followed by BA and they are as follows:
10 pages (2500 words) Case Study
Royal Thai Airways
Briefly after on October 26, 1997, Varig Brazilian Airlines joined the consortium carrier group in an integrated worldwide air transport network. Partnership between the six carriers formed 'the strongest airline alliance in the history of commercial aviation with the most extensive network covering major destinations over six continents.' Through partnership collaboration, RTA works toward promotion of aviation rights development of Thailand's tourism industry 'as means of generating additional income both in Thai baht and foreign currencies.' Conclusively, RTA is both a brand and a national identity strategy; a corporation dedicated to 'spreading awareness around the world of the uniquenes
10 pages (2500 words) Case Study
Gulf Air
Despite these destinations gulf air's aircrafts also fly to other destinations of the world as well. Golden Falcon represents the logo of the company which is shown as flying high on the company's aircrafts. Gulf air had a humble start more than half a century ago but it has since then blossomed into a very well established corporate entity since then.
10 pages (2500 words) Case Study
Report on British Airways
It serves 150 destinations in 75 countries around the world to transport 36 million passengers in a year (BA fact book 2007; british-airways.com). BA is the founder member of oneworld airlines including American airlines, Quantas, Iberia, Cathay Pacific etc.
8 pages (2000 words) Case Study
British Airways strategic management
It is further stated that the principle benefit of strategic management is help the organizations to formulate better strategies allowing the organization to be more proactive than reactive in shaping its own future (David, R.F; 2006, p, 15). It is further stated by David, W.G.
5 pages (1250 words) Case Study
Project Managment
ompletion, the end product should be well recognized with the “Establishments” providing the promotional material, in which when the I.D is presented, all benefits be provided to the employee as per agreement with “Etihad Airways” and the “Establishment”. The
3 pages (750 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation