Final Project Air Blue Airline: Submission Date: 24 December, 2018
Final Project Air Blue Airline: Submission Date: 24 December, 2018
Final Project Air Blue Airline: Submission Date: 24 December, 2018
Introduction:
Air blue is a private Pakistani airline with its head office on the 12th floor of the Islamabad
Stock Exchange (ISE) Towers in Islamabad. It started its operations on May 24, 2004. It is
Pakistan's second largest airline with over 30% share of the domestic market. Air blue operates scheduled
flights operating 30 daily services linking four domestic destinations and international services to Dubai,
Abu Dhabi, Sharjah, Muscat and Manchester. It carried1.4 million passengers on domestic flights in
the 2006-07 fiscal year. Its main base is Jinnah International Airport, Karachi. During the first year the
airline became very popular, which allowed the airline to compete directly with the PIA and
Shaheen.This allowed the airline to expand into more cities in Pakistan including Peshawar and
Nawabshah. On 14August 2005 (Pakistan's 58th Independence Day) Air blue launched its first international
flight from Karachi to Dubai.
VISION STATEMENT
PIA is the oldest airline in Pakistan and has the first mover’s advantage. It flies to 82
destinations.
Shaheen:
Shaheen is the second national airline after PIA. It is mainly focus on International
customers.
SWOT Analysis:
Strength:
98% punctuality of on-time flight departures
More technology oriented.
Leading market position
Efficient e-ticketing and wireless e-check.
Lesser workforce because of extensive technology usage.
Package for students and special children.
Air blue showed a record operating profit of over Rs 150 million for year 2006.
Weakness:
Air blue 2010 plane crash.
Do not offer business class travel.
Not having its own repair and maintenance facilities.
Less number of staff.
It connects only 7 cities of Pakistan.
Not operating flights for Hajj Pilgrims, which could be a major source of
income.
Weak Promotion.
Opportunities:
Introducing new domestic and international routes like India, China, Gulf etc.
Business class travel and high quality services
Better training programs
Threats:
Fluctuating petrol prices.
Terrorism
Accidents
Incapability of national airport runways to handle big crafts.
Pest Analysis:
Political factors:
Increased competition.
Directly influenced by political conditions.
Pakistan’s Civil Aviation Authority (CAA) rules and regulations.
Tax rates.
Economic factor:
Increase of interest rates
Rise in GDP
Prices of the competing airlines.
Inflation rate
Social factors:
Increased awareness among passengers
Privacy concerns
Increase travel lifestyle
Fluctuating consumer preferences
Increase in number of people for Hajj and Umrah.
Technological factors:
E-Ticketing (SABRE system)
automated check- in systems
In flight entertainment
SMS services.
Efficient aircraft.
Ansoff’s Matrix
Market penetration occurs when a company adopts a low cost strategy to induce
customers to try its product or service. It is important to note
here that market penetration strategy begins with existing customers of
t h e organization. This strategy is used airlines to increase sales and market
share without drifting from the original product/market strategy.
Air blue tried to entice its current customers to use more of the company’s services
by offering various discounts and schemes such as student and old citizen discounts
and Blue Miles.