Analysis of the Etihad Airways


Research Paper (postgraduate), 2011

17 Pages, Grade: B


Excerpt

Table of contents

Introduction

Etihad’s Objectives

Marketing Strategies

Haul Services

Abu Dhabi as a Hub Centre

The Minimum Passenger Connection and Lounges Services Provided

Frequent Flyer Programs

Conclusion

Reference list

Etihad Airways is one of the world’s most famous airline carrier based at the Abu Dhabi in the United Arab Emirates. This organization is well known for its quality cabin crew services it provides to its clients. The cabin crew is made up of highly qualified beverage and food managers, cabin mangers, cabin seniors and cabin crew who are dedicated to providing quality services to its clients, hence the organization’s top reputation globally. The airline operates in various destinations globally including Africa, Asia, Americas, Middle East and Europe. Alongside the airline services, Etihad airways operate other services including Etihad Cargo and Etihad Holidays (Saleem, 2010).

The organization has its head office in the Khalifa City in the Abu Dhabi international airport where the organization’s corporate activities are controlled at. The organization is governed by the board of directors consisting of seven non-independent executive members, an audit committee and an executive committee. The boards of directors are responsible for coming up with legislations, rules and policies which govern the organization. The winning of the World Travels award is one of the contributing factors among other wards which have contributed to this organization’s excellent performance and positive public picture (Lastrou & Oretti, 2007).

This airway carrier operates in a total of 86 destinations globally. These destinations are located in a total of 42 countries distributed across Africa, Americas, Europe, North America, Asia and Oceania. Etihad provides quality in-flight entertainment services to its clients meeting their comfort. The organization has partnership agreements with other airline companies which promote the company’s operations. These include the Aer Lingus, Bangkok Airways, Jet Airways and American Airlines among other airlines. Therefore, this paper will analyze in detail this airline operation including its marketing strategy, objectives, flyer programs, and its membership ties among other organization’s operations (Vedder, 2008).

Etihad’s Objectives and Purposes.

One of the objectives of the Etihad airlines is to provide airline carrier services to its esteemed customers globally with the dedication of meeting their clients’ expectations. Additionally, the airline was established in the United Arab Emirates to bear the flag globally. The acts of the airline were to carry the organization’s flag globally to its guests and express their level of hospitality to these nations. Furthermore the airline company wanted to provide the most modern flights to its customers hence, creating a competitive air transport market for its competitors (Ramavarman, 2010).

Furthermore, the airline was established with the core objective of ensuring that it unified the Eastern countries and the Western countries through the provision of its air services with the Abu Dhabi being the core Centre of all of these business operations. The organization aimed at providing luxurious tourism airline services to its clients and quality air cargo services to its clients alongside its other airline services. The airline cargo is handled with the responsibility of transporting precious cargo, goods and pets among other products. The organization operates in a system of products share to ensure that it maximizes the profits acquired from the sale of their products and services (Lastrou & Oretti, 2007).

Etihad’s Marketing Strategy.

To achieve the overall success in the competitive market, the organization came up with a carefully planned marketing strategy which acted as a driving agent towards the achievement of the organization’s goals and objectives. One of the marketing strategy adopted by this organization included coming up with both the short and long term goals to be achieved under specific duration of time. Breaking even by the year 201 was one of this organization’s short term goals. This was to be achieved through decreasing the flights costs which could ultimately lead to increased sales associated with the reductions of their flight costs (Zeith, 1988).

Additionally, this organizations short term objectives was to maintain its customer value through decreasing its services costs. The status quo of this organization was going to be maintained through the reductions of their costs of services hence, making the organization become the most luxurious in its services provision to their clients. The organization came up with long term objectives which could enable it maintain a quality market strategy. This included increasing the amount of their profits annually by 5-10% facilitating its competitiveness. Furthermore, increasing their customer’s value by a rate of 8-10% by the year 2015 was stated as the organization’s long term objective. Etihad had a long term objective of opening up Abu Dhabi to the outside world and increase the UAE staff by the year 2013 by 15% (Etihad Airways, 2010).

Product strategy was adopted as a method of contributing to the competitiveness of the Etihad in the market. This included providing both passengers and goods air transportation. To achieve its competitive advantage, Etihad airways augmented their products components both in terms of their product strategy and flight transport systems to the Abu Dhabi. The products components which contributed to this organization’s competitiveness included Etihad Diamond First class, Etihad Coral Economy Class, Etihad Crystals Cargo and Etihad Holidays among other products components (Milne, 2009).

The organization’s decision to have the Abu Dhabi to be its capital is one of the market strategies which contribute to this organization’s competitiveness. This is because; Abu Dhabi is one of the most growing cities in terms of economic development. Unlike other airline carriers which do not have lounges for the unaccompanied minor customers, the Etihad developed lounges for these individuals as a method of marketing strategy which contributed to its attractiveness hence, the competitiveness. This is accompanied with the development of the youth programs which contribute to its competitiveness (LaSalle, 2009).

The organization’s decision to adopt effective pricing strategy as a method of acquiring its competitiveness has contributed greatly to this organization’s great performance. This involves delivering somewhat services when compared to its competitors including the \British Airways and the Emirates airline. Place strategy adopted by the organization involving the distribution of its tickets both at the main offices and the agents globally has contributed to its excellent performance and positive picture to its customers. Additionally, place strategies such as online selling of its tickets and 24 hour customer care services have enabled the organization penetrate to the airline global market (FlightStat, 2010).

People strategy is another strategy adopted by this organization to achieve its desired market competitiveness. This includes employing well educated staff both on the ground and the air. The staff is trained to have skills such as being helpful and courteous to meet their customers’ demands. The provision of a simpler process for its clients has positively contributed to this organization’s competitiveness at the global market. This involves the use of less effort in services such as booking to the departure of the clients in their airports. The provision of check-in and check-out services at the various Etihad destinations has simplified the passenger’s travelling process (Basit, 2010).

The physical evidence market strategy used by this airline has created customers’ awareness to this airline and their services. This include the ETIHAD AIRWAYS written on their aero planes, in-flight entertainment systems, varied menu for its customers, sitting arrangements, spacious airport layout and its quality marketing team are some of the physical marketing strategies adopted by this organization enhances its visibility and attract its customers hence, its competitiveness. Various promotional strategies employed by this organization has enabled it penetrate into the global market attaining its competitiveness (Zeith, 1988).

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Excerpt out of 17 pages

Details

Title
Analysis of the Etihad Airways
College
The University of Liverpool
Grade
B
Author
Year
2011
Pages
17
Catalog Number
V215657
ISBN (eBook)
9783656441106
ISBN (Book)
9783656442523
File size
503 KB
Language
English
Notes
well done
Tags
Etihad Airways, Marketing Strategies, Etihad’s Objectives
Quote paper
Dr Alex Cole (Author), 2011, Analysis of the Etihad Airways, Munich, GRIN Verlag, https://www.grin.com/document/215657

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