Impact of Recession in Gulf Aviation Industry

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

Executive Summary

The recession has greatly affected the air transport companies in the Middle-East and indirectly because tourism is one of the secondary human needs to give it up, but nonetheless flourishing sector so the past years can be restored to its original level and profit growth especially as some areas are economically linked directly to it. The danger of rising oil prices and increase in ticket prices which would reduce the chances of recovery in air transport. Most airlines have taken heavy losses and to withstand the crisis had to use various different marketing policies of lower prices or promotions in order to diminish losses.

However, some signs have predicted a recovery through marketing strategies and better positioning in tourism demands of the air transport companies which may probably effect positively. Economic performance and efficiency together become salient features supported by by better marketing strategies.

Chapter 1: Introduction

Table of Contents

Table of Contents1

Problem Statement2

Project Background2

Objectives of the Project3

Purpose of the Project3

Research Questions4

CHAPTER 2: RELATION TO PREVIOUS RESEARCH5

CHAPTER 3: METHODOLOGY50

CHAPTER 4: DISCUSSION AND ANALYSIS60

CHAPTER 563

Reflections63

Recommendations83

REFERENCES…………………………………………………………………………………………………………………………………………………………………..84

Impact of Recession in Gulf Aviation Industry

Problem Statement

To identify the reasons of the impact and problems associated with the Middle Eastern airlines going through recession.

Project Background

The role and operation of Middle-Eastern airlines, consumer likes, dislikes and risks involved will be analysed. In addition to that the reasons of the impact and problems associated with the Middle Eastern airlines going through the recession. Fuel comprises the airline industry's second-largest operating expense following labor. Information and material related to the positioning of middle eastern airlines will be based on the consumer perceptions.

Facts associated to the airline marketers who enjoy little control over the positioning of their products because of the nature of the services business. Services provided by airlines are not as complex as high technology products, but they are made up of a very complex mix of intangibles. The chapter will cover information about Airline products that are not considered physical objects, but performances and experiences are important and matter more. (Allister Bokman, 2008 Pp. 50.)

Objectives of the Project

The objectives of this study are to analyze the:

Effects of the recession on middle eastern aviation industry

How companies have reacted to the recession especially companies in the aviation industry through marketing strategies.

How will companies deal with the permanent changes that come from the global recession?

Analyses of the different strategies used by different avaiation companies in the middle east to stay in business during the recession.

Purpose of the Project

The purpose of this dissertation is to explain the ways in which recession has affected the aviation operations in Middle East and the domestic and international sourcing strategies that shape them. Middle Eastern aviation customers are now putting increased pressure on their airlines to provide technical solutions and to develop links with other customers for the first ...