The Re-establishment of SAMA Airline (LCC in Saudi Arabia)

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TABLE OF CONTENTS

Introduction1

Background of the Company1

Purpose of the Study2

Literature Review2

Methodology3

Research Philosophy4

Sample size and sampling method5

Data collection method5

Pilot test of questionnaire5

Research Instrument - Development of questionnaire5

Sample size and sampling method5

Data analysis method5

Reliability and validity5

Ethics and legal considerations6

REFERENCES7

The Re-establishment of SAMA Airline (LCC in Saudi Arabia)

Introduction

The commercial airline industry in total is estimated to carry 1.25 billion passengers and 22 million tons of cargo, employ 22 million workers (3 million directly, 7 million indirectly, and 12 million induced), and account for one trillion dollars a year in economic production ($250 billion directly, $250 billion indirectly, and $500 billion induced)? Since 1919, when the first scheduled international service commenced between Paris and Brussels, the international component of the industry has played a prominent role in its development (Boyd et al., 2009 84). However, the last few years have seen this international component of airline operations emerge as the driving force behind the industry's growth and expansion.

Despite the fact that air transport derives much of its glamour and prestige from its perceived international character, its regulation is still characterized by an overarching nationalism. Many students and practitioners of aviation law are attracted to the field because it seems to combine law and commerce within an international scope. However, if they are interested in pursuing the international and commercial aspects of the industry, they soon realize that most of their time and energy will be devoted to overcoming or buttressing, international and national legal constraints. In the past few years, governmental fiscal restraints have lead to an increasing trend towards the privatization of airlines (Bartlett et al., 2008 129).

In most other industries, privatization is seen as the converse of nationalization. However in aviation, privatization is just the first step in the process of de-nationalization of the industry. The second step in the process must eventually be the dismantling of the various national regulatory structures which limit international participation. Like it or not, aviation legislators, executives and commentators must admit that recent regulatory and economic developments in the aviation world have and will continue to exert pressure towards the creation of a regulatory framework which would not hinder the development of global or multinational airlines.

Background of the Company

Sama Airlines is a low-fare airline in Saudi Arabia. Sama Airlines has reported that it is replacing its reservations and distribution system and moving to the most up-to-date version of Navtaire's New Skies reservations and distribution system. Navitaire is a subsidiary of Accenture and a provider of reservation and distribution systems for airlines.

The airline has said that the new services, such as advanced seat selection and the opportunity to pre-purchase excess baggage will be now available, plus a new range of fares to suit all passengers. In addition, the airline will also be introducing a two-hour grace period for all bookings, allowing changes to be made, with no change fee charged, if passengers make any errors in their original booking.

Sama Airlines has announced two new international routes between Riyadh-Asiut, ...