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

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ACKNOWLEDGEMENT

I am very grateful to my supervisor, family and friends for their immense support, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

The aim of this study is to examine the re-establishment of a low cost carrier called SAMA located in Saudi Arabia. The company was launched in 2007 and forced to close in 2010. The purpose of this dissertation is to analyse the strategies of the company for its re-establishment. The major topic of concern for this particular research study is the strategies behind the successful re-establishment of SAMA airline. This study address the key factors behind the successful re-establishment of an airline which had been forced close in 2010. The management of SAMA decided to re-establish the services of the company for this purpose they required a competitive team, an effective leadership and a strong CSR approach. This research paper shade light on all these aspects of SAMA airline. The SAMA airline strategy is quite effective for the re-establishment. The SAMA airline decided to utilize technology for the reduction of cost and offer better services and high amount of convenience to the passengers. To achieve the recognition, desires and needs the SAMA airline will utilizes a combination of methods. The company should strength their CSR for gaining the positive response from the customers. The company can gain good advantage from public relations.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Research Background1

Background of the Company1

Problem Statement1

Purpose of the Study2

Research Questions2

Significance of the Study2

CHAPTER # 2: LITERATURE REVIEW3

Airline Industry3

Saudi Airlines4

The Impediments to Internationalization4

The Link between Governments and Airlines5

The Airlines' Need for Size and Scope5

Airline Franchises5

Airline Alliances6

Classification of Airline Alliances6

CHAPTER # 3: METHODOLOGY8

Research Design8

Research Philosophy8

Research Approach8

Sample size and sampling method9

Data collection method9

Pilot test of questionnaire9

Research Instrument - Development of questionnaire9

Data analysis method9

Reliability and validity9

Ethics and legal considerations10

CHAPTER # 4: RESULTS & DISCUSSION11

Introduction11

Respondents Profile11

Questionnaire Analysis14

Correlation Analysis21

CHAPTER # 5: CONCLUSION23

Effective Leadership Practices and Strategies behind the Re-establishment of SAMA Airline23

Strategies and Factor behind the Re-establishment of SAMA Airline23

Conclusion24

REFERENCES26

APPENDIX27

Questionnaire27

CHAPTER # 1: INTRODUCTION

Research Background

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 ...