IMPACT OF RECESSION IN AVIATION COMPANIES OF THE MIDDLE

IMPACT OF RECESSION IN AVIATION COMPANIES OF THE MIDDLE EAST

IMPACT OF RECESSION IN AVIATION COMPANIES OF THE MIDDLE EAST

Abstract

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

The first chapter gives an introduction about the aviation industry in the Middle-East and the impact of recession throughout the Middle-East. 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. In addition they might also differ from one experience to another with the same customer. (Allister Bokman, 2008 Pp. 50.)

Chapter 2

Relation to Previous Research

The literature review will discuss all important facts and especially will provide the effect of recession in most middle-eastern airlines that include Emirates, Saudi Arabian Airlines, Itihad Airlines, Qatar Airlines, Royal Jordanian, Air Arabia, Jazeera and Oman Air. Fuel comprises the airline industry's second-largest operating expense following labor. According to the Air Transport Association, during times of moderate gas prices, the price of fuel costs. As issues like the the war in Iraq and other issues the costs of fuel are climbing. With every one-cent increase in the cost of jet fuel. As a fact to be further researched fuel hikes and passenger recession have been caused for economic hardship throughout the industry.

As a result, profitability has suffered due to the weakening economy. In the middle-east as is the case internationally, the air travel market on both domestic and international routes has been experiencing greater competition in recent ...