Thursday, February 16, 2006

Air Arabia & its Competitive Advantage

Since two years ago when Air Arabia was unguarded, it started with a low-cost model. This model was planted in the corporate culture since day one, the CEO Adel Ali was very clear in his views. The low cost model is applied from front-line employees up to top management, the CEO uses both faces of paper instead of just one side. This made the employees aware to be a truly a low-cost carrier we have to start to save in every possible way. Air Arabia's head office is known for having chairs for employees only, so you'll always find chairs moving across the isle. This again passes the low-cost culture to all employees, that helps them always remember to save. Especially with some of the well qualified staff that joined Air Arabia from other conventional airlines, were saving is not that big of an issue, so the difference in culture must be digested. Being able to do that Air Arabia has able to keep its cost low which made them have a competitive advantage over its rivals.

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