Organizational Behavior - Emotional Intelligence Customer Satisfaction Saudi Arabian Airlines
Saudi Arabian Airlines
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Saudi Arabian Airlines is the national airlines of Saudi Arabia and is based in Jeddah. It operates domestic and international scheduled flights to over 70 destinations in the Middle East, Africa, Asia, Europe and North America. Domestic and international charter flights are also operated. In 2006 Saudi Airlines began the process of wise development, dividing itself into Strategic Business Units (SBU); the catering unit was the first to be privatized. In August 2007, Saudi Arabia's Council of Ministers approved the conversion of strategic units into companies. It is planned that ground services, technical services, air cargo and the Prince Sultan Aviation Academy, as well as the catering unit, will become subsidiaries of a holding company. The company boasts about the punctuality of its airlines. Being the national airline of Saudi Arabia, it rarely has to spend heavy expenditure on marketing. Both the expatriates and residents of Saudi Arabia prefer to fly with Saudi Airlines. The airline keeps on launching magnetic schemes for the customers on timely basis. The company has made segmentation of customers on the basis of different sectors the airline flies to. For example the price and the services provided during the flight to the US are premier and are of executive standard. The fare of the US sector is high too. On the other hand the fare of the flight to the sectors like India, Pakistan, Srilanka etc. is comparatively quite low. The customers are provided with just the core services with very little add‐ons to it. The company earns heavy profit from the flight to US sector and makes it possible to bring down the price of the flight to Indian sector. This way, the company is able to compete with its competitors who try to attract customers towards them by using intelligent marketing tactics. The company identifies the summer season as the peak season and raises the fair of its airline by nearly six percent. This way the company enjoys a profit of six percent because, during the peak season, the customers do not really have any option other then flying with Saudi Airlines as most of the seats to different are pre‐booked by the offices that sponsor tickets for theirs employees.
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General data about saudi arabian airlines
Transcript of Saudi Arabian Airlines
Saudi Arabian Airlines is the national airlines of Saudi Arabia and is based in Jeddah. It operates domestic and international scheduled flights to over 70 destinations in the Middle East, Africa, Asia, Europe and North America. Domestic and international charter flights are also operated. In 2006 Saudi Airlines began the process of wise development, dividing itself into Strategic Business Units (SBU); the catering unit was the first to be privatized. In August 2007, Saudi Arabia's Council of Ministers approved the conversion of strategic units into companies. It is planned that ground services, technical services, air cargo and the Prince Sultan Aviation Academy, as well as the catering unit, will become subsidiaries of a holding company. The company boasts about the punctuality of its airlines. Being the national airline of Saudi Arabia, it rarely has to spend heavy expenditure on marketing. Both the expatriates and residents of Saudi Arabia prefer to fly with Saudi Airlines. The airline keeps on launching magnetic schemes for the customers on timely basis. The company has made segmentation of customers on the basis of different sectors the airline flies to. For example the price and the services provided during the flight to
the US are premier and are of executive standard. The fare of the US sector is high too. On the other hand the fare of the flight to the sectors like India, Pakistan, Srilanka etc. is comparatively quite low. The customers are provided with just the core services with very little add‐ons to it. The company earns heavy profit from the flight to US sector and makes it possible to bring down the price of the flight to Indian sector. This way, the company is able to compete with its competitors who try to attract customers towards them by using intelligent marketing tactics.
The company identifies the summer season as the peak season and raises the fair of its airline by nearly six percent. This way the company enjoys a profit of six percent because, during the peak season, the customers do not really have any option other then flying with Saudi Airlines as most of the seats to different are pre‐booked by the offices that sponsor tickets for theirs employees.
The company has an impressive fleet which is shown in the table below.
This big fleet and the boast of punctuality is the strength of the company. The low prices offered are the core competency of the company. The company provides values to its customers based on the different segments identified as mentioned above.
The company also has a frequent flyer program, which provides the member of this program with special advantages and attractions like relaxation of in‐cabin and off‐cabin weight of baggage.
The company also facilitates its customers with e‐ticketing which makes the purchasing process very fast and hurdle free.
The company has been suffering from poor customer relation due to the following incidents:
* 19 August 1980: Saudia Flight 163 Karachi‐Riyadh‐Jeddah was completely destroyed by fire at Riyadh airport with the loss of all people on board the L‐1011.
* On 23 December 1980, a tire on a Saudi Arabian L‐1011 exploded, penetrating the passenger cabin. The hole sucked out two passengers and depressurized the cabin.
* 12 November 1996: Saudia Flight 763 collided with Air Kazakhstan Flight 1907, resulting in the 1996 Charkhi Dadri mid‐air collision
* On 8 September 2005, a Saudi Arabian Boeing 747 travelling from Colombo to Jeddah, carrying mostly Sri Lankan nationals to take up employment in the Kingdom, received a false alarm claiming that a bomb had been planted on board. The aircraft returned to Colombo and, during the evacuation, there was a passenger stampede in the wake of which one Sri Lankan woman died, 62 were injured, and 17 were hospitalized. The aircraft had taken on a load of 420 passengers in Colombo.
* In 2007, a Saudi Arabian Boeing 747‐300 collided with Garuda Indonesia Flight 238, a Boeing 737‐500 during the 737's pushback. No injuries or fatalities were reported on both aircraft, and the Garuda was safe to take off
Despite of such happenings which led to poor customer relation and poor market reputation the company is now able to come up with new strategies and make a new image in the market which still attracts customers. The company still enjoys a big profit. The company needs to work a little on marketing.
Saudi Arabian Airlines has codeshare agreements with the following airlines:
* Air France
* Air Jamaica
* Egypt Air
* Etihad Airways
* Gulf Air
* Iran Air
* Mahan Air
* Qatar Airways
* SriLankan Airlines
* Syrian Arab Airlines As a conclusion I would like to say that adopting an effective marketing strategy would play a big role to manifold thecompany's profit. So we can say that today most of the companies go for adopting different marketing techniques so as to make the customers aware about their new products and also about the new features introduced by them in their product or service so as to increase their sales.
