arik air strategy1
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ANALYSIS OF THE AIRLINEINDUSTRYARIK AIR
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OUTLINE
Aviation in Nigeria
Industry overview
Industry structure Key success factors
Differential performance
Conclusion
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Quote
The Nigerian Government,To provide a safe efficient, reliable, dynamic,
customer-focused and market driven air
transport services which will make the countrya leading hub in Africa and a major participantin global aviation and at the same time makesignificant contribution to Nigeria's gross
domestic product. (GDP)
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Aviation in Nigeria
Aviation is a complex industry: It is divided into 2major parts.
All over the globe, aviation has become a majormeans of transportation and communication
Nigeria has placed substantial premium on the
development of civil aviation
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Industry Overview
A proposed entrant should know that the aviationindustry is highly capital intensive with hugeinvestment in aircraft
The aviation industry suffers from inadequatefunding and availability of funding for the industry ishampered by factors including legal, regulatory,political and economic factors.
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Financing Options
Outright purchase
Installmental payment
Borrowing and equity contribution Finance lease
Operating lease
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AERO,CHANCHANGI,IRS,ARIK, DANA, AIRNIGERIA, FIRST
NATION
OIL MARKETINGCOMPANIESAIR-PLANE
MANUFACTURERSGROUND
HANDLING
ROADRAIL
EMAILPHONE
MAIL/COURIER
TRAVEL AGENCYINTERNET
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KEY SUCCESS FACTORS
People
Service product/promotions
Route system Revenue/cost control
Financial management
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Business Focus
ArikAir ensures the highest standards ofsafety and security are sustained as theydeliver the following services
Scheduled passenger service Passenger charter flights
Executive charter flights for corporate organizations andVIPs
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Differential performance
On site aircraft maintenance by LufthansaTechnik
Minimum response time to confirm bookings
Round the clock service
International safety standards
Expert expatriate management team
World class customer service delivery
Value added benefits like flexibility, morechoice of schedules and frequencies
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9%
28%
40%
10%
5%
8%
Market Share
Virgin
Aero
arik
dana
Chachangi
Irs
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0
10
20
30
40
50
60
14
26
58
1310
17
Number of Routes
Virgin
Aero
arik
dana
ChachangiIrs
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
8%
23%
41%
8% 4%
11%
Passenger frequency
Virgin
Aero
arik
dana
Chachangi
Irs
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0
20000
40000
60000
80000
100000
120000
140000
Arik Aero Dana Airnigeria
LAG - PHC - LAG
Economy
Business
PRICING
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0
20000
40000
60000
80000
100000
120000
Arik Aero Dana Airnigeria
LAG - ABJ - LAG
Economy
business
PRICING
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Current Route Network
Primary hubs Lagos and Abuja
26 routes domestic
20 airports domestic
Per week 150 flights
Secondary hub - Port harcourt
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`In Conclusion
Arik Air has delivered:
Brand new aircrafts
First class maintenance
Developed new routes
Developed infrastructure
Carried over 2,700,000 passengers
Appointed as National carrier of NigerRepublic
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So.
Havent they created a world classairline that, in Sir Arumemi-Ikhideswords, Nigeria and the rest of theworld would be proud to fly?
We believe they have
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