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The Key Success Factors

The Key Success Factors

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Published by: lavender_soul on Dec 04, 2009
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The Key Success Factors of Oman Air :
To be able to face the severe competition in the aviation industry today, any airlinecompany must be efficient in some common areas related to its customers .OmanAir success factors can be noticed obviously in two areas : "1) attracting customersand 2) managing its people.
Attracting Customers
Oman Air attracts its customers through some "attractiveness factors" which arerelated mainly to the services such as: price, promotions, special offers etc.
Managing People
Oman Air employees are well trained , morlas, having the ability to offer help for allcustomers from different age, helath training,
Managing Finances
The last of the four areas is financial management, for which six factors are used. Unitrevenue and unit cost are important by themselves, but their relationship is alsoimportant. Therefore, we have compared both unit revenue and unit cost as well as theunit margins among the airlines. A measure of capacity to normalize these factors isused since the airlines fly all their available seats, not just those that are occupied.Better unit revenue may not be an advantage for an airline whose unit costs are out of line.In addition to unit revenues and unit costs, funding for growth is an important factor for an organization's long-term success. Most successful organizations choose to growover time. In the case of the airlines, growth is measured in terms of capacity growth.Furthermore, in order to grow, an airline needs adequate funds. To be attractive for most equity investors, an airline must grow its equity over time. Moreover, to beattractive to most debt investors, a reasonable debt-to-assets ratio is desirable. In thisrealm of funding, this study is less precise. However, in light of this study's prior research, the measures in this case appear to indicate the likelihood of enduringsuccess for the airlines.Sources :
Airline Industry Key Success Factors
The ability for airlines to succeed today is measuredaccording to several key success factors.
Pepperdine University 2009
Can you highlight the vision Jet Airways has embarked on?
The vision is to grow with quality and to make the airline- the passenger's first choice of flying.
What marketing strategy has Jet Airways planned to conquer the gulf region?
Jet Airways believe in Quality, Quality and Quality...Our Chairman Mr. Naresh Goyal believes that there is always room for improvement even for a perfectionist. He emphasises on Quality, flight on-time performance and passengesatisfaction. These are the three most important aspects which have elevated Jet Airways asone of the top five airlines in the world. Mr.Goyal's ability to take quick decisions and to takerisks while implementing such decisions are the key factors for the ongoing success of JetAirways. It is his vision, perception and perseverance that the airline is flying high and hasclimbed the summit of success.
What is the rapport between Jet Airways and Oman Air?
There is a great level of understanding between Oman Air and Jet Airways. Oman Air hasbeen very supportive. We look up to them as it is the national Airline of Oman. From now onwe will enjoy mutual cooperation, mainly in the aircraft handling and engineeringdepartments.
What is the kind of market response Jet Airways expects from the Gulf region?
There will be a healthy competition between the airlines. There is an aviation boom within andtowards India. The class of passengers traveling to and fro India has seen a phenomenalchange. At present, most of the executive positions overseas are held by Indians, and thereare many others who are highly successful in IT, Medicine and other fields. Thus thefrequency of travel of these Indians has increased drastically and because of the increaseddemand for Indian sectors every airline will get the passenger load
Do you have Mangalore sector on your cards?
Yes... we are well aware of the strong demand for the Mangalore sector. We are still waitingfor the green signal for destinations like Mumbai, New Delhi, Chennai and Mangalore.Mr. Abraham Joseph, Senior General Manager, Gulf, Middle East and North Africa said thatboth the governments of India and Oman have been very supportive towards launching the
flight and he added that he is very confident that the airline will be a success in the gulf region.Visibly elated, Mr. Jay David, Country Manager, Jet Airways Oman, reiterated the new sloganof Jet Airways Change the way you Fly and experience the Joy of flying.
The Key Factors chapter covers the industry's Key Sensitivities and Key SuccessFactors. The Key Sensitivities section outlines the key factors that are outside thecontrol of an operator in the industry, but are likely to have significant impact on a business. The Key Success Factors section details the factors within the control of anindustry operator and which should be followed in order to be successful in theindustry. Often this will include behavior that will help to minimize the effects of theKey Sensitivities.
Industry Issue Paper
by Catherine C. Giapponi and Carl A. Scheraga
This paper argues that a critical dimension in understanding the factorsthat inhibit the effectiveness and benefits of airline alliances is corporatetransparency. Specifically, the issue of transparency in corporategovernance is considered. Corporate governance is the set of institutional arrangements affecting corporate decision making, and deals with therelationship among various participants in determining the direction and  performance of corporations.However, airline strategic alliances span an array of national cultureswhich influence the development of such relationships. The impact of national culture as a determinant of governance transparency is alsoinvestigated in this paper. This study draws on the literature whichexamines the impact of national culture on international joint venturesand governance systems. National cultures are described by Hofstede'sfive dimensions of power distance, uncertainty avoidance, individualism,masculinity, and temporal orientation.Governance transparency is investigated by the examination of corporateannual reports. Thus, this study investigates not only the level of corporate governance transparency demonstrated by participants in eachof the three major airline alliances, but the relationship between said governance transparency and the cultural identity of each of the participants.

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