Experience ETIHAD

The Arabian Dream liner

A Marketing Research on Etihad Airways

Coventry University Business School - MBA Coursework: A Marketing Research on Etihad Airways Experience ETIHAD The Arabian Dreamliner

In partial fulfillment of the course M04MKT MBA September 2011 Submitted to: Module Leader Seminar Guide Mr. Bal Samra Mr. Bhajan Singh Aulak

PRINCIPLES OF MARKETING

Date: 6-December-2011

By Concept Crew: The International Marketing Group Denis Sablin (SID: 4014216) Cem Dogu Kocaturk (SID: 4041577) Arjun Raj (SID: 3961629) Andrew Rowan (SID: 2959357) Srijit Thankamony Madhusudhanan (SID: 3864087) Akhil Vijayakumaran Nair (SID: 4018683)

Executive Summary
Flying high from the Middle East skies, Etihad Airways the young carrier has positioned itself as a global aviation brand in a short time span of eight years. The Abu Dhabi based carrier started commercial aviation operations in late 2003 and has achieved the status of one of the world s rapidly growing airline during the challenging period of just eight years. The prosperous results of this early attempt can be attributed to the marketing strategy and initiatives of Etihad Airways which resulted in a strong global aviation brand closely linked to world class service delivery, innovation and best in class service with Arabian Hospitality.

Experience ETIHAD

The Arabian Dream liner is a positivist marketing research analysis

report on Etihad Airways. This report talks about the different prospects of the marketing strategy and marketing initiatives of Etihad Airways and this report would talks about the business background and the market analysis followed by the marketing orientation of the Etihad airways.

Table of Contents

1. Introduction 1.1 UAE Aviation Industry 1.2 Organizational Competencies 2. Marketing Orientation .. 2.1 Customer Needs 2.2 Market Opportunities 2.3 Marketing Products and Services 2.4 Customers 3. Segmentation, Targeting and Positioning (STP) 4. Marketing Audit 4.1 Profitability of Market 4.2 Competitor Analysis 4.3 Customer Value 4.4 Customer Analysis 4.5 PESTEL 4.6 SWOT . 4.7 Porters 5 Forces 5. Marketing Strategy Marketing Mix 5.1 Etihad - Product Strategies 5.2 Etihad - Pricing Strategies 5.3 Etihad - Promotional Strategies 5.4 Etihad Place 5.5 Etihad People 5.6 Etihad Physical Evidence Strategy 5.7 Strategic Model - Ansoff Model 6. Conclusion 7. References 8. Bibliography 9. Appendix Price Comparison Table Market Share

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1. Introduction
The fastest growing airline company in recent times was founded in July 2003 by Royal Decree. Based in the United Arab Emirates (UAE) capital city, Abu Dhabi, they currently employ 7,855 people in 44 countries and fly to 66 destinations globally.

1.1 U.A.E. Aviation History

Due to the future decline in oil industries in the region the UAE government is actively diversifying into other industries with tourism and aviation the top priorities. UAE s first airline company was established in March 1985 with Emirates. Fast economic growth in Asian countries like China and India and their business relations with other parts of the world and also the labour from those areas that work in the gulf region generates a huge potential for the aviation industry. There is also benefit from the increase in the cargo business between Asia, Africa, Europe and the Americas. The region is now on its way to becoming an international air hub, trying to redirect passenger flows between Europe, America and Asia (Vespermann, Wald and Gleich 2008).

Today the advancement of the aviation sector is one of the main approaches for the region to become a global centre for business (trade and commerce). Thus the

regional governments are facilitating the aviation sector and attend many international exhibitions and fairs.

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1.2 Organizational Competencies

Etihad Airways placed the biggest order in aviation history with up to 205 aircrafts at the Farnborough air show in 2008. Each year the company introduces a major campaign and invest seriously on marketing as the marketing department is so important in this sector and in Etihad it has three divisions, Sponsorship and Exhibitions, Brand Management and Visual Communication (Etihad Airways 2011).

Etihad are a major competitor with different strategies in the industry as in one of his speeches in Canada, CEO of the company James Hogan states We have a mandate from our shareholder. That mandate is to be the best airline in the world, not the biggest (Etihad Airways 2011).

2. Market Orientation
Customer satisfaction and needs are the focus of market orientated companies. Change and adaption are endemic for survival, responding to market opportunities will drive companies. Market driven companies seek to adapt their product and service offerings to the demand of current and latent markets (Jobber 2007).

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Marketing Orientation (Jobber 2007)

2.1 Customer Needs

Etihad initial focus is passenger s whose primary location is based in Al Ain or Abu Dhabi, travelling via Abu Dhabi International Airport. This was reflected in an earlier advertising campaign slogan from Abu Dhabi to the world . This has since been

developed and evolved through a range of campaigns to fly with the best .

Market research led to the development of tailored personal flight experiences showcased by the 2010 television advertising campaign titled he likes, she likes . The 2011 advertising campaign builds on the product inspired service philosophy with focus on promoting United Arab Emirates as both a top tourist and business destination in the world.
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Qualitative aspects of promotions are analysed to further understand and respond to customers needs and also to assess the effectiveness and the value of company exposure through sponsorship.

2.2 Potential Market Opportunities

Etihad has currently segmented its customers on the basis of the purpose for which they travel, thus you have passengers segmented into tourist, personal, religious and business (Milne, 2009). With anticipated growth in tourist arrivals estimated to increase to 3 million by 2015 from 1.34 million in 2006 (Jones Lang Lasalle, 2009) and the subsequent increase of Abu Dhabi International Airport capacity to handle upwards of 50 million passengers annually. Etihad needs to take advantage of this opportunity by understanding what the customers need and meeting these needs. Etihad is expanding its global contact centre organization, holiday, and cargo businesses to take advantage of its customers growing needs. Etihad is not a member of any global alliances, preferring affiliate and bilateral relationships with other airlines. These relationships, either codeshare or special prorate agreements help to increase and enhance the network it can offer to its customers. These agreements also work in reverse enabling partners access to Etihad s vast network.

2.3 Marketing Products and Services

Marketing concept; the achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition (Jobber, 2007). Etihad s integrated marketing approach has set it apart from other carriers. This integrated approach is similar to how DHL marketed itself in the USA when competing
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against Federal Express and UPS where specific advertisements were focused directly at the people who make the decisions on which freight company to use. Etihad s advertising material has been distributed via trade, customer and VIP events, including the airlines own channels. The high quality collateral material was reflective of the personalized, luxurious services offered. As the official flag carrier of Abu Dhabi, the Etihad brand is used to reflect the same values. The advertising shows the attention to detail and effective integration from all areas of the business and how they work together to give the ultimate luxurious flying experience. Brand building has been further enhanced with the key sporting and cultural sponsorship events both in Abu Dhabi and around the world, these include sponsorship deals for the Abu Dhabi F1 grand prix, Manchester City football club, Sport Australia hall of fame, Rugby, Golf, Hurling and many other art and cultural events from around the world.

2.4 Customers
Analysis of the microenvironment and more specifically its customers will show; who the customers are, customer segmentation, why, when and how they choose Etihad. Recent research has driven a number of customer focused events to improve the customer experience and increase satisfaction, these include:1. Introduction of self-service kiosks 2. Extended chauffer service 3. Improved menu fine dining experience (Etihad, 2011)

4. Increased destinations and countries 5. Latest more efficient aircraft 6. Improved loyalty program 7. Improvements in all flight classes
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8. New airport lounges 9. Priority boarding 10. Designer uniforms for air and ground staff

The above improvements all confirm Etihad s vision for the future. And we are always in touch with your needs. That s why we are constantly innovating, taking the smallest detail into account in our pursuit of excellence and perfection (Etihad, 2011)

3. Segmentation, Targeting and Positioning ( STP )

The marketing strategy of an organization depends on the anticipated customer needs, behavior and characteristics of the marketing environment. Segmentation and targeting processes are used to classify the customer behavior and target the customer in the market and positioning is used to create an image in customer mindset. (Jobber D, 2010)

(Las Perner , 2011)

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The segmentation of Etihad airways is based on the Geographic, Psychographic and Behavioral attributes of customers like life style habits and social class of customers. Etihad focus on a safe and reliable corporate image with brand building activities and online promotions. The main target groups of Etihad are the business travelers and the leisure travelers. The augmentation of product and service offering is achieved by the different seating arrangements like diamond, pearl and coral classes, other value added services like ICT services and special services like religious and medical services. The target reach is achieved with own flights and code share agreements of Etihad Airways. Etihad position itself as a full service carrier (Premium Positioning) with the other premium carriers like Emirates and Qatar Airways. The performance positioning of the Etihad is acknowledged by the different awards in its profile. Etihad enjoys the advantage of a well positioned hub and focus on high standard service with marginal positioning in the market.

4. Etihad

A Marketing Audit

Etihad s marketing audit is a study on the various internal and external factors using the marketing analysis tools such as SWOT, PESTEL and Porters 5 Forces. The result of this marketing audit is to distinguish the various factors which influence Etihad Airway s marketing strategies

4.1 Profitability of the Market

The profits of the Middle East carriers are expected to fourfold this year to $400 million through increased passenger traffic and cargo traffic. The region will act as a hub between Europe and Asia, as per the latest forecast from the IATA (International Air Transport Association, 2011)
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The report points to the growing role carriers in the region are playing in the global travel industry. The IATA tripled its earnings forecast for the industry to $8.9bn worldwide this year based on a stronger than expected recovery but said profits would encounter turbulence next year and slow to $5.3bn. It warned the industry would achieve only "razor thin" profit margins and could come down with a bump as austerity measures bit across the globe. (The National, UAE, 2011) Etihad announced promising positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) in 2011 Q1, with revenue growth of 28 per cent. (The Business Traveller, UK, 2011)

4.2 Competitor Analysis

Etihad main competitors are the players from the same region rather than European, American or Asian airlines. Qatar Airways which is operating in Doha as a hub and their biggest rival Emirates which is also from UAE and uses Dubai as its hub. Emirates Airlines is the dominant carrier, although Qatar Airways and Etihad, combined, are roughly 70% of its size. Emirates turnover is almost 20% of Dubai s GDP, and the airline is regarded as the embodiment of Dubai s rapid rise to international prominence (O Connell 2011). In addition, Emirates is spending huge amount of money for its brand awareness especially in sports like $380 million in 2008 which is %4 of its turnover.

These carriers are mainly based on extra-regional services. Emirates are offering 82% of its seat capacity on extra-regional services. Most other important carriers from the region like Etihad (74%), Qatar Airways (66%) and Gulf Air (54%) also operate more than half of their seats on extra-regional flights (AEA, 2006). Air France (26%) and Lufthansa (23%) show that the share of extra regional offer for European network carriers is considerably less, indicating that these carriers have stronger domestic markets. Seat offer by Middle Eastern carriers to Europe is concentrated around three
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countries

the United Kingdom, Germany and France

which together account for

64% of offer (Vespermann, Wald and Gleich 2008).

Qatar Airways continues to invest in both its fleet of aircraft and at the same time its hub. For instance the company set up an additional terminal only for First Class and Business class passengers to minimize the queuing. The new terminal for premium passengers will be a big boost for Qatar Airways. It is the first of its kind, not only in the Middle East, but anywhere in the world (Clothier, 2006) as company s CEO Akbar Al Baker states. The company has strong policy to expand and since 2010 they launched 25 new destinations. So with these new routes they fly to 101 different points worldwide. They are also about to announce a new business class for their passengers aimed at differentiating them from their competitors. One of the important advantages of Etihad competitors is their hubs which are located on highly attractive touristic locations with significant purchasing power like Dubai.

Also these competitors, especially European carriers have good pricing systems, for example, have been developed in decade-long processes and are difficult to copy. Other important fields and assets for reaction are strategic networks and co-operations, frequent flyer programs and booking systems (Vespermann, Wald and Gleich 2008).

According to the Centre for Asia Pacific Aviation, the market share of Etihad in the Middle-east region is nearly 4.5% with stiff competition from the market leader Emirates at 19.3 % & Qatar Airways which has a share of 6.2 %.As a young airliner which started its operations in 2003, Etihad has challenged these well established airliners & succeeded in strategizing its expansion spree in the middle-east aviation sector.

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(Centre for Asia Pacific Aviation, 2011)

Etihad s competitors weaknesses are generally their policies that focuses mainly high profit value customers instead of budget travellers and middle class travellers, they also when compared to European predecessors have less flights to the USA.

4.3 Customer Value

Perceptual segmentation of the market, whether it is perception, belief or value, shows how both individuals and groups understand the market place and it residual value. Successful marketing will understand this concept and focus in on the highest value customer base available (Jobber, 2007) It is perceived by the customer that they are receiving value when benefits outweigh sacrifice. Therefore:
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Customer value = benefit

sacrifice

Perceived benefit can be generated from the product (for example, first class travel), associated services (for example, the luxury of its airport lounges) and the company image (an attractive company profile giving a positive feel). Successful marketing will target customers from the largest value pool, communicate the perceived benefits in order to maximise spending.

4.4 Customer Analysis

Customer analysis is part of the microenvironment and focuses on buyer behaviour. Firstly, the target market or customer must be identified and then its requirements or needs conveyed. The marketing plan will then address these requirements and needs. An understanding of market segmentation, benefits sort, choice criteria, how they are rated verses the competition, distribution channels, promotions and price will be needed to complete the analysis (Kotler, 2005)

4.5 Etihad - PESTEL Analysis.

There are some factors in the macro environment that effect the decision making process in an organization. To help analyze these factors marketers can categorize it using PESTEL model. This distinguishes factors between political, economic, social, technological, environmental and legal.

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The political situation in Emirates gives a competitive advantage to UAE companies because of political stability in this region in comparison with other Arabic countries. Etihad is based in Abu Dhabi which is a rapidly developing city. Dubai has the advantage of starting its development earlier than other locations, but on the other hand now the growth of Abu-Dhabi s economy is higher. It even more influences the Etihad s role because its headquarters are located in a capital of the country. There is a competitive advantage for Emirates and Etihad airlines because they, as other companies in the country, benefit from a low tax regime and lower costs in domestic airports.

The currency value of UAE is closely associated to the US Dollar, which resulted in a lower exchange value base cost advantage over the EU rivals. The other features of macro environment are shown at the PESTEL diagram.

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4.6 Etihad - SWOT analysis.

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The SWOT analysis is a simple method used to synthesize the results of the marketing audit. Strengths and weaknesses are internal resources (controllable) or capabilities where threats and opportunities are external resources (uncontrollable). The analysis will help align strategies to the needs of the business (Jobber, 2007). Etihad s strengths are focused on taking advantage of their opportunities, having a strong market brand, the backing of the government helps them take advantage of the growth opportunities in the region. The matching of strategies is seen where in threats there is a shortage of trained and qualified personal so Etihad have set up their own learning academy. Conversion strategies can be used to remove any threats from the business, Etihad are working on developing environmentally friendly fuels to help address the environmental lobbyists, and this is further improved by the fleet of efficient planes. The benefits of matching and converging strategies using the SWOT analysis will reduce the threats to the business and help change weaknesses into strengths.

4.7 Etihad - Porters 5 Forces Analysis

Michael porter says that there are three horizontal and two vertical factors exist when we analyze the competition in a market. The porters 5 forces model can be used in the airline industry to evaluate the competitiveness in the airline industry. This model can review the internal as well as external competition in the industry. There are five factors included in the Porters analysis.

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Fig 1: Porters 5 Forces Model

Threat of New Entrants: Aviation industry was pretty tough for new comers to break into in the past. The entry barriers slowly disappeared when the borrowing became cheaper. Etihad is facing serious threat from the new entrants to the market. The new Middle East no frills carriers RAK Airways and Air Arabia are major concerns while considering the threat from new entrants. The Brand Name recognition and incentives to lure customers from the rivals, mainly from the Emirates and Fly Dubai are major threats to the Etihad.

Power of Suppliers: There are only a few suppliers in the aviation industry which leads to the dominance of the suppliers over the airlines. The aircraft manufacturers and the aviation fuel suppliers are very limited in their numbers and the airlines have limited influence on them. The advantage of Etihad is the support of Abu Dhabi government which is an OPEC member.

Power of Buyers: The customer power to influence marketing strategy or industry is very limited in airline industry. But the Arabian customer base can influence Etihad at least in the Middle East.

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Availability of Substitutes: Etihad has major concerns in the business class as the business travels are replaced by the technology and communications infrastructure. The Leisure travelers may choose either shipping or road travel as a substitute.

Competitive Rivalry: The competition is very tight in the domestic and international market for the airlines in tough economic conditions. Strong competition from the Middle East causes serious threats to Etihad.

5. Marketing Mix
There exist two key concepts in marketing management namely the marketing mix concept and the relationship marketing concept. Marketing mix is considered to be the foundation of marketing since 1950s where the 4Ps is the cornerstones of the concept. We can blend the concepts of relationship marketing with marketing mix concept as they can work in tandem. Some marketing experts debate over the fundamental reasons for extending the orthodox marketing mix also. The fundamental 4Ps and some weighted Ps are discussed in the below context for Etihad (Kotler et al, 2005). Based upon its understanding of customers, a company develops its marketing mix (Jobber, 2001:13).

5.1 Product

In general the product is defying as anything which is capable to satisfy customers needs (Jobber, 2010). Etihad is satisfying clients in different ways, so we should go deeper in theory to clarify what we are assuming of their product. Kotler defines product as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need and adds that products include more
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than just tangible objects (Kotler, Armstrong, 2005). This aspect is close to Etihad, because they don t offer airlines or seats inside it, but they are operating at the service market. So the core product of Etihad is definitely a service, the air transportation service.

Under definition of James Fitzsimmons service is

a time perishable, intangible

experience performed for a customer acting in the role of co-producer (Fitzsimmons, 2003).

The involvement of the customer in the aircraft routine and non-routine service and repair operations need attention to hanger design that is not found in classical manufacturing process. E.g. aircrafts are manufactured in factories and the supplier is of not worried about it, because clients first see the result as a well-operating mechanism in the pleasant surroundings of an air show. That s the reason for Etihad to pay much more attention to satisfy customers and not only with convenient routes of travel, but with lots of other features. It must be said they are operating with quality of services as an industry leaders. The core product is quality air transportation services, the company currently serves 66 destinations in 44 countries and Etihad has serious proposals to operate from more business hubs and tourist spots across the globe by 2020. The average operational schedules of Etihad are: 147 flights per day; 1,032 flights per week; 4,472 flights per month; and 53,664 flights per year ( Etihad , 2011 )

In the Gulf and Middle East they operate over 90 flight schedules per week from Abu Dhabi to 12 major airports within Europe. (Etihad, 2011)

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Etihad has major business opportunities in Australia and tremendous scope in the Australian continent. Etihad operates 21 schedules per week from Abu Dhabi to the airports in Australia. The company also operates 22 flight schedules to Northern East Asia and 14 schedules to East Europe (Etihad Airways, Feb 2011) One of the slogans of Etihad is a commitment to providing guests with a superior travel experience both inflight and on the ground. (Etihad, 2011). In the air product line of Etihad includes the following core services which are becoming well-known brands among customers: y Diamond First class: This service was presented in 2009 which can be converted into a comfortable bed for the passenger. Your cabin is isolated with two doors to make you enjoy your privacy. This service is available for flights from USA to Australia and already awarded as todays best first class. y Pearl Business class: This service of Etihad is also awarded as best business service both because of convertible seat to a bed and wider at the same time when compared to its competitors. Additionally it has entertainment systems and well-designed lighting system. y Coral Economy class: This is also a new service which is mainly focusing on families and provides support including guiding, new menus and entertainment before and during the flight. It draws attention that all of the products mentioned are still young, but surely they have passed successfully the stage of introduction (at least at basic geographical destinations of company) and their lifecycle is now at the stage of growth.

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When reading different prospects of Etihad, you are paying attention that every product of company is suggested the idea of high quality. Quality (including services) is defined in different ways and is often considered as measure of excellence, but this is very misleading as quality is really a comparative evaluation of one product against another (Addock, 2000). Speaking about flight services in Etihad, clients are mentioning that their quality is incomparable. The best way to approach quality is to understand that it is everything that leads to customer satisfaction. To further improve customer satisfaction and the whole flying experience Etihad is also offering the following air service package enhancements: y Interior Finish: Every seat has its own screen for entertainment purposes and it has many other details on the seat for a comfortable flight. y Dining: This is another exciting experience especially in Diamond class and Pearl Business cabins (Etihad, 2010). Although In the Coral class customers can choose three main courses, one of which is normally inspired by the destination. y Inflight entertainment: In every Etihad flight you will have a choice of hundreds of movies and music channels, radios and pc games for pleasurable hours during the flight. y Inflight Duty Free: Etihad offers all guests the opportunity to shop inflight from the airline s exclusives range, featuring more than 170 products (Etihad, 2011).

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Etihad also offers facilities for children and families for all users as well as first class commodities of top brands for Business class passengers. The augmented product of Etihad is a range of on-the-ground services as top-class lounges, which are now spread all over the world, Etihad has also an exclusive service that is called Etihad Chauffeur and it provides a rare travel experience, Online check-in, Priority boarding, Luxury coach Service in Abu Dhabi. Therefore, Etihad as a successful company with great investment opportunity creates the service profit chain, which provides all range of services from home in Abu-Dhabi through luxury coach and auto check-in to comfortable business class seat and finally to a limousine in London, which can drive you to your destination hotel. This chain of services deals with not only with satisfied and happy clients, but with trained, hardworking and well-paid employees as well, due to greater service value and retaining superior firm performance and economic growth as a result. All the five elements of Kotlers s service profit chains are here. The Etihad managers continue the service profit chain by providing a limousine service from home to the airport and then to the final destination. In 2009 the plans to penetrate the hospitality sector were announced. Now they are finding its reflection in a loyalty program with Habtoor hotels, building hotels near Etihad stadiums etc. Management also understanding that even such a great company can t provide access to all destinations by air. To this reason there is an Etihad rail covering 1200 km of railroads in Gulf region and some loyalty programs with railroad companies abroad, for example; French SNCF. Etihad is not a member of any global alliances, preferring to affiliate and bilateral relationships with other airlines, hotel chains and railways and like loyalty programs. This makes your trip more comfortable and on the other hand bounds the consumer to Etihad with the system of accumulating miles and associated benefits.

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Etihad both their brand and the word of mouth can be a guarantee to a client, that the product of a company can match the highest expectations. We shouldn t pass by the plans of Etihad to enter the low-cost segment, which were announced in summer 2010. This is about destinations which have high demand for economy traffic and low demand for premium traffic such as Alexandria, Calicut, Colombo, Damascus, Doha and Thiruvananthapuram (Zawya, 2010). This is not a classical low-cost, because passengers are provided with beverages and similar facilities like clients at standard flights, but there are more seats in such airplanes and cheaper prices. In general the development of this sector doesn t seem to be cloudless, because there are already some low-cost operators in both the Gulf and India regions which have a competitive advantage in price.

Etihad is also operating in the cargo sector which is a profitable one but is not a core product for this company.

Let s place the products of Etihad in BCG Matrix.

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5.2 Pricing Strategy and Practices

Price can be defined as The amount of money charged for a product or service, or the sum of the values that consumes exchange for the benefits of having or using the product or service (Kotler et al, 2005). Pricing is a fundamental element used in the concept of marketing which produces revenue and one of the most basic elements of the marketing mix. The pricing decisions of a firm are influenced by micro economic and macro-economic factors in the aviation business.

Internal Factors Marketing Objectives Marketing Mix

External Factors Nature of Market and demand Competition Pricing Decision Other environmental factors (Economy, resellers, government)

Strategy Costs Organization for Pricing

(Kotler et al., 2005)

The common pricing objectives in any organization are Increasing Profit, Increasing Revenue, Increasing Quantity, Increasing profit margin and sustainability of the business.

The price that company charges will be somewhere between one that is too low to produce a profit and one that is too high to produce any demand. Producer costs set a
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floor to the price; consumer perceptions of the product s value set the ceiling. The company must consider competitors prices and other external factors to find the best price between these two extremes (Kotler et al., 2005).

We have different approaches in fixing the price for a product or service. The pricing approach is connected to three factors namely cost, consumer perception and the competitors. The main approaches are listed below: 1. Cost based approach 2. Buyer based 3. Competition based 4. Complex dynamic pricing The complex dynamic pricing approach is used in the airlines as the competition is so close in the industry. Two types of marketing strategies are widely used for pricing of the new products or services. Market Skimming Rapid penetration A high initial price with the objective of profit margin maximization A low initial price with the objective of quantity maximization

The pricing strategy can be selected based on the life cycle position of the airline. Etihad Pricing and Revenue Management:

Etihad are in the early maturity stage of the marketing product life cycle. The transformation from rapid growth stage to sustainable maturity stage is not an easy task in the aviation industry. Etihad have a market penetration strategy to capture the market share in the Middle East region with the strategic support from the Abu Dhabi government. Etihad was delivering the same service as Emirates and British Airways to

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attract more business and revenue. Etihad would like to achieve its revenue breakeven point by the end of 2011 and to achieve profit by 2012. The pricing and revenue management of airlines are so complex and dynamic. Dynamic pricing strategy is used in Etihad pricing now. The dynamic pricing software is used for the yield management and revenue management in Etihad with the objective of increasing profits based on the value of proposed sales. Etihad adopted SITA fare pricing software for ticketing and Descartes & Sabre solutions for cargo pricing and revenue management. After the breakeven point Etihad can increase the prices to compete with the rivals and can achieve the target profits with its luxury high quality image. Load factor (the seating capacity which is actually sold) and yield (Revenue obtained for one passenger per one kilometer) are the two variables associated with the airline revenue. Etihad can use a balanced load factor and yield among the new congestion pricing mechanisms to remain sustainable in the business.

5.3 Promotion
Promotion is the process of marketing communication involving information, persuasion and influence (Hundekar et al. 2010:102).

Any form of corporate communication which uses various methods to convey certain message to its targeted audience in order to achieve a particular organizational objective can be called as Promotion. In order to carry out this process multinationals or organizations engages in spending huge amount of money through different Promotional strategies. Various such efforts undertaken by most companies and in this case Etihad are demonstrated as follows:

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Advertising: Advertising is any paid form of non-personal communication of ideas or

products in the prime media, i.e. television, the press, posters, cinema and radio (Jobber, 2001: 353). Etihad follows a massive advertising strategy through mediums such as radio, television, newspaper advertisements, magazines, billboards, digital hoardings,

brochures and catalogs, airport and travel agencies in-store displays, posters, motion pictures, signs, and web pages. The presence of the brand and its reach is widespread throughout UAE and the world. From the aggressive advertising campaigns Etihad was awarded World s Leading Airline at the World Travel Awards in 2010 for the second consecutive year. It set the benchmark for the airline s brand communications enabling Etihad to inspire its audiences through a range of campaigns to fly with the best . The same year, it launched an international television advertising campaign titled He Likes, She Likes showcasing the airline s continued investment in products and services and commitment to offering a tailored, personal experience for every traveller (New Business Age: 2011).

Direct Marketing:
Direct Marketing is the direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships (Kotler and Armstrong, 2011: 405). Having established its International offices in more than 35 cities around the world and through the presence of Etihad Premium Lounges in London Heathrow, Frankfurt, Manchester and Dublin the company uses its staffs and employees to market their service through direct sales and exhibitions in many travel and tourism trade shows. Etihad has also set up a dedicated Global Sales Team which promotes its Business focusing on corporate and travel management companies. The UAE and Global marketing team has explored diverse techniques of promoting and boosting their business through various channels and services such as Etihad Holidays, global contact

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centers, Hala Abu Dhabi (destination management company) , Etihad.com ( ecommercial website for sale of tickets, holiday packages , chauffer service, hotels, car hire and luxury coach services, etc.) & Etihad shops located in UAE and abroad.

Sales Promotion:
Sales Promotions are incentives to consumers or the trade that are designed to stimulate purchase (Jobber, 2001: 490). Etihad carries out a number of sales promotions, one of the noted such promotion is Breaking Deals . Through these special offers Etihad provides the cheapest air fare for flights originating from Abu Dhabi and other operating destinations. Etihad also provides complimentary ground transfers between Abu Dhabi International Airport (AUH) and Dubai, attracting customers travelling to and from UAE with their competitive flight fares. The ground transfer service provided between Dubai & AUH has managed to attract travellers from their rival carriers as the customers choose to fly with Etihad for their competitive price. Other sales promotion by Etihad includes the online web promotions such as Getaway Deals available on the website every Monday offering Etihad customers amazing last minute bargain fares. The latest promotion includes the November Super Sale again available only on Etihad s webpage which offers discounted fares for flights operating from London Heathrow and Manchester to other favorite destinations.

Loyalty Program:
Etihad boasts of its award-winning Etihad Guest loyalty program which has an

estimate of one million customers to date. The Etihad Guest miles offer the Etihad Guest subscribers to redeem the accumulated points at 1800 flight rewards and over 200 participating partners for non-flight rewards. The non-flight rewards include various categories ranging from lifestyle products to electronic and computer products. Every year, Etihad hosts over 40 promotional activities to boost the Etihad Guest Loyalty campaigns to attract more members to this program.
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Sponsorships:
A business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage (Sleight, 1989). As a young and innovative carrier, Etihad positions them in a global market with an aim to help bring the world together. The company promotes both the UAE local and world cultures in the form of sponsorship of local and world events. The innovative airline associate itself with a variety of causes and events as a facilitator of change to bringing the world cultures together. Etihad supports and promotes a variety of cultural and sporting events both in UAE and abroad. Listed below are a number of such sponsorships by the company so far:

Etihad Stadium

Melbourne, Australia

This is the company s first and major Sponsorship in the field of Sporting in Australia. Under this sponsorship, the branding has been prominently featured both inside and outside the Stadium. This premium stadium is located in the Docklands precinct with a capacity of approx. 55,000 audiences and hosts a variety of cultural and sporting events. y F1 Etihad Abu Dhabi Grand Prix

The Formula 1 Etihad Abu Dhabi Grand Prix is a sponsorship by the company in the field of Racing. Located at Yas Island, UAE the circuit boasts of its spectacular architecture showcasing Abu Dhabi and brand Etihad to the world audience of more than estimated 600 million viewers.

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Manchester City Football Club

The three year partnership contract between the Manchester City Football club and Etihad showcases the Etihad Brand Logo on the Club s stadium throughout, official team shirt, Club s website and merchandise. y Sport Australia Hall of Fame

Etihad plays a major role in the sponsorship of Sport Australia Hall of Fame and also facilitates young athletes for International competitions through their Scholarship programs. y Golf

The Abu Dhabi Golf championship s official airline and a diamond sponsor of the event Etihad. This event is held in Abu Dhabi Golf Club and is considered to be one of the region s biggest tournaments in golf. y GAA Hurling All-Ireland Senior Championship

Etihad Airways is once again the official carrier and sponsor of the GAA Hurling AllIreland Senior Championship. The sport is considered to be one of the oldest sporting competitions of Ireland which has a history to speak of its own and is also a fastest growing game in the world. y Harlequins Rugby Football Club

Harlequins RFC (UK Premiership Rugby team) are mainly sponsored by Etihad Airways. The team plays at the Rugby league in UK and Europe and are located at Twickenham Stoop in London. y Arts and culture

As part of Etihad s initiative to bring culture and arts to Abu Dhabi and its people, Etihad has been sponsoring various media events and exhibitions. A range of Etihad s

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sponsorships includes the Abu Dhabi Film festival, Gourmet Abu Dhabi and international music events such as Coldplay, Shakira, and Justin Timberlake concerts. y Katrina Kaif

Celebrity Brand endorsement of Etihad is through the Indian Bollywood star - Katrina Kaif. The move is mainly to attract Indian customers who are a major market for the company. Katrina Kaif being the brand ambassador has participated in promoting the brand and has taken part in many fashion style shots and international campaigns representing Etihad.

5.4 Etihad - Place:

Place includes company activities that make the product available to target consumers (Kotler and Armstrong 2011: 83). The main objective of this aspect of the marketing mix is to make sure that good quality services & products are available at the right time & that too at the right place, for the customers. The distribution channels are managed well & used judiciously to achieve this. The approach of Etihad towards the PLACE aspect of its marketing mix is outlined below. Services offered at different locations or offices: Based on the different categories of customers served by Etihad, it offers distinct travelling classes for all its flight services which have been listed below. 1. Diamond Suite and First Class 2. Pearl Class (Flat Bed and Seat). 3. Coral Economy Class. 4. Crystal Cargo.
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At the airport: Etihad airways offer luxury coaches or free chauffeur service to its customers who wish to travel between Abu Dhabi International airport & Dubai or Al-Ain. Inside the flight: Etihad have a series of special facilities lined up for its customers aboard their flights: 1. Providing soft toys to kids, facilities to warm food for infants & changing their clothes. 2. Assistance to unaccompanied minors. 3. 600 hours of entertainment facilities through their entertainment system E-BOX.

The marketing strategy of Etihad has been a proven success as it took only seven years for Etihad to reach the level of excellence which took Qatar Airways and Emirates thirteen years and eighteen years respectively and is undergoing a major revamp as per the suggestions of Booz and Company, the high profile global consultation company which was employed for this particular task by Etihad (Etihad Airways, 2011). Pros & cons of Etihad s Place aspect of Marketing Mix: Pros: 1) Market penetration:

It involves expansion of sales of existing products in existing markets by selling more to present customers or gaining new customers in existing markets (Hundekar et al. 2010: 58). Etihad, as a newcomer in the aviation sector, competed against some of the big players like Emirates and Qatar Airways with panache. It penetrated into the market by placing
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its products and services in such a way so as to ensure its customers had easy access to them. Their success in a very short span of time can be attributed to their robust marketing strategy which includes management of a well maintained company website through which they reach their customers and potential customers, which portrays the clarity of their functioning in the best possible way or in a way which their competitors had never adopted before. In 2010, the official website of Etihad was visited by as much as twenty million people and the company launched its website in 12 new countries. As a newbie, Etihad had to make its presence felt in the aviation sector through implementing certain new ideas like Crystal cargo, which in 2010 accounted for about 19% of its operating revenue. It is currently on a freighter network expansion spree which also includes introduction of an intra-Gulf road freight business which most of its competitors are not into. 2) Coverage and logistics: Etihad increased its coverage by forging new code share agreements with airliners like Air Malta, Hungary s Malev, Virgin Blue, Siberia Airlines (S7) etc. Etihad has a total of twenty eight code share agreements till date with some of the best airliners across the globe with twenty eight percent of the airline s 2010 passenger revenue coming from this alliance. Etihad currently serves 144 destinations along with its partners (Etihad Airways, 2011). Etihad has an efficient network management system which relies on logistics & planning. In a bid to match the demand for its services, Etihad has ordered for new airplanes like A380, A320, and B777 etc. to its existing fleet of air-carriers which by any standard is a step in the right direction by a company which is highly service oriented (Etihad Airways, 2011).

Cons:
Maturity:
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Etihad is at a stage where it is recording growth with increasing sales but it has its own share of woes in the form of tough competition from its competitors. In this case,

Overall marketing effectiveness becomes the key factor in the stage of maturity (Hundekar et al. 2010: 54). Etihad, as an airliner, is performing well in trying to reach out to its customers through its different marketing programs. However, when it comes to the place aspect of its marketing mix, it has reached a saturation point, like its competitors, with not many options left to satiate the demands of its customers. As the adage goes THE HIGHER THE RISE, THE GREATER THE FALL, the aviation sector has reached a stage where the introduction of innovative ideas will either yield the same results or no results at all. There is a lot to choose from for the customers since the aviation market is vibrant & the ambit for development within this sector is medium if not low as a result of increase in air traffic & aviation fuel prices & other nonconducive factors. For e.g.: Kingfisher airlines, India s second biggest airline, recorded a loss of 58 million or 4.69 billion rupees because higher fuel costs adversely affected its revenue in the current fiscal year. It also leads to the company calling for an end to its presence in the low-cost sector in September with the shutting down of its carrier Kingfisher Red (BBC, 2011). Etihad on the other hand maybe one of the big three in the middle-east with the others being Qatar Airways & Emirates But, the major advantage which Etihad enjoys at this stage i.e. being a part of an oil rich United Arab Emirates, which is keeping it insulated from the problems which most of the airlines in the western world are facing in procuring aviation fuel cannot be kept at bay for too long. In the not so distant future, every sector is going to face the brunt of oil shortage & the aviation sector is no exception to this fact.

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The other concern for Etihad is its absence in the low-cost carrier sector. With Air Arabia as the market leader for this sector in the Middle-east (Watson, 2011) it is going to be a not-so-easy job for Etihad to penetrate into this segment as it involves a lot of planning & expenditure. One question can sum it all up for Etihad: Why would an airliner like Etihad try to jump into the bandwagon of road freighter business?

5.5 People
Success in aviation sector requires dedication of all intellectual resources at all organizational layers with a strong leadership and effective management. Thus communication, application, strategic choice, decision making, training, rewarding and resource allocation are the main essentials for the understanding of these crucial organizational processes.

Management:
Etihad Airways is headed by James Hogan since 2006 formerly CEO of Gulf Air. Other executive managers are James Rigney (CFO), Peter Baumgartner (CFO), Richard Hill (COO), and Ray Gammell (CPPO).

Staff:
Etihad is aiming to be the best airlines in the sector with the best customer service as Etihad s chief commercial officer (for marketing and product), Peter Baumgartner states We aim to be the best airline in the world but importantly our benchmarks are not set within the airline sector, but elsewhere where customer service is at its best (Tumer 2008). The company employs almost 8,000 staff from 120 different nationalities (including 900 pilots and just under 3,000 cabin crew), the company has projected this number will grow to 27,000 by 2020.

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Training:
Etihad provides a broad range of training opportunities for its staff including a cadet pilot scheme, a technical engineering development program and a graduate management development program (Etihad Airways 2010).

Etihad Airways cadet pilot training is a distinctive program that includes many pilots from all over the world. The successful pilots will join Etihad but first they should complete an eighteen month course in Abu Dhabi where company s all training courses are held. The company has also another 18 month-long course at its academy in Abu Dhabi which is designed to provide managers for company s future growth. Also the carrier hired 190 food and beverage managers from the hotel industry to generate a service similar to a hotel environment for its customers. Currently it seems that they ve achieved this goal with a 91.5% company score according to a customer service benchmarking survey performed by Ethos Consultancy (Ethos Consultancy, 2010). After these successful training periods, in engineering side (their technical division) Etihad has achieved providing MRO capabilities for many airlines and it was accredited by Swiss Federal Office of Civil Aviation in 2009.

Rewarding:
Organizations do need incentive systems to encourage highly qualified employees to make them achieve their goals in all departments. The company has a new performance evaluation system called I achieve and within this new approach they established performance based pay awards. 95% of the employees were included to this system and all the performance objectives and the results were recorded after reviews of the line managers so the employees started to get their performance based bonuses since April 2011. In addition, at Etihad Plaza and at different company accommodation points across Abu Dhabi, Etihad provides Fit 2 Fly leisure facilities including gymnasiums, pools and recreational amenities for the best welfare for their people (Etihad Airways 2010).
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5.6 Physical Evidence Strategy.

Physical environment has emerged as an important concept for understanding customer s behavior in the service industry (Bitner, 1992). Whether it s the chauffer driven limousine with the pristine chauffer, visions of the cabin staff, the executive lounge or just a sighting of the Royal Decree on the tail fin of an Etihad airplane at the airport; Etihad is portraying a visual image of luxurious travel, comfort and superiority through its servicescape environment. A product can be touched, experienced and demonstrated. Etihad s services cannot, and, as such must be communicated through the surrounding environment. The physical evidence strategy given to any perspective customers by Etihad must reflect that Etihad is committed to providing guests with a superior travel experience both inflight and on the ground (Etihad, 2011). Diamond, pearl and coral are used to differentiate and identify the different classes of travel; Frau, leather seats, flat beds, privacy doors and many other luxurious accessories all promote the superior luxurious travel. Passengers can dine when they are ready choosing from an extensive menu. On the ground the luxurious theme is continued in the many lounges available and then home in a chauffeur driven limousine or on to your Etihad holiday!

Customer perceptions of Etihad status of a company supplying the superior travel experience are further substantiated with the company s involvement in a number of superior promotions and sponsorship deals that are consistent with its core values, these include, the F1 Abu Dhabi Grand Prix, Manchester City Football Club and Sport Australia Hall of Fame.

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5.7 Strategic Behavior -Ansoff Model

As per the Capital Magazine, the Etihad strategic behavior is so close to the Ansoff product strategy model matrix. The business strategy of Etihad include market

penetration strategies, new product development strategies, market extension strategies and a diversification strategy. (Capital ME, 2011)

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Market Penetration

The Middle East aviation market was the prime focus of the Etihad in the initial stages of its growth. The Middle East aviation market is aggressively penetrated by the Etihad with its deliberate marketing strategies and Etihad is flying high in the world aviation market too. y Product Development

The new product development activities are in a correct proportion in the Etihad Airways. New products or services are introduced with positive changes in the existing products or services. y Market Extension

The market development and geographic extension activities are pretty active in the Etihad. The new destinations like Australia and US are typical examples for this. y Diversification

The cargo services and the engineering services like the MRO services are the diversification initiatives from the Etihad.

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6. Conclusion
Etihad emerges as a new leader in the global aviation industry, substantiating itself as a sustainable growth leader for its Middle East based rivals and is causing a serious threat to the global carriers. Etihad transformed from a challenger to leader in not more than eight years of its existence. The journey of Etihad is with the mission and vision of becoming the world s best airline with sustainable growth and serving customers with its best in class services, supporting Abu Dhabi the achievement of its 2030 plan as a mission critical player. Etihad has the potential to improve the relationships with global alliances and code share agreements with other airlines and may promote the Etihad loyalty program further to capture the client base. Etihad may also add more high demand destinations in all the price segments increasing the product offerings. Etihad may also diversify the product offerings with Engineering and MRO services by adding the airline mail services, road freighter services and storage services to its product range. Etihad would be better off if it sticks to strong marketing of its services to cater to its existing customer requirements and make its presence felt in the low-carrier sector by forging relations with the main players of this sector and with aggressive promotional activities. Etihad will highlight Abu Dhabi as a global tourist destination and business hub in the Middle East and this Abu Dhabi factor is crucial in the marketing strategy of the Etihad and its future success. Etihad Airways should evaluate the creation of a long haul, low cost subsidiary enabling the group to compete against other low cost carriers without risking the Etihad premium carrier brand image being diluted by the cheaper no thrills airline. After the breakeven point Etihad should increase the prices to compete with the rivals and can achieve the target profits with its luxury high quality image. Etihad can use a

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balanced load factor and yield among the new congestion pricing mechanisms to remain sustainable in the business.

From Etihad s promotional mix strategies, it is evidenced that the airline is carrying out a very wise and different approach in the field of brand building and promotional techniques. The company s main focus is currently on sponsorships. However, since Etihad is a young and modern brand it would be highly beneficial for the company to invest more on corporate social responsibility. Even though the brand is doing considerably good in the field of commercial aviation with respect to its age, a better advertising strategy would help the company in establishing new fleet routes in areas where they haven t yet established a strong hold. An increase in outdoor and indoor visual display units for advisements in foreign countries focusing on main aero hubs would assist Etihad in reminding the international travellers of the advantage of the brand s service and presence. Etihad can achieve a sustainable business model with the help of Emirates business model in the Middle East by mixing the airlines business strategy with the Abu Dhabi s growth plans in the region. The growth plans can be achieved by establishing Abu Dhabi as both a tourist and financial business hub with high class brand image and can position the airline as a market leader in the global aviation industry. With escalating unrest in the middle-east region, ever increasing price of aviation fuel and declining demand, Etihad would be better off if it sticks to strong marketing of its services to cater to its existing customer requirements & make its presence felt in the low-carrier sector by forging relations with the main players of this sector (BBC, 2011)

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7. References
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Doganis, R. (2009), Flying Off Course IV: Airline Economics and Marketing. [Online] Taylor & Francis. Available from: <http://lib.myilibrary.com?ID=257617> [26 November 2011]

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Kotler, P., Armstrong, G. (2005) Principles of marketing: Fourth European Edition. London: Prentice-Hall International

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Turner, C. (2008) How Etihad's marketing set new global airline standards [online] Available at: <http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=11214&Title=How_Etih ad's_marketing_set_new_global_airline_standards> [11 November 2011]

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Vespermann, J., Wald, A. and Gleich, R. (2008) Aviation growth in the Middle East impacts on incumbent players and potential strategic reactions. Journal of Transport Geography [online] (16), 388-394. Available at: <http://www.sciencedirect.com/science/article/pii/S0966692308000331> [2 November 2011]

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8. Bibliography
1- Archived news 2011, Viewed 04 November 2011, <http://www.etihadairways.com/sites/Etihad/global/en/aboutetihad/mediacente r/newslisting/newsdetails/Pages/manchester-city-and-etihad-10-yearpartnership-deal-jul11.aspx> 2- Crystal cargo 2011, Viewed 09 November 2011, <http://www.etihadcrystalcargo.com/cargo/> 3- Etihad to sponsor Ferrari F1 2008, Viewed 08 November 2011, <www.tradearabia.com/news/MEDIA_140347.html> 4- Etihad Airways 2008, Viewed 08 November 2011, <http://www.conferenceeventsadmin.com/uploads/assets/strategyawards2009/ 2008_pdfs/15Marketing.pdf> 5- Etihad wins major global aviation award 2008, Viewed 10 November 2011, <http://www.ameinfo.com/164108.html> 6- Etihad Airways - Katrina Kaif visits Manchester City FC stadium 2011, Viewed 12 November 2011, <http://www.youtube.com/watch?v=URt8em_EZfg&feature=related> 7- Etihad Holidays 2011, Viewed 16 November 2011 <http://www.etihadholidays.com/holidays/Home.aspx> 8- Etihad, Viewed 16 November 2011, <http://www.airlineleader.com/airline-of-the-month/etihad> 9- Etihad Airways, official partner of Manchester city football club 2011, Viewed 16 November 2011, <http://www.etihadfootball.com/EtihadFootball/> 10- Etihad Airways, Official Partner of Harlequins, Viewed 18 November 2011, <http://www.etihadrugby.com/EtihadRugby/> 11- Etihad Airways has signed a 12 month extension to its sponsorship of the Gaelic Athletic Association (GAA) Hurling All Ireland Senior Championship as the official sponsor and airline, Viewed 18 November 2011,
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<http://www.etihadhurling.com/Etihadhurling/> 12- Etihad Golf Club, 2011, Viewed 18 November 2011, <http://resources.etihadairways.com/etihadairways/images/Website/Golfclub/in dex.html> 13- Factsheets 2011, Viewed 10 November 2011, <http://www.etihadairways.com/sites/Etihad/Etihad%20Images/Resources/EYFactsheet.pdf> 14- Manchester City confirm stadium renaming in Etihad Airways agreement 2011, Viewed 11 November 2011, <http://www.guardian.co.uk/football/2011/jul/08/manchester-city-stadiumetihad-airways> 15- Milne, D. , King of the Skies, Business mangement, Viewed 11 November 2011, <http://www.busmanagementme.com/article/King-of-the-Skies/> 16- Manchester City FC launches 'Sky Blue' in UAE supported by Etihad Airways 2011, Viewed 11 November 2011 http://www.ameinfo.com/278926.html> 17- Our sponsorships 2008, Viewed 10 November 2011, <http://www.etihadairways.com/sites/Etihad/global/en/aboutetihad/oursponsors hips/Pages/oursponsorship.aspx> 18- Our history 2011, Viewed 13 November 2011, <http://www.etihadairways.com/sites/Etihad/global/en/aboutetihad/etihadstory/ Pages/EtihadHistory.aspx> 19- Our sponsorships 2011, Viewed 13 November 2011, http://www.etihadairways.com/sites/etihad/global/en/aboutetihad/Pages/OurAw ards.aspx# 20- PESTEL analysis of the macro-environment, Oxforduniversity press, 2007. 21- The F1 Etihad Airways Abu Dhabi Grand Prix is over for another year 2011, Viewed 04 November 2011, <http://www.etihadracing.com/EtihadRacing/>

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9. Appendix
y Price Comparison Table

Depart: AUH -> Arrive: LHR Date: 16- Nov-2011 Return 17-Nov-2011 (Ticket Price is the total ticket price stated in AEDs and includes return fare, taxes and surcharges for 1 adult passenger) Airline Stopover Ticket ( AED ) Etihad Emirates British Air Qatar Direct Direct Direct Via Doha 5670 4820 6250 3440 www.etihadairways.com ( 2011 )
www.emirates.com/ ( 2011 ) www.britishairways.com ( 2011 )

Price Source

www.qatarairways.com ( 2011 )

Market Analysis: O&D Traffic Manchester-Australia 2010 Market Share 47.46% 14.41% 12.98% 10.59% 3.61% Market Share Change Since 2005 11.03% -14.24% 12.98% 0.13% -1.97% -

Rank 1 2 3 4 5

Airline Emirates Airline Singapore Airlines Etihad Airways Qantas British Airways TOTAL

Traffic 79,325 24,093 21,700 17,697 6,032 167,147

Table Source: IATA BSP (January 2010

December 2010)
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2005
Qantas 11% Singapore 0% Etihad 0% Qantas 11% Etihad 13%

Others 11% BA 4%

2010

Others 51%

Emirates 36%

Emirate s 47%

BA 2%

Singapo re 14%

The above graph shows the O&D traffic of different airliners, providing their services in the UK from Manchester to Australia, for the years 2005 & 2010. An analysis of these graphs clearly shows that the market leader position in Manchester is currently held by Emirates. But it needs to be mentioned that Etihad managed to capture nearly 13% of the market share even though it started operating flights in this route only from March 2006.It has shown a similar trend in its services from London Heathrow to Australia in 2010 by capturing a market share of nearly 6%.This is the perfect example of Etihad s intention to establish itself in the western world by employing meaningful measures in its business.

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