Introduction
Dubai International Airport is always busy with flights all over the world, but at the heart of the emirate's airport stands another player that is coming into full competition with major and established airlines. Dubai Aviation Corporation or Fly Dubai focuses on its company slogan “Get Going”. Fly Dubai is changing Dubai's image in global airline industry with the intent of providing affordable or low-cost offerings to meet demands and needs of those who travel in and out of the progressive and developing business centers of Dubai.
Brief History
Since 2009, Fly Dubai has started to fly in the skies of Dubai as the newest airline operator in the region (Lonely Planet, 2010). The company was founded by the Government of Dubai as the flagship carrier of the emirate. Fly Dubai is also supported by The Emirates Group, but the airline is not duly sanctioned by the group (Schulte-Peevers, 2010). The airline has flights across Middle Eastern destinations such as Doha, Beirut, and Amman, and other international destinations such as in Asia, Europe, and Africa with its more than 30 fleet. At the moment, the airline company flies to 61 destinations across the planet – and they are increasing their fleet and scope of travel as part of the goal of the company in making Fly Dubai the premier carrier in Dubai.
According to Yousef (2013) of The Daily Star – Lebanon, Fly Dubai is increasing its fleet with new aircraft. To be noted, when the company started in 2009, they inked a deal with Boeing for 40 aircraft worth $3.74 million. There are still 20 373 or 800 models that should be delivered to Fly Dubai to complete the 50 fleet order of the airline company. As part of its expansion and growth, Fly Dubai also intends to offer business class service to its consumers, aside from its regular economy seats (Al Rabiya, 2013).
With the growing number of emerging low-cost airlines in the region, FlyDubai competes heavily with both international and local airline carriers. Parallel competitors of the company include the Air Arabia, which is from Sharjah, UAE, and the Kuwait-based Jazeera Airways (Yousef, 2013). After its launch in 2009, the airline company has enjoyed a good response from consumers and they are looking forward to both horizontal and vertical expansions and growth.
Product/Service Offerings
Fly Dubai started out as a low-cost airline offering economy seats only, but they have also entered the business sector with the business seats offering. The combination of these offerings creates an inclusive network for the company to compete with the established airways of the region, both regional and international, and with low-cost airlines. This is a forward direction taken by the company which is complimented with the expansion of its fleet.
The Business Class seats or offerings of the company is part of the renovation of the Boeing 737s of the company. Business class seats are exceptionally comfortable and spacious, according to www.flydubai.com. The Business Class offering is also coupled with special services such as speedy check in and security on departure to ensure that busy people are kept at best without wasting time. In the same manner, the Business Class includes special meals with a wide selection wine and drinks. Aside from the regular ordinary and business offerings of the company, Fly Dubai also has 30% off return flight fares for special destinations. These are all-year-round offerings that encourage travelers to fly with the airline to and forth their destination. Moreover, the airline also offers entertainment packages for travelers to enjoy from while they are crossing regions.
Together with the flying services and offerings of the company, Fly Dubai also offers services through its partners in payment, bus transportation, accommodation, travel insurance, and even in UAE visas. Nonetheless, for companies that are wanting for fast delivery of their cargoes, Fly Dubai offers the flydubai Cargo as its division that will ensure cargoes of goods are delivered properly and safely. Fly Dubai Cargo caters general, perishable, valuable, mail, and courier cargo deliveries to destinations across airports where Fly Dubai operates.
Growth of Fly Dubai
When Fly Dubai entered the airline industry in 2009, it's future was still uncertain amidst the intense competition of the market. However, the airline company has proven that it has what it takes to ensure a good place in the industry. Today, the company is moving forward across horizontal plans of increasing the company's fleet and vertical plans of catering to other segments of the market.
Primarily, the success of Fly Dubai can be traced to its establishment and formation. Fly Dubai is established by the Government of Dubai as the emirate's flagship airline. It is necessary to note that Fly Dubai defines the people of the emirate and the people find attachment with the airline also. In this scenario, cultural pride takes a great part of the success of Fly Dubai. It is obvious that people of Dubai would choose Fly Dubai because of their attachment to the flagship. And of course, it is also important to note that the airline is supported by The Emirates Group. This provides the airline a good advantage in capitalization and the knowledge on how to capture the market.
Second, low-cost airlines are greatly appreciated in the region. According to the report of Ivan Gale (2010) of The National, low-cost airlines allow more people to travel across the region. This is a very important part of the growth of the company. As the company offers low-cost and affordable flights to consumers, consumers also tend to fly more often. In the value of reciprocity, Fly Dubai gets the most of its segment. Because people would want to travel with less expense, choosing a low-cost airline is the best option possible. This is the truism of Ghaith Al Ghaith (CEO) of Fly Dubai: “Our objective was to make air travel more accessible and offer real value for passengers.”
Third, according to Gale (2010), Fly Dubai has been very aggressive and diplomatic in its “efforts to gain traffic rights in a region long considered to be protective and restrictive” to ensure that the airline can fly to these destinations, thereby increasing the total flights and passengers of the airline. Fly Dubai has been in great negotiations with restrictive and protective regions such as India. They don't want to lose opportunity in capturing a market that is booming and has great potential in adding value to the airline company.
Fourth, the growth of Fly Dubai can be seen in the way it handles its product mixes and how it handles change in the market. The airline does not just offer convenience and entertainment to its business class seats (which is opened lately). This means that passengers of the economy seats can also enjoy the benefit of the services and offerings of the company. Fly Dubai wants to ensure that they are giving quality flying experience to consumers to ensure that they will fly back with the airline for the return flight.
Problems and Challenges Faced by Fly Dubai
One of the major problems and challenges faced by Fly Dubai is the competition with well-established airlines. The late entry of Fly Dubai in the airline industry becomes a risk for the company. The Dubai International Airport caters more than 100 airlines that fly everyday from the airport to destinations across the planet (Schulte-Peevers, 2010). This means that Fly Dubai must cut the market share of these big airlines to ensure its place in the industry.
Yet, Fly Dubai must also keep up with the demand of the industry. The limited fleet of the company is translated to limited and sometimes fractured flights. It is necessary for the company to increase its engagement and market penetration by increasing its flights and fleet. As the market grows in number (as noted earlier that more people are flying through airlines), Fly Dubai needs to capture the advantage to ensure a competitive point. This means that the company has to continually reinvent itself to meet demands of competition and of the changing market.
Conclusion
Fly Dubai is still a new entrant of the industry compared to its multinational competitors with decades of experience and a reputation to boast. But right now, the airline company can be considered as one of the industry's leaders. Fly Dubai has carved out itself as a good airline company that can deliver and compete with both local and international competitors. The direction of the company is certainly forward to ensure that they can compete with new demands. This is why the company is focusing on negotiating with their new aircraft that should be added to the current fleet. This will ensure that the company captures the market and keeps their pace in it.
Recommendations
Based on the following analysis and review of Fly Dubai, the following recommendations are provided for consideration:
Ø Fly Dubai should increase its fleet. Although the company is still looking forward to the delivery of 20 more aircraft from Boeing, it is necessary to ink another deal that will secure the company a steady growth afterward. The company cannot just rely on its relatively small size of fleet for its steady growth in the future.
Ø Diverse seats offerings. Aside form economy and business class seats, the company should look at other market segments. For instance, for families that are flying for vacations across the region, Fly Dubai can offer family class cabins. By looking at what market segments need, Fly Dubai will not be stagnant in just the economy and business class seats offerings.
Ø Fly Dubai Cargo must be increased. Looking at the success of Fly Dubai, the focus will be drawn to passengers. It is time for Fly Dubai to compete with big airlines with the cargo division.
References:
Al Rabiya. (2013). Low-cost airline Flydubai plans business class seats. Retrieved from http://english.alarabiya.net/en/business/aviation-and-transport/2013/06/19/Low-cost-airline- Flydubai-plans-business-class-seats.html
Gale, I. (2010). Fast-growing flydubai keeps up its speed. The National. Retrieved from http://www.thenational.ae/business/fast-growing-flydubai-keeps-up-its-speed
Lonely Planet. (2010). Oman, UAE and Arabian Peninsula Country Regional Guides. Lonely Planet.
Schulte-Peevers, A. (2010). Dubai. Ediz. Inglese City Guide. Lonely Planet.
Yousef, D. (2013). Boeing, Airbus square off over FlyDubai deal. The Daily Star. Retrieved from http://www.dailystar.com.lb/Business/Middle-East/2013/Jul-05/222591-boeing-airbus-square- off-over-flydubai-deal.ashx#axzz2YgrMj9Q9
