Traveling by air is the safest and the fastest agencies of conveyance. The aero conveyance industry provides services to every portion of the universe. The industry does non merely supply conveyance services to travellers but besides greatly contributes to the planetary economic system. The industry does non merely see immense grosss ( really few economic activities generate the gross compared to the one generate by the air hose industry ) but the industry besides contributes greatly in doing certain that the other parts of the economic system move swimmingly, this is because of its impact to the assorted economic sectors for illustration the flower industry, touristry and fabrication ( Centre of Asia Pacific Aviation 2010 ) .

During its origin the air hose industry witnessed a batch of ordinance, but late, the air hose industry has witnessed several mileposts ; one of them is the debut of computing machine engineering. The development of the information engineering has had several impacts in the air hose industry such as decrease of travel bureaus ( Centre of Asia Pacific Aviation 2010 ) . Technology has besides lead to the debut of characteristics such as on-line booking so travellers do n’t necessitate to book physically in order to acquire a ticket alternatively merely travel on-line and obtain your ticket. The air hose industry is presently made up of over 2000 air hoses and the entire sum of aeroplanes is believed to be 23000 and 3700 airdromes. Recent statistics show that the air hose industry conducted around 2.8 million flights around the Earth which saw T it that two billion riders were safely delivered to their coveted finish. The air hose industry has been turning at the rate of 5 % per twelvemonth but the recent planetary economic recession greatly reduced the rate of growing of the air hose industry. This growing varies greatly depending on the geographical and economic conditions of a peculiar topographic point ( Centre of Asia Pacific Aviation 2010 ) .

Economic effects on the air hose industry and other effects

The air hose industry has been faced with many challenges. The events of September 1999 made many persons to avoid utilizing aeroplanes ; this issue besides saw the intercession of the authorities to the air hose industry in order to set steps that regulate air traveling. Another reverse that the air hose industry faced is the planetary economic recession. The planetary economic recession greatly affected the air hose industry which saw its rate of growing greatly reduced. The recession besides lead to puting away of employees therefore cut downing the figure of people with the ability to afford universe visits, this greatly impacted the gross of the air hoses that some of them ended up doing loses. The recession besides saw the monetary value of fuel rise to really high monetary values therefore increasing the operations costs of the air hose industry. However, the air hose industry is being expected to to the full retrieve from the reverse caused by the recession in the following four to five old ages ( Centre of Asia Pacific Aviation 2010 ) . .

Economic effects on epicurean life

The planetary economic recession had a really large negative impact towards the income of the people hence many people could non pass excessively much on other issues other than their basic demands. The economic recession saw the rate at which people had entree to epicurean lives reduced. This greatly impacted the air hose industry ; this is because of the decreased universe visits. The recession besides caused the decrease of touristry activities and geographic expeditions. This had a great impact on the gross generated in the air hose industry this is because of the decrease of flights from continents such as Europe to Africa and the United provinces to Africa. Therefore we are able to see that any consequence on the planetary economic position does non merely affect industries such as the air hose concern but besides goes farther to impact other industries which provide epicurean services such as the touristry industry. The recession besides reduced the buying power of people, this proverb to it that some trade goods which are non necessities i.e. trade goods which provide comfort have a really low demand. From the above we are able to see that a alteration in economic tendencies greatly affects the manner people live. It forces them out of their epicurean life due to limited resources ; this is because people tend to use the limited available resources to get the merchandises and services that will be given to be economic friendly i.e. within their buying power ( Schiffman 2010 ) .

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The ‘ups ‘ and ‘downs ‘ in the air hose industry have made the net income from the industry unpredictable. The industry has been faced with old ages of really high net incomes and old ages of really high losingss. For illustration there was a clip the air hose industry posted a loss of over 22billion USD for a back-to-back period of four old ages. This period was overturned by another period which saw the industry post an accumulative net income of 25 Billion USD over a period of four old ages. In the recent times the industry has besides been posting losingss with respect to high operating costs which was besides characterized by a fiscal crisis caused by the planetary economic recession, this period was between the twelvemonth two 1000 and the twelvemonth two 1000 and five.

However, this did non deter new participants from fall ining the game. The twelvemonth two 1000 and three saw the debut of a new and really competitory air hose from the United Arab Emirates. Etihad air hose, Etihad is a recent but major participant in the air hose industry. Even though it was incepted when the air hose industry was confronting economic complications it was able to stand to the challenge and navigate through the available chances to make its current degree. The presence of Etihad air hoses is being felt by the other major air hoses in the East such as the Fly Emirates and Qatar air hoses ( Centre of Asia Pacific Aviation 2010 ) .

Consumer behaviour sing Etihad air hoses

Merely like other concerns, the air hose industry experiences altering consumer behaviour. These alterations are attributed to alterations in economic tendencies, quality of services offered, political issues and sometimes the general public attitude towards a peculiar merchandise or service. Since its twelvemonth of origin Etihad has witnessed alterations in the consumer behaviour and monetary value fluctuations. The alterations in consumer behaviour are largely controlled by the current market monetary value and the general economic clime ( Schiffman 2009 ) . Therefore Etihad experiences alterations in the consumer behaviour as it experiences alterations in the monetary values of flights. Therefore the alterations may non be by a great border. However there are certain major alterations which were brought approximately by serious alterations in the economic position of the whole universe. This was referred to as the planetary economic crisis. These alterations in the economic position of both persons and authorities caused a decrease on the rate at which people accessed epicurean services and merchandises ( Schiffman 2009 ) .

This did non merely cut down the figure of flyers utilizing the Etihad air hoses but besides the figure f people who accessed and used the executive services i.e. the first category services offered by premium air hoses. The economic crisis besides reduced the figure of individuals going by air because the air hose was forced to increase the menu to cover for the operations costs caused by the hiking in the fuel monetary values. Addition in the menu and lessening of the flyers ‘ income caused a great fluctuation in the consumer behaviour, this is because, some of the people who used the first category service had to travel to a lower category to cut down on costs or sometimes discontinue traveling by air. On the other manus those in-between category flyers had to discontinue traveling by air wholly or cut down the rate at which they used the air hose as a agency of conveyance. Etihad as a premium air hose truly suffered the effects brought approximately by the economic recession ( Schiffman 2009 ) .

The other ground for alterations in consumer behaviour is alterations in the prevailing whether and geographic status. For illustration the vent crisis which was caused by the eruption in Iceland. Harmonizing to studies from the Etihad direction, the volcanic eruption in Iceland is one of the major challenges which resulted to alterations in the consumer behaviour in the twelvemonth 2010. This is after some of the dying clients cancelled their flights even after being urged to be patient since the crisis was about to be over ( Centre of Asia Pacific Aviation 2010 ) .

Due to multiple alterations in the consumer behaviour majorly caused by economic jobs, Etihad launched type of plane which was all consumer i.e. the plane was non merely at that place to transport first category riders but besides the in-between category riders. The air hose introduced this category of service in order to hold entree to other flyers who are of the highest figure but low income ( Centre of Asia Pacific Aviation 2010 ) . In a command to keep a changeless and predictable consumer behaviour Etihad made sure that give attractive menu bundles that are considerate to people of all economic degrees. Etihad besides adopted a system which a developed by a company known as Specialist in air conveyance communicating and IT tools. Etihad made a trade with Specialist in air conveyance communicating and IT tools which saw that they develop a comprehensive pricing system that will assist in monetary value direction to turn to fare monetary value fluctuation job, the system will besides see to it that Etihad understand and do speedy accommodations with respect to alterations in consumer behaviour and the predominating market conditions ( Centre of Asia Pacific Aviation 2010 ) .

Etihad Presence in the UK air hose market

Etihad is has non been competitory and a major participant in the UK air hose market. The chief air hoses commanding the UK air hose market are, The British Airways, Virgin Atlantic Airways Limited, Easy jet company limited and the British Midland air passages. However, Etihad Airlines has made a move that will guarantee that with clip it establishes itself in the UK Airline market ( Centre of Asia Pacific Aviation 2010 ) . Etihad has made a trade with flybe which will see to it that the individuals populating in the United Kingdom who use the air as a manner of conveyance have direct easier handiness to Etihad. This will hold a positive impact towards Etihad ‘s constitution in the United Kingdom.

Under the understanding, Etihad will hold the chance to put the letters EY on the Flybe planes which will be going to Paris, Manchester and Frankfurt and other regional airdromes within the United Kingdom, in return Etihad will set the codification BE on the Etihad planes which will be merchandising the same finishs. This trade will give Etihad ‘s users the ability to entree more airdromes and finishs in the United Kingdom other than the lone three finishs that Etihad Flies presently i.e. Manchester, London and Heathrow. This is a really nice selling enterprise since it will greatly help Etihad set up itself in the United Kingdom market within a really short period of clip ( Centre of Asia Pacific Aviation 2010 ) . .

Etihad Marketing and Brand Product Management

Etihad has employed several selling schemes in order to advance their services ; this includes advertizements on web sites and arrangements in films. The advertizements on web sites include PowerPoint presentations and other exposures which they have used to expose the assorted locations that they fly to. The advertizements outline the assorted positive grounds why one should utilize the air hose to wing to its major finishs such as the capital metropolis of the United Arab Emirates among others. These advertizements truly move those consumers who prefer premium services since it is the air hose ‘s current forte ( Schiffman 2009 ) . One of the advertizements made by Etihad through the cyberspace and on web pages can be found on hypertext transfer protocol: // The air hose has besides topographic point advertizements on other web sites which display the quality of their first category service.

The house has besides made arrangements in films for illustration Sex and the metropolis 2 were one of the characters says “ aˆ¦.Etihad Airways ‘ first category means private cabins, with small doors and level beds. It feels really private and evidently, really luxuriousaˆ¦ . ” The air hose besides gave out tickets to the populace to travel and see the film. This is a really nice manner of advancing its merchandise and services.


Keeping in head the new and moves and selling schemes which have been initiated by Etihad. Etihad is on its manner to going one of the greatest air hoses in the planet ( Centre of Asia Pacific Aviation 2010 ) . The air hose is non merely basking great chances in the Middle East but it will shortly be able to set up itself in the United Kingdom air hose market ; this is because of organizing partnerships with Flybe and Virgin Atlantic air hoses ( Centre of Asia Pacific Aviation 2010 ) . The air hose has besides adopted new engineering that will help it in turn toing issues refering consumer behaviour and alterations in the manner the market operates this and other moves will help in guaranting quality service proviso hence bettering their consumer figure and gross.

The air hose is besides traveling from a first category merely air hose to an ‘all economic system ‘ air hose. This greatly assists in turn toing the alterations in consumer behaviour i.e. once the economic position of a individual alterations and can no longer afford the first category services he/she will hold something to fall back to. This ensures that he air hose does non wholly loose clients due to economic alterations which may hold inauspicious negative effects to the air hose ‘s gross. The above schemes place the air hose at really good place in the hereafter. This is because the recent stairss taken to better the air hose have positive long term effects ( Schiffman 2009 ) .

Beginning: ( Centre of Asia Pacific Aviation, 2010 )

Harmonizing to the above graph, the air hose has experienced uninterrupted growing since its origin ; the graph represents growing in signifiers of the plus base, figure of clients served and finishs covered. The chart signifies uninterrupted growing in the air hoses gross and assets which is a positive indicant turn outing that the air hose is build on a strong foundation hence a good hereafter ( Centre of Asia Pacific Aviation 2010 ) .

Service Improvement

When we talk of epicurean trade names, we refer to trade good which offers absolute satisfaction when it comes to the chief purpose of the trade name ( in this instance, conveyance ) . Etihad provides first category services when it comes to transport services but in few locations in the planet. In order to increase the usage of Etihad ‘s services they need to see offering their services to the whole universe merely like other air hoses do, the air hose should besides better the quality of the services they offer at a discounted monetary value ( Schiffman 2009 ) .


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