How Does the Low Cost Carrier Flydubai Manage to Increase It's Market Research Paper

How Does the Low Cost Carrier Flydubai Manage to Increase It's Market Share in the Aviation Industry in the Middle East Region - Research Paper Example The paper tells that the Dubai based Flydubai Airline is one of the LCCs that has succeeded in carving a considerable market niche for itself. The airline launched its operations in 2009 and has since spread its services to different parts of Asia, Europe, and Africa. One aspect that has made the airline successful is innovation on unique strengths and not in competing with larger airlines for above customer segments. The principle behind LCC is to offer services to routes that are considered less lucrative for larger airlines to operate. In order to understand the operations of Flydubai, it is necessary to investigate how the company operates and how it has spread its routes in determining its strategies and its competitive advantage. In addition, the report will investigate the strategies that the airline has put in place since its launch, and how these have contributed to the growth and expansion of the airline. This will indicate how the airline stands in comparison with other la rge airlines such as Emirates and regional LCCs in the Middle East. The report will show that strategic management and innovations are the most important factors that explain the rapid growth of Flydubai in the short time since its launch. Flydubai is a low-cost airline with its operations based at Dubai International Airport. The company was founded on 19 March 2008 but did not commence its operations until 1st June 2009. The airline offers its services in various destinations within the Middle East region, Europe, Africa and other Asian countries. The company has a good fleet of Boeing 737NGs, at its disposal, which is part of the latest lines of airplanes that have facilitated the company to compete effectively in the market. Flydubai was founded by Ahmed bin Saeed, the then Emirates chairman as a special brand of Emirates to offer the low-cost option to tourists and business operators within the region. Though the airline operates as an independent airline and even competes with Emirates, they offer some services in cooperation with Emirates, which include facilitating passenger connectivity in relation to dual boarding in the issuance of passes and baggage on the specific destination. Immediately after its launch, Flydubai remained in the black for about two years without reporting any figures. However, in February 2013, the company surprised many by reporting they had made a net profit of $ 41 million in 2012, with $756 million dollars in revenue. The rapid growth over its two years of operations opened another chapter in Dubai that proved the need to have more LCC in the rapidly expanding Dubai market.