Aviation Strategy and Planning Report 2022

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Aviation Strategy and Planning
Name
Institution
Date

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Executive summary
The report aims at conducting Internal and external environmental analysis of Gulf
and Middle East aviation market and industry in order to determine the suitable corporate
strategy. Dubai Express is categorized as a low cost airline is privately held and planning to
start operations in UAE and Dubai region. Middle East aviation industry is very competitive.
There are over 10 airlines operating in the industry with key players being Etihad and
Emirates. The key trends in the industry include the increase in number of passengers,
increase in privatization and demand for more aircraft in the near future. The opportunities
that exist in the Dubai Market include open sky policies, economic support from Dubai and
the UAE government, established airline terminals, moderate taxation, changing consumer
patterns and enhanced technology. The challenges include high context cultures, established
brands by competitors, stiff competition in the market, political insurgencies, low number of
aircraft pilots and cabin crew, unfavourable economic crises like fluctuations oil prices,
variation in exchange rates, tightened capital markets and natural disasters. To enter into
Dubai, the Dubai airline should use both merging and acquisition market entry modes. The
company is also recommended to use product differentiation strategy upon successful entrant
into the market in order for it to gain a market share.

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Table of Contents
Executive summary....................................................................................................................2
1.0 Introduction..........................................................................................................................3
2.0 Brief Description of the Market & Business........................................................................4
3.0 Key Aviation Industry Trends..............................................................................................5
4.0 Strategic Opportunities for aviation business development.................................................7
5.0 Challenges & Opportunities.................................................................................................9
6.0 National / International aviation policy recommendations................................................12
7.0 Future impact on aviation business....................................................................................13
8.0 Government perspective.....................................................................................................14
9.0 Conclusion & Recommendations.......................................................................................14
10 References...........................................................................................................................15

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1.0 Introduction
The report aims at suggesting an appropriate corporate strategy for the Dubai Express
Airline which is a low cost airline in the Gulf & Middle East region. The Dubai Express
Airline is privately held and planning to start operations in UAE and Dubai region. In
addition, the report conducts PESTEL analysis as a tool for analyzing the external
environment to identify threats and strategic opportunities that exist in Dubai. The analysis of
opportunities and threats in the aviation industry is important as it helps to determine the
benefits of the industry and strategies that a company can use to utilize them to gain
competitive advantage and penetrate into the new markets. Through the analysis of the
trends, opportunities and threats, the report is able to provide conclusion and recommendation
of market entry strategies that will ensure there is the sustainability of the company in Dubai,
UAE.
2.0 Brief Description of the Market & Business
Gulf and Middle Eastern aviation industry are very competitive with diverse key
players dominating and controlling the market. Currently, the industry is revolutionizing as a
result of various external and internal environmental factors. The growth of passenger traffic
in the industry is the main reason why the industry is experiencing this rapid growth and
transformation. The key players in the Gulf and Middle East industry include Etihad, Qatar
and Emirates. Currently, the numbers of low cost airlines are increasing in the Middle East as
compared to the last decade (O’Connell and Bueno, 2018: 237-268). The key concepts of a
low cost airline had been there for over the last 200 years since it was started by Southwest
carrier from America in the 1970s and later networked to other parts of the world including
the Gulf and Middle East aviation industry (Roberts & Griffith (2019: 1). The main objective
of launching Dubai Express Airline was to offer cheap prices to passengers and other
consumers as a way of gaining market share and maintaining sustainability in the crowded