Saudi Airlines Operation and Management: A Comprehensive Report

This report provides an in-depth analysis of the operational management of Saudi Airlines, also known as Saudia, the national carrier of Saudi Arabia. It examines the airline's market position, facing domestic and international challenges. The report delves into research objectives, critical thinking, and group effectiveness within the organization. It highlights the airline's strategies for goods and services, quality management, process design, location, layout, human resources, supply chain, inventory, scheduling, and maintenance. The analysis includes the need for government support to foster competition, which can improve services and generate revenue. The report emphasizes the importance of customer satisfaction and the airline's engagement with its audience, with recommendations for service improvements. The report provides a comprehensive overview of Saudi Airlines' operational strategies and challenges within the aviation industry.

Running Head: OPERATION MANAGEMENT: SAUDI AIRLINES
Operation Management: Saudi Airlines
Name of the Student:
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Executive Summary
The research report provides a transparent idea regarding operational management and how
Saudi Airlines is operating in the domestic as well as in the international marketplace. The
report focuses on the research objectives as well as analysis of the same. The report also
provides a transparent idea regarding the group effectiveness as well as the presentation of
the structure so that the airline can flourish in the process. Lastly, the report focuses on the
audience who are to be engaged along with the recommendation regarding the betterment of
the services that the company provide to the consumers and conclusion regarding the
importance that the firm needs to provide as well as the government so that the Saudi Airlines
can achieve the greater height in the marketplace.

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Table of Contents
Introduction................................................................................................................................3
Research Objectives...................................................................................................................3
Analysis and Critical Thinking..................................................................................................4
Group Effectiveness...................................................................................................................5
Presentation of the Structure......................................................................................................6
Audience to be Engaged.............................................................................................................7
Recommendation........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Operation management enables the firm to look after the area of designing as well as
controlling the process so that the company can operate in an efficient way possible. This will
assist the firm to flourish in the marketplace and assist them to generate revenue with the help
of efficient operation management (Krajewski, Ritzman and Malhotra). This is vital for all
the companies to understand, which will enable them to gain the success of what they are
targeting in the marketplace. Therefore, every organization must look after its operation in
the marketplace so that it can modify its operation according and assist them to obtain the
aims in the process (Hitt, Xu and Carnes, 85).
Saudi Airlines which is also known as Saudia is a national carrier airline of the
country. The company is based in Jeddah. The airlines rank third in terms of revenue
generation, which is an important factor as they are the national airline and get support from
the government to operate in an efficient way possible (Ansari and Qadri, 1564). This enables
the organization to flourish in the market and operate without any disturbance, which
provides the understanding that the company might not face that much problem in the
operation than the other airlines who are operating in the country. The airline operates both
domestically and internationally to some of the regions namely the Middle East, Asia, North
America, Africa, and Europe (Alsowayigh).
Research Objectives
In this research paper, there will be critical thinking as well as analysis of the same
regarding the airlines is to be done. This is essential for the firm to understand its financial
standing in the marketplace and assist them to gain success in the process. The paper will also
provide a transparent idea regarding the issues that the company is facing in the market along
with that few examples regarding the issues that are being faced by the firm to flourish in the

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marketplace. This will also focus on the techniques that need to be followed by the airline so
that they can overcome the situation that has arisen in their business model and can work
efficiently in a group to overcome the situation which is vital for the organization to flourish
and to gain the success in the process.
The paper will also look after the planning of the strategy so that they can expand in
the marketplace and also help them to understand the needs and wants of the audience in an
effective way possible so that they can become popular in the marketplace. This is critical for
the airlines as they are the national carrier and that is the sole reason, they need to eliminate
the issues that they are facing in the market so that they can operate in an efficient way
possible and assist them to achieve what they are willing to gain from it. Therefore, the
company must look after the matter and enable them to accomplish the problem and eliminate
them in an efficient way possible. This will enable them to generate revenue in an organized
way possible and assist them to flourish in the market and provide authenticity to the paper.
Analysis and Critical Thinking
Saudi Arabian Airlines faces a few problems in the market as they are suffering and
what are the ten strategies that the firm have taken in the process so that they can compete
with the other competitors in the marketplace. This is essential for the company so that they
can modify their customer service, which is essential for the growth of the firm in the
process. The competition enables the firm to look after the operation that is performing in the
market, which will help them to obtain success and make the necessary development in the
process. This is happening as the company possesses 70% of the market share and that is the
sole reason there is no scope or less scope for the other airlines to sustain in the marketplace
(Bouras et al). This is also a reason for the downfall of the competition in the market. This

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results in a decrease in the quality of the services and the operational management that the
firm is providing to the consumers.
The government should look into the matter and support the airline firm as well so
that there might be a competition in the market, which will automatically enable the country
to generate more amount of revenue in the process and improve the condition of the company
along with the country (Alzeban and Gwilliam, 80). Therefore, it is a critical situation for the
government to look after as the country is unable to generate revenue from the aviation
industry and the GDP of the country is decreasing in the process. Hence, these operational
challenges should be eliminated in the process so that the company can enter the aviation
industry and the operation of the existing firm can be improved with the help of the
competition in the market.
Group Effectiveness
The company Saudi Arabian Airlines possesses 40% of the international share and to
improve the shareholding in the international marketplace, the firm requires to provide
entrance to the small firms in the aviation industry so that they can improve their services
with the help of the healthy competition (Alam, 195). This will ultimately improve the
operation of the firm and assist them to provide the customers with enhancing and elite
service in the international market as well. This will also motivate the employees to work
hard so that they can flourish in the marketplace and enable them to obtain success in the
process. Thus, it can be said that the firm needs to work together in an efficient way possible
so that it can capture a huge market share from the international market (Raza et al).
The company need to look after the customer satisfaction so that they are able to lure
customers from the marketplace and will be capable of generating revenue in the process.
Therefore, the organization needs to understand so that they can grow in the marketplace and

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can capture a huge international market share (Chetty). The government plays a major role in
this situation by providing the facilities to the small business firms as well so that they can
enter the market and can provide competition to the Saudi Arabian Airlines so that the
company can adopt the strategy which will enhance the operational management of the firm
and let them gain the success in the process (Aljuaid). Hence, it is an important aspect that
requires attention in the process so that they can grow in the marketplace.
Presentation of the Structure
As Saudi Arabian Airlines is the carrier airline of the country and get support from the
government, the government needs to provide support to the other small airlines' company as
well. This will automatically encourage the company to look after the operation when there
will be an increase in the competition in the marketplace. This will assist the Saudi Arabian
Airlines to review the operation management and the strategy that they are following in the
process, which will also assist them to review the strategy that they are using in the
international marketplace (Balakrishnan and Chandra, 10). There are certain operational
activities that have been adopted by the company so that they can capture the domestic as
well as international market in the process and they are: (i) Goods and Service: Offering the
consumers with the lowest available price, which is a great strategy that the firm have taken
in the process. The main goods that the firm is providing to the consumers are the airline
service (ii) Quality Management: Allowing the consumers to cancel the reservation for a
certain period of time is also a great operational management that the organization have
undertook in the process so that the customers fell satisfied in the process. Not increasing the
ticket value after the purchase also showcase the dedication for the organization towards the
customers satisfaction and it is quite essential for the firm to look after so that the customers
feel satisfied in the process. (iii) Process and Capacity Design: Refund for the ticket that the
consumers cancel which is also important for the firm to showcase their capability in the

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operational management (Gamraoyi). The company sale their seat as per the availability with
overselling which is necessary for the expansion of the company in the marketplace and
enable them to attract the customers. (iv) Location: The firm mainly operates in the Saudi
Arabia and in few international markets. The location is essential for the company to look
after so that they can set the price accordingly. (v) Layout Design and Strategy: Disclosing
the policy and conditions so that there is a transparent communication that can take place in
the process and help them to guide the customers to get full satisfaction in the process. The
firm encourages the quality customers service which will be helpful for the firm to expand in
the marketplace and to achieve the success in the marketplace. This is essential for the
organization to look after so that they can achieve the success in the process. (vi) Human
Resources and Job Design: The company response to the customer’s complaint, which is
essential for them to expand in the marketplace and to provide customer satisfaction
regarding the services that they are providing to them. (vii) Supply Chain Management:
The firm took the operational strategy which will enable them to deliver the baggage to the
customers on time. This is essential for the growth of the company in the process and help
them to expand in the international market as well. (viii) Inventory: The company also look
after the accommodation for the disable people, which is also essential factor that need to be
look after by the airline company so that they can compete in the market as well as can gain
the popularity in the process. (ix) Scheduling: The firm need to look after the scheduling of
the airline service and the frequency requires to be maintained so that they can achieve the
success in the process. (x) Maintenance: The firm requires to maintain the quality of the
service and all the other aspects in an effective way possible so that they can achieve what
they are intending to gain in the process.

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Audience to be Engaged
As the company improves its operational management due to the increase in the
competition in the domestic market. The company will be able to frame the strategy so that
they can target the audience in an efficient way possible. The airline will be able to promote
the new services that they are providing to the customers along with the discounts on flight
booking. This is necessary for the expansion of the airline in the aviation industry and will
help them to achieve success in the process (Alsughayir, 91). This requires to be understood
by the firm and promote their brand in the market accordingly. This is essential for the airline
to understand so that they can lure the consumers to avail the service from the Saudi airline
and help them to generate high revenue from the marketplace.
This will assist them to flourish in the international marketplace as well and with the
improve services as discounts the company will be able to target the travellers to avail the
service from the airlines and help them to grab a huge international market share in the
process. This is an important aspect for the firm to look after and also the company will be
able to target the businessman to travel with Saudi airlines both domestically and
internationally (Al Qahtani). This is vital for the firm to flourish in the international market
with the help of the huge customer base and that can obtain with the help of the customers
who are being targeted by the company and availing the service from the organization in both
the market and help them to gain the success in the process.
Recommendation
Few recommendations requires to be look after by the company so that they can
operate in an efficient way possible in the international market as well along with the
domestic market. The recommendation is:

9OPERATION MANAGEMENT: SAUDI AIRLINES
 The airline needs to look after the taste and preferences that are changing in the
market. As they are enjoying the monopoly market so the operational strategy of
the company has become stagnant in the process. The airline requires reviewing
its strategy in an efficient way possible so that it can lure the customers from the
marketplace and let them obtain success in the process (Albliwi et al). This is
essential for the firm to look after the matter and can provide quality service to the
consumers.
 The airline also requires to look after social responsibility as the firm needs to
sustain itself in the marketplace. As the company is enjoying the monopoly
market they are reluctant to look after the environment and the society and that is
the sole reason the airline needs to look after the matter so as to sustain in the
marketplace and which will assist them to expand in the marketplace (Mason,
105). This is crucial for the firm to create an impact in the marketplace and help
them to gain success in the process. This requires to be understood by the firm so
that they can expand in the marketplace and can obtain success in it.
These are the things that need to be understood by the company so that they can
obtain success in the process and help them to gain popularity in the marketplace. The
airlines need to understand the situation and should improve their quality so that they can
become popular in the process.
Conclusion
In the end, it can be inferred as the airlines need to look after the operational
management so that they can capture a huge market share in the international market and
which is necessary for the expansion of the firm in the process. The company also needs to
look after the strategies so that they can improve the services that the company is providing to

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the customers and can look after the interest of the customers. This will enable the company
to expand in the marketplace and can gain the popularity in the process. The ten strategy that
the company have taken is quite effective and enable the company to expand in the market
and achieve the success in the process. This is essential for all the industry to flourish in the
marketplace both domestically and internationally.

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References
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Airlines Company: Explority Study." International Journal 5.4 (2016).
Alam, Muhammad Aftab. "Cockpit learning in power distant cockpits: The interaction effect
of pilot's interdependence and inclination to teamwork in airline industry." Journal of
air transport management 42 (2015): 192-202.
Albliwi, Saja Ahmed, et al. "Implementation of lean six sigma in Saudi Arabian
organisations." International Journal of Quality & Reliability Management (2017).
Aljuaid, H. "Language learning strategies used by a group of Saudi Arabian EFL learners." A
Thesis, School of Education and Professional Studies, Griffith University (2015).
Alsowayigh, Mohammad. "Assessing safety culture among pilots in Saudi Airlines: A
quantitative study approach." (2014).
Alsughayir, Abdulrahman. "Human resource strategies as a mediator between leadership and
organizational performance." International Business Research 7.3 (2014): 91.
Alzeban, Abdulaziz, and David Gwilliam. "Factors affecting the internal audit effectiveness:
A survey of the Saudi public sector." Journal of International Accounting, Auditing
and Taxation 23.2 (2014): 74-86.
Ansari, Zaid Ahmad, and Faran Ahmad Qadri. "An analysis of the customer satisfaction from
the service quality of general services of saudi airlines." International review of
management and business research 3.3 (2014): 1564.