QTY8216 Strategic Management and OD

Based on PESTEL Analysis critically

analyse Air Arabia joint venture with
Etihad
Air Arabia-Etihad Airways Joint Venture

 Air Arabia and Etihad Airways plan to initiate a partnership.

 Their objective is to develop a low-cost carrier named Air Arabia Abu Dhabi.
 The two companies have business goals and objectives.
 The aviation market has been difficult due to various issues.
 Reviewing the effectiveness of the partnership is vital.
 The internal conditions of the two companies ought to be analysed.
 The external market conditions also need to be understood.
 Political factors
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PESTEL  .

Analysis of Air Economic Factors

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Arabia Entering  .

a New Market  .
Social Factors
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 Political factors
 Air Arabia’s is linked politically to the UAE
leadership.
 Sharjah and Abu Dhabi are within the UAE federal
control.
PESTEL  Stable political environments in the regional
Analysis of Air markets.
Economic Factors
Arabia Entering  China-US trade war.

a New Market  Oil reliance in most of markets in the MENA region.

 The impact of the upcoming US elections.
Social Factors
 Improved customer base
 Chance to build its reputation
 Technological Issues
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PESTEL Environmental Issues

Analysis  .
 .
(Continued)  .
Legal Issues
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 Technological Issues
 Acquisition of 100 new passenger planes.
 The Abu Dhabi international Airport as its hub.
 Implementation of management information
systems.
Environmental Issues
PESTEL  New climate change regulations for the aviation
industry.
Analysis  Adverse weather changes.
(Continued)  Customers sensitive to the ongoing climate change
campaigns.
Legal Issues
 The Air Arabia-Etihad Airways partnership deal
terms.
 Strictly adherence to IATA regulations and other
aviation guidelines.