Business Outline: Case Study: Airblue Limited

INTRODUCTION

Airblue Limited is a private Pakistani airline and the second largest airline after Pakistan International Airlines (PIA) to be functioning in Pakistan with its floating shares in the domestic market. Its head office is on the twelfth floor of the Pakistan Stock Exchange (PSX) Towers in Islamabad. Airblue has scheduled flights linking the domestic locations of Pakistan with international destinations like Oman, Saudi Arabia and the United Arab Emirates. Compelled by a group with many years of association in the business, airblue exemplifies a new era in air industry. The shareholding organization of Airblueintegrates a gathering of shareholders including Mr. Tariq Chaudhary with bigger part stake. Similarly, Mr. Chaudhary fills

In this way, the lower-management also participates in every decision regarding the company. Furthermore, the “open door policy” refers to a communication policy where the senior management leaves their door open for the lower management. The subordinates should feel free to give any kind of suggestion to the upper management. This would encourage transparency as well as improved coordination between employees, which is another positive aspect.

As the structure is mainly traditional and flatter, Air Blue has several departments. Each department has its own manager who looks after the day to day operations and reports to the CEO. The fewer levels of management make the decision-making process easier as there is hardly any communication gap between lower and senior management.

Air Blue consists of a strong leadership, their team consists of highly qualified leaders and managers. The CEO Mr. Tariq Chaudhary also serves as Chairman of the Board.

The main hierarchical structure of Air Blue is as follows. Air Blue has appointed managers regarding sales and operations in the three major cities of Pakistan, Islamabad, Lahore and Karachi in order to provide their best

4. Growing GDP:

The growing GDP and Pakistan’s entry in the emerging economies by IMF is a positive indicator and giving a green light in Pakistan’s worldwide reputation therefore opening doors for the more international route expansion and permissions.

5. Competitors Advantage:

With PIA’s downfall, poor service and repute also with Serene Airlines aircrafts parking accidents and engines being frequently down in the past few months, giving Airblue the advantage of getting more customers.

THREATS

1. Middle East Chaos:

Deteriorating peace situation in Middle East with more wars looming ahead is going to adversely affect Airblue as it only operates in Middle East on international routes.

2. Easy New Entry: As opening up a private airline procedure (license providing) has been made easier than it has been for the past 4 years had arose the threat of new competitors.

3. Fuel Prices

The most major factor that affect the airline financials by a blow are the escalating oil prices thus increasing the costs of the company.

4. Chinese