Summary

Evidently, the global financialcrisis took place in 2008 is one of the worst economic disaster which has led to the great recession. At its core, the global crises was originated in most of the credit markets in the developed countries centered particularly in United Kingdom, United States and Europe, but the fallout had an adverse and significant impact on the activity in every region and country.

The impact of the global; financial crises on the aviation industry seems to be extremely challenging for the industry as the industry had through the financial loss and the entire industry was disturbed by the crises. As the airline industryis one of the pillar of the economic growth for each and every country, due to the global financial crises, the economy has severely affected.As the airline industry is a source of transportation throughout the world, the global financial crises has deeplystuck and stab the growing industry. In addition to this, due to the global financial crises, the airline industry throughout the world had experienced negative growth and has affected by the industry resulted in huge losses. Furthermore, the airline industry is also surviving due to the global financial crises and stillstriving to recover its losses. The extent of adverse impact of the global financial crises on the aviation industry can be evaluatedthrough big number of aviation companies went bankrupt and are still surviving to regain their position in the market.

Air Arabia – the lone survivor in global crises Harvard Case Solution & Analysis

As the global crises intensified, there seems to be a large swing in the appetite of financial markets for risk as well as their capacity of accepting risk. The result tends to be shifted from the easy going credit conditions that has prevailed to a tight credit situation for some years. This has accompanied by the loss of business and consumer confidence with adverse and great impact on the economy as well as on global activity.

Air Arabia company is known for providing travel services to passengerstogether with its subsidiaries. The company has been operating in two segmentssuch as airline and other. The services offered by air Arabia includes;

Commercial air transportation
Aircraft rental
Passenger transport
Cargo services
Aviation training
Aircraft repairs and Maintenance services

In addition to this, thecompany is also engaged in providing the trading of the spare parts and aircraft. Furthermore it operates tourist and travel agencies,representative office. Airline companies and air cargoagencies. It also provides document transfer and commercial brokerage services and IT services to the aviation industry.

The overall situation is tohave a closer look over the impact of the global financial crises on the profitability and revenues generated by air Arabia. When the crises adversely hit the financial performance of the aviation industry, the air Arabia industry has been showingprofit and the crises has not negatively impacted on the profitability even after when crises has past.

Air Arabia which is a Dubai based low cost barrier in the very first quarter, therevenues went by 32%from the year earlier. In the frits quarter, thecompany has earned Dh 103 million as compared to the previous year in which it has earned Dh 78 million.................

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