Abstract

The case exposes important issues that characterize the Middle East aviation sector, and how these issues create unsuitable working environment for major low-cost carriers. Nasair, one of Middle East carriers, has been striving to survive in the market. Domestic fare-caps and high fuel prices are among several other regulations that cause Nasair's failure to sustain their growth due to the losses accumulated from operating domestic flights. However, 2012 was regarded as a turning point, where the company was able to build a new direction that was based on three main areas: enhancing their regional expansion, diversifying ancillary revenues, and building an aggressive growth strategy. Nasair predicted a potential growth by looking at the international market, thereby, increased their regional flights to 23 destinations across the Middle East. Moreover , the company managed to establish Nasair's "Smart Services" to include affordable services offered to different types of customer segments. Thanks to their efforts, Nasair was able to increase their uplifting passenger rate by 20 percent this year, compared to 11 percent that was achieved last year, but the question whether Nasair will be able to maintain their growth in the future or not ?, this is what the case is trying to figure out.

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