Abstract

The case discusses the challenges faced by Flyadeal, Saudi Arabia’s low-cost carrier (LCC) in expanding internationally and achieving double-digit profits. Ever since Steven Greenway (Greenway) became the CEO of Flyadeal, he pursued growth strategy by flying the airline to more international routes. However, the growth strategy was challenged by aircraft supply chain constraints thus delaying its goal to attain double-digit profits. How would Flyadeal formulate growth strategies amidst aircraft supply chain constraints? What should Greenway do to make the airline achieve double-digit profits and become sustainable?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the operating strategies adopted by a successful low-cost carrier
• Analyze how an LCC can achieve double-digit profits to become sustainable.
• Diagnose unit-cost drivers and formulate growth strategies for LCCs amidst aircraft supply chain challenges.

Keywords

International expansion; Sustainable; Economies of scale; Operational efficiency; Wide-body aircraft; Maintenance, repair, and overhaul; Load factor; On-time performance; Wet lease’ agreement; Aviation market; Regulatory environment; Hybrid model; Saudi Vision 2030; Airbus SE; Cebu Pacific,Safran Nacelles; Boeing; Virgin Atlantic; WestJet; Scoot; Virgin Blue; Swoop; Wizz Air Holdings plc