Major Strategies of Pakistan based Private Airline-Aero Asia - Essay Example

The paper "Major Strategies of Pakistan based Private Airline-Aero Asia" is a worthy example of an essay on business. A non-U.S based company that has been chosen for this project is Aero Asia, which was a private airline based in Pakistan. It offered a number of international and domestic services but due to failure in the execution of several management strategies, Aero Asia got bankrupted on 17th May 2007. The company was suspended from CAA Pakistan because of the managerial issues which were related to the compliance on CAA terms and conditions.

Aero Asia commenced its operations in 1993. It had a promising start and also hired the best employees for its senior management’s position. The airline made solemn commitments in hiring and training its employees. But in May 2007, it was suspended by CAA Pakistan due to issues that were related to operational safety and convenience for passengers. Being in the airline industry, a company needs not to do any compromise on its safety standards.

There were a number of reasons for the failure of this airline. The core reason due to which it was suspended, were:

• Not meeting safety standards
• Noncompliance with the terms and conditions of CAA Pakistan
• Backward technology, i.e. using old Russian aircraft which were not restful for long-distance flights
• Higher fares as compared to their competitors
• Undeveloped marketing plans i.e. low advertisement and awareness among customers

The company failed to survive because of the above-mentioned strategies. It needed to be in pace with its competitors and must have evaluated its weaknesses in order to pursue the business as a leading airline company. Passengers started leaving to travel in this airline due to the safety concerns, uncomfortable ambiance of aircraft and not provided with the desired cuisine. Aero Asia was serving only Pakistani food in order to reflect the Pakistani culture but as it was an international airline as well, it should have served international cuisine in order to retain the customers. Because of these issues, customers gradually started to shift to other airlines. Aero Asia not only lost a huge market share but also ended up as a bankrupt airline due to failure in executing its proposed strategies.