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Island Aviation Services (IAS) Analysis


Strategically located in the centre of Indian Ocean, Island Aviation Services (IAS) was contained on 13th Apr 2000 as a restricted liability company, totally owned by the federal government of Maldives. IAS is the best local company that delivers aviation services in Ibrahim Nasir Guy' International Airport. IAS is devoted in providing top quality services to its main airlines as well for the people, through trained and motivated team of personnel. IAS is the greatest company in the nation which gives aviation services to the in Ibrahim Nasir International Airport.

The company specializes in the following businesses:

  1. Airline services: 'Maldivian' the country's carrier operates to 7 home destinations linking to capital Men' (Ibrahim Nasir International Airport). Furthermore Maldivian flies to international vacation spots ie; Trivandrum, Chennai and Dhaka.
  2. Airport lounge services: IAS provides finest services to business category individuals. The lounges include light refreshments, reading materials, internet, television etc.
  3. Airport management: The recently opened Dharavandhoo airport is the first international airport that is maintained by IAS, covering all the areas of aerodrome services such as hearth and rescue, airport terminal security, passenger and ramp handling, terminal services and DCS check-in.
  4. Engineering services: IAS has remained providing aircraft maintenance services at optimum standard. IAS commits in providing quality services through well trained, highly qualified and dedicated engineering staff.
  5. Cargo services: IAS provides cargo services to 7 different local parts connecting to capital Man'. IAS facilitate cargo services through excellent customer support, network connection and technology.


Aviation industry is relatively a industry in the Maldives. The greatest airline which provides national flights is Maldivian", the key domestic carrier of the country. Maldivian fleet comprises of 1 Airbus A320, 2 Dash8-200 series and 3 Dash8-300series aircrafts. Today Maldivian works daily plane tickets to 7 domestic international airports in Maldives and plus operates daily flights to Trivandrum, Chennai-India and Dhaka Bangladesh. Also in July 2013 Maldivian will be starting schedule flights to China "Chongqing City". Furthermore to commercial flights Maldivian also manages charter plane tickets, special medical evacuation flights and freighter flights.

Since Maldivian is dominating the domestic airline market, the flight is usually the 'price designers' in the air travel market in Maldives. Maldivian is still a leader on the market rather than follower. The primary market of Maldivian is residents and the supplementary market is international travellers who take a flight to faraway atolls where regional airports are available. The consumers are segmented relating to medical travel and leisure, business travel and leisure market.

The demand for air move is largely determined by the spending capacity of customers. The principal determinant of consumers demand for Maldivian is the price of the solution. If the price tag on Maldivian airline goes up the consumers switches to substitutes like visiting in acceleration boats and local dhoanis. This only happens in Northern atolls since it doesn't take much time for the travelling to capital. However people residing in most Southern Atolls haven't any choice since it takes quite a while to reach to capital Men' if indeed they choose to visit by sea. The price of the tickets mainly rises due to fluctuations in world engine oil prices. The other determinants of consumers demand for 'Maldivian' are:

  • Sufficient disposable income: a rise in income of the consumers will boost the sales of Maldivian. In the same way when the income is reduced credited to recession the demand falls for Maldivian airline
  • Substitute good: travel using one flight with same intercity route is very close replacement for travel on the other. Appropriately an increase in the price of the substitute good or service triggers an increase in demand for Maldivian.
  • Services and Consumers anticipations: Proving excellent inflight services will increase demand for Maldivian. For eg lounge services to Business Course and VIP travellers.

The rivals of Maldivian are FLYME, Air Taxi and Trans Maldivian. FLYME is the main element rivalry competing primarily with 2 local places. The other two companies mainly provide air travel for tourists from Hulhule' International Airport to their designated resort. The aeroplanes used are sea planes as virtually all the islands don't have runways. Recent federal government anticipate starting seaplanes to inhabited islands is major factor to get worried by Maldivian

Government is also stimulating development of resorts in all the atolls, which means the demand for Maldivian increase in future. Nevertheless the inception of 'FLYME' the next local carrier, Maldivian is obligated to reduce the costs and enhance their services. Although they focus only to 3 local areas, one of these to be ALIF ATOLL which is not a destination of Maldivian, they may have strengthened their services to almost all of the resorts in this atoll.

One of the talents of Maldivian is that it's already a recognised company, with ticket prices the same, consumers generally chose the older and competent companies. Maldivian also provides lounge services to business and VIP people. There are various other strategies that organization can utilise to increase their sales. Pursuing are some of them

  • Maldivian could let the customer choose what else they wanted to pay for. They could pay to change their original booking, they could choose seat of preference, prority boarding and even fast keep tabs on through security.
  • They could raise the travel add on's such as stretching travel insurance where substantial travel cover can be gained. They may possibly also offer airport parking, airport-city transport, forex, telephone cards, city trips and seat tickets for occurrences.
  • On table sales can be offered (work free inflight shopping) such as perfume, makeup, watches and jewelry.
  • Customer loyalty programs can be offered to ensure commitment of regular flyers. Maldivian can accomplish loyalty programs by partnering with hotels, resorts and branded retailers to offer airline a long way. Also they could accomplish purchasing of additional mls by existing users enabling them to attain a higher position, get free journeys sooner or up grade to business category or transferring miles as gifts or awards.

Price elasticity of demand actions the change in volume demanded of particular good or service to the changes in price. The elasticity of air travel demand varies according to the coverage and located area of the market in which prices are evolved and importance of flights price. Demand for Maldivian is relatively inelastic, as there are few substitutes. Folks are ready to buy the ticket at any price, especially in the top season from November till end of Feb (Holiday season and college holidays). During this period the supply is relatively inelastic because the demand is higher than the source. Usually in this period due to high demand Maldivian runs extra flights to local places as well concerning Trivandrum. Flights is often a luxury good with demand elasticity for income. The costs on air transportation would form an inferior talk about of the disposable income for consumers with an increased throw-away income level than for consumers with less throw-away income. Assuming increase in ticket fare for Maldivian would mean that utility loss as a result of a fare increase will be lower for consumers with a higher disposable income. Because of this, consumers with a higher throw-away income would be less price-sensitive implying a poor relation between income level and the amount of the price elasticity of demand for air travel.

Before an flight gets that way it needs to ensure that this is aware of its customer needs and needs, as well as what its opponents can and will do in response. It used to be that legacy companies sought to increase average fares but that's all changing. Nowadays low-cost airlines and even more intensifying traditional airlines are looking to maximise income per flight, which implicitly includes all ancillary profits as well as the airfares paid.


http://maldivian. aero/commercial/our-company. html

http://paperwork. tinbergen. nl/01047. pdf FOR POINT 6

http://www. iata. org/SiteCollectionDocuments/air_travel_demand_summary. pdf

http://www. aviation-performance. com/pdf/Airline_ancillary. pdf FOR POINT 5

http://www. flyme. mv/

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