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ANALYSIS OF THE AIRLINEINDUSTRYARIK AIR

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OUTLINE

Aviation in Nigeria

Industry overview

Industry structure Key success factors

Differential performance

Conclusion

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Quote

The Nigerian Government,To provide a safe efficient, reliable, dynamic,

customer-focused and market driven air

transport services which will make the countrya leading hub in Africa and a major participantin global aviation and at the same time makesignificant contribution to Nigeria's gross

domestic product. (GDP)

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Aviation in Nigeria

Aviation is a complex industry: It is divided into 2major parts.

All over the globe, aviation has become a majormeans of transportation and communication

Nigeria has placed substantial premium on the

development of civil aviation

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Industry Overview

A proposed entrant should know that the aviationindustry is highly capital intensive with hugeinvestment in aircraft

The aviation industry suffers from inadequatefunding and availability of funding for the industry ishampered by factors including legal, regulatory,political and economic factors.

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Financing Options

Outright purchase

Installmental payment

Borrowing and equity contribution Finance lease

Operating lease

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AERO,CHANCHANGI,IRS,ARIK, DANA, AIRNIGERIA, FIRST

NATION

OIL MARKETINGCOMPANIESAIR-PLANE

MANUFACTURERSGROUND

HANDLING

ROADRAIL

EMAILPHONE

MAIL/COURIER

TRAVEL AGENCYINTERNET

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KEY SUCCESS FACTORS

People

Service product/promotions

Route system Revenue/cost control

Financial management

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Business Focus

ArikAir ensures the highest standards ofsafety and security are sustained as theydeliver the following services

Scheduled passenger service Passenger charter flights

Executive charter flights for corporate organizations andVIPs

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Differential performance

On site aircraft maintenance by LufthansaTechnik

Minimum response time to confirm bookings

Round the clock service

International safety standards

Expert expatriate management team

World class customer service delivery

Value added benefits like flexibility, morechoice of schedules and frequencies

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9%

28%

40%

10%

5%

8%

Market Share

Virgin

Aero

arik

dana

Chachangi

Irs


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0

10

20

30

40

50

60

14

26

58

1310

17

Number of Routes

Virgin

Aero

arik

dana

ChachangiIrs

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

8%

23%

41%

8% 4%

11%

Passenger frequency

Virgin

Aero

arik

dana

Chachangi

Irs

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0

20000

40000

60000

80000

100000

120000

140000

Arik Aero Dana Airnigeria

LAG - PHC - LAG

Economy

Business

PRICING

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0

20000

40000

60000

80000

100000

120000

Arik Aero Dana Airnigeria

LAG - ABJ - LAG

Economy

business

PRICING

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Current Route Network

Primary hubs Lagos and Abuja

26 routes domestic

20 airports domestic

Per week 150 flights

Secondary hub - Port harcourt

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`In Conclusion

Arik Air has delivered:

Brand new aircrafts

First class maintenance

Developed new routes

Developed infrastructure

Carried over 2,700,000 passengers

Appointed as National carrier of NigerRepublic

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So.

Havent they created a world classairline that, in Sir Arumemi-Ikhideswords, Nigeria and the rest of theworld would be proud to fly?

We believe they have

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