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SWOT Analysis of Airline Industry

This SWOT analysis for an airline identifies strengths like passengers needing network services and enhanced in-flight amenities, weaknesses like excess capacity and high debt levels compared to competitors, opportunities to focus on short-haul flights to feed their network, and threats such as potential labor problems as the airline tries to streamline costs to compete with low-cost carriers.

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avinashtiwari201745
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131 views2 pages

SWOT Analysis of Airline Industry

This SWOT analysis for an airline identifies strengths like passengers needing network services and enhanced in-flight amenities, weaknesses like excess capacity and high debt levels compared to competitors, opportunities to focus on short-haul flights to feed their network, and threats such as potential labor problems as the airline tries to streamline costs to compete with low-cost carriers.

Uploaded by

avinashtiwari201745
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SWOT ANALYSIS

Strength
Passengers will continue to need network sevices Ensure a leisure Travel, especially to the business traveller, like airport lounge. Enhanced in-flight service and more comfortable seating. In long-haul markets, where premium service is essential, through higher capacity and long range Boeing 747s and Airbus 340s.

Weakness
Excess capacity. Complicated flight operations. Hub-and-spoke networks of legacy carriers were profitable as long as LCCs had low service along heavily travelled routes. Mounting debt Enormous debt to investment ratio (above 90% for most US legacy carriers like US, DL, AA, UL, CO) compared to LCCs (25% for Southwest). Cost-to-revenues ratio per seat mile is very high (>13) compared to Southwests 7.67

Opportunities
Maintain short-haul flights only to extent needed to feed the network

Threats
Labour problems as legacies try to streamline in order to compete with LCCs.

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