WikiSWOT.com :: Free Airline Industry SWOT SWOT Analysis

User Generated >> Airline Industry SWOT SWOT Analysis:

Strengths

Despite downturns, over time air travel continues to grow
Public acceptance of air travel as both a fast and safe way to travel
Airline staff is highly trained and experienced
Airlines have the ability to segment the market allowing them the ability to establish different levels of service and make associated pricing decisions

Weaknesses

Airlines have a high spoilage rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
Aircraft is expensive and requires huge capital outlays
Large workforces spread over large geographic areas, including international points, require continual communication and monitoring
While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors

Opportunities

Airline market growth offers continual expansion opportunities for both leisure and business destinations
Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground
Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier

Threats

A global economic downturn negatively affects leisure, optional travel, as well as business travel
The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model
Terrorist attack anywhere in the world can negatively affect air travel
Government intervention can result in new costly rules or unexpected new international competition

History: Version 2 (Newest), Version 1 (Oldest)

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