AIRLINE INDUSTRY SWOTT ANALYSIS (Strengths, Weaknesses, Opportunities, Threats, & Trends)

SWOT ANALYSIS : AIRLINE INDUSTRY

2006 I . Strengths

The main strengths for airline industry is the fact that globalization has increased the need of air transportation . Previous researches discover that people of America are searching for value and higher quality of service , but the statement turns out to be wrong as we enter the 21st century . Despite the increasing demand of quality leisure travel , cheap price and reliability are the two merits still considered most significant by businesspersons and travelers in general

II . Weaknesses

The emerging low cost carrier (LCC ) has

also received an amount of critics as logic states that lower cost flight would provide lower quality of safety and security services . Questions , opinions and suggestions are posted trough the internet in relation with the accusation that these increasingly popular industry could pose a certain safety hazard to customers

Research and observation supported the logic that airline companies growth has a very close connection to economic growth and trade . The gulf war in 1990s has damped the industry as the war resulted worldwide economic recession . IATA 's member airlines suffered 20 .4 billion from 1990 to 1994 . The organization put their mind into the issue and by 1996 profit was back due to aggressive cost cuts policies ( The Airline Industry

III . Opportunities

Since the planes hit the two towers in 9 /11 tragedy , high-class airline giants are loosing millions of dollars while low fare airlines taking their places . The small-scale low cost companies known as low cost carriers (LCC ) have created new opportunities to provide low cost flight services , which become a new trend in worldwide air travel

As air travel becomes more accessible for even the most price aware customers , airlines are forced to make wider price differentiation policies in to keep up with the competitions in the `new market

Businesspersons and general travelers usually try this new segment of flying for private holidays . But they have seem to find it satisfying as they continue to used it and gain the discounts or other extra facilities as they become frequent fliers

IV . Threats and Trends

The 9 /11 tragedy has give the economy a significant down phase especially the airline industry which has a direct involvement in the tragedy . Almost all airlines suffer losses during the following periods of the incident . Safety and security concerns have been major discussion s on government bodies , business firms and common society in general

Concerning the trends of airline industry , it is found that the trend in air travel industry based on two factors . First , airlines are to buying new airplanes to taking used ones due to the fact that new airplanes provides carriers with more efficient operational costs . Second , carriers are to deploying small airplanes such as Boeing 737s and Airbus A320s that have 120 to 200 seats in to provide low-fare air travel

References

Airline Industry . Retrieved June 29 , 2006 from http /adg .stanford .edu /aa241 /intro /airlineindustry .html

Air Travellers ' Security Charge (ATSC ) and Low Cost...