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Analysis on airlines Free essay! Download now

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Analysis on airlines

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Downloads to date: N/A | Words: 551 | Submitted: 16-May-2011
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http://www.graddiary.com/company/airbus/

Airbus' mission is to provide the aircraft best suited to the market's needs and to support these aircraft with the highest quality of service. The Airbus jetliner product line comprises 14 aircraft models, from the 100-seat single-aisle A318 jetliner to the 525-seat A380 - which is the largest civil airliner in service.




A SWOT analysis--a review of strengths, weaknesses, opportunities, and threats--is a core requirement of any organization, and essential to understand any industry. The volatile airline industry is no exception. While individual airlines each analyze and make decisions based on their own situations, there are overall industry similarities that all airlines face, with each endeavoring to maximize strengths and opportunities while minimizing weaknesses and threats.
Strengths
A major strength of any airline is the product itself--air travel. Despite downturns, over time air travel continues to grow, not only due to population growth, but also due to an increased propensity to fly.?Another strength is the safety record, and the associated public acceptance of air travel as both a fast and safe way to travel. Both traditional, brand recognized airlines and new low cost carriers share this strength.?Airline staff is highly trained and experienced, from pilots and flight attendants to mechanics and ground staff.?Businesswise, airlines have the ability to segment the market, even on the same routes. This allows airlines 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. The return on investment can be different than planned.?Large workforces spread over large geographic areas, including international points, require continual communication and monitoring. This can be exacerbated during operational irregularities, such as bad weather.?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. This is particularly true for international destinations.?Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like inflight Internet access and other value added products for which a customer will pay extra.?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.?A plague or terrorist attack anywhere in the world can negatively affect air ...

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