SWOT ANALYSIS

SWOT Analysis

SWOT Analysis

Introduction

The airline industry has undergone significant restructuring in latest years. Airlines, previously rivals in a highly regulated industry, have become opportunistic seekers of co-operation. In today's world, mega-carriers and small airlines are employed simultaneously rather than vying with one another. Forms of co-operation encompass sub-contracting, cipher sharing, franchising and the formation of global marketing networks. Such alliances allow firms to focus on their respective centre competencies, while drawing the benefits of scale economies. In essence, co-operation among competitors has directed to increased competitiveness. This has accelerated the tendency of junction marketing, and the airline has become characterised by the desire to pertains to a global network. The inclination has been to strive for a global presence.

The transportation industry was traditionally among the most regulated and defended sectors of the economy. For many national flag-carriers, neither affray neither market forces were considerations. Governments set prices, paths, services, etc. More lately, industry structure has changed, mirroring a new operating natural environment and giving rise to opportunities for joint-marketing alliances. During the past two decades, comparable forces have replaced the government as instruments of regulation. Previously defended airlines discovered themselves vying in a new environment. Whereas airlines used to operate individually of one another, the industry structure has been shifting, as there has been pressure to collaborate with competitors, in alignment to become competitive.

As early as 1914, travellers on Zeppelin airships were served champagne with their in-flight meals. During the 1920s, soaring dining rooms were presented, and chefs prepared warm meals aboard the Zeppelins. Airlines presented railway-style, uniformed stewards and restaurant-style tables adorned with vases of flowers and silver cutlery. In 1928, Pan Am became the first US airline to provide work cabin attendants to serve meals. Also in 1928, Western Airlines (eventually absorbed in Delta Airlines) served meals conveyed to their aeroplanes, by Cadillac, from a restaurant near Los Angeles Airport. In 1929, Pan Am presented in-flight movies on its flights between Miami and Havana (Dana, 1999).

 

Air China case study

Air China was based on the 1st of July 1955. Its headquarter is based in Beijing. It engages in international and domestic passengers and cargo air journey services. To unify its facility image and simplify its repairs and maintenances, actually, it fleet of total 118 aircraft exclusively is consisted of Boeing models, encompassing 56 B747s, 17 B777s, 19 B767s and 26 B737s. with over than 28,600 of chair capacities. It has established hub-spoke method="color: Red;">method method="color: Red;">method="color: Red;">traveller and cargo transport network. The hub of this mesh is Beijing International Airport.

The company is operating 339 routes, which consists of 53 international and 286 domestic, operating more than 1,000 scheduled flights on every week basis, serving 29 cities in 19 countries.

 

Growing domestic market

Fierce affray and sluggish market demand has compelled the compant to turn its business focus on the fast increasing domestic market, where it enjoys the protections from the Civil Aviation Administration of China (CAAC). Chinese Government has adopted an aggressive fiscal principle by reducing interest rate to 2 percent, ...