SWOT analysis of Air India

Strengths in the SWOT analysis of  Air India

• Air India has been the largest air carrier in India in terms of traffic volume and company assets.

• It owns the most updated fleet and competent repairs and maintenance expertise.

• Its information systems are advanced and compatible with its operation and service.

• It has a good reputation in both international and domestic markets, quality service and the age-old Goodwill that has still kept it alive in the interests of the rescue operators.

• Has financial backing of the Government

Weaknesses in the SWOT analysis of  Air India

• Air India is operating across broad international and domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets.

• Low profitability and utilization of capacity.

• Growing Competitor base and entry of Low-Cost Carriers  (LCC’s)

• The airline’s high-cost structure and the compulsions of being a public sector unit are the reasons and it had been making a loss and shall continue to make losses for some more quarters.

Opportunities in the SWOT analysis of  Air India

• India airline industry is growing faster and will continue to grow as the GDP increases, and the trend is predicted to continue once the slowdown recedes.

• Worldwide deregulations make the skies more accessible; the route agreement is easier to be achieved. The number of foreign visitors and investors to India is increasing rapidly.

• Complementary industry like tourism will increase demand for airline service. The Civil Aviation Ministry’s strong regulation and protection provides opportunities for consolidation and optimization.

• Customers are getting wealthier, tend to be less price-conscious and prefer to choose quality service over cost.

• Best time for introducing LCC’s

Threats in the SWOT analysis of  Air India

• Air India faces imminent aggressive competition from world leading airlines and price wars triggered by domestic players.

• The Indian Railway Ministry has dramatically improved speed and services in their medium/long distant routes, attracting passengers away from air service, with prices almost at par with the low cost carriers