SWOT Analysis: Cathay Pacific Airlines

Delta Airlines is one of the leading airline industries in the market based on on-time performance, revenue per available seat, customer satisfaction, and it is well positioned in taking advantage of the new positive economic outlook for the airline industry. It is a domestic Airline carrier that provides passengers and cargo services throughout the US and other international destinations. Some of its hubs are in Atlanta, Detroit, Minneapolis, Amsterdam, JFK and Tokyo-Narita as well as in partnering with the existing regional airlines. Currently, the assets of Delta Airline are valued $54,252 million and the composition can be divided into three main groups including PPE (Property, Plant, and Equipment), Current Assets and other Assets (Luo, 2014).

The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition

The Airline industry today offers services to nearly every place of the globe. The following economic factors that include consumer behaviour, currency rate, purchasing power of consumers, oil price plus the inflation plays key role in deriving the country’s economy. According to (Macmillan & Tampoe 2000), Airline industry itself is a leading economic force in terms of both its effects on associated industries for example aircraft manufacturing, operations and tourism. In this regard, this paper discusses the economic factors that affect the decision, the board of Air Asia needs to consider before acquiring 10 units of Air Bus model A350-1000 to increase its fleet of long haul airplanes.

| Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. * Lack of online presence * In some aircrafts the seats are uncomfortable and narrow

First, let’s take a look at the SWOT analysis (strengths, weaknesses, opportunities, threats). This strategic planning method should give us an overall understanding of all the aspects of JetBlue

Rivalry among low cost carrier industry is very high. Due to this, it is difficult to acquire high profit through market share dominance. With high fixed costs, airlines often sell unsold seats cheaply or provide free upgrades which can lead to price wars. (Hubbard, 2004). Growth in a mature industry with low growth potential can only be achieved through diversification or at the expense of the competitor. (Duritz,

A SWOT framework is used to evaluate the internal and external forces affecting the company.

1.1 Product: At the point when Delta carrier changing their value, offering low airfares it pulls in clients toward them and afterward individuals initially favored that airline. Also, when aircraft give markdown on distinctive seasons it likewise draws in individuals. As indicated by the contextual investigation, aircraft known the moderateness of individuals and organization has numerous techniques; organization give most reduced conceivable charges to business explorers or relaxation voyagers in a basic straightforward manner. From the beginning, organization has altered expense on airfares regardless of the possibility that the traveler in plane is few or the high cost of flying a void plane

The company can create strategic alliances and promote growth in the airline industry by leveraging code share agreement with other airlines. Codeshare arrangement between airlines has been a developing strategy on the rise within the airline industry, where one flight operated by an airline is jointly marketed as a flight for two or more airlines. This approach has been a key feature in promoting major alliances between airlines. It offers the airlines the opportunity to broaden its services in unfamiliar, new markets and destinations as well as assist in reduce operational cost, since the airline would sacrifice its capacity to the operating code sharing partner who bares the operational cost. Code sharing creates opportunity for airlines to establish connections beyond their own network and boost sales across the industry.

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

The company's internal strategies stand in response to the conditions of the external environment. The airline industry in the United States is a difficult one in which to operate. Fixed costs associated with

The supplier power in airlines is dominated by the world’s two largest aircraft manufacturers are Airbus and Boeing. The competition between the two manufacturers is neck to neck but that would prove to be a boon for Emirates as the prices would not rocket through the ceiling. A study shows that Emirates holds 93 Boeing aircrafts and 83 Airbus units (Planespotters, 2009). In 2007, Emirates purchased 81 Airbus flights, to extend it services- however, they chose Airbus over Boeing as the latter failed to deliver its latest aircrafts on time and moreover, Airbus had quoted a good price (Barryl, 2007). The changing oil prices also have an adverse effect on the aviation industry. In a nutshell, the bargaining power of suppliers is high.

The four cost components of the airline industry – fuel, landing fees, aircraft leasing and taxes - has made operating Lucky Air in a productive manner a constant challenge. Even though the company has a high competitive advantage being linked to Hainan Airlines, it still needed to upgrade its business strategy on a regular basis to ensure maintaining the lead they had over the other airlines. The company like all its counterparts face a myriad of restraints including heavily regulated governmental laws, limitation to price reduction, a low potential for rapid expansion due to government restrictions and heavy taxes.

Significant developments have occurred in the field of air transport. A large number of countries made remarkable progress in liberalizing international air transport regulations, and became involved in full market-access arrangements. At the same time, the airline industry underwent a major shift and saw the forging alliances and mergers between companies in order to consolidate their presence in a market environment characterized by strong competition. (Icao.int, 2013)