Swot Analysis Of Airline Industry

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INTRODUCTION THE AIRLINE INDUSTRY The airline industry is hampered by slim profit margins, forcing carriers to find ways to reduce the inefficiencies in their model and thus are trying to focus on both cost reduction and revenue growth through better customer interactions. According to AIDA reports, mostly the growth in the aviation industry is tasted by low-cost carriers (LCCs), which are now controlling somewhat around 25 percent of the world's market and has long been expanding at some speed in the emerging markets; growth also has been coming from prolonged gains by some carriers in the developed markets. In the aviation sector, every other player in the value chain — airports, travel agents, airplane manufacturers, jet engine makers…show more content…
The way all these commercial airlines react to and navigate the various trends playing out across the globe will help to determine the real carrier performance in the forthcoming years. As is true in almost all other major industries, the basic understanding of individual customers’ needs and expectations and consumer-related activities is quite important to deliver personalized services and targeted experiences/products. Thus, it is has become important for the airlines to evolve beyond their excessive reliance on the loyalty programs in its existing form, which can very well generate significant and much required customer data but doesn't lead to relevant insights about the travel behaviour and…show more content…
The ranking can also be found out for individual factors by looking at the weights and assigning the highest to the one with lowest weight. DEA Data envelopment analysis was used to find a balanced input output benchmarking for 5 airlines to found out the most efficient airline among them in terms of using the limited resources that they have. The 5 airlines chosen were- 1 indigo 2 spicejet 3 air india 4 go air 5 jet airways This tool was used basically to confirm the results obtained from AHP technique using consumer responses by using actual facts/figures or statistics about these airlines. A two input - two output method was used to analyse these airlines. The input-output combinations used were Inputs Outputs Available ton km('000) Revenue Passenger km Operating cost passenger load factor An efficiency benchmark is obtained by excel add-in to analyse the rest of the airlines according to it. The optimal lambdas generated can be used to generate the result for each airline to improve their performance. In the end we will try to analyse these results to find out the best airlines that are setting the standards for others to follow and thus used as benchmarks for others to learn from and imitate their plans and

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