Asiana Airlines SWOT Analysis

adam February 20, 2011 Aerospace & Airline No Comments

Strengths

• It has a low cost operation.

• It works effectively and posses excellent management team which is very good in strategy formulation and execution.

• It encourages work force and give effective results due to its multiskilled staff means.

• It has highly comfortable seats plus cabins.

• Its single type fleet reduces its maintenance fee.

• It offers a five star service and twinkles because of its 95% on time performance.

• One of its aims is to promote Malaysian hospitality and local fovels.

• It has a well established distribution channel and is versatile in its products and services.

• It posses variety of promotional activities utilizing IT which includes email alerts and desktop widgets (Adams, 2003) .

• Air Asia is a well established brand name in Asia pacific. Its management is media friendly and shares latest information on its airline and airline industry.

• It is one of the renowned members of Star Alliance and offers approximately 516 departures throughout Europe, Asia and North America.

• Asiana air lines has been awarded with the Sky-trax 2010 World Airline award in addition to airline of the year award  by Air Transport World (ATW) in 2009, and was honored  best in class certification  by the international organization for standardization (ISO) in 1996.

Weaknesses

• It has a limited service resource due to lower costs.

• It is unable to handle irregular situations due to limited human resources.

• Government often interferes.

• More and more seats are being financed and load factors are still under pressure.

• Deals and passengers compensation.

• It highly depends on outsoaring.

• Air Asia lacks its own maintenance, repair and overhaul (MRO) facility, which serves as its competitive disadvantage.

• It often receives complaints from its customers regarding flight delays, charges for different things and refunding problems.

Opportunities

• Two mega events of Asiana air lines are about to commence in the coming six months these include;

1. Increasing oil price.

2. ASEAN opens skies.

• The rising oil prices apparently seems as a threat for Air Asia but as a low cost leader Air Asia will lead all other airlines and its cost will be still lowest, this parameter will bless it with an opportunity to capture previous customers of other low cost and full service airlines (McConnell and Huba, 2003).

• It can commit into partnership with numerous less costly airlines to enjoy their added benefits like landing slots, landing rights and brand name.

• Rising population of Asia (middle class) will provide bigger market and greater opportunities for low cost Asiana Air lines.

Threats

• There is a user’s perception that Asiana air lines compromise safety for keeping their costs low.

• Security charges, landing charges and airport departures are not under its operators control this serves as a threat for all airlines especially low cost airlines whose aim is to keep their cost as low as possible (Villarreal, 1987).

• It has attracted many competitors .Many full service airlines are planning to compete with Air Asia by developing new low cost services. For example low cost Tiger Airways has been developed by Singapore airlines.

References

1. Villarreal, Carmen Teresa. “Uses and Misuses of Risk Metrics in Air Transportation,” in Public-Sector Aviation Issues-1987

2. Asiana Airlines. Official website: http://flyasiana.com/gateway/gateway_en.html. Accessed: 17th Feb, 2011.

3. McConnell, Ben and Huba, Jackie.  Creating Customer Evangelists.  Wabash & Lake, Inc.  2002-2003.

4. Adams, Paul.  “As Southwest Airlines soars, it lifts up BWI.”  The Baltimore Sun.  August 19, 2003.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.