Etihad Airlines SWOT Analysis

adam February 23, 2011 Aerospace & Airline No Comments

Etihad Airlines is the flag carrier of a very well established country named Abu-Dhabi. And it serves almost 64 destinations along Middle East, Europe, Asia, Toronto in North America, and soon in Manchester (UK).

Strengths

• Despite being young, it is growing with pace towards success having 57 wide and medium bodied air busses in its fleet that were only six in 2003, the point where they started.

• A progressively positive EBITDAR (earnings before interest, taxation, depreciation, amortization and rentals) has been shown by Etihad airways from 2003 to 2010, an s revenue rise of 2010 as reposted to be 29.2 per cent.

• Total revenue of air lines is calculated up to 2.3 billion dollars, the main earning source being its cargo terminal.

• The seating capacity has tremendously raised from 4.6 million in 2007 to 6 million in 2008 to 7.4 million in 2009 and still greater in 2010 ultimately that is expected to rise at the same pace in 2011.

• Partner with Virgin blue and V Australia for joint flights serving about 100 destinations.

• Headed by CEO John Hogans, 6300 members are serving Etihad airline including 3,000 cabin crew members.

• Management team of Etihad airways has been technically accomplished through Graduate management development programmed and are gone though every field related to the airlines for its betterment and efficient working.

• Different sponsorships are being offered to sports clubs including rugby and football.

• It has been world’s leading airline in 2009 and is ranked in top ten airlines since 2007.

• A full entertainment system is provided through its E-Box, including USB plug and play.

• Cabins are divided unusually as diamond zone, pearl zone and coral zone, for first, business and economy class respectively.

• Owing to its services, almost 30 awards have been achieved, including WTA.

Weaknesses

• Customer services centers should be liable enough to guide the people, but there are complaints that they mostly refer to someone else or negate to help

• Compensations and liabilities are delayed or not provided (Sadiq, 2003).

• Flights having via destinations have their interval time often increased more than that was committed.

Opportunities

• As the airlines are quite young moving ahead towards success skies, over a thousand vacancies will be announced in current year 2011 to cater the increasing fleet and passenger loads.

• Loyalty and frequent flyer programmers have been initiated in which customers are given discounts on web shopping.

Threats

• Etihad airlines are in competition with topmost airlines of the world, any small loss can prove to be a big hinge in its way. So efficient and clever working is desired.

• Air testing should be done with the availability of reliable crew and incidents like hitting a concrete wall and losing $30m, if repeated may prove lethal for it’s as far as good reputation.

• Bomb threats have been given to the airlines, haltering the airline and frightening the passengers.

• Some time natural environmental conditions doesn’t suits the flights and because of this huge amount has been paid as loss in last year, when ash cloud interrupted flights for several days to and from Europe.

References

1. Flight global. (2010). "Etihad on course to break even next year: Hogan". Retrieved 2010-06-26
2. Sadiq Sohail, M. Malaysia Airlines (2003). Facing Challenges in the New Millennium, KFPUM (MAS)
3. Directory: World Airlines". Flight International: p. 78. 2007-04-03.
4. Eithad Airlines. (2009). " http://www.etihadairways.com." . Retrieved on 22 Feb 2011

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