M RahmanSWOT analysis of Air India
The aim of this detailed SWOT analysis of Air India is to examine the internal and the external environments of Air India. It aims to examine the strengths and the weaknesses of the airline. It also aims to examine the opportunities Air India should explore and the likely threats it should keep an eye on.
Strengths of Air India
Air India is one of the most extensive flight service providers in India. It is also the flag carrier airline of India. The hub of the airline is Indira Ghandi International Airport, New Delhi (India). Air India is a member of Star Alliance.
Air India serves a total of 101 destinations including 57 domestic destinations as of February 2020. It flies to 33 countries across four continents around the world. It has a good number of modern aircraft from both Airbus and Boeing. Air India has code sharing agreements with a number of airlines in the world.
Air India is the state-owned national carrier of India. Therefore, it enjoys financial support from the government of India. Air India also has a good reputation for the quality of its services.
Weakness of Air India
Air India has a weak financial position. Its projected net loss for 2017-18 was estimated at over Rs 3,500 crore (Economic Times, 2018). In fact, the airline has been making continuous losses and has huge accumulated losses. The accumulated losses have swelled to about 69,575.64 crore in the past decade. The accumulated debt in 2017 stood at Rs 46,000 crore (Singh, 2017). Due to financial weaknesses and some other issues, the government of India has announced a plan to sell the airline.
Air India has years of soured relations with its employees causing it a lot of problems. In May 2012, staff organised a protest over training opportunities. In addition, approximately 200 pilots called in sick for work which forced the airline to cancel a number of international flights from Mumbai and Delhi (Kannan, 2012).
Opportunities for Air India
India is the second largest country in the world by population. So, it is not difficult to imagine how massive the domestic market is for Air India. The airline has potentials to grow in the domestic market.
Tourism demand is high worldwide. Deregulation of the airline industry also make the global skies more accessible to airlines than ever before. Both tourism demand and deregulation certainly offer Air India international growth opportunities. Many analysists see the airline’s recent decision to launch its second long-haul route from Mumbai to London Stansted Airport three times per week a move in the right direction.
Threats to Air India
Threat is the last element to consider in the SWOT analysis of Air India. Air India faces a fierce competition from some of the world’s leading airlines in its international routes. Local small airlines and their price wars are also deemed as threats to Air India.
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Last update: 22 February 2020
References:
Air India (2020) About Air India, available at: http://www.airindia.in/about-airindia.htm (Accessed 22 February 2020)
Economic Times (2018) Air India’s projected net loss for 2017-18 less than 2016-17, available at: //economictimes.indiatimes.com/articleshow/62340477.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst (Accessed 01 April 2018)
Kannan, S. (2010) Air India: Problems run deep in India’s national airline, available at: http://www.bbc.co.uk/news/business-18082903 (Accessed 01 April 2018)
Singh,S. (2017)Air India’s mountain of debt root of all problems: Ashwani Lohani on FB, available at: http://www.business-standard.com/article/companies/air-india-s-mountain-of-debt-root-of-all-problems-ashwani-lohani-on-fb-117051500184_1.html (Accessed 01 May 2018)
Photo credit: Pixabay
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
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