I. SWOT Analysis of AirTran Airways
Strengths
Weaknesses
- Financially Capable
- Recognized Carrier
- Largest Low-cost Airlines
- High accident rate for the past years
Opportunities
Threats
- Acquisiton of new fleet
- Possibility of company expansion
- Strong Competition
- Unstable Market
A. Strengths
The company is among the top players in the low-cost airline industry in the United States. And as such is has a better financial range than almost all of its equals in the industry. Enormous financial reserves permit the organization to capitalize on market opportunities, investments and growth actions that are not easily reached to more underdeveloped organizations with a reduced capital.
AirTran Airways is indubitably one of the most identifiable brand names in the airline industry in the United States. And based on its website, it is one of the country’s largest operators of Boeing planes in the country. This allows the company to manage the flights of all 56 destinations on their flight lists. Moreover, the company is a recognized name in the industry. It has created a repute of excellence that new entrants in the industry aspire.
B. Weaknesses
One of the major weaknesses of the carrier would be the number of in-plane incidents since 1998. There have been incidents in four different occasions. Specifically, there was one in 1998 in Atlanta, Georgia; two in 2000 in Greensboro, North Carolina and again in Atlanta Georgia; and one in 2003 in Flushing New York. These accidents are major factors that turn-off both the core customers and prospective clients into acquiring their services.
C. Opportunities
The carrier has acquired the newest edition of the Boeing fleet, the Boeing 717. This means that there may be fewer incidents that may occur and at the same time the customers are getting a more value for their money. Moreover, there are talks of possible merger with one of the other low-cost carriers in the industry. Not only does the company acquire a greater range of assets and resources, it will also have an opportunity to expand the existing market share of the company.
D. Threats
A chief player, with considerably superior fiscal, marketing and operating sources than AirTrans, may perhaps go into this market at any instant and vie openly against the company. The United States low-cost carrier industry is booming with cutthroat players like Spirit Airlines, Frontier, and JetBlue. AirTrans has to be conscious of competition on every level and sustain its operational performance if it is to keep hold of its position as among the country’s top low-cost carriers.
Credit:ivythesis.typepad.com
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