SWOT Analysis of Air India

STRNEGTH WEAKNESS

Reduced age of Fleet size to 2.5 Frequent change of

years Managing Director
Reduced maintenance cost by MDs are not from Industry
43% Lack of clarity in Goals and
Advantage of Hub and Spoke Vision
system SW
OPPORTUNITIES OT THREATS

New entrants (Vistara and Air

India set to be 3 largest
rd
Asia) also gaining market share
aviation industry by 2020 100% FDI provides opportunity
Cost benefit due to to foreign Air carrers looking to
Economies of Scale after the tap huge potential
merger
AI to get advantage of being
the
 Timeline Transformation of Air India
T1- 2003, After 2003 number of New Private Players Increased
considerably
T2 Merger of Air India and Indian Airlines in 2007
T3 Scenario after the Merger
T4 Air India in 2020
STRATEGY
HR

T
T2
T1
3

Financial
T4
OPERATIONA
L Marketing
SWOT Analysis of Airline Industry
STRENGTH
Fast growing major economy
Fast growing middle class population
Above average Safety Record
Scattered Tourist Destinations
More than 100 years old Aviation
Industry
OPPORTUNITIES
Potential of increase in Inbound and
Outbound traffic
Development of India as prime medical
and tourist destination
To develop an Aviation hub between
Singapore and Dubai
WEAKNESS
Weak Infrastructure
High operational cost
Dependence on Foreign resources because of
limited R&D
Slow growth of cargo
Poorly developed Air Navigation Services
Underdeveloped MRO industry
THREATS
Ongoing global terrorism
Economic downturns and recessions
Substitute cheaper modes of transport
Congestion in air space
Reasons for Failure of Merger and Losses

Failure of HR
Integration

Merger suggested
without considering
integration and Leadership Crisis
synergy problem

Two separate
Problems of
Maintenance Team for Lack of Proper Planning
two different fleets Merger

Problem of IT
integration of Ticketing Too much dependent on
System Consultants

Leaky Financials