Question

SWOT analysis of American airlines?

Answer 1

American airlines commonly known as American offers airlines services, both global an domestic, through its subsidiaries. Its headquarter is in Fort Worth, Texas.

SWOT analysis of American airlines

STRENGTH	WEAKNESS	OPPORTUNITY	THREATS
Strong tie-up and alliances - The company has very strong alliance base with various other international airlines such as Air Berlin, Pacific Airways, British Airways etc.	Limited supplier- The airlines is dependent on limited number of supplier for the supply of engines and other parts required by the airlines.	Growth in Air Freight - Due to the growth in the air freight the revenue will boost and also boost up the market share. The reason is that American airlines cargo has one of the largest air cargo operations in the world.	Competition - The US airlines industry faces intense price competition mainly in domestic markets. This can have negative effect on the market share and financial condition.
Operational network - It is one of the largest scheduled passenger airlines in the world.	Number of LCC competitors - Low Cost Competition is raising very rapidly which are affecting their revenue also.	Growing global Tourism - The growing tourism give the airlines the opportunity to capitalize on the demand created because it has large operating network in the world.	Environmental Law - The airlines industry is subject to various rules and regulations where environment is concerned. The company have to make sure to comply all the rules otherwise company have to pay penalties.
Majority market share in the world - In FY 2015, American airlines cover about 13% of the market share in the world which is considered as majority market share in the world.	Unfunded pension benefit - The airlines is due to contribute to the minimum funding requirements of the Pension Funding equity Act, 2004,which can affect the company's liquidity position.	Growth in US airlines industry - The US growth has delivered a robust growth in recent years. It shown the growth of about 4.2% in terms of revenue.	Fuel costs and government intervention - Fuel cost is raising very rapidly which is directly affect the bottomline of the company. Also the airlines sector is controlled by the government, therefore, changes in the policies can adversely affect the brand.
Reputation for onboard entertainment - American airline's onboard entertainment is very popular among the customer and the same is also been appreciated by them.