CAPA Publishes Aeroflot SWOT Analysis
OREANDA-NEWS. April 23, 2014. A SWOT analysis based on Aeroflot activities in 2013 was published by Centre for Aviation (CAPA). "Russia’s national champion is well positioned to confront new challenges", stated the esteemed aviation research agency.
According to the results of its comprehensive analysis, Aeroflot’s advantages are:
The biggest share of the domestic market (including foreign airlines operating in Russia) — 30% of total passenger traffic;
Dominating key Moscow hub — Sheremetyevo airport;
Long-term profitability of the Russian flag carrier, while other major European airlines have all made losses more than once;
Better cost efficiency compared to other aviation groups as, for example, Air France-KLM or IAG;
One of the most modern fleets in Europe with an average age of 4.5 years;
Aeroflot Group’s multi-brand strategy covering all market segments;
Ambitious but realistic growth plans for the Group: passenger traffic is to reach 70 million passengers in 2025 (compared to 31.4 million passengers in 2013), which is higher than average market growth.
CAPA analysts underlined such favorable opportunities for Aeroflot as:
Strong growth potential of the Russian market;
Deeper integration Aeroflot Group companies;
Launch of its own LLC Dobrolet that would mean a new business within the Group.
SWOT-analysis named some potential risks that might influence air transport development in some regions, including factors related to the political crisis in Ukraine. Nevertheless, Aeroflot’s strategy of dynamic development provides the potential for neutralizing these risks.
In general, according to the study, "opportunity knocks for Moscow favourite".