Airline Industry SWOT Analysis of the Airline

Airline Industry

SWOT Analysis of the Airline Industry

The airline industry offers transport services of people, cargo, and mail. Its development began in the 19th century, where the conception of the airships and, eventually, the flights of the Wilbur brothers via their airplane invention made flying for leisure possible. The development of air transportation for people includes the provision of cargo and mail services, made possible through air freights (such as the Federal Express service).

The SWOT analysis of the current situation of the airline industry in the country today shows, interestingly, a direct link to socio-political issues that are prevalent nowadays, be these issues national (or domestic) and international.

Strengths of the airline industry include are its privilege of deregulation, development of new aircraft technologies, and geographical landscape of the United States, making it imperative for people to travel (at their convenience) via airplane flights. Deregulation of the airline industry at the domestic level allows airlines to adjust prices of transportation fees appropriate to changes in the market and needs of the airline companies. However, since airline industries have international flights, the privilege of deregulation is negated by international regulation. Nevertheless, the open skies agreement of the United States with states from the European and Asian region are advantages that make the airline industry profitable. Also, the development of new technologies in aircraft development will allow companies to develop airplanes that have the fastest speed, increasing efficiency and productivity. Lastly, the country's large geographical landscape and mobile American society makes air transport not just a luxury, but a necessity for people who want to be transported to another states at the least amount of time or in the soonest time possible.

Weakness is the propensity of airline service fees to increase due to changes in the U.S. market prices. The lack of regulation of the government to the airline industry shall create problems when prices increase, especially its most important commodity, fuel. Thus, since air transport is a deregulated industry, it is vulnerable to changes and fluctuations of the market, domestically and internationally.