New Zealand Airline SWOT Analysis

A small overview is given here to the students for completing SWOT analysis assignments on New Zealand airline. This can help students to have a general overview.

The New Zealand airline is famous with the name of air New Zealand. It is a popular airline operating all over the world. It contains a fleet size of 100 excluding 27 orders and 33 options with International routes being served by Boeing 747, Boeing 767, Boeing 777, and Airbus A320 aircraft.

Strengths of New Zealand Airlines:

• New Zealand has an edge in manufacturing aircraft.
• Online booking and impressive search have returned the investments many folds.
• Special routes have been designed to promote marketing and trade.
• Air New Zealand is rated 8^th best airline globally in 2009 by Styrax. Also, it was awarded as airline of the year in 2010 by the air transport world.
• Very well established emergency exit system. And both sides of the seats have an exit system.
• The organizational structure of New Zealand airlines is well organized and balanced. It is the ultimate reason for their success. Its crew is always dedicated to excellence and the promotion of tourism in their country.
• New Zealand airlines have a complete understanding of marketing and advertisement’s role in it. There is a formulation of the new policy every year and most of the time it successfully runs as their team is always discovering the arrangement for flyers and new products.
• It is initiating the environment-friendly fuel usage and policies.
• It is approaching almost sixteen countries at fifty-one distinct cities in United Kingdom, Oceania, North America, Pacific, and Asia.

Weaknesses of New Zealand Airlines:

• Weakness is the second element to address in the SWOT analysis of Air New Zealand. One of the major weaknesses of Air New Zealand is its limited global reach. While the airline’s presence in the domestic market is extensive, its global reach is limited. Likewise, its brand awareness compared to its competitors is limited as well.
• Total revenue generated last year was NZ$82 million, which was expected to be increased but the situation became adverse and a loss of NZ $4.05 billion was beard because of fewer boarding passengers as compared to the previous year (McDonald, 2000).
• It accepts payment by only credit card and not by cash and outsiders have to pay a surcharge on their card transactions.
• To entertain more choices to the customers, they introduced several classes.
• Economy and premium economy cabins are not comfortable especially on long flights.
• From December 2010 Air Blue and Air New Zealand are working in alliance and are expected to strengthen each other.
• The crew is often not recognized and services are often delayed.
• The staff is not efficient for outside flights as compared to local flights.

Opportunities:

• New Zealand airlines will announce new carrier capacities in the year 2011 by introducing new crafts, escalating configuration, and utility in the way of recuperating the gains in the fiscal year 2011.
• Frequent flyers earn miles from their tickets. Also, they are categorized into silver and gold based on the class in which they travel.

Threats:

• Tough competitors of Air New Zealand available in the industry such as Cathay Pacific.
• It has committed the maximum number of accidents in the last decade that proves its technical inaccuracy.
• The major concern after the 9/11 incident is security.
• The increase in fuel price has a big impact on Air New Zealand because of its big fleet.

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