abhishreshthaa
Abhijeet S
Continental Airlines is a major American airline based in Continental Center I in Downtown Houston, Texas. On October 1, 2010, UAL Corporation (the parent company of United Airlines) changed its name to United Continental Holdings, Inc. and completed its acquisition of Continental Airlines. These airlines are in the process of merging their operations under the name United Airlines. During the integration period, both airlines will, for a time, run separate operations under direction of a combined leadership team of the new parent company based in Chicago.
Strengths
* Despite downturns, over time air travel continues to grow
* Public acceptance of air travel as both a fast and safe way to travel
* Airline staff is highly trained and experienced
* Airlines have the ability to segment the market allowing them the ability to establish different levels of service and make associated pricing decisions
Weaknesses
* Airlines have a high spoilage rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
* Aircraft is expensive and requires huge capital outlays
* Large workforces spread over large geographic areas, including international points, require continual communication and monitoring
* While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors
Opportunities
* Airline market growth offers continual expansion opportunities for both leisure and business destinations
* Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground
* Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier
Threats
* A global economic downturn negatively affects leisure, optional travel, as well as business travel
* The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model
* Terrorist attack anywhere in the world can negatively affect air travel
* Government intervention can result in new costly rules or unexpected new international competition
Strengths
* Despite downturns, over time air travel continues to grow
* Public acceptance of air travel as both a fast and safe way to travel
* Airline staff is highly trained and experienced
* Airlines have the ability to segment the market allowing them the ability to establish different levels of service and make associated pricing decisions
Weaknesses
* Airlines have a high spoilage rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
* Aircraft is expensive and requires huge capital outlays
* Large workforces spread over large geographic areas, including international points, require continual communication and monitoring
* While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors
Opportunities
* Airline market growth offers continual expansion opportunities for both leisure and business destinations
* Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground
* Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier
Threats
* A global economic downturn negatively affects leisure, optional travel, as well as business travel
* The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model
* Terrorist attack anywhere in the world can negatively affect air travel
* Government intervention can result in new costly rules or unexpected new international competition