SWOT ANALYSIS ON United Air Lines

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Abhijeet S
SWOT ANALYSIS ON United Air Lines : United Air Lines, Inc., doing business as United Airlines, is a major airline based in the United States and one of the world's largest airlines with 48,000 employees and 360 aircraft. It is a subsidiary of United Continental Holdings, Inc. formerly, UAL Corporation, with corporate offices in Chicago. United's largest hub is Chicago's O'Hare International Airport. United also has hubs in Washington Dulles International Airport, Denver International Airport, San Francisco International Airport, Los Angeles International Airport and Narita International Airport near Tokyo. United is a founding member of the Star Alliance, the largest airline alliance in the world, and offers connections to over 1,000 destinations in over 170 countries worldwide.

On Sunday, May 2, 2010, the Boards of Directors at Continental Airlines and United Airlines approved a stock-swap deal that would combine them into the world's largest airline in revenue passenger miles and second largest in fleet size and destinations after Delta Air Lines. The new airline will take on the United Airlines name, Continental's logo and be based in United's hometown of Chicago. The parent company of the new carrier will be called United Continental Holdings, Inc. The new United will be run by Continental's CEO, Jeffery Smisek, along with United Airline's CEO, Glenn Tilton, serving as non-executive Chairman of the board. United's pilots union announced that they "are fully prepared to protect and defend the interests of all United pilots."[6]

On August 27, 2010, the U.S. Department of Justice approved the $3 billion merger.[7] Share holders of both companies approved the deal on September 17, 2010. The transaction was completed on October 1, 2010.


Strengths
* Diseconomies to scale
* Over leveraged fiancial position
* R&D
* market share



Weaknesses


* No online presence
* Not innovative
* Not diversified
* Poor supply chain
* Weak management team
* Weak real estate
* Weak, damaged brand
* Ubiquitiouegory, products, services

Opportunities

* Acquisitions
* Asset leverage
* Financial markets (raise money through debt, etc)
* Emerging markets and expansion abroad
* Innovation
* Online
* Product and services expansion

Threats

* Competition
* Economic slowdown
* Lower cost competitors or imports
* Maturing categories, products, or services
* Price wars
* Product substitution
 
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