Air New Zealand is a flag carrier New Zealand airline company. It started its business in 1965 after the rebranding of the Tasman Empire Airways Limited. Today, we’ll discuss the SWOT analysis of Air New Zealand; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Air New Zealand
- Air travel
- Airline lounge
- Frequent flyer programs
- Airpoints dollars
- Status points
Parent Company of Air New Zealand
- New Zealand Government (51% shares)
Statistical facts and figures of Air New Zealand
- Annual revenue – 1.70 billion USD (2022)
- Net income – -0.51 billion USD (2022)
- Market capital – 1.28 billion USD (2022)
- Employees – 5563
- Asset net worth – 5.19 billion USD (2022)
- Fleet size – 108 aircraft
- Destinations – 50
Competitors of Air New Zealand
- British Airways
- Virgin Atlantic
- Emirates
- Delta Airlines
- Etihad Airways
- Malaysia Airlines
- Qantas
- Air Astana
- Copa Airlines
- Jetstar Airways
The SWOT analysis of Air New Zealand would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Air New Zealand SWOT analysis as a business strategy analysis example company as follows;
Strengths of Air New Zealand
Some of the main internal strengths in the Air New Zealand SWOT analysis example company as business strategy analysis are as follows;
Recognized Brand
Air New Zealand is a well-recognized aviation brand and the airline has a strong history and decades of experience in serving air travel customers. The flag carrier airline has earned the trust and confidence of customers with years of quality services.
Special Routes
In order to gain a competitive edge, Air New Zealand takes special routes and offers unique destinations that very few other airlines offer. The objective is to promote trade and marketing in those regions and ultimately it increases the company’s sales and revenue.
Uniqueness
The other unique feature of Air New Zealand is that it is the only and sole airline that circumnavigates the world. In simple words, it means that the aviation brand flies across the globe, and the other airlines only follow the specific routes to approach their destinations.
Awards
Air New Zealand has earned various honors and awards over the years for its quality and safe air travel experience for its customers. Some of them are as follows;
- Airline of the Year Award by AirlineRating.com – 2023
- Best Airline by Airline Excellence Award by AirlineRating.com – 2020
- Top 10 Airline and Airline of the Year Award by Air Transport World
Loyalty Programs
In order to attract the attention of new customers and retain the existing ones; Air New Zealand offers rewards and status points to its regular air travelers and passengers. They could convert the status points into money or air tickets for the aviation brand and its partners.
Weaknesses of Air New Zealand
Some of the main internal weaknesses in the Air New Zealand SWOT analysis example company as business strategy analysis are as follows;
Controversy
In 2005, Air New Zealand decided to outsource its repair and maintenance works from the other world’s leading aircraft manufacturers like Airbus and Boeing. It caused the loss of roundabout 600 jobs and the company couldn’t secure repair contracts with other companies. The company had no other choice but to employ some of its engineers on the new pay cut terms.
Limited Brand Awareness
Comparative to Virgin Atlantic, Emirates Airline, or American Airlines; Air New Zealand has limited brand awareness. Along with brand awareness, the aviation brand offers a limited number of destinations and routes; which limits the company’s market share.
Opportunities for Air New Zealand
Some of the main available opportunities in the Air New Zealand SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Air New Zealand should expand its business in new regions and markets across the world. It allows the company to target new segments of the customer market and increases its sales, revenue, and market share.
Strategic Alliance
The best strategic approach to expand your business is through strategic alliances and partnerships. Air New Zealand is already a member of Star Alliance; the aviation brand should establish contracts and partnerships with other airlines. It would help the company to expand its operations, and offer more destinations, and routes for customers.
Portfolio Expansion
Along with market expansion, Air New Zealand should expand the growth of its service portfolio. It comprises of offers new and unique services; a speedy ticket processing process, quick service time, easy access, great in-flight experience, and others.
Threats to Air New Zealand
Some of the main potential threats in the Air New Zealand SWOT analysis example company as business strategy analysis are as follows;
Competition
The airline industry has reached the market saturation level with multiple airlines operating their business and offering similar types of services. It imposes a significant challenge to Air New Zealand to maintain its position in the presence of tough competition.
High Fuel Cost
International political conflicts have disrupted the supply chain and distribution of oil and it resulted in the form of increased fuel cost. The fuel price directly impacts the end retail price that the customers don’t like.
Regulations
The world’s governments and countries have established strict guidelines and protocols to ensure the safety of their passengers. To comply with regulations, it has become highly difficult for the aviation brand to remain competitive and profitable.
Conclusion: Air New Zealand SWOT Analysis Example Company |SWOT Analysis of Air New Zealand |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Air New Zealand; we have realized that Air New Zealand is the world’s leading aviation brand. If you are learning about Air New Zealand SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
