As per classic airline exhibit -2 document, there are three close competitors for classic and we have SWOT analysis for these airlines and can identify the threat they pose to classic. First we have to look the strengths of these airlines.
1. British Airways
2. Northwest Airlines
3. United Airlines.
British Airways: It is the flag carrier airline of the United Kingdom & the largest airline in the UK based on fleet size, international flights and international destinations. BA has the advantage of economies of scale which is the cost advantage that arises with increased output of a product. They have the global network presence and brand value.
To be successful, the administration of British Airways shows commitment to their business and believes in it more than anyone else. The cost reduction program is effective and their customer base is loyal. Frequent flier programs are operative and strong.
Northwest Airlines: They are dominant and longtime player in the industry, Northwest airlines can be considered without a doubt one airline that has stayed in business through ups and downs throughout its near 90 years and continues to thrive in the commercial airline industry.
Strength of Northwest Airlines lies in its current fleet of aircrafts that currently consist of 449 airplanes majority of which are Boeing 757-200 series. They have established network fed by regional carriers. Similar to BA, Northwest airline successfully run the frequent flier program. They also are the cash rich company.
United Airlines: United Airlines is the world’s largest air carrier and the second largest in the U.S. UAL has also come up with many innovative business moves that have helped it to become one of the most dominating in the airline industry today.
They exhibit the same strength like BA or NWA. Customer loyalty program, strong global presence, worldwide network and brand image are few of the area which provides a competitive advantage to them.
Threat to classic...