STRENGTHS
1. A large market share in the segment of passenger air transport, where the share of
Aeroflot is more than 30%, and in the segment of cargo air transportation, where the company's share reaches 20%.
2. Aeroflot's fleet is the youngest in Russia.
3. High fuel efficiency fleet of the Company.
4. Opportunity to attract cheap debt resources.
5. Availability of own terminal.
6. Receipt of royalties for Transsiberian flights, allow Aeroflot to receive additional income.
7. Long-term profitability, which favorably distinguishes "Russian national champion" from a number of major European companies;
8. Cost control, which more effective than others aviation groups, for example, Air France-KLM or IAG (British Airways and Iberia)
9. One …show more content…
Ambitious, but realistic growth plans. Passenger flow - from 31.4 million passengers in 2014 to 70 million in 2025th, i.e. rates higher than the average market.
12. The highest level of safety in Russia
• Clear instruction with passengers
• Conduct courses with staff
• Selection of qualified personnel
WEAKNESSES
1. Distribution of functions, authorities and responsibilities
• Too many departments, confusion with responsibility
• The government with a controlling stake does not always make effective decisions
2. Forecasting and planning system
• A large number of departments complicate work
• Forecasts do not always rely on accurate data
• Forecasts may be inaccurate due to the specifics of the industry
3. The motivation system
• Low salary for non-flying personnel
• Lack of promotion opportunities
4. Monitoring system
• There is no clear understanding of the powers and rights of middle management
5. Information system. Communications
• Lack of a unified information system
• Complexity of the entire information system
6. Corporate standards
• A large number of acts that need to be met
• Strict quality and security requirements for the service provided
7. Production
• Inefficient operation of some …show more content…
A renewal of the park is quite a costly and lengthy process.
5. State of the economy
The year 2008 severely undermined Russian aviation, after which many companies could not recover, aviation fuel remains expensive.
6. Financial system
• Dependence on the foreign currencies
• Interest rate risk
7. Actions of the authorities (legal system and regulatory requirements).
• A large number of restrictions imposed by Russian and international legal norms
• Insufficient support of the aviation industry by the government.
• Weak legislative and judicial practice
• Lack of proper control
8. Natural resources and ecology.
• The Russian Federation has the necessary natural energy resources for the aviation industry, but because of the high prices in the domestic market, most companies sell fuel from foreign suppliers.
• Legislation in the Russian Federation allows Aeroflot not to worry about the state of the environment. But Aeroflot is also a member of the Skyteam alliance, which means that it has to fulfill certain requirements of this alliance regarding pollution. This is also necessary to attract foreign investors.
9. Flight operations in bypassing the territory of Ukraine
10. Expansion of
1. A large market share in the segment of passenger air transport, where the share of
Aeroflot is more than 30%, and in the segment of cargo air transportation, where the company's share reaches 20%.
2. Aeroflot's fleet is the youngest in Russia.
3. High fuel efficiency fleet of the Company.
4. Opportunity to attract cheap debt resources.
5. Availability of own terminal.
6. Receipt of royalties for Transsiberian flights, allow Aeroflot to receive additional income.
7. Long-term profitability, which favorably distinguishes "Russian national champion" from a number of major European companies;
8. Cost control, which more effective than others aviation groups, for example, Air France-KLM or IAG (British Airways and Iberia)
9. One …show more content…
Ambitious, but realistic growth plans. Passenger flow - from 31.4 million passengers in 2014 to 70 million in 2025th, i.e. rates higher than the average market.
12. The highest level of safety in Russia
• Clear instruction with passengers
• Conduct courses with staff
• Selection of qualified personnel
WEAKNESSES
1. Distribution of functions, authorities and responsibilities
• Too many departments, confusion with responsibility
• The government with a controlling stake does not always make effective decisions
2. Forecasting and planning system
• A large number of departments complicate work
• Forecasts do not always rely on accurate data
• Forecasts may be inaccurate due to the specifics of the industry
3. The motivation system
• Low salary for non-flying personnel
• Lack of promotion opportunities
4. Monitoring system
• There is no clear understanding of the powers and rights of middle management
5. Information system. Communications
• Lack of a unified information system
• Complexity of the entire information system
6. Corporate standards
• A large number of acts that need to be met
• Strict quality and security requirements for the service provided
7. Production
• Inefficient operation of some …show more content…
A renewal of the park is quite a costly and lengthy process.
5. State of the economy
The year 2008 severely undermined Russian aviation, after which many companies could not recover, aviation fuel remains expensive.
6. Financial system
• Dependence on the foreign currencies
• Interest rate risk
7. Actions of the authorities (legal system and regulatory requirements).
• A large number of restrictions imposed by Russian and international legal norms
• Insufficient support of the aviation industry by the government.
• Weak legislative and judicial practice
• Lack of proper control
8. Natural resources and ecology.
• The Russian Federation has the necessary natural energy resources for the aviation industry, but because of the high prices in the domestic market, most companies sell fuel from foreign suppliers.
• Legislation in the Russian Federation allows Aeroflot not to worry about the state of the environment. But Aeroflot is also a member of the Skyteam alliance, which means that it has to fulfill certain requirements of this alliance regarding pollution. This is also necessary to attract foreign investors.
9. Flight operations in bypassing the territory of Ukraine
10. Expansion of