Aer Lingus SWOT & PESTLE Analysis
ID : 52973853| Jun 2021| 21 pages
COMPANY PROFILE -Aer Lingus
Business Sector :Aviation
Operating Geography :Ireland, Europe, Global
About Aer Lingus :
Aer Lingus is the national carrier and second largest airline of Ireland. It operates between Europe, North Africa and North America, with nearly 57 aircrafts in service as of early 2020. It was started by the Irish government in 1936 as the national carrier under the Air Navigation and Transport Act. However, during 2006 to 2015 it was privatized by the Government's decision to float the company on the Dublin and London Stock Exchanges; and it is now a completely owned subsidiary of IAG (International Airlines Group) which is also the parent Company of British Airways and Iberia. IAG group is one of the world's largest airline groups with 598 aircraft operating to 279 destinations and carrying around 118 million passengers every year. Its operational bases are Belfast-City, Cork, Shannon with hub at Dublin. Aer Lingus has its headquarters at Dublin Airport, Ireland. Skytrax a renowned global air carrier rating organization continues to rate Aer Lingus as Ireland’s exclusive 4-Star airline The Company slogan is ‘Smart flies Aer Lingus’.Aer Lingus’ vision statement states: 'Connecting Ireland to the World'. Aer Lingus’s mission is to play its full role in future industry consolidation both on a regional and global scale. The brand’s strategy is “To be the leading value carrier across the North Atlantic enabled by a profitable and sustainable short-haul network.” The USP or Unique Selling Proposition of Aer Lingus lies in being the national carrier and second largest airline of Ireland.
Aer Lingus Revenue :
€467 million - FY ending 31st December 2020 (y-o-y growth of -78%)
€2,125 million - FY ending 31st December 2019 (y-o-y growth of +5%)
€2,019 million - FY ending 31st December 2018
Competitive Analysis of Aer Lingus
SWOT
PESTLE
The SWOT analysis for Aer Lingus is presented below in a matrix followed by the detailed analysis report
| Strengths | Weaknesses |
| 1. Expanding product portfolio via significant investments to sustain global growth 2. Alluring travelers by offering innovative services backed by significant investments and collaborations 3. Maintaining financial performance despite headwinds in the market 4. Well established/ strong foothold in European market in LCC segment 5. Strong fleet capacity supporting convenient travel time and location 6. Catering a large base of passengers with quality service and impeccable experiences Accused of side-stepping refund claims | 1. Accused of side-stepping refund claims |
| Opportunities | Threats |
| 1. Entering the Trans-Atlantic Joint Business benefitting customers with new travel options 2. Adding new routes to provide essential connectivity and promote tourism 3. Sustainable jet fuel pledge to help transition to a low-carbon business model | 1. Impact of COVID-19 on the aviation industry and Aer Lingus at large 2. Intense competition in the aviation industry |
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Detailed SWOT Analysis of Aer Lingus
Strength
1. Expanding product portfolio via significant investments to sustain global growth: Aer Lingus relentlessly focuses on making significant investments to evolve its products with an innovative approach. In fiscal 2020, investments were made around the addition of new engine technology aircraft, recruiting hundreds of new cabin crew, pilot, and ground positions were created to keep pace with new aircraft and routes. Additional single-aisle Airbus A321 long-range aircraft and widebody A330 aircrafts were drawn in 2020, enabling expansion of the North Atlantic network via added frequency and capacity across existing North American gateways. Precisely the fleet increased frequency to the networks including a new destination to Minneapolis-St. Paul from Dublin and Dubrovnik and Nice from Cork. Aer Lingus continued to achieve the highest Net Promoter Score amongst the IAG airlines with the new flight connections facility in Pier 4 at its Dublin hub. Ireland’s flag carrier, believes in the successful execution of its strategy in order to deliver compelling results for its stakeholders and for the Irish economy.
2. Alluring travelers by offering innovative services backed by significant investments and collaborations: Aer Lingus continues to invest, innovate and evolve its products, services, and people through substantive investments and collaborations, to offer its customers with best-in-class services. In 2019, the brand launched innovative ways to pay with ‘Apple Pay’ and ‘Pay with Avios’. Additionally, ‘Aer Credit Card’ was launched in partnership with the Bank of Ireland. With the introduction of Aer Space, the company is focusing on rendering new premium travel experiences for short-haul guests. In collaboration with PressReader, the brand offers guests free access to various media. Ireland’s premium carrier, also invested in a new baggage tracking system. Besides for its fleet additions, Aer Lingus continued to achieve the highest Net Promoter Score amongst the IAG airlines due to enhancements in its catering proposition including complimentary beer and wine in long-haul economy. The company also invested in a new apprentice training program, and a new pilot training program continuing the long tradition of training future pilots.
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Weakness
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Opportunity
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Threats
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Aer Lingus SWOT & PESTLE Analysis Report
1. Annual Report and Accounts 2019 - https://www.iairgroup.com/~/media/Files/I/IAG/documents/IAG%20Annual%20report%20and%20accounts%202019.pdf
2. Passengers and agents allege Aer Lingus is breaking law on refunds - https://www.irishtimes.com/life-and-style/travel/passengers-and-agents-allege-aer-lingus-is-breaking-law-on-refunds-1.4213285
3. 6 new routes from Belfast City Airport - https://blog.aerlingus.com/6-new-routes-from-belfast-city-airport/
4. US Department of Transportation Approves Aer Lingus to Join Trans-Atlantic Joint Business Between American Airlines, British Airways, Iberia and Finnair - http://news.aa.com/news/news-details/2020/US-Department-of-Transportation-Approves-Aer-Lingus-to-Join-Trans-Atlantic-Joint-Business-Between-American-Airlines-British-Airways-Iberia-and-Finnair-NET-ALP-12/default.aspx
5. Aer Lingus owner makes sustainable jet fuel pledge - https://www.breakingnews.ie/business/ba-owner-makes-sustainable-jet-fuel-pledge-1115816.html
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Aer Lingus SWOT & PESTLE Analysis
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