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Aeroflot SWOT & PESTLE Analysis

ID : 52686653| Jul 2020

COMPANY PROFILE -Aeroflot

Business Sector :Aviation

Operating Geography :Russia, Europe

About Aeroflot :

PJSC Aeroflot – Russian Airlines is commonly known as Aeroflot. Public Joint Stock Company “Aeroflot-Russian Airlines” is the largest airline in Russia and a major European carrier. Established in 1923, Aeroflot features amongst Russia's most perceived brands. It is one of the world's most established carriers, with a rich legacy, the most recent developments and a significant level of digitalization. Today, Aeroflot is an honor winning carrier with operational unwavering quality and notoriety for industry-driving client care confirmed by Skytrax's Four Star Airline status. Aeroflot Group includes Aeroflot – Russian Airlines, Rossiya, Pobeda and Aurora. This multi-brand strategy means the Group can expand its presence in all key market segments on both domestic and international routes. Aeroflot Group aims to sustain and grow its position as a leading global airline. Aeroflot Group is recognized by international ratings as a global leader in customer service. The Russian Government has direct ownership of 51% of Aeroflot through the Federal Agency for State Property Management, with the remaining shares being free-floating, as of March 2020,
Aeroflot’s USP lies in it being one of the oldest active airlines in the world, as it was founded and operated since 1923. Aeroflot’s vision statement reads “Our goal is to be the undisputed leader in domestic and international air travel in Russia and one of the best airlines in the world, combining dynamic development, high reliability and quality of service.”

Aeroflot Revenue :


$11B - FY ending December 2018
$9.5B - FY ending December 2017

Competitive Analysis of Aeroflot

SWOT
PESTLE
The SWOT analysis of Aeroflot is presented below:
Strengths
Weaknesses
1. Largest Russian airline and one of the oldest of the world.
2. Strong competitive edge with regards to fleet size and age
3. Aeroflot Group operates across all segments of the aviation transportation market
4. Strong brand presence across Russia
5. Established digital infrastructure across all operational areas
1. Aeroflot’s multi-brand strategy not well maintained.
2. Lack of availability in small areas.
Opportunities
Threats
1. Large mature domestic market.
2. Introduction of its own LCC
1. Increased domestic competition
2. Unpredictable geo-predictable issues
3. Increasing LCC in the market
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Aeroflot

 

Strength

1. Largest Russian airline and one of the oldest of the world: Aeroflot Group is Russia’s largest airline group and features amongst the Top 20 world airline groups in terms of PAX. In 2018, the Group accounted for 40.7% of Russia’s air-travel market, carrying 55.7 million passengers, of which 35.7 million flew Aeroflot – Russian Airlines. Aeroflot Group is recognized by international ratings as a global leader in customer service. Aeroflot holds 4-Star Airline status from Skytrax and was named Best Airline in Eastern Europe for the seventh time at the 2018 Skytrax World Airline Awards.

2. Strong competitive edge with regards to fleet size and age: Aeroflot operates the youngest fleet in the industry among airlines with the active fleet of 100+ aircraft. It has a balanced fleet and is constantly renewing and modernising it in line with the business’ multi-brand development strategy. The airline has a fleet size of around 250 as of year 2020. Aeroflot fleet average age was approx. 4.2 years for Aeroflot airline and 6.3 years for Aeroflot Group as of December 2018.

3. Aeroflot Group operates across all segments of the aviation transportation market: Aeroflot Group is the largest and most efficient airline group in Eastern Europe and operates across all segments of the aviation transportation market. In 2016 it completed creation of Aeroflot Group as a unified airline holding. The main Aeroflot airlines is the premium carrier, while Rossiya is the mid-price carrier, Pobeda the low-cost carrier and Aurora is the regional carrier for the Far East.

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Weakness

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Opportunity

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Threat

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Major Brands :

  • Pobeda
  • Rossiya
  • Aurora
  • Aeroflot
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Aeroflot SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Aeroflot SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/aeroflot/ [Accessed 14 Aug, 2020].

In-text: (SWOT & PESTLE.com, 2020)

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Aeroflot SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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