Aeroflot SWOT and PESTLE Analysis

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.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

1. Putin’s practice of stable governance policies in Russia: Russia under Putin’s 18 years of governance has followed a “stability first” policy which has badly affected the micro economy of the country. While Russia seems to be strong as per international markers having strong reserves and low debts, it is sorely lacking on the domestic front. The aviation industry and especially the government owned and operated Aeroflot are amongst the worst hit with the company having to put patriotism before profits at all times. European and American sanctions have also proved to be major stumbling blocks in the company’s line of growth as it has prevented the company from being able to add the more popular and spacious Boeing and Airbus aircrafts to its fleet. The airlines has instead had to opt for the home developed Sukhoi Superjet 100 and the 2018 released MC- 21 which have proved to have poor safety records and soiled its reputation in a never ending circle of red tapism.

2. Geopolitical uncertainty and tensions with United States and Europe: Aeroflot faced significant issues after the Ukrainian fallout following which the country had placed a total ban on all Russian airlines. This decision was made after Ukraine accused Russia of supporting the pro-Moscow Separatists by providing them with ammunition and troops. More recently in 2020, tensions also erupted between the USA and Russia over some Russian military reconnaissance flights seen patrolling off Alaska. U.S. officials in Europe and the Defense Department have deemed such flights to be detrimental behavior, seeking to capitalize on the disruption caused due to the Covid-19 pandemic. Any further escalations in tensions have the potential to disrupt Aeroflot’s operations in the USA. In 2018, the Russian aviation industry had already suffered disruptions due to the US military interventions in Syria.

The remaining section of “Political” is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.