Auckland International Airport SWOT & PESTLE Analysis
COMPANY PROFILE -Auckland International Airport
Business Sector :Aviation
Operating Geography :New Zealand, Global
About Auckland International Airport :
Auckland International Airport is the largest and busiest airport in New Zealand, located in Auckland, which is the largest city in the country. The airport is operated by Auckland International Airport Limited (AIAL), a publicly listed company that manages the infrastructure, services, and facilities of the airport. Auckland International Airport handles more than 21 million passengers annually, with over 30 international and domestic airlines operating from its two terminals. The airport has direct flights to more than 70 destinations around the world, including major cities in Asia, Australia, North America, and Europe. The company has a market capitalization of over NZD 12.89 billion, as of 2023. In addition to managing the airport, AIAL also invests in various businesses related to airport operations, such as retail, property management, and car parking. The company has several development projects in progress, including the expansion of the international terminal, the construction of a new domestic jet terminal, and the development of a new hotel and office complex.
The USP of Auckland International Airport lies in it being a major player in New Zealand's aviation and tourism industry. AIAL has a strong focus on sustainability and has set ambitious targets to reduce its carbon emissions and waste generation. The company has implemented various initiatives, such as the use of electric buses and the installation of solar panels, to reduce its environmental impact.
Auckland International Airport Revenue :
$ 300.3 million - FY ending 30th June 2022 (y-o-y growth 7%)
$ 281.1 million - FY ending 30th June 2021
Competitive Analysis of Auckland International Airport
Strengths | Weaknesses |
1. Country's largest and busiest airport with over 100 worldwide destinations. 2. Strong brand recognition allows for premium pricing for their products. 3. Strong property portfolio through effective management of facilities. 4. Diversified product portfolio with 10 different product and service offerings. 5. Strong and large distribution network ensures timely availability of products to a large customer base. | 1. High dependence on one major airline, Air New Zealand which accounts for a significant proportion of its revenue. 2. Limited runway capacity results in reduced aircraft movements during peak periods. |
Opportunities | Threats |
1. New Zealand's popularity as a tourist destination boosts the airport's profits. 2. Has the potential to expand its services to new markets, particularly in the Asia-Pacific region. 3. Increasing demand for domestic travel and trends of customers migrating to high end products. | 1. Highly volatile and rising fuel prices can increase Auckland Airport's input costs. 2. Competition from other New Zealand airports, such as Wellington and Christchurch International Airports. |
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Detailed SWOT Analysis of Auckland International Airport
Strength
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Weakness
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Opportunity
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Threat
1. Highly volatile and rising fuel prices can increase Auckland Airport's input costs: Volatile and rising fuel prices can significantly increase input costs for Auckland Airport. Jet fuel prices can be impacted by a variety of factors, such as geopolitical tensions, global supply and demand imbalances, and weather events, leading to price volatility. According to data from IndexMundi, jet fuel prices in New Zealand have experienced significant volatility in recent years, with prices fluctuating between NZD 1.03 and NZD 2.10 per liter over the past five years. Rising fuel prices can lead to increased costs for airlines, which can ultimately be passed on to passengers in the form of higher ticket prices. This can impact demand for air travel, and ultimately reduce revenue for the airport. In addition, Auckland Airport has significant energy costs associated with its own operations, such as running the terminal and lighting the runways. Rising fuel prices can increase these input costs, leading to reduced profitability for the airport.
The remaining section under "Threat" is available only in the 'Complete Report' on purchase.
Major Competitors :
- Wellington International Airport
- Christchurch International Airport
- Sydney Airport
- Melbourne Airport
- Brisbane Airport
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References used in Auckland International Airport SWOT & PESTLE Analysis Report
1. Auckland Airport to Start New Expansion Phase With Transport Hub - https://www.bloomberg.com/news/articles/2022-05-11/auckland-airport-to-start-new-expansion-phase-with-transport-hub
2. Number of passengers carried on domestic flights by Air New Zealand in New Zealand from 2016 to 2021 - https://www.statista.com/statistics/1128904/new-zealand-number-passengers-carried-domestic-flights-air-new-zealand/
3. Economic contribution - https://corporate.aucklandairport.co.nz/sustainability/economic-contribution
4. How has New Zealand’s international aviation market evolved since the pandemic? - https://www.cirium.com/thoughtcloud/how-has-new-zealands-international-aviation-market-evolved-since-the-pandemic/
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SWOT & PESTLE.com (2023). Auckland International Airport SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/auckland-international-airport/ [Accessed 06 Jun, 2023].
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Auckland International Airport SWOT and PESTLE analysis has been conducted by Sindhu and reviewed by senior analysts from Barakaat Consulting.
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