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Iberia SWOT and PESTLE Analysis

ID : 521653653| Mar 2023| 21 pages

COMPANY PROFILE -Iberia

Business Sector :Aviation

Operating Geography :Spain, Europe, Global

About Iberia :

Iberia (Iberia Líneas Aéreas de España, S.A.) is a Spanish airline company headquartered in Madrid, Spain. It was founded on June 28, 1927, making it one of the oldest airlines in the world. Iberia operates scheduled flights to over 90 destinations across Europe, Africa, the Middle East, Asia, and the Americas. It is a member of the Oneworld alliance, which is one of the world's largest airline alliances, and it has codeshare agreements with several other airlines. Iberia's main hub is Madrid-Barajas Airport, and it operates a fleet of over 130 aircraft, including Airbus A319, A320, A321, A330, A340, and A350, as well as Bombardier CRJ-1000 and ATR 72-600 aircraft. The airline offers different classes of service, including Economy, Premium Economy, Business, and First Class. In addition to passenger transportation, Iberia also provides cargo services through its subsidiary, Iberia Cargo. Iberia has received several awards for its service and quality, including being named the "Best Airline in Southern Europe" by Skytrax in 2021. As of early 2023, Iberia employed over 11,400 people.

The USP of Iberia lies in it being the largest and oldest Spanish airline. Iberia’s mission is to always be the best option for both leisure and business travelling.

Iberia Revenue :


€ 2,784 million– FY ending 31st December 2021
€ 2,259 million - FY ending 31st December 2020

Competitive Analysis of Iberia

SWOT
PESTLE
The SWOT analysis for Iberia is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Largest Spanish airline and leader between Europe and Latin America
2. Three strong complimentary businesses
3. Strong backing of its parent company, IAG Group
4. Europe's most punctual airline in 2022
1. Frequent flight cancellations due to workers’ strike
OpportunitiesThreats
1. Strategic acquisition of rival airline
2. Codeshare partnerships to facilitate network extension
3. Modern Airline Retailing program to advance customer centricity and value creation in the airline industry
4. Focus on its long-haul markets: Latin America and the United States to drive growth
1. Increase in ticket prices due to rising fuel costs
2. High competition from LCC players in Spain
3. Unionised Swissport workers strikes across Spanish airports to impact operations
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Detailed SWOT Analysis of Iberia

Strength

1. Largest Spanish airline and leader between Europe and Latin America: The largest airline in Spain and a pioneer between Europe and Latin America, Iberia is a member of the OneWorld airline alliance and the IAG airline company. Its objective is to consistently offer the greatest travel options. Its hub is located at Madrid airport, where it offers flights to 50 different countries. In addition to its mainline Iberia flights, the airline also operates Iberia Express and Iberia Regional Air Nostrum, allowing for even more travel options and flexibility. With its extensive network and frequent flights, Iberia has become a popular choice for travelers between Europe and Latin America. The airline has also received numerous awards for its service, including being named the Best Airline in Europe at the 2020 World Travel Awards.

2. Three strong complimentary businesses: Iberia operates three strong complimentary businesses that enable it to offer a comprehensive range of travel services to its customers. These businesses include Iberia Maintenance, Iberia Handling, and Iberia Airport Services. Iberia Maintenance provides a range of technical services, including aircraft maintenance, repair, and overhaul. It is one of the leading aircraft maintenance providers in Spain and has a strong reputation for providing high-quality services. Iberia Handling is responsible for providing ground handling services at airports, including passenger and baggage handling, aircraft cleaning, and other related services. Iberia Airport Services provides a range of services at airports, including cargo handling, catering, and aircraft fuelling. Together, these three businesses complement Iberia's core airline operations, allowing the company to provide a complete travel solution to its customers. By offering a range of services beyond airline tickets, Iberia can differentiate itself from its competitors and offer a more comprehensive travel experience.

The remaining section under "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.

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References used in Iberia SWOT & PESTLE Analysis Report

1. About us - https://grupo.iberia.es/about_us/our_activities
2. Spain’s Iberia airline named most punctual in Europe - https://www.thelocal.es/20230104/spains-iberia-airline-named-most-punctual-in-europe/ 3. Iberia and British Airways to re-route flights to avoid Russian airspace - https://www.thelocal.es/20220225/iberia-and-british-airways-to-re-route-flights-to-avoid-russian-airspace/
4. THE IMPORTANCE OF AIR TRANSPORT TO SPAIN - https://www.iata.org/en/iata-repository/publications/economic-reports/spain--value-of-aviation/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2024)

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