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Qatar Airways SWOT & PESTLE Analysis

ID : 52243053 | Oct 2017

OVERVIEW

Name of the Company: Qatar Airways

Business Sector: Aviation

Operating Geography: Middle East, Global

About the Company: Qatar Airways established in 1993 is the state owned carrier of Qatar and a leading aviation player globally. Based out of Doha, Qatar; the airline serves over 150 destinations globally as of 2017 with a modern fleet of close to 200 aircraft's. The airline and its subsidiaries have more than 43,000 employees globally as of March 2017.

Revenue: QAR39.4 billion – FY ending Mar 31st 2017

SWOT & PESTLE Analysis

The SWOT analysis for Qatar Airways is presented below:
Strengths
Weaknesses
1. World class airline with premium service offering
2. Global network coverage with huge modern fleet
3. Strong profitability and growth
4. Backing and consistent support from the State of Qatar
1. Majorly reliant on international customers with low local population
2. Limited transparency in financial and operational disclosures
Opportunities
Threats
1. 2022 FIFA world cup in Qatar to fuel aviation growth
2. Development of Doha as a financial center and a major international hub
3. Implementation of latest technology solutions to enhance service offerings
1. Qatar’s political dispute with GCC members to affect Qatar Airways
2. Strong competition from other international carriers such as Emirates, Etihad and Lufthansa.
3. Terrorism and political uncertainty may impact travel demand
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Strengths

1. World class airline with premium service offering: Qatar Airways has built a solid reputation over the years of being a world class airline with premium service offerings. The airline has been the front-runner in introducing premium service offerings such as lie-flat beds in Business Class to being the first to launch the A350 – the most technologically advanced commercial passenger aircraft. It continuously strives to deliver a superior and differentiated passenger experience which is one of its key strengths and also helps to drive and build customer loyalty. Qatar Airways in 2016 introduced a revolutionary concept in the business class segment, a patented and unique Qsuite, which allows a group of two or four people to create their personal space within the Business class cabin.

2. Global network coverage with huge modern fleet: Qatar Airways serves more than 150 destinations across the globe as of FY16. During 2016-17 the airline added new destinations across Australia, continental Europe and the Americas. The airline also launched the longest commercial flight in the world (measured by flight time) between Auckland and Doha in February 2017. Qatar Airways also increased its stake in International Airlines Group (IAG) in 2016 to 20.01%. The airlines boasts of 196-strong fleet of modern aircrafts which includes a number of the new generation and technologically advanced 16 Airbus A350-900 as well as 30 Boeing 787 Dreamliners.

To get the complete detailed report on Qatar Airways please mail us at: support@swotandpestle.com. or contact us here.

Qatar Airways PESTLE analysis has been conducted by senior analysts from Barakaat Consulting.

References

1. Qatar Airways Annual Report 2017: https://www.qatarairways.com/content/dam/documents/annual-reports/2017_Annual_Report_ENGLISH-WEB.pdf

2. Could the Qatar crisis finally be over?: http://www.news.com.au/finance/economy/world-economy/could-the-qatar-crisis-finally-be-over/news-story/65f0f448e768d176e22f24c72356be0a  

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The PESTLE / PESTEL analysis for Qatar Airways is presented below:
Political
Economical
1. Political blockade of Qatar by other GCC nations to impact Qatar Airways1. Protectionist policies of Trump administration to affect Middle East carriers
2. Qatar’s economic growth to slow down due to blockade by other GCC nations
Social
Technological
1. Customer perception of exclusive and premium service
2. Marketing deals with world class institutions strengthen customer reach
1. Adoption of innovative technology solutions to improve efficiency
2. Technologically advanced on-board experiences enhance the airline brand
Legal
Environmental
1. Regulations such as laptop ban on passengers originating from Middle East destinations to United States1. Operation of most modern and efficient fleets reduces emissions
2. Group-wide environmental sustainability and governance framework
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Political

1. Political blockade of Qatar by other GCC nations to impact Qatar Airways: In June 2017, four Middle East countries - Saudi Arabia, Bahrain, the United Arab Emirates and Egypt severed trade and diplomatic ties with Qatar due to political and ideological differences, and also closed transport connectivity by road, sea and air to these countries from Qatar. Qatar Airways has been severely affected by the crisis as it cannot use Saudi airspace and has to reroute its flights over Iran and Turkish airspace which increases flight time. Further, due to the blockade, Qatar Airways has been losing around 50 flights daily to 18 destinations, which translates to 18% of its total capacity. There are indications that the dispute will be resolved, but if the standoff continues or similar such disputes occur in the future, Qatar Airways’ profitability is bound to be impacted.

To get the complete detailed report on Qatar Airways please mail us at: support@swotandpestle.com. or contact us here.

Qatar Airways PESTLE analysis has been conducted by senior analysts from Barakaat Consulting.
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