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TAROM SWOT and PESTLE Analysis

ID : 521659853| Mar 2023| 21 pages

COMPANY PROFILE -TAROM

Business Sector :Aviation

Operating Geography :Romania, Europe, Global

About TAROM :

TAROM (Transporturile Aeriene Române) was founded in 1954 by the Romanian government. TAROM is headquartered in Bucharest and operates from its main hub at Henri Coanda International Airport. The airline serves over 50 destinations across Europe, Africa, and the Middle East. TAROM operates a fleet of 23 aircraft, including Boeing 737s, Airbus A318s, and ATR 42s and 72s. The airline offers two classes of service on most flights: Economy Class and Business Class. In-flight amenities may vary depending on the length of the flight and the class of service. TAROM is a member of the SkyTeam global airline alliance and has codeshare agreements with several other airlines, including Air France, KLM, and Delta Air Lines. The airline also has interline agreements with other airlines, allowing for seamless connections to additional destinations. In addition to passenger flights, TAROM also operates cargo services, charter flights, and aircraft maintenance and overhaul services. The airline has won several awards over the years, including the "Best Airline in Romania" award at the Romanian Top Hotel Awards. As of early 2023, TAROM employed over 1,248 people.

The USP of TAROM is that it is the flag carrier and oldest airline of Romania. TAROM's mission is to provide safe and reliable air transportation services to its customers, while also contributing to the development of Romania's aviation industry.

TAROM Revenue :


Lei 960 million – FY ending 31st December 2021

Competitive Analysis of TAROM

SWOT
PESTLE
The SWOT analysis for TAROM is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Member of SkyTeam giving it a competitive advantage of extensive network
2. Certified as a 3-Star Airline for quality
3. Fleet consists of 3 top manufacturers
4. Being a state-owned company, receives strong government support
1. Continuous decline in market share
2. Frequent instances of workers’ strike
3. No profits in the past 14-15 years of its operation
OpportunitiesThreats
1. Partnership with Traxon to provide the airline with digital access to thousands of stakeholders throughout the supply chain
2. Restructuring plans with EU aid to pull the airline from difficulties
1. Wizz Air is ready to take the place of Romanian airline TAROM
2. Increasing risk of bankruptcy due to various macroeconomic factors
3. Bucharest Airport may suspend TAROM’s services
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of TAROM

Strength

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

Weakness

1. Continuous decline in market share: The percentage of TAROM's international seat capacity from Romanian airports has decreased dramatically in recent years, according to an analysis of Cirium capacity statistics from 2010. It was about 20% between 2010 and 2014 but began to decline after that as Wizz Air and Ryanair in particular developed their Romanian networks. It had decreased to 11% by 2019. For the past two years, Wizz Air's and Blue Air's schedule data accuracy has been rather questionable. However, TAROM's market share of the available international seat capacity is just 6% as of the flight schedules for 2022.

The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.

Opportunity

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Threat

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TABLE OF CONTENTS
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References used in TAROM SWOT & PESTLE Analysis Report

1. Romania to bring in new executives to save state-owned TAROM - https://www.aviacionline.com/2022/04/romania-bring-executives-save-tarom/
2. TAROM Workers Are Likely To Strike Next Week - https://simpleflying.com/tarom-workers-are-likely-to-strike-next-week/
3. Explained: Impact of Russia-Ukraine war on global aviation and why is that airspace important? - https://www.cnbctv18.com/aviation/explained-impact-of-russia-ukraine-war-on-global-aviation-and-why-is-that-airspace-important-12685752.htm
4. Fears more Emerging Europe airlines to follow Romania’s stricken Blue Air - https://intellinews.com/fears-more-emerging-europe-airlines-to-follow-romania-s-stricken-blue-air-255923/
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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