Previously we looked into the SWOT Analysis Qantas, the world’s third-oldest airline. In this case study, we will analyse the SWOT Analysis of ITA Airways.
ITA Airways is a state-owned flag carrier owned and operated by the government of Italy via the Ministry of Economy and Finance. The airline was established in the year 1946 as Alitalia and since then its airline flies to over 41 scheduled domestic, European, and a few intercontinental destinations and it is expected to be expanded.
Today, ITA Airways is Italy’s leading airline for total revenue. As the world goes online, marketing changes and if you’re interested in keeping up with the latest developments, – check out Free Masterclasses on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we dive into the SWOT Analysis of ITA Airways, let’s take a look at the company, its history, finances, products, and opponents.
About ITA Airways
ITA- Italia Trasporto Aereo was earlier named Alitalia which was owned by the Italian government till 2009. Alitalia went bankrupt, ITA then took over Alitalia on 15 Oct 2021 with 52 planes and 2800 staff members, its first flight, ITA AZ 1637, took off from Milan Linate to Bari. Now ITA airlines is a member of the SkyTeam global airline alliance since 29 October 2021 and the airlines operate 41 scheduled domestic, European, and few intercontinental destinations.
The airline company majorly focuses on efficiency and innovation, customer satisfaction, and environmental sustainability. The plane boasts a blue livery, a symbol of the country’s unity and pride, and of Italy’s national sports teams.
Alitalia was a certified 3 star rated airline company and now ITA will also be rated as a 3 star rated airline company in due course. Alitalia was the flag carrier and national airline of Italy while now, ITA Airways is the national and major airline of Italy.
|Founder||Government of Italy|
|Year Founded||2020 as ITA|
|No. of Employees||2,300|
|Annual Revenue||$1.2 Billion (2020)|
|Net Income/ Profit||N/A|
Products & Services Of ITA Airways
- Airline Services
- Business Class Long Haul
- Business Class Medium Haul
- Premium Economy
- Economy Class
Competitors Of ITA Airways
Below are some competitors of ITA airlines
- Delta Airlines
- Air China
- British Airways
Now after knowing ITA Airways briefly, let’s begin with the SWOT analysis of ITA Airways.
SWOT Analysis Of ITA Airways
SWOT analysis is a tool used to evaluate a company’s strengths, weaknesses, opportunities, and threats. This analysis gives us a very concrete idea of how the company functions and deals with internal and external factors.
From the SWOT analysis of ITA Airways, let us first begin by understanding the strengths of ITA Airways.
Strengths of ITA Airways
The strength of a company is the strangest part of your business. Following are some strengths of the company which help them to flourish.
- Entry to Airline Alliance: ITA Airways got welcomed by SkyTeam Airline Alliance very quickly after its name change from Alitalia which is advantageous for ITA to operate seamlessly in the Airline sector.
- Network Strategy: The network strategy of ITA Airways is currently 41 and it will increase to 58 destinations and 74 routes in 2022 and 74 destinations and 89 routes in 2025.
- Revenue Management: Systematic revenue management in ITA Airways allows to automate inventory control, increase loads on low-demand flights, and increase the yield on high-demand flights.
- Government-Owned: ITA Airways is owned by the government of Italy which gives ITA Airways strong financial support via the Ministry of Economy and Finance. Also, the airline’s corporate offices are located in the ministry.
- New Appealing Logo: The new design of the logo with livery features of blue fuselage and white for the wings give it an appealing look.
- Brand Value and Image: ITA Airways previously Alitalia has made a name for itself over the decades it has worked. A strong brand image always helps the company stay in the market and lead other competitors.
Weaknesses of ITA Airways
The weakness of a company tells what is lacking in the business which if corrected can help the business run better. Following are the weaknesses of the airlines which they can correct for the betterment of the company.
- Dependence on the Italian Market: As we know, ITA Airways’ main market is Italy. This can be very risky for the airline business due to the political, economic and social issues in the market. Companies need to expand their market by establishing centres in developing countries to reduce risk factors.
- Almost Got Bankrupt: Alitalia lost money for years owing to problems linked to government and political interference.
- Not a Good Network Strategy: ITA Airways has not built their network really well; currently they only operate 34 scheduled domestic flights to European and intercontinental destinations. Also, the airline is placed at 12th position in the largest airlines in Europe.
- Limited International Planes: As said above, the airline only operates in Italy and European regions which is a major drawback for the company because it is holding itself to touch a broader revenue stream by not operating flights to international countries.
- Intense Competition: Strong competition with other domestic and international airlines which means limited market share growth for ITA Airways.
Opportunities for ITA Airways
Opportunities of a business are the positive leads that can bring better investments in the business. Following are some opportunities given by ITA Airways.
- Aggressive Advertising: The company introduced a new brand identity and logo in line with its new positioning and values.
- Focuses on Fleet: Fleet is another key point for which ITA should be part of an international airline group as soon as possible.
- Expanding Social Media Marketing: Digital and social media marketing offer ITA Airways many opportunities to increase customer loyalty. Engagement feedback will provide an in-depth look at customer preferences, so airlines can better serve them.
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- Growing Tourism: Expanding the Italian airline industry and growing tourism can help flourish the business of ITA Airways in the international & domestic sectors. Italy continued its tourism industry growth, with many visitors from Mexico, Canada, the UK, Japan, and China.
Threats to ITA Airways
Threats in a business are reasons investors would cut funding or negative market developments. Given below are the threats which the company is facing.
- Italians Travel Less by Air: Italians usually like to travel through roads. Another reason is that the airline cost is higher and Italians don’t travel much through the air.
- Many Competitors: Intense competition from low-cost airlines offering discounted prices can lead to loss of margins for ITA Airways.
- Rising Fuel Price: Rising fuel prices is another headache for the aviation industry as it reduces profits. Increasing oil prices causes high fuel prices and as fuel is one of the key expenses for airlines an increase in the cost of fuel gets passed on to consumers through higher airfares.
- Pandemic Situations: The aviation industry has seen a dramatic drop in demand for air transport from passengers due to the COVID-19 pandemic. Many people’s jobs in the air transport sector were at stake during a pandemic.
- Terrorist Attack: The threat posed by terror groups hangs over all airlines as well as aeroplane manufacturers.
- Government Regulations: Since the airways are operated by the government, emission regulations and many other government rules directly or indirectly affect the airline company.
This ends our detailed SWOT analysis of ITA Airways. Let us conclude our learnings below.
ITA Airways is still at the back of beyond as they have recently relaunched their brand. The airline company can revamp the insufficiency and can turn into a cut above the company.
As ITA is in all ears because of their history, the airline company came up with a marketing strategy of relaunching the company with a new logo and position which brings them back in the market with stronger competitors.
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We hope this blog on the SWOT analysis of ITA Airways has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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