Getjet Airlines: SWOT
Getjet Airlines has started operating in Canada and has recently expanded its fleet. However, the average age of its fleet is around 24 years old. More information regarding this company's strengths, weaknesses, opportunities, and threats is provided below.
- In 2019, Getjet Airlines started operating in the Canadian market, signing a contract with Sunwing Airlines.
- Recently, the airline launched a new logo and is introducing a new aircraft livery, inflight menu, and online check-in system, as well as expanding its fleet. The company plans to have a fleet of fifteen by the end of 2019.
- They recently added an Airbus A330-300 to the fleet, which is part of the company’s strategic development. This addition will enable the airline "to operate transatlantic flights."
- In 2018, the company signed contracts with Europe's largest tour operators and airlines, which puts the airline in a leading position in the market.
- Most of the airline's fleet is old as the average age of their aircraft used is around 24 years, which represents a concern by current aviation standards. The airline is still operating Boeing 737 Classic series aircraft that are almost 30 years old, it also has Airbus A319, A320 and A330 planes which are about 10 years old.
- The airline does not seem to take responsibility of claims or delayed flights, as companies like Populetic offer to compensate customers affected by Getjet Airlines.
- Current growth in global per capita income has increased the demand for airline transportation, with the number of tourist arrivals increasing at a yearly rate of 4.7%.
- "Growing competition has placed downward pressure on airline ticket prices and freight shipping rates," resulting in the industry's revenue growth.
- Leasing companies are getting busier because of the high demand for lift, which is attracting new investors into the leasing market, "from brand new aircraft to mid-to-late-life equipment." As Getjet Airlines leases its aircraft, this represents an opportunity.
- Airline profitability has improved in such a way that many airlines could be cushioned from the industry's bigger threats, such as higher fuel cost and changes in the value of the US dollar.
- Oil prices increased in 2018 peaking at US$86/bbl (Brent Crude), the average oil price is expected to be $60/bbl in 2019. According to the International Air Transport Association (IATA), "airline fuel costs will rise from an annual worldwide spend of $180bn in 2018 to $200bn in 2019," which represents 24% of total operating costs.
- Despite the fact that the frequency of terrorist attacks on airlines has decreased, these incidents are still a persistent threat to all the industry.
- Getjet competes in the Baltic region with KlasJet, Avion Express, and SmartLynx, all of which have recently expanded its fleet. However, the fact that SmartLynx is getting new owners will intensify the competition between them.
- The Boeing 737 MAX groundings provided airlines, such as Getjet, a chance to grow, but if the MAX serves passengers once again, it might complicate operators that added new aircraft to their fleet as too much capacity in an overly saturated market can cause a chain of events with bad consequences. Also, "airlines are not too keen to continue wet-lease agreements that increase operational costs and might be detrimental to route profitability."