SWOT ANALYSIS

Strength
Passengers will continue to need network sevices Ensure a leisure Travel, especially to the business traveller, like airport lounge. Enhanced in-flight service and more comfortable seating. In long-haul markets, where premium service is essential, through higher capacity and long range Boeing 747s and Airbus 340s.

Weakness
Excess capacity. Complicated flight operations. Hub-and-spoke networks of legacy carriers were profitable as long as LCCs had low service along heavily travelled routes. Mounting debt Enormous debt to investment ratio (above 90% for most US legacy carriers like US, DL, AA, UL, CO) compared to LCCs (25% for Southwest). Cost-to-revenues ratio per seat mile is very high (>13) compared to Southwests 7.67

Opportunities
Maintain short-haul flights only to extent needed to feed the network

Threats
Labour problems as legacies try to streamline in order to compete with LCCs.