SWOT analysis is a common tool used to analyse a variety of organisations. Since this method provides transparency and ease of analysis of the collected data it was decided to use this tool in this portfolio (Sarsby, 2016).

Wizz Air SWOT

SWOT ANALYSIS

The carrier is using, for instance, the website of the company and a mobile application to sell tickets. This enables the airline to save part of the distribution expenses. The growth of the airline over the past two decades reinforces the conviction that users are satisfied with Wizz Air's services. Many of them are getting what they expect, which is the cheapest possible tickets on direct routes where they can decide on additional services. In addition, over this time the carrier has had no serious accidents apart from one emergency landing related to a landing gear failure in 2015 (Plane Crashes, 2015). This may indicate good organisation and a professional workforce. Another aspect is successive development. As the article by Loh (2021) highlights, the airline was able to continue to grow despite the coronavirus. This is mainly due to the enormous cash holdings of low-cost carriers - €1.6 billion in the case of Wizz Air. ROCE (return on capital employed) is an indicator that shows financial performance and returns to investors. It provides a measure of how well a business is performing (Bishop, 1969). In the case of low-cost carrier Wizz Air, the ROCE for 2021 was 19.4%, down just over 1% from the previous year (Wizz Air, 2021a). This score compared to rival Easy Jet or Ryanair is the highest.

The low-cost business model is most effective when flights are full. Therefore, routes with lower load factors are not likely to remain in service for long with such carriers. This is also evident in terms of seat distribution. Wizz Air is the most severe in this respect, giving passengers the least amount of legroom. This in turn translates into a quality of service that is considered poor, which can be seen in passenger ratings (Skytrax, 2022). High staff turnover is another of the weaknesses of the carrier. Poor salaries and low employee motivation result in high employee retention, which translates into higher costs associated with, for example, continuous training of new staff. An example of behaviour indicative of a company's unfavourable behaviour towards its employees is leaving them in Ukraine when war broke out (European Transport Federation, 2022). Additionally, in 2015 the carrier was charged with discrimination against employees wishing to form a Labour Union (Maszczynski, 2019).

A huge opportunity for the carrier is the expansion of its route network. The carrier increases the number of connections, which is also visible in the example of the Italian market (Wizz Air, 2021b). Additionally, in recent years, the carrier has decided to open to the middle eastern market with flights to Abu-Dhabi, which is a great chance for the company. Social factors such as the enrichment and development of the lower classes must also be taken into consideration. This phenomenon is reflected to a large extent in travel, with more and more people being able to afford travel and holidays. The development of the classes within India can serve as an example (Beinhocker et al 2007). The last of Wizz Air's opportunities is technological development, including both new types of aircraft power that will be even more efficient but also digitalisation. Elements such as artificial reality represent opportunities for better distribution of fares in the future (Kuisma, 2018).

Wizz Air's risks include the price of fuel and fuel hedging. There are risks associated with the purchase of fuel by the fact that its price remains volatile. An additional risk is the dependence of operations on international restrictions (Burgueño Salas, 2022). Related to this are changing Covid regulations and disasters such as the war in Ukraine, where Wizz Air expanded a year earlier. Another aspect is competition, which is a huge threat. Wizz Air directly competes mainly with Easy Jet and Ryanair. However, it should be remembered that the success of the LCC model has affected the flag carriers, which now offer a basic service on short routes, as do the low-cost carriers. The competencies of FSNC should therefore be taken into account in further coverage (Bubalo and Gaggero, 2015). Another threat is the changing needs of customers, which cannot necessarily be met by a carrier with specific organisational characteristics such as Wizz Air. The last threat is events such as tornadoes, volcanic eruptions or strikes by traffic controllers. These events have an intrusive effect on the airline's operations, which translates into profitability. The impact of such events on airlines is presented in more detail by Mazzocchi et al (2010).