Aeroflot SWOT analysis. Russia's national champion is well positioned to confront new challenges

In 2013, the Aeroflot Group achieved a 38% increase in net income. ASKs and passenger numbers grew by 14%, reflecting both the strong underlying growth in the Russian market and Aeroflot's powerful market position. Revenue growth, at 12%, did not quite match this, but the Group managed to lower its unit costs and hence drive the improvement in profit.

As the leading airline group in the Russian Federation, Aeroflot has benefited from its government's smoothing of the path to consolidation, while keeping LCC competition at bay. The government is now ready to allow the development of LCCs domestically and foreign LCCs are making their presence felt on international routes.

With Aeroflot now on the verge of setting up its own LCC subsidiary, Dobrolet, CAPA reviews the Group's strengths, weaknesses, opportunities and threats.