By assessing the Political, Economic, Social, Technological, Environmental and Legal factors, the Opportunities and Threats can be faced by a company can be identified. Future trends and requirements for change based on these trends can be identified through this analytical tool Johnson, et al, Political and Legal factors Southwest Airlines domestic operations are significantly influenced by government bodies; primarily Federal Aviation Administration FAA see www.
It has gone through many ups and downs in the past. Airline industry is particularly sensitive to law and order, economic situation, that has resulted in difficult situation for commercial airline despite increasing popularity growth of air passengers.
Shankman, This report is based on analysis of Political, Economical, Social, Technological, Legal and Ecological factors that may affect airline industry.
Political Factors There are number of different political factors that are currently affecting the airline industry like: The number of people travelling to other countries is decreased due to fear of their safety and security, iata.
However different governments around the world are investing heavily on making new airports and expanding the existing ones, to be able to handle larger number of air travellers. These investments are an effort to make their country as preferred destination for not only passengers but also airlines to stopover.
There were million passengers travelled by air in European Union in that was 4. Many countries are allowing visa free travel to citizens of specific countries that is resulting in growth of air travel.
Economic Factors Airline industry is highly dependent on economic situation. The economic instability has resulted in increased demand of low cost airline like Ryan air and Easy Jet etc. Timms, Many airlines gone through difficult times due to effects of down turn.
Furthermore increased fuel prices also resulted in increased costs of operations that lead many airlines to adopt different strategies to reduce their operational costs. People around the world are now becoming more used to low budget airline and their business is grooming.
The economic down turn and increased fuel prices has taught many valuable lessons to airline industry like to ways to survive in tough economic conditions, becoming more productive and reducing costs. Currently fuel prices are at its lowest point of last decade and that is helping many airlines to not only recover their losses but generate profits too.
Furthermore the growing income of middle class in different parts of the worlds with decreased costs of air travel with the time that has increased affordability of people. As result tourism is becoming larger and more diverse customer market.
Shankman, Globalization has resulted in cross border expansion of businesses that has resulted increased travel of CEOs and business managers. This trend is expected to increase further with the time. The maiden age of air travellers is increasing that mean many older people prefer to travel by air due to different reasons.
That means there will be growing number of older passengers who will prefer air travel for shorter distances for increased comfort. Especially increased use of internet has made it possible for customers to purchase tickets from their homes. Furthermore the ability and access of airlines has increased as passengers can get latest information about airfare and travel.
Shankman, Many airlines are increasingly making use of technology to facilitate their customers for example Airlines has introduced mobile phone applications to facilitate customers. Furthermore social media has made it easy for airlines to interact with customers.
The Aero planes are becoming more fuel efficient day by day helping airlines to reduce travelling costs while new technology has also enabled airlines to introduce more safety measures. Legal Factors Many countries had introduced different rules, regulation, and quality standards for airlines in order to ensure safety and security of passengers.
The compliance to these rules and regulations is compulsory for any airline travelling to and from these countries. This has increased the costs for many airlines and they have to maintain certain level of services and standards.malaysia airlines swot analysis Malaysia Airlines System Berhad (MAS) is founded in as Malayan Airways, but it has change its name as Malaysian Airline System in1 October Malaysia Airlines is the flag carrier of Malaysia and serves over destinations across six continents from its main base at Kuala Lumpur International Airport.
malaysia airlines swot analysis Malaysia Airlines System Berhad (MAS) is founded in as Malayan Airways, but it has change its name as Malaysian Airline System in1 October Malaysia Airlines is the flag carrier of Malaysia and serves over destinations across six continents from its main base at Kuala Lumpur International Airport.
Firefly Airline Swot Pestel Introduction Emirates Airlines (also known as Fly Emirates) is a major airline in the Middle East, and a subsidiary of The Emirates Group. It is the national airline of Dubai, United Arab Emirates and operates over 1, passenger flights per week, from its hub at Dubai International Airport, to destinations in.
So, this PEST analysis for airline industry has highlighted four important factors that are affecting its external macro environment.
By keeping these factors in mind, we have come to the conclusion that the increased costs of doing business, strict rules and regulations imposed by regulators, competition from low-cost airliners, changes in passenger profile, in addition to the recent airline related deaths, all .
Airline industry has played an important role in progress and growth of economies around the world. It has gone through many ups and downs in the past. Airline industry is particularly sensitive to law and order, economic situation, that has resulted in difficult situation for commercial airline despite increasing.
Swot and Pestel of Emirates Airlines. Introduction Emirates Airlines (also known as Fly Emirates) is a major airline in the Middle East, and a subsidiary of The Emirates Group.