Political The political environment in which airlines operate is highly regulated and favors the passengers over the airlines. It is also difficult for new airlines to get operating licence in some countries due to different legal restriction and requirements.
Added to this was the prolonged recession in the wake of the dotcom bubble bursting. The test flights of eco friendly aeroplanes that use bio fuel has been successful that is appreciated Pest analysis american airlines many organizations working for environment protection.
Legal In recent years, the number of lawsuits against airlines from both customers as well as workers has gone up. Especially increased use of internet has made it possible for customers to purchase tickets from their homes.
Retrieved 29 Decemberfrom http: Though the passengers might not notice these aspects, it is the case that once one scratches the surface and does some research, it is clear that the airline industry is in a mess and only, radical restructuring can help revive its fortunes.
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. The other debilitating factor was the fluctuations in the price of oil because of the Second Iraq War and the subsequent spike in oil prices just before The Great Recession of Timms, Many airlines gone through difficult times due to effects of down turn.
This last aspect or the ongoing global economic slowdown has meant that the already struggling airlines now have to contend with declining passenger traffic, competition from low cost carriers, high aviation fuel prices, labor demands, and soaring maintenance and operating costs.
Government plans further investment in airports Lexology. Furthermore social media has made it easy for airlines to interact with customers. This is because of the fact that the global aviation industry operates in an environment where passenger safety is paramount and where, the earlier tendencies towards monopolistic behavior by the airlines have made the political establishment weary of the airlines and hence, they have resorted to tighter regulation of the operations of the airlines.
The airline carries more than six thousand flights in a day. All these factors have made the airlines loss making and prone to bankruptcies and closure because they can no longer afford to run their operations profitably. Airline industry is responsible for 3.
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. Shankman, This report is based on analysis of Political, Economical, Social, Technological, Legal and Ecological factors that may affect airline industry.
It has gone through many ups and downs in the past.
Shankman, Many airlines are increasingly making use of technology to facilitate their customers for example Airlines has introduced mobile phone applications to facilitate customers. 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.
The airline takes passengers to more than fifty countries around the world. The number of people travelling to other countries is decreased due to fear of their safety and security, iata. Environmental With climate change entering the social consciousness, passengers are now counting their carbon footprint with the result that they are now more environmentally conscious.
Further, the regulators are being stricter with the airlines, which mean that they are now increasingly wary of their strategies, and actualizing their strategies only after they are fully convinced that they are not violating any laws.PESTLE or the External Environmental Analysis of industries and companies that operate globally is a useful methodology to analyze the external environmental factors.
This article uses the PESTLE methodology to analyze the global aviation industry or the airline industry. The key theme in this article is that global airlines are going through what can be called the “Airline Death Spiral.
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SWOT analysis on American Airlines focuses on the strengths that have enabled it to reach where it is the weaknesses that it has, opportunities that come its way and the threats that the airline has to counter. Pest Analysis: American Airlines Essay Analysis of the Airline Industry Parameters of the Industry American Airlines is a subsidiary of AMR Corporation and one of the leading airlines in the U.S.
Analysis of the Airline Industry Parameters of the Industry American Airlines is a subsidiary of AMR Corporation and one of the leading airlines in the U.S. A Competitive Analysis of Airline Industry: A Case Study on Biman Bangladesh Airlines Competitive Advantage, SWOT Analysis, PEST Analysis, Airlines, Airline Industry.
I. Introduction Grant states that „when two or more firms compete within the same market, one firm possesses a.Download