Furthermore increased fuel prices also resulted in increased costs of operations that lead many airlines to adopt different strategies to reduce their operational costs. Added to this was the prolonged recession in the wake of the dotcom bubble bursting.
Airline companies alone have had to spend a great deal of time and money revising their policies, procedures and prices to accommodate the ever-changing influences of their customers over the years. 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.
This is higher than They will most likely want to complete some business work during their flight, so they will be looking for flights that off in-flight WiFi. The industry impacts and is impacted by social forces. Security Airline companies have undergone a dramatic shift in the safety precautions they take, upping the ante in security measures due to recent terrorism attacks.
In terms of safety too, they are more reliable and efficient. Especially increased use of internet has made it possible for customers to purchase tickets from their homes. The number of professional travelers also increased. After forming our DEPEST analysis, we were able to thoroughly analyze it to determine the trends at the intersection, trends at the subsections, and the opportunities and threats of the airline industry.
Events like disasters and wars also have an impact on the airlines industry. Added to this is the retiring of the Baby Boomer generation that has resulted in the airlines losing a lucrative source of income. 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.
This trend is expected to increase further with the time. Over time one thing has gotten absolutely clear; growth of the airlines has benefited governments, businesses and individual passengers.
Further, the social responsibility initiatives are becoming more pronounced and more under scrutiny as consumers and activists turn a critical eye towards the airlines and their corporate social responsibility. Lastly we were able to determine the opportunities and threats for the airline industry.
The latent demand for air travel in Chinese markets has increased. This growth rate is expected to sustain. Organizations like International Civil Aviation Organization are working to deepen this relationship. 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. These investments are an effort to make their country as preferred destination for not only passengers but also airlines to stopover.
The global forecast by Airbus for highlights that the demand is going to increase in the coming years. Considering the vast regions that many airlines operate, the business environment is often regulated by on the political atmosphere in a particular market.
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.
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. As a result of this, their operational costs are stretched, hence, decreasing revenue base.
The Impact of September 11 on Aviation. We also noticed a trend between the demographic, economic, and technological sectors when it comes to business travel. The air travel markets saw a low in the early In countries ravaged by war, it becomes difficult for airline companies to operate due to the risks imposed.
Legal In recent years, the number of lawsuits against airlines from both customers as well as workers has gone up. Furthermore the ability and access of airlines has increased as passengers can get latest information about airfare and travel.
For example, with the introduction of the new Boeing Dreamliner jet which is more fuel efficient and made of composite materials, airlines will have the opportunity to provide a more environmentally efficient aircraft. It is obvious that government regulation or political factors play an important role in determining the growth and proliferation of the airlines industry.
Even the aircrafts are enabled by best in class technology.
Competition in the industry can be regulated by the activities of politicians in the sense that, they are responsible for formulating laws. Apart from this, the demanding fliers and competition from low cost airlines means that full service airlines can no longer compete on price or volume.Social Factors Affecting Airlines.
by Natalie June Reilly; Updated October 05, Airline companies alone have had to spend a great deal of time and money revising their policies, procedures and prices to accommodate the ever-changing influences of their customers over the years. Airline Industry Key Success Factors; Size of Check-In.
Transcript of A PEST analysis of external factors that affect the airline industry Group 2: Nynke Buwalda, Eva Mulder, Manon Mulder, Bert Sloof Introduction Political Factors Economic Factors Social Factors The Airline Industry Increased Popularity of Holidays abroad Causes of increase international tourism - greater awareness of.
Political factors affecting airline industry refer to a variety of government interventions that may hinder or enhance the operations of air transport.
Considering the vast regions that many airlines operate, the business environment is often regulated by on the political atmosphere in a particular market. 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. Political Factors Affecting Airline Industry. Title: The US Airline Industry in After years of losses the Us Airline industry is finally beginning to rebound from the 9/11 tragedy which saw negative profits at an all time high.
Government Regulations, Challenges, Impact On Airline Business Revenues By Eddy Metcalf January 11, - Government regulation regarding airport security, emissions and taxes is one of top issues negatively impacting global airlines’ revenues over the .Download