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PESTLE analysis Airplane industry

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by

Amelia Georgieva

on 10 March 2016

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Transcript of PESTLE analysis Airplane industry

Government stability
Political organisations (OPEC)
Deregulation and Liberalization --> 'Open Skies Agreements'
Cabotage regulations
Aviation Taxes
Environmental regulations and tax
Passenger rights
Social factors
Age Profile
Health & Safety
Lifestyle
Obesity
Economical Factors
Fuel prices
Hedging Agreement
World Economy +Recession +Inflation
Labor costs
Globalization
Technological and Environmental Factors
New Technological changes
Costly investments in new airplanes
Advances in aircraft safety
Recycling
Pollution and Noise
Political and Legal Factors
PESTLE analysis of the Airline Industry
Introduction
PESTEL Analysis of the Airline Industry
Strategic opportunities and dilemmas in the perspective of ‘Ryanair’
Thank you for listening!
Any questions?
Ingrid Moltke-Hansen
Emil Todorov
Amelia Videnova
Mandhir Girdhar
References:
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Beiske, B. 2002. Loyalty Management in Airline Industry. Diplomartibeiten Angentur.
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Centreforaviation.com. 2014. Tax hikes threaten US airline industry with billions in new costs | CAPA - Centre for Aviation. [online] Available at: http://centreforaviation.com/analysis/tax-hikes-threaten-us-airline-industry-with-billions-in-new-costs-59227 [Accessed: 10 Mar 2014].
Executivetravelmagazine.com. 2014. U.K.’s airline passenger tax goes up – and up - Air Travel News - Executive Travel. [online] Available at: http://www.executivetravelmagazine.com/blogs/air-travel-news/2012/3/30/uks-airline-passenger-tax-goes-up---and-up [Accessed: 9 Mar 2014].
Financial Times. 2014. UN agency calls for global scheme to tackle airline emissions - FT.com. [online] Available at: http://www.ft.com/cms/s/0/3196dd06-2d1a-11e3-8281-00144feab7de.html#axzz2vBzljzML [Accessed: 10 Mar 2014].
Longo, R. 2010. Ryanair and Air France - KLM SWOT and PESTLE Analysis. [online] Available at: http://www.docstoc.com/docs/48511122/Ryanair-and-Air-France---KLM-SWOT-and-PESTLE-Analysis [Accessed: 8 Mar 2014].
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PESTLE, R. 2010. Dr. Rosario Longo: Ryanair and Air France KLM: SWOT and PESTLE. [online] Available at: http://rosario-longo.blogspot.co.uk/2010/04/about-ryanair-ryanair-is-irish-airline.html [Accessed: 9 Mar 2014].
Reilly, N. 2014. Social Factors Affecting Airlines | eHow. [online] Available at: http://www.ehow.com/list_7379446_social-factors-affecting-airlines.html [Accessed: 9 Mar 2014].
Seawright, S. 2006. Airline industry turbulent since 9/11 - Telegraph. [online] Available at: http://www.telegraph.co.uk/finance/2945214/Airline-industry-turbulent-since-911.html [Accessed: 10 Mar 2014].
Slideshare.net. 2014. Ryanair strategic analysis. [online] Available at: http://www.slideshare.net/LorcanN/ryanair-strategic-analysis [Accessed: 10 Mar 2014].
Smith, O. 2013. Ryanair 'worst' brand for customer service - Telegraph. [online] Available at: http://www.telegraph.co.uk/travel/travelnews/10319838/Ryanair-worst-brand-for-customer-service.html [Accessed: 9 Mar 2014].
The Guardian. 2014. EU agrees watered-down deal on aviation carbon emissions. [online] Available at: http://www.theguardian.com/environment/2014/mar/05/eu-deal-aviation-carbon-emissions [Accessed: 9 Mar 2014].
Uniassignment.com. 2012. Understanding Ryanairs External Environment And Industry Commerce Essay. [online] Available at: http://www.uniassignment.com/essay-samples/commerce/understanding-ryanairs-external-environment-and-industry-commerce-essay.php [Accessed: 10 Mar 2014]
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From Ryanair´s perspective
Strategic opportunities
'Open Skies Agreements' - facilitates for transatlantic flights
New addition of countries in the EU creates opportunities and a bigger market
Globalization can increase the need for cheap transportation as people find jobs across borders
Low cost strategy have demonstrated to work well in difficult economic times ( Net profit 2013; 569M Euro)
Fuel hedging agreements; reduce the level of risk related to their biggest cost
Good use of technology which decrease costs; new planes, self service at airports, ticket purchasing online
From Ryanair's perspective
Strategic dilemmas
In regards to expansion both in Europe and transatlantic;
higher taxes (aviation and environmental)
increased passenger compensations
higher fuel costs
'Open Skies Agreements' & allowing more cabotage- introduced more competition
Increasing competition and costs- more difficult to maintain low prices?
Possibly lower demand in the future due to demographic changes, older people prefer land transportation
Full transcript