The airline industry employs more than 113,000 people directly and a further 276,000 indirectly where the company has a turnover of more than $19 billion (Bajawa, & Woodall 2006). The UK airline industry is…
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It is very important for any organization to consider the PESTEL analysis before it can engage in marketing its products. This is more important in that it allows companies to plan their future. PESTEL analysis describes a series of macro-environmental factors, which are used in environmental planning. This paper looks at the impacts of government intervention in the airline industry in using PESTEL.
It is very important of external analysis when doing a market research since it gives an overview of the different macroeconomic factors, which the industry has to take into consideration. Some of the Political factors considered are the taxation policy in the industry, the laws related to employment, trade restrictions, and regulations on the environment, tariffs, and political stability in the industry. Economic factors considered in this case are economic growth of the industry, changes in interest rates, changes in exchange rates of the industry, and the rate of inflation that affects the industry (Zhou, & Stuart 2008). Social factors considered in their case includes, cultural concepts of the entire industry, health consciousness of the industry, the rate of growth of the population, the distribution of age, careers attitudes in the industry and emphasis laid on safety in the airline industry. Technological factors are also considered in this case and includes environmental and ecological aspects, which determines the barrier to entry in the industry, the minimum level of efficiency and production in the industry which effect outsourcing decisions. Moreover, technology factors cover research and development activities the level of technology and automation incentives used in the industry rate at which technology changes in the industry (Sajeev 2012).
PESTEL is a way of analyzing the different environments that affect the industry. Pestel deals with
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This paper looks at two mergers that occurred in this industry between the years 2004 and 2011- merger of British Airways-Iberia and the Continental-United merger. This paper aims at evaluating the strategies behind these decisions, projected achievements and what prompted the companies in this industry to come up with the ideas of mergers and acquisitions.
During this season since the supply cannot keep up with the demand the prices of air travel tickets goes up. During low season the airlines utilize a lower pricing strategy in order to attract more customers. As prices goes down the demand for air travel rises.
Alliances make business sense motivated by cost reduction and improved services to customers among other factors. Strategic alliances are common to any industry, and their presence felt within the airline industry. An airline alliance is an agreement by at least two airlines to work on a substantial level.
Some authors imply that privatization in the public sector has caused "a shift from well paying public jobs to lower paying private jobs" (Deller, 2002). Still, research has proven that deregulation alone has different impact for the different industries (Hirsch and Macpherson, cited by Bratsberg et al, 2001).
Transaction costs economics and the new institutional economics have provided ways in which traditional economics model (On the assumptions of maximising behaviour by individuals) can be used in understanding the relationship between institutions and the reform process (Craciunesco 2006).
Mergers and acquisitions (M&As) have been the growing trend within the last few decades. The increasing number of M&As within the last few years can be associated in part by rapidly changing technologies, with particular advances in computing and communications, the quest of market dominance, as a strategy of entering into new markets and in all to wipe out competition (Cummins & Xie 2007, Cummins et al., 1999, Cummins and Xie, 2005).
2) that influence the structure of the market and impact mobility.
This paper aims to create a general economic profile for the airline industry by discussing various aspects of the airline market, such as industry trends, market demand and supply and associated elasticity, the products the industry produces and associated externalities, employment relationships, and more.
In order to come to a clearer and more knowledgeable understanding on this subject matter, the key elements as well as those related to the subject at hand must be thoroughly discussed; by doing this we can gain a more intellectual viewpoint on this issue.
h caused by the terrorist attacks in 2001 and the tight competition in the world market, the recent national unemployment rate rose up to 5.5% in May as compared to 5.0% in April this year. (U.S. Department of Labor, 2008) This happened since some of the medium-scale and
This essay explaines the element of risk in the airline industry, that could include aspects such as the single loss of aircraft or a collision between two aircraft, terrorist atacks and so on. The main task for the companies is to manage the possible risks and reduce losses. This essay focuses on comparing risk managment, that is used in British Airways and Easyjet.
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