The recent economic recession shook the entire industry. Even the airlines industry was deeply affected. Except for these economic fluctuations, both the world economy and the global airlines industry have done well. This growth rate is expected to sustain.
British Airways Existing Line of Business: Walsh, who was in Mumbai on September 3rd, to announce a code-share agreement with Kingfisher Airlines, says that despite the airline facing mounting competition from other international carriers operating in We will write a custom essay sample on Pestal Analysis of Airline Industry in India or any similar topic specifically for you Do Not Waste HIRE WRITER India, he is not worried as India has huge growth potential and each player can have a decent pie of the expanding market.
On the flip side, he tells that though the future of the aviation industry is consolidation and many foreign carriers want to invest in India, Indian law does not permit them to do so. In fact, after the recession, India was among the fastest regions to recover from the downfall.
We are operating in and out of India for the past several decades and will continue to o so in a consolidated fashion. We have a huge customer base here and we still find growth opportunities in the region.
Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry: The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers.
An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country. The most significant political event however has been September 1 1.
The events occurring on September had special significance for the airline industry since airplanes were involved. International airlines are greatly affected by trade relations that their country has with others.
Unless governments of the two countries trade with each other, there could be restrictions of flying into particular area leading to a loss of potential air traffic e. The state owned airlines suffer the maximum from this problem. These airlines have to make several special considerations with respect to selection of routes, free seats to ministers, etc which a privately owned airline need not do.
Economic Factors Business cycles have a wide reaching impact on the airline industry. After the September 11 incidents, the world economy plunged into global recession due to the depressed sentiment of consumers.
In India, even a company like Citibank given first class railway tickets instead of plane tickets. The loss of income for airlines led to higher operational costs not only due to low demand but also due to higher insurance costs, which increased after the WTC bombing.
This prompted the industry to lay off employees, which further fuelled the recession as spending decreased due to the rise in unemployment. Even the Indian carriers like Air India was deeply affected as many flights were cancelled due to internal employee relations as well as external problems, which has been discussed later.
Social Factors The changing travel habits of people have very wide implications for the airline industry. In a country like India, there are people from varied income groups. The airlines have to recognize these individuals and should serve them accordingly.
The destination, kind of food etc all has o be chosen carefully in accordance with the tastes of their major clientele. Especially, since India is a land of extremes there are people from various religions and castes and every individual travelling by the airline would expect customization to the greatest possible extent.
A Jain would be satisfied with the service only if he is served Jain food and it should be kept in mind that the customers next to him are also Jain or at least vegetarian. Another good example would be the case of South West Airlines which occupies a solid position in the minds of the US air travelers as a reliable and convenient, fun, ow fare, and no frills airline.
The major element of its success was the augmented marketing mix which it used very effectively.Below is a pestle analysis for the airline industry that can help anyone understand the conditions in this industry.
Political environment. Most of the countries have tight regulations for the aviation industry. This is because the airline industry is faced with many risks which can result in accidents and deaths as well as irreparable damages. PEST analysis PEST analysis is very important that an organization considers its environment before beginning the marketing process.
In fact, environmental analysis should be continuous and feed all aspects of planning.4/4(1). An Analysis of the Airline Industry Words | 5 Pages. My industry analysis will be about the airline industry. Nature of competition The airline industry is in a state of oligopoly, bordering onto the state of imperfect competition.
Furthermore, with there being more competition in the industry and regulations in demand, passengers are in a position where they can push for lower prices and amenities. Economic.
The 9/11 attacks left a major impact that the airline industry is yet to recover from. PESTLE Analysis of Airline Industry by adamkasi | Jan 3, | Industries | 0 comments Airline industry has played an important role in progress and growth of economies around the world. Industry Analysis Porter’s five forces In order to analyze the industrial environment of Southwest Airlines and evaluate the nature of the competition faced by the company, this essay uses Porter’s Five Forces tool developed by Porter E.M (Porter, ).