Internal And External Factors That Effects On Emirates Airline Company

There are many different factors that come into play regarding the airline industry. Airlines such as Delta operate in an extremely political environment that requires an abundance of government regulation, especially after incidents like 9/11. As shown in Appendix A, the state of the economy, such as changes in GDP, per capital income, disposable income, and industrial production can also drastically impact the Airline Industry (Teresa Cederholm). In order to remain competitive in the airline industry, companies such as Delta must adopt the latest technology. For a full PESTEL analysis, refer to Appendix

To evaluate the external environment of JetBlue airways we will use the PESTEL analysis. PESTEL analysis stands for “Political, Economic, Social, Technological, Environment and Legal analysis”.

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

The airline industry has been a major factor in the globalization of the world economy. It connects the sellers and the buyers as well as transports goods across countries. It also breaks the time and distance barriers. In the past, air travel was considered a luxury but it is now a common necessity.

American Airlines is one of the major American airlines who serves nearly 50 countries globally and also a member of the one world global alliance. The airline corporate headquarters are in Fort Worth, Texas. Over the years the airline expanded through the union or merger of 85 companies. Robertson Aircraft Corporation and Colonial Air Transport were the core of the foundation of this company. In 1921, Robert Aircraft organized first in Missouri as a general manufacturer and flying service who flew its first mail route on April 15, 1926 between Chicago and St. Louis, Missouri. The first flight flown by pilot Charles A. Lindbergh. A charter, Colonial Air called Bee Line formed in 1923, flew mail between New York City and Boston which began on

Political force describes the impact of politics in marketing decisions. It takes into consideration the influence of a government that may affect the business environment. This includes the business cycle of a nation, monetary policy, fiscal policies, and trade policies. For instance in 2013 the Qantas Airlines was severely affected by the political unrest in Thailand which in result, caused a major concern for the organisations to generate adequate revenue in that particular region. In relation to that situation, Qantas also didn’t manage to obtain their desired target of revenue in the Middle East region due to the political instability that most Middle East country was facing from 2003 to 2010. In nut shell, the p;,political factor can relentlessly affect the airline industry at a particular region because people will normally think twice before deciding on their holiday location.

S. There are several social and cultural factors influencing the airline industry: the globalization, mergers between airlines, weather, September 11, 2001, wars with other nations.

Over the course of a company’s operations, the environment in which it is in largely determines the success, or failure, of the company. Analyzing Allegiant Travel Company, using a PEST analysis, we were able to discover the many environmental factors within the political, economical, social, and technological range that could affect the airline industry, and specifically Allegiant Travel Company. In each category, there are important environmental situations that affect the welfare of the company.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

The success of Emirates can be attributed through a combination of marketing mix which emphasize on excellent customer service, product and equipment. In addition, Emirates is known for its commitment to the highest standards of quality in every aspect of their business, providing premium service be it in first, business or economy class. We will look into a few P’s of the marketing mix that Emirates currently employ to become one of the most profitable

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

• Government blithe support: The Emirates Airline business model is one that is independent and self-sustainable. The airline doesn’t gain from reduced fuel rates or other monetary support from the government of Dubai. However the government offers remarkable support

Airline industry is the major engine powering the globalization of businesses and services. Prior to 1970’s, the airline industry was mainly owned and controlled by the governments in different countries. There was no free market competition as travelers have to make do with the services and prices available to them from the few airlines. But with the deregulation of the airline industry that swept across the world after 1970, entry barriers were lowered allowing new start-up of many airline companies, thus engendering competition in the airlines industry. This has led to competitions in various fronts, especially in prices and services provided onboard the flight. This competition has led to formulation of various business modules and the re-strategizing of the already existing and new start-up companies, in order for them to survive the new business environment. The operating environment of the airline industry continues to evolve, thereby presenting a significant challenge for the survival of the industry. Different models and frameworks have been formulated for analyzing the operating environment of various industries. In analyzing the operating environment, it is vital to indentify the different factors that might affect the organization cost, supply and demand. PEST (Political, Economical, Social and Technological) is one of the framework used for analyzing the macro-environment affecting organizations in a

The world as we know it to be is recently very ill. Due to much effect of human activity, global temperature is rising at a fast rate per year, which leads to serious changes in climate and weather. This results in aviation industries to be badly affected as the changes will lead to flight delays and bumper flights due to mid air turbulence. Thus Emirates does take this factor into serious considerations and started carrying out its “Go Green” plan in 2011 to reduce emition of greenhouse gases. Airplanes can cause an increase in greenhouse gases such as carbon dioxide (CO2) thus Emirates carry out its flight operations using Biofuel. Though its expensive, usage of Biofuels for its engines does save for a better environment. Emirates also carried out a “Recycling” plan in 2009 by recycling its jets of those that are old and out of

Like any organization, Emirates Airline’s business objective is to grow and operate profitably in a mid to up- size market with a whole range of travel products and services which are aligned to Emirates Groups value of choice, competitiveness, quality, service delivery and return on investments by offering finest selection of worldwide destinations, based on and complementing the Emirates network which are customized according to travelers need (Kotler, 1997).