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PESTLE Analysis of the Airline Industry

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Government policies could facilitate a flow of dollars into the U. S. By making improvements to speed the visa application process and customs inspections b. Taxes represent approximately 20% of a customer's airfare


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a. Macroeconomic cycles, such as the Savings ; Loan Crisis and the sass's boom followed by the dotcom crash, have caused contractions and expansion in the industry

b. With highly unionized workforces, companies have little control over labor costs during periods of demand fluctuations, incurring huge losses without deductions in force. Also read R yanair PESTLE analysis


a. Wars, political instability, terrorism, diseases, etc. All affect customer demand for passenger air travel

b. Customers value on-time flights. Congestion management has been an ongoing challenge, particularly for large hub airports that are seeing unprecedented levels of demand

a. Newer aircraft provide technological advantages, impacting flight range, fuel efficiency, and passenger comfort

b. Frequent flier programs have allowed airlines to amass a wealth of information on their customers, including flight patterns and travel references


a. Contractual renegotiation's and mandated procedural methods can significantly drain resources and attention

b. Union strikes always demand quick action by the airlines to resolve the matters as quick as possible to get their labor force back to work. Weather delays not only cost the airlines in excess fuel and operating costs, but it also causes an increase in ICC emissions

c. Similar to technology, advancements in aircraft design/construction has led to much more fuel efficient aircraft

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PESTLE Analysis of the Airline Industry essay

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What is the PESTEL analysis of the aviation industry?

This detailed PESTEL analysis of the aviation (airline) industry aims to examine some of the macro factors that impact on the airline industry in a number of countries, notably the USA, the UK, Canada, Australia, China, and India. The global airline industry is really enormous and plays an important role in global trades.

Is there a PEST analysis for the airline industry?

Here is a PEST analysis for airline industry to give you a better idea. The airline industry operates in a highly regulated political environment where passengers are favored over the airlines.

What is a PESTLE analysis?

PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business . In most countries, there are strict regulations for the aviation industry.

What are the factors that are upsetting the airline industry?

Now let us take a sneak peek into the factors that are upsetting the industry. Below is the PEST analysis of the airline industry to give a clear idea about the concept. Political: The airline segment operates in a high political environment where the lives of the passengers are more favored than the airlines.

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