Ryanair Pestel

Complete a PEST(EL) analysis as preparation for a scenario planning exercise next week.

Political

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• Due to severe security measures, they had to cancel 279 flights and refunded 2. 7m€. A loss of 1. 9m€ in reduced bookings
• Aer Lingus was fundamentally opposed to a merger with Ryanair, even if it raises its price
• 12. 6 % of the shareholding controlled by Aer Lingus, whose members rejected the offer by a 97% majority vote
• Opposed to the BAA airport monopoly plans to build a 4bn gold plated Taj Mahal at Stansted

Social

• Europe’s leading budget airline August 2006, Air Transport World magazine- most profitable airline in the world
• 72% negative response from a poll of readers of the Financial Times for one of its initiatives
• In 2006, its employees count by more than 700, to 3. 500 people, comprising over 25 different nationalities
• In 2006, it was voted the world’s least favourite airline because of the unfriendly staff, delays and poor legroom
• The airline formerly refused to provide accommodation or meal vouchers when flights were cancelled or delayed, until it became illegal to do so in 2005

Environmental

• Deploying more efficient aircraft that use less fuel and produce less pollution
• Concerns about greenhouse gases from carbon emissions
• Replace its fleet of old aircraft with new, more environmentally-friendly aircraft, reducing the average age of its fleet to 2. 4 years
• New aircraft produced 50% less emissions, 45% less fuel burn and 45% lower noise emissions per sea

Economic

• Its average paid was 49612€, a higher figure than any other major European airline
• August 2006, Air Transport World magazine- most profitable airline in the world
• Cost-cutting/yield-enhancing measures for passenger check-in and luggage handling could save more than 1€ per passenger
• Web based check-in and priority boarding, save costs on check-in staff and airport facilities, as well as time
• By tailoring rosters, they maximised productivity and time off for crew members

Technological

• Web based check-in and priority boarding
• Fleet of over 100 new Boeing 737-800 aircraft and firm orders for a further 138 new aircraft to be delivered over the next six years
• Stronger passenger safety: body searched, banned from carrying liquids and gels in their carry-on luggage

Legal

• Complying with EU regulations which impose a ceiling on pilot flying hours to prevent dangerous fatigue
• In litigation with various airport over landing charges Accused it of misleading passengers on its website by exaggerating the prices of its competitors in making comparisons
• Following flight cancellations due to increase in security measures, they decided to file two legal cases against UK government
• In 2005, new legislation that offered compensation cost to passengers affected by delays, cancellations or denied boarding

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