Question

PESTEL ANALYSIS of us airline industry

Answer 1

Political- Fortunately US as a healthy relationship with all the countries and all the countries are focusing toward the safety, security of the passengers. Generally political factors are national factors but since aviation industry is global and spread all over the world, so political factors of other countries should also be considered.

The US aviation industry had generated revenue of $709 billion in 2016.

The aviation industry is controlled by the Government and hence political factors become very important. The Government make rules and regulation supporting the passengers not the companies because for government the issues of safety is must for the government, profitability of customers are not priority. Increased government intervention are affective the industry negatively.

Economic- Economic is not supportive for the Airline industry. The recent slowdown has affected the industry very badly. The slow was heavily in 2009. That is why the most companies adopted the cost cutting measures. Because of this thousand jobs were lost. But now the recession is past but one thing is clear that aviation industry is not immune to recession and economical slowdowns.

Social- Social factors are changing rapidly. The demands of the passengers are changing and that is forcing the companies to change itself. Passengers are searching for those providers which are providing more services at less cost. That is forcing the companies to change their strategy. The companies have less business class passengers and more economical class passengers and that is not much profitable for the companies.

Again the technology is harming the aviation industry as the busi9ness people can attend a meeting on video conferencing or other means.

Technological changes- Most of the customers are liking to check out through their Smartphone and PCs. Ticketing is also been done through the internet. The companies are also forced to rum advertisement campaigns on the social media in order to attract more customers.

Environmental aspects- Aviation industry is largely responsible for the pollution. Be it air, noise or soil pollutions. This is why the aviation companies are forced to reduce this affect and adopts the policy of Green flying. Fuel in the major cost for industry. The companies are forced to improve their technology s that the fuel efficiency can be increased.

Legal issues – In case of accidents the aviation companies are set responsible. The aviation industry is highly regulated by the government laws and regulation. As I have stated above the rule and regulations are toward the customers not th companies. In US the laws toward the customer safety is very strict for the companies.

From the above analysis it is clear that aviation industry is highly competitive and not much profitable. The economic fluctuation influences the aviation industries very much.