PESTET Analysis: The Pestel Analysis Of Air France

PESTEL Analysis
1. Political
◦ Visa free on Europe
One of the main customers of Air France are European customers. One of the politics in Europe is to break down frontiers and then increase the easiness and wiliness to customers to travel all over Europe.
◦ Stable and cooperative governments
Many politics agreements are regulated to the European level, as these governments are mostly stable and cooperative, this helps the industry to better control and see the next political changes.
◦ Terrorisms regulations
After the main bombing in 2001, global airlines companies now need to have strict bombing and security regulations. The industry now have to ensure a high level of security.
◦ Taxes
The industry is set in a highly taxing government. The

◦ Grow of E-Commerce
The customers are more and more willing to pay they services or products online.
For the industry this mean a better way to target more customers and simplify the transactions and use of the services.
4. TECHNOLOGICAL
◦ Usage of Electronics devices to lower costs (self checking, on-line selling)
With the constant evolution of the electronics devices, the company can use them to lower the cost and increase the customers satisfaction by

◦ Innovation in Aircraft
The aircraft industry is also evolving in a way to lower the fuel consumption, the CO2 emission (and then reducing taxes), and also increasing the airplane life-cycle. ◦ New kind of gas
Also every year new kind of gas are discovered such as bio-fuel reducing the environmental impact and reaching sustainability. This helps the industry to lower the gas costs.
5. ENVIRONEMENTAL
◦ Green gas policies,CO2 emission restrictions, EU emission trade
The EU always try to reduce the air pollution by creating new environmental laws that the industry must know and follow.
6. LEGAL
◦ Open Skies Agreements
The industry must agree with an Open Skies Agreements forcing them to collaborate with competitors.
◦ High level of security regulations
All the industry must follow strict security laws to lower the bombing risks and security failures. Both in the planes or in the airport.
Summary:
The market is globally growing due to highly educated customers willing to travel, the political scene trying to reduce countries borders. The Technological innovation helps the industry to target