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Political Factors Of Virgin Atlantic

725 Words3 Pages

QUESTION 1. Analysis Political, Economic, Legal, Socio-cultural, Environmental and Technological
1) POLITICAL

Political factors have a great effect on the operating environment of the aviation industry. For Virgin Atlantic, it is compulsory for them to work within an operating restriction that determine the services offered, where the airlines can fly, taxes for landing, fuel taxation, security legislations.
In recent years, the terms of terrorism attacks become a serious issue and have a negative effect on this market.

2) ECONOMIC

During the last decade, the global economic environment experienced a sharp downturn in the amount of economic activity, and this issue has a strong affect the air travel demand.
The recession …show more content…

Therefore, in the short time, consumers are getting more careful with their discretionary spending and this lead to a serous drop in passenger volume.
Consumers are not ready to pay former prices for airlines. These changes affect a change in demand of air flights.
Besides, customers are intend to choose a cheaper costs airlines operators when the economy is suffering
It is considered that the airline industry is a cyclical system.
Airlines have to scope with high fuel prices, labor demands, operating and maintaining costs, and declining passengers. So, any fluctuation in the oil price will have a direct effect on the currency and also impact the cost of flying for Virgin Atlantic as well.

3) LEGAL

Noted that passenger safety is more important than anything else, Virgin Atlantic offers a high regulated political environment where passengers are favored over the …show more content…

By cutting fuel consumption and aircraft weight, Richard Branson stated plans to reduce gas emission on 27 September 2006.
In 2007, as a potential change to future operational procedures, Virgin Atlantic made a partnership with Boeing to save fuel by having aircraft towed.
In February 2008, the companies also volunteered a Boeing 747 for a test of biofuels. With 20% of the power for one engine provided by plant-based biofuel, the aircraft flew without passengers from Heathrow to Amsterdam Airport.
Richard Branson said that they expected to use algae-based biofuels in the future.

6) TECHNOLOGICAL

Technology in this industry is very expensive and fast moving.
In order to foster technological development and be cutting-edge, airline operators are required to invest huge efforts into Research and Development (R&D). Besides, the focus also lies in the fields of alternative energies and

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