“With 8 million people flying each day, the concept of travel as a rare escape is outdated. Obstacles that prevented people traveling, like high costs, continue to fall away. For those with the means, travel has become a lifestyle. Barriers like language are disappearing with the advent of smart translation apps. Cheap flights are empowering time-short travelers to jet off for weekends.
II. Air Asia’s PEST Analysis Political Flying internationally is difficult. Bilateral agreement is one of the obstacles in the main of low cost carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok, Beijing, Hong Kong and Singapore there are no cheaper, secondary airports. The budget airline industry in south-east Asia has been underdeveloped because the aviation market is tightly regulated by bilateral air rights agreements.
9/11 has made a big impact and has effected U.S citizens for many reasons. After 9/11 the U.S saw a birth of fear in all of its citizens. It caused everyone to become fearful of the future because nobody knew what was coming next. As a result, many citizens prefer to travel less because the fear of hijackers. Even though it can be cheaper to travel by plane most prefer to spend more money driving than risking getting on a plan that might be hijacked.
When there are good in economic growth, consumer’s discretionary income rises and there is often an increased demand for air travel that people like to travel and spend their leisure time with vacation and others. But, when economic downturn, demand for air travel will decrease. Therefore, these economic factors have affected Ryanair’s profits. Ryanair needs to make a new strategy or adjust their plan in order to meet the economic condition. This is because to avoid wastage during low travel periods besides taking the opportunity when there is peak-time travel.
However, research has indicated that Virgin Atlantic has encountered stiff competition from other companies in the industry, for instance, they were once forced to lower the rate of their flight which follows a review of prices for air travels by their major competitors which include British Airways, Fly emirates, and Qatar Airways. "Economic indicators for example GDP, exchange rates and inflation are important to management of Virgin Atlantic. They can tell when it is a good time to
I have seen where I buy a flight on Hipmunk Hipmunk will give me a better deal than say United will Sometimes though and this has only happened to me I think twice when I look at the flight on hipmunk it will give me one price say dollars US United will actually offer it to me for . Like I said this has only happened to me a couple times but I like to save a few bucks everyone likes to save money. So I have made it a habit to check the carriers website before I actually purchase the ticket to see which is cheaper. And if that doesn't work you are not tottally out of luck. You have one other option.
The intensification of pilot fatigue has frequently been traced back to the current pilot shortage. The pilot shortage has been difficult for the entire industry and is anticipated to become more severe as time progresses. The largest cause of the pilot shortage is due to the current economic climate within the aviation industry and the massive amount of money it takes to become a qualified pilot. Educational requirements and training costs to receive the necessary pilot qualifications are extremely expensive and can easily surpass the $100,000 mark. Normally, job fields, which require such a financial commitment, will compensate employees with high wages in order to offset debts that have been acquired.
Such culture and environment helped southwest to sustained growth even in economic downturns,etc. Technological:: Advance IT technology is used and Online booking operations, ticketless travelling,etc. Legal: Competitors may intervene in between and create problems in operation. For Example:It is mentioned in the case that Texas based airline imposed 2 cases against Southwest airlines to stop to from flying. Ecological: Terrorist attacks and natural disasters as floods and earthquakes can also have a global impact on consumer’s demand for air travel and put struggling airlines further into the red.Fuel price surge and other economic downturn factor affected the company to some extent.
But their ability to be nimble, because they are a legacy carrier, it 's not as easy let 's say, as some of the smaller carriers that are out there. I do have deep insecurity about trans-Atlantic pressures because of significant capacity growth happening in flights across the Atlantic, and I believe trans-Atlantic to be their most profitable region. And then the capacity creep and the capacity expansion by Middle Eastern carriers, is something that deeply bothers me. Their pilot union agreement and what happens on a renewal in a few years also concerns me, because the last round of negotiations showed that the pilots do have the power relative to the management team and interest to the carrier. And their pension.