Pestle Analysis Of Airline Industry

1.1 Company Profile

• Established as an airline in 1974

• Flag Carrier of the United Kingdom

• Part of the larger International Airlines Group which is the 3rd largest airline group in the world by annual revenue

• Allied to the Oneworld alliance which aims to be the primary airline choices for international travelers

• Fleet size of 295 and revenue of £ 11.4 Billion

• Flies to 183 destination including Bangalore, Chennai, Delhi, Hyderabad and Mumbai in India

• Offers 4 products on its aircraft (2 products are fixed other 2 are either both available or either one of them)

• Economy (World Traveler), Premium Economy (World Traveler Plus), Business Class (Club World) & First Class

1.2 Segmentation

• The process of defining and segregating

Economy Class (World Traveler)

• Passengers hail from Rural and Urban areas

• Generally, belong to all age groups from a child to a elder

• Primarily low or middle income group which are educated or maybe be uneducated as well

• This category contains a wide variety of people such as students, salaried employees, government employees etc.

• Generally, travel by aircraft for vacation or maybe some instances of business

• Frequency of travel is low and seek affordable and cheap airfares and services

2. Premium Economy Class (World Traveler Plus)

• Travelers are mostly urban hailing people with few rural hailers

• Focus more on the middle aged and teenagers travelling with parents

• Middle income families that belong to the upper middle class families

• The majority people in this category are graduates as this category is not known to many travelers

• They generally travel for vacations and frequency is also medium amount of travel

• They have medium level expectation from the airline with a value for money concept

• It is primarily meant for the international routes of the airline

3. Business Class (Club World)

• Middle or old aged people who are mostly from the urban

First Class

• This class of passengers are the highest revenue earners for the airline

• A ticket from London to New York in First Class costs £15000 or Rs 1300000 per person

• An aircraft generally contains 8 first class seats

• This is only targeted to long haul international travelers

• Very high income group hailing from upscale urban areas

• They belong to the very high class society and are generally very educated and accomplished in life

• They are ambitious in nature and look for detail in the service provided with very high expectations from the service provider

• There primary concern is business and have a medium travel frequency with luxury