International airline industry with a particular focus on British Essay

foreign advertizeline pains with a particular focus on British Airways - Essay ExampleIt wad be seen that the European airline industry has evolved from being dominated by large, business class air carriers to one which is increasingly controlled by the proliferation of low enclosures airlines. The wide popularity and acceptance of budget air function which has signifi foottly increased air traffic and gave a boost to the tourism industry has began putting coerce on large airlines to create their own low profile brand in order to repossess their market sh atomic number 18s.The emergence of budget airlines is directly attributed to the transformation of the global business environment. The major drivers which facilitated this trend argon the deregulation of the European air travel sector the system of the European Union the 9/11 tragedy the rapid technological advancement and change in customers lifestyle and preferences. It is irrefutable that the deregulation of the Europ ean airline industry primarily contributed to the rise of low cost carriers. It can be recalled that deregulation has get down the barrier to entry in the industry as well as enhanced the competitiveness of the players which are previously receiving subsidy from the government. This, in turn, largely contributes to the cost efficiency of airline operators allowing them to charge lower prices to passengers. The establishment of the European Union affects the airline industry has the same effect like the deregulation of the sector. This has opened up markets and lowered operating costs, encouraging the proliferation of low cost carriers (Sorensen 2006). The 9/11 tragedy which left menace worldwide has also helped in lowering the cost of air travel in order to direct up empty seats in the airline. This is coupled by the publics preference of budget airlines since they want to maximise the value of their money in response to the economic recession. Lastly, technological advancement has significantly enhanced companys efficiency. It can be recalled that the internet technology has lowered the airlines costs in terms of booking and servicing customers by eliminating travel agent costs. This has paved way for huge costs savings which cut down the cost of airline operations (Sorensen 2006). 2. Conduct a PEST-analysis of the airline industry - for both the present and medium term (5 years) future. Once you complete Political, Economical, Societal and Technological analysis, chose one example from each heading and discuss how it pull up stakes affect the industry in 5 years time. PoliticalThe operation of the European airline industry is strongly affected by the policies which are instituted by the government. The political issues which are affecting and are more(prenominal) likely to shape the sector are European and international law on environmental laws and regulations (International purlieu Law 2006) further integration with the European Union harmonization of technical requirements and administrative procedures and the tighter monetary policies which are currently adopted by each nation in order to maintain the amount of their currencies.Recognizing the destiny for sustainable development, it is expected that policy makers will be focusing on creating policies which are more centre on the preservation of the environment. It should be noted that right now, the European Environmental Law is gaining more