Ba Pestle Analysis 6f2s68

c c c The British Airways business environment can be determined by a number of various factors. To catalogue these factors, a PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis may be employed. c The political environment is mainly associated with governments functions, and its influence on airlines, which interrupts in the economy. The airline industry has always been greatly affected by the political environment. Recently it became more observable. The September 11th terrorist attacks in America resulted the entry of rigorous governmental restrictions regards security rules. Nowadays travellers to US under the Visa Waiver Programme must obtain their Travel Authorisation. Moreover engers may be required to provide Advance enger Information to the US government in order to travel (www.usembassy.org.uk) c d eregulation and liberalisation of the airline industry easier the entry to new competitors. This has stimulated for more competition and price wars between airlines. Cheaper ticket prices are imposing need of maximum capacity in order to make a profit. The amount of economic activity in the economic environment is extremely important for airline industry. Due to the global recession the airline industry is unable to perform well. The recession in 2008, was a major factor contributing to the downturn in demand for air travel, which is distinguish e d by high income elasticity. According to Mintel (2009) in 2008 UK's gross domestic product (GD P) decreased to the level of 0.7%. This resulted in a dynamic trend engers to fly with low cost airlines instead of more expensive. Air enger Duty (APD ) for engers flying from a UK's airports was restructured and the new charges now take distance into . This was implemented in November 2009 and made long-distance flying significantly more expensive. According to National Statistics' I, the cost of enger air transport in the UK enlarged by 34.3% in 2008 due to high oil prices(peak oil $147 a barrel).The oil price rise might add £100 million to British Airways costs. Also, the increase of other air travel charges leads to more expensive airfares. These high price rises tended to lower the number of engers that were uplifted by UK airlines in 2008. According to Mintel (2009)The percentage of UK residents in Great Britain who travelled by air in 2008 fell to47.3%, making it the first annual fall in this measure since at least 2001. Single currency established in Europe seems to boost airlines, as EU borders are opened and customers can use single currency (www.britishairways.com Accessed 02/05/10). However, England¶s choice to not use the Euro might consequence in a

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