The global airline industry

Introduction This report will study the airline asset, one of the best low cost airlines in Europe; it will explain how asset use the right tools to succeed in the European market, using the best strategies. It will analyses this process with the use of PEST and SOOT, Welch are two tools used for studying the company Internally and externally.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

It will study system’s key issues such as the relationship with business passengers, the various ways how it protects the environment and how it reduces the amount of oil used; finally asset will be compared with its biggest competitor Rainy. Identification, adaptation and application of suitable management tools In today’s business world, any company must analyses and utilize the use of suitable management tools, in order to succeed, and ultimately secure a desired profit.

Two methods of analytical tools have been studied and are constantly used In the airline industry. The first is PEST, which is a methodology based upon variables of the context sketching out the scenario existing in the environment in which the airline organization operates. This Is an analysis, the purpose being to Identify which variables may be relevant In decision making In strategic and operational organizations. It can also be developed on a prospective basis with the aim of identifying the main elements of discontinuity within a company as a basis of comparison.

The PEST tool acronym stands for: Political Economic Social Technological 1 org The second method is attributed to Albert Humphrey, who led a research programmer at Stanford University in the sixties and seventies using the data provided by the ‘Fortune 500’, and is known as the acronym SOOT, which involves specifying the objective of the business project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

Chapman, 2011) The SOOT tool acronym stands for: Strengths Weaknesses Opportunities Threats Appraisal of airline’s operating environment Political: Political changes in the EX. New members in the EX. Terrorism Economic: Oil price Security and insurance costs Competition – PEST Business travelers using asset Use of credit card on the phone and Internet Increasing of the use of air transport Technology: Internet New generation aircraft Fuel saving Environment: Pollution Natural disasters Noise pollution Appraisal of airline’s internal capabilities Strengths: – SOOT Primary airports

Quick turnaround Only use of Airbus Easy website Weaknesses: High density seating Extra charges Employee productivity High load factor High seat cost Opportunities: Expansion of the EX. New bases Business travel market Threats: High competition Alternatives transport New taxes and regulations Oil prices Risk of strikes The EX. is facing a period of serious economic crisis, especially in Ireland, Spain, Greece and Italy. In spite of this, asset keep growing and making brilliant progresses.

Passengers originating outside the I-J now account for 56%, an increase of 3. 2 percentage points over the previous year. Business passengers traveling with asset for business purposes, has increased by nearly one million, to 9. Million. (asset, 2011) Technology and Environment pose one of the biggest issue in the aviation industry and every airline has to face the problem of the cost of fuel and the effect upon the environment. asset is looking at new technologies to provide a successful outcome, in fact, it is the first commercial airline to test a revolutionary Anna- technology coating.

This coating, only one micron thick, will add only one pound to the weight of the aircraft but can achieve considerable advantages in terms of fuel economy. The material, already tested in military aviation, promises good results in arms of cutting fuel consumption with percentages of 1-2%, and resulting in significant advantages as regards the cutting of the emissions from aircraft in flight. To fill the microscopic pores on the surface of the aircraft by creating a smooth and durable coating which increases the aerodynamics.

Carolyn McCall, chief executive of asset, has welcomed the project, adding the need for the government to accelerate plans to make a carbon tax that proponents say would provide the incentive that airlines need to invest in a more efficient technology. Carolyn McCall said: “All airlines should be encouraged to reduce the environmental impact of its activities, which is why we welcome the Government’s commitment to move the tax on passengers to a fairer and more environmentally friendly outlook. We look forward to seeing the details of their proposal.