pest analysis on british airways?

Question

how could we analyse british airways udner the pest?

Answer 1

There are three key drivers behind the recent trends and events in the airline industry. These are:

A/ Deregulation
B/ Internet
C/ Low Cost Airlines (LCAs)

A/ Deregulation
Drawing on the political factors in the PEST analysis performed on this industry, there are two significant factors that have brought change to airline industry.
i/ The US Airline Deregulation Act 1978
ii/ Air Transportation Deregulation in Europe between 1987 - 1997

The main PEST factors that have influenced alliances are:-
Political.
Politically, there are operating restrictions, which airlines have to work within. The benefits in joining an alliance, is that it makes otherwise unreachable routes, a reality. This also ties in with slots, as each national carrier in their home cities, has the monopoly. Another political benefit is the bilateral route agreements, which all members of an alliance can utilise.

Economic.
Capacity in Europe outstrips demand, which leads to rate wars, equalling lower yields for companies. Economically, alliances lead to a greater control on capacity, therefore reducing competition and increasing yields. Alliances also reduce the near term possibilities of airport expansion. By code sharing airlines are able to not only split costs but to offer services and enter markets, they might ill afford to do on their own. This leads to less aircraft at airports, therefore less space being required, and is another way in gaining access to prime airports, which can expand no further.

Social.
These are strong from an employer staffing perspective. Airlines in alliances / code-share can reduce costs by utilising only one airline's staff.

Technological.
Technology in this industry is fast moving and very expensive. Alliances, give the opportunity for joint investment ventures, such as shared check-in systems.

Answer 2

British Airways Pest Analysis

Answer 3

Class. However, the Germans also have a sense of humour. Here is a popular German joke: Q. Why did the grandfather cross the road? A. To occupy France.