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Essay / Pestle analysis of Virgin Atlantic airline
Table of contentsPolitical analysisEconomic analysisSocial factorsTechnological analysisLegal environmentEnvironmental factorsPolitical analysisIt inspects the government's directions. These are policies, rules and regulations on the industry or association with reference to Virgin Atlantic Airline. It can be debated that several political factors such as tax policies, weak labor force, customer policies and trade restrictions imposed by the government have a great impact on the airline industry. According to Virgin Airline management, they are an expression of various policy challenges when activities spread overseas relative to the UK (e.g. the US and Australia). Most policy challenges are met by licensing, bureaucracies established by the UK and foreign governments have also increased the parameters and control of business operations by government. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssayEconomic AnalysisVirgin Atlantic Airways has been facing strong competition from other companies in the industry. For example, the organization had to reduce its flight prices following an analysis of air travel prices by its main adversaries in the airline industry like American Airlines and UK Airways. As a result of this competition, by 1990, "Virgin Atlantic was offering first class tickets at business class prices; inventions included limousine pickup for first class passengers and seatback video training systems." seats for economy class passengers”. This new decision creates an opportunity to win economic competition and get more profits and customers. Social factors British Airways, Atlantic Airways and other airlines such as EasyJet have already asked the EU and the French government to come up with an action plan to minimize the effect of ATC. Air traffic controller attacks on passengers A number of ATC union strikes hit France in 2016 due to social unrest sparked by a series of contested labor reforms by the socialist government, leading Virgin Atlantic to cancel many flights to and over France. The peak summer season in 2016 was difficult to operate for many airlines, including Virgin Atlantic, largely due to social factors beyond the airline's control, particularly air traffic controller (ATC) strikes ) In France. perfect because it allows passengers to compare airfares from different airlines in just a few clicks, which actually affects pricing ability, according to Gal-Or (2011). However, the Internet also offers Virgin an opportunity to reduce costs. That's why the company recently launched AIR4, Virgin Atlantic's major technology revolution in the company's history, which saw Virgin invest in passenger services IT systems such as the new mobile app, Auto -assistance. service reservation technology and improved kiosk functionality (2016 annual report). Legal environment In December 2016, Virgin Atlantic pilots decided to take industrial action following union recognition after the pilots' union, the Professional Pilots' Union ( PPU), which represents over 70% of Virgins, over 900 pilots, demanded to be the only exclusively recognized union for Virgin pilots and for the British Airline Pilots Association to be derecognized (The. 2017).