The environment is assessed in detail for EasyJet – one of the largest no-frills airlines of Europe. A PESTLE analysis is carried out for the Macro environment to analyse the broader forces that affect the factors of the microenvironment.

Analysis of the Macro environmental Factors (using PESTLE):

‘Open Skies Agreement’ - liberalization of aviation within and between US and Europe, is in place for summer 2007 which is a favourable Political factor. Also, investigation on BAA dominance and joint ownership of Scottish and London airports is going underway by the OFT (Office of Fair Trade), to ensure consumers interest. This will also lead to competition within the airports if the monopoly breaks. (Mintel’s Report – No-frills/Low Cost Airlines – UK, 2005)

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Travel sector benefited from increased Economic activities and its positive impact on disposable income. Increase in air travel had been at a faster rate then other transportation modes in UK since 2001. Economic Growth Rate (2005) indicates,

  • Increase in passengers by 8%
  • Number of seat kilometres by 8.8%
  • Revenue reached 15bn. (Increase of 1.9% since 2004)

Percentage of air travellers increased from 39.4 in 2001 to 45.5% in 2005. In the UK the number of passengers on the scheduled flights increased at a rate higher then the rest of the world, increasing its share from 4.2% in 2001 to 4.7% ...

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