Ryanair PESTEL

Ryanair’s PESTEL

(70’s, 80’s, market oriented ideas such as: ) Deregulation of the Airline Industry, privatisation and competition- evolved from being public utilities to a market-driven industry with customer demand setting the levels of service and price. Consequently intense rivalry, intensified by new entrants (low cost), led to innovative business models and to crucial changes in the industry structure. And fares went down dramatically, which resulted in decreasing yields;
Iraq War;
Terror attack on the World Trade Centre (9/11)- next following days Ryanair had to cancel 279 flights, losing £1.9 milhions of euros;
Persian Gulf War in 1991;
Landing slots awarded by government institutions- after 9/11 governments reinforced security, increasing expenses and forcing airlines to push the tickets price up;
Monopolies legislation: CAA and their outdated equipment and bureaucratic procedures slow down airline companies;
Environmental protection laws
Taxation policy;
Foreign trade regulations;
Employment law;
Government stability;
Social welfare policies

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Worldwide economic recession;
Increase oil price (effected by wars (Iraq/Gulf ));
Alliances;
Recession- increase financial fear, consequently sales decreased;
Interest rates increase tickets price;
Increase security cost (terrorism threats (7/7- 9/11))increasing ticket prices;
Inflation (now);
Unemployment- the jobless rate rose to 7.9% from 7.6% and if keeps risen the demand will decrease;
Energy availability and cost- the threat of higher costs;
Disposable income will decrease with the unemployment rising;
Business cycles

Worldwide economic recession;
Increase oil price (effected by wars (Iraq/Gulf ));
Alliances;
Recession- increase financial fear, consequently sales decreased;
Interest rates increase tickets price;
Increase security cost (terrorism threats (7/7- 9/11))increasing ticket prices;
Inflation (now);
Unemployment- the jobless rate rose to 7.9% from 7.6% and if keeps risen the demand will decrease;
Energy availability and cost- the threat of higher costs;
Disposable income will decrease with the unemployment rising;
Business cycles

SARS- dramatic drop in passenger demand;
Dropping travel (consequence of terrorism and SARS);
SARS/Swine Flu;
Income distribution- Increase Disposable Income;
Attitudes to work and leisure- 35h-40h of work so increase leisure time;
Cultural diverse leads to demand- foreign living in UK, tend to go back to their homeland for holidays at least 2 times a year;
Population demographics- increasing population;
Social mobility;
Consumerism;
Lifestyle changes- consumers are becoming more consciously green and the fact that airlines produce big amounts of CO2 will lead to a demand for cleaner substitutes;
Levels of education- unemployment rate rising will lead to lower level of education among consumer decreasing demand;

Substitution- rail competition is high;
Phone calls;
Video conference;
Sharing corporate jets lowering costs;
Fuel efficient lows costs;
Cost of Maintenance with 1-2 planes- same planes, same structure to facilitate the cleaner workforce;
Government spending on research;
Government and industry focus on technological effort;
New discoveries/development;
Speed of technology transfer;
Rates of obsolescence;

Government CO2 emissions high;
Noise Pollution high;
Less Green/threes/erosion on behalf of more space will lead to more environmental legislation;
Waste disposable;
Environmental protection laws restrict companies plans;

Landing rights, related time slots and other privileges are still awarded by government institutions;
the monopolistic Civil Aviation Authorities with often outdated equipment and bureaucratic procedure;
‘grandfather rule’ gives airlines the right to keep slots which were allocated before liberalisation;
Governments are also responsible for negotiating ‘open sky agreements; regulating air traffic between countries;
Airports in Europe are mostly stated owned;
Competitive legislation;
Labour legislation;
Monopolies legislation;
Employment law;
Health and safety;