Two main political factors in Virgin’s external business environment are deregulation and infrastructure. Before the 1980s airlines were typically controlled by the government, now due to deregulation, governments do not dictate airfares or routes etc and thus leave an open market for new competitors. As there is more competition for market share, airlines are forced to become efficient and competitive therefore driving prices down. Deregulation is said to have caused an estimated 20% in air fares (Dayao, et al., 2009). In 1979 the “open skies” act was introduced. This refers to an international deregulation policy to ‘liberalize the rules and regulations and minimize government intervention’ (USLegal, n.d.) One recent act is the open skies policy between the US and Europe, ‘allowing airlines based in the United States and Europe to fly across the Atlantic between any two airports in each region’ (New York Times, 2008). Although airline deregulation is not a recent concept, ‘its effects are still being felt today’ (Smith and Cox, n.d.) through the emergence of…