PESTL Analysis of British Airways:
* Deregulation as the size of the market increases, causing economics of scale to increase. * Heavy Regulations (AEA, 2009). The Association of European Airlines charged that they were handed with heavy regulations which was holding back their member airlines while global competitors were ahead, sponsored as an instrument of national policy. So compliance is necessary if British Airways wants to continue its operations. * Security has been an important issue for airline industries in recent years. With terrorist attacks on UK and US in past years, BA should increase its security measures so as to ensure consumer confidence and hence this advantage is maintained. * Prohibition of travelling to particular countries and wars in certain parts of the world has affected the airline industry in terms of passengers and flights being operated on the particular routes.
* Global Economic Crises has led to reduction in the number of business travels because companies are trying to cut on costs by using some alternative communication. * Hike in oil prices, any kind of fluctuation in global oil prices will directly affect BA’s cost base. * The spending of the UK consumers saw the sharpest decline, making the competition more intense for airlines to attract customers. * Low Cost Airlines giving stiff competition.
* British Airways has a potential opportunity for growth because UK has an aging population (National Statistic Online, 2008) where they can attract old-age people who typically spend time on leisure activities such as international travels. * BA should conduct a market research on current lifestyles of the consumers, their buying patterns, their travelling patterns and future changes in them. * BA should be aware of demographic changes, in terms of segmenting off the structure of the population by number of peoples working, ages, regions, affluences etc. So as to find out demand for the products as a whole or demand for particular products and services, not to forget the increasing threats to existing products.
* A Recent survey (New media...