Pest Analysis

Topics: Airline, Muscat, Oman, Flag carrier Pages: 7 (1878 words) Published: December 30, 2010






PEST Analysis4

Political Factors4

Economic Factors5

Social Factors5

Technological Factors6

Analyze your findings7

Strategies pursued by the business to control PEST factors:7


Oman Air


Oman Air is the flag carrier of the Sultanate of Oman, based in Muscat, in which the government holds 33.8% stake. It operates scheduled domestic and international passenger services, as well as local air taxi and charter work. Its main hub is at the Seeb International Airport, Muscat. The airline is member of the Arab Air Carriers Organization.


Oman Air was established in 1970 and started operations in 1993 as Oman Airline following a merger of Gulf Air's Light Aircraft Division and Oman International Services. Its inaugural flight was from Muscat to Salalah. Oman Air commenced its international operations in July 1993, with a flight to Dubai. In the same year, the airline started its services to India, with a flight to Trivandrum. In 2001, Oman Air became the first International foreign Airline to fly to Kochi, India. Oman Air was the first airline in the Gulf to introduce the brand new Boeing NG 737 aircraft series. It was also the first ever airline to offer intra-Gulf commuter services. Oman Air’s origins date back to 1993. Since then, we have been maintaining a very high standard of professionalism.


Oman Air can look back on an eventful history. It includes many glorious moments but the course of events has not always been smooth. History is always a reflection of people and their times. The challenges facing air transport have become increasingly complex, yet Oman Air has always found the strength to learn and renew itself. In the year of 1970 Oman International Services (OIS) commences civil aircraft handling services at the old Beit Al Falaj Airport. Lately Seeb international airport partially constructed. As of now Oman Air has around 22 fleets in different category and operates 296 flights a week within a network of 36 destinations in 19 countries. There was a 20% increase in the staff strength in mainly operational areas and the coming years will see numbers continuing to rise to cope with the Company's planned expansion. Development of a master plan to provide for a new Head Quarters Building plus associated structures to house General Training, Flight Stimulator and Cabin Crew Training Centre as well as staff accommodation, recreational and social facilities, and a clinic and welfare centre, provision of a new engineering facility, purpose built to Oman Air's requirement that will provide a four bay aircraft hangar and associated workshops which the Company hopes to develop into a Maintenance Repair and Overhaul.

PEST Analysis

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

Political Factors

Political interference has to be present everywhere. Given below are a few of the political factors with respect to the Oman airline industry: oThe airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travelers, regarding traveling to a particular country. oThe most significant...

References: •
• Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business -- Craig S. Fleisher & Babette Bensoussan;
• Intermarket Technocal Analysis, Jone. Murphy 1991
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