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Pest Analysis On EasyJet Airline Company Limited : EasyJet Airline Company Limited (styled as easyJet) is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports.[1] The parent company, EasyJet plc, is listed on the London Stock Exchange (LSE: EZJ) and is a constituent of the FTSE 250 Index.[2] As at 30 September 2009, it employed 8,000 people, based throughout Europe but mainly in the UK.
EasyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions[4][5] and base openings fuelled by consumer demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now operates over 180 aircraft,[6] mostly Airbus A319.[6] It has 20 bases across Europe, the most important one being London-Gatwick.[7] In 2009, EasyJet carried 45.2 million passengers[8] and is the second-largest low-cost carrier in Europe, behind Ryanair.[9]
EasyJet was featured in Airline series broadcast on ITV which followed the airline's operations at London Luton and later at other bases. EasyJet's founder, Sir Stelios Haji-Ioannou, was featured heavily in the series.[1
PEST analysis for easyJet
The following factors are likely to have an influence on the airline industry and should therefore be taken into account when formulating a Marketing Plan for easyJet.
Politico-legal factors
• Threat of war in the Middle East
• The Air Miles scheme is not considered as a taxable perk by the government in the way that company cars are taxed which may change to allow easyJet to compete on more equal grounds with the likes of BA.
• A EU east-enlargement may provide access to viable, new markets.
Economic factors
• Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism.
• As the recession is likely to last for some more time, business travellers will keep an eye on their travel expenses.
• Globalisation should continue to boost traffic in the long-term.
• The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated.
Socio-cultural factors
• To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet .
• The public are general quite friendly to the prospect of cheap flights. However they may feel begrudged where they see promotions found in newspapers where flight are for £10 only to find that the actual cost is much higher for the particular time or day they wish to fly on.
Technological factors
• A key issue will be the extent to which technological advancements – such as the use of the Internet on distribution and cost synergies from industry consolidation – can offset upward pressures on prices and costs.
• easyJet has to keep track of technological developments in the field of e-commerce and aircraft manufacture in order to gain a competitive advantage.
EasyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions[4][5] and base openings fuelled by consumer demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now operates over 180 aircraft,[6] mostly Airbus A319.[6] It has 20 bases across Europe, the most important one being London-Gatwick.[7] In 2009, EasyJet carried 45.2 million passengers[8] and is the second-largest low-cost carrier in Europe, behind Ryanair.[9]
EasyJet was featured in Airline series broadcast on ITV which followed the airline's operations at London Luton and later at other bases. EasyJet's founder, Sir Stelios Haji-Ioannou, was featured heavily in the series.[1
PEST analysis for easyJet
The following factors are likely to have an influence on the airline industry and should therefore be taken into account when formulating a Marketing Plan for easyJet.
Politico-legal factors
• Threat of war in the Middle East
• The Air Miles scheme is not considered as a taxable perk by the government in the way that company cars are taxed which may change to allow easyJet to compete on more equal grounds with the likes of BA.
• A EU east-enlargement may provide access to viable, new markets.
Economic factors
• Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism.
• As the recession is likely to last for some more time, business travellers will keep an eye on their travel expenses.
• Globalisation should continue to boost traffic in the long-term.
• The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated.
Socio-cultural factors
• To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet .
• The public are general quite friendly to the prospect of cheap flights. However they may feel begrudged where they see promotions found in newspapers where flight are for £10 only to find that the actual cost is much higher for the particular time or day they wish to fly on.
Technological factors
• A key issue will be the extent to which technological advancements – such as the use of the Internet on distribution and cost synergies from industry consolidation – can offset upward pressures on prices and costs.
• easyJet has to keep track of technological developments in the field of e-commerce and aircraft manufacture in order to gain a competitive advantage.
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