… Business Environment
Thesis Statement: The paper is an analysis of the business environment within which the Airlines Industry operates and how this environment has changed over the years. PEST analysis is used in understanding the environment prevalent.
PEST analysis in the airline industry is an analysis of the political, economic, social and technological external environment. (www.netmba.com/strategy/pest).Global Airlines has been undergoing tremendous changes.
Political decisions and governmental policies affect the global Airline industry as well. The US Airline Deregulation Act 1978 and Air Transportation Deregulation in Europe during 1987 to 1997 are important governmental decisions which has restructured the industry bringing about free and fair competition. Deregulation in Europe brought about reduced entry barriers, thus making the path clear for the entry of low-cost airlines. In the US during the 1990s restructuring of fares and cost operations towards lower levels took place. Recently in the 107th Congress, in America, lawmakers were engaged in making provisions to force airlines for improving their customer service, which included among others to increase compensation for passengers who face difficulties during and after travel. The members of the Congress are also initiating methods of mergers within the …