PESTEL Of RYANAIR
Introduction
Ryanair is an airline with the straight of low fare. Ryanair operate over 1500 flights per day from 51 bases, across 28 countries. The firm has over 1,500 routes, connecting 168 destinations. Ryanair has 290 new Beoing 737-800. They plan to buy a further 13 new aircraft. Ryanair has the average youngest aircraft group in the Europe. The firm runs with more than 8500 employees. First part of the report is analysing the external environment of airline industry through the model of PESTEL. The second part is using value chain to analysis the airline named Ryanair.
PESTEL
Political/ legal issues
Passenger rights in the EU
The EU has passed a legislation that aims to improve the rights for passengers who travel form EU countries. It is particularly targeting the practice of overbooking for EU airlines. Many customers, especially business passengers, have fully flexible tickets. And they often do not show up for a reserved fight. But when too many passengers want to fly with in this flight, some passenger will be denied boarding because of the limitation of aircraft. The legislation provides a compensation scheme for passengers who are denied boarding. The airlines must re-schedule the flight for the customer of giving refund and must pay for their food and hotel if necessary until they have their next flight.
Economic issue
The rate of exchange
America is the largest aircraft exporting country. And most of international aircraft fuel supplier using the US dollar as settlement currency, because US dollar is the key currencies for international settlement. Europe Airlines is depended on Europe. None of them use US dollar as settlement currency. For Europe Airlines, the changing of us dollar/ euro influences the company direction and the profit rate. The changing of dollar’s value also influences the price of tickets which flight between Europe and America. To transfer the risk of exchange, the airlines are making forward exchange contract with
Ryanair is an airline with the straight of low fare. Ryanair operate over 1500 flights per day from 51 bases, across 28 countries. The firm has over 1,500 routes, connecting 168 destinations. Ryanair has 290 new Beoing 737-800. They plan to buy a further 13 new aircraft. Ryanair has the average youngest aircraft group in the Europe. The firm runs with more than 8500 employees. First part of the report is analysing the external environment of airline industry through the model of PESTEL. The second part is using value chain to analysis the airline named Ryanair.
PESTEL
Political/ legal issues
Passenger rights in the EU
The EU has passed a legislation that aims to improve the rights for passengers who travel form EU countries. It is particularly targeting the practice of overbooking for EU airlines. Many customers, especially business passengers, have fully flexible tickets. And they often do not show up for a reserved fight. But when too many passengers want to fly with in this flight, some passenger will be denied boarding because of the limitation of aircraft. The legislation provides a compensation scheme for passengers who are denied boarding. The airlines must re-schedule the flight for the customer of giving refund and must pay for their food and hotel if necessary until they have their next flight.
Economic issue
The rate of exchange
America is the largest aircraft exporting country. And most of international aircraft fuel supplier using the US dollar as settlement currency, because US dollar is the key currencies for international settlement. Europe Airlines is depended on Europe. None of them use US dollar as settlement currency. For Europe Airlines, the changing of us dollar/ euro influences the company direction and the profit rate. The changing of dollar’s value also influences the price of tickets which flight between Europe and America. To transfer the risk of exchange, the airlines are making forward exchange contract with