Pestle Analysis of Easyjet
Pestle analysis of Easyjet
Political Factors
Political factors reflect the political stability of the region where Easyjet is operating.
OPPORTUNITIES
Government grants permission to purchase new Aircrafts.
Government guidance and assistance available to travel and tourism businesses.
European Countries Collaboration and good relationship making EU politically stable. This stability is a significant advantage for the growth of Easyjet
THREATS
Airlines which fail to comply with strict carbon emission limits will face fines from the Environment Agency, the government has announced. BBC news Wednesday, 4 March 2009
Government enforces rules on airlines company to apply expensive technological solutions to detect terrorists for passenger security
Economical Factor
Despite the global recession the Easyjet is making significant profits. Easyjet was able to offset half the impact of higher fuel cost and deliver pre-tax profits of £123m.
2008 2007 Change
Total revenue (£ million) 2,362.8 1,797.2 31.5%
Profit before tax – underlying (£ million) 123.1 191.3 (35.7)%
Profit before tax – reported (£ million) 110.2 201.9 (45.4)%
Pre tax margin – underlying (%) 5.2 10.6 (5.4)pp
Return on equity – underlying (%) 7.6 13.6 (6.0)pp
Basic EPS – reported (pence) 19.8 36.6 (45.9)%
Easyjet annual report and accounts September 30th, 2008
Economic down-turn people are more price sensitive in their consumption. The low-fare strategy of Easyjet is exploiting the demands of the customers to travel at cheaper prices.
Currency exchange rates can also effect the company economically however the recent decline in the value of US dollar as compared to Euro is paying off Easyjet.
EASYJET PLC CHAIRMAN’S STATEMENT Feb. 2009
http://www.easyjet.com/en/News/agm_chairmans_statement_feb_09.html
Moreover, any changes in the European Commission rules regarding compensations and reimbursements to the passengers, labour laws or taxes can have viable financial impacts
Political Factors
Political factors reflect the political stability of the region where Easyjet is operating.
OPPORTUNITIES
Government grants permission to purchase new Aircrafts.
Government guidance and assistance available to travel and tourism businesses.
European Countries Collaboration and good relationship making EU politically stable. This stability is a significant advantage for the growth of Easyjet
THREATS
Airlines which fail to comply with strict carbon emission limits will face fines from the Environment Agency, the government has announced. BBC news Wednesday, 4 March 2009
Government enforces rules on airlines company to apply expensive technological solutions to detect terrorists for passenger security
Economical Factor
Despite the global recession the Easyjet is making significant profits. Easyjet was able to offset half the impact of higher fuel cost and deliver pre-tax profits of £123m.
2008 2007 Change
Total revenue (£ million) 2,362.8 1,797.2 31.5%
Profit before tax – underlying (£ million) 123.1 191.3 (35.7)%
Profit before tax – reported (£ million) 110.2 201.9 (45.4)%
Pre tax margin – underlying (%) 5.2 10.6 (5.4)pp
Return on equity – underlying (%) 7.6 13.6 (6.0)pp
Basic EPS – reported (pence) 19.8 36.6 (45.9)%
Easyjet annual report and accounts September 30th, 2008
Economic down-turn people are more price sensitive in their consumption. The low-fare strategy of Easyjet is exploiting the demands of the customers to travel at cheaper prices.
Currency exchange rates can also effect the company economically however the recent decline in the value of US dollar as compared to Euro is paying off Easyjet.
EASYJET PLC CHAIRMAN’S STATEMENT Feb. 2009
http://www.easyjet.com/en/News/agm_chairmans_statement_feb_09.html
Moreover, any changes in the European Commission rules regarding compensations and reimbursements to the passengers, labour laws or taxes can have viable financial impacts