The US Airline Industry in 2007

Scenario Analysis

Planning Scope:
 The US airline industry
 scenario analysis for 2-year.

Drivers of changes (PASTEL):

 Political: since 2007, the US airline has experienced changes in policies and regulation
with the aim of protecting passengers and airline users from various accidents. Increased
security and political instability in several countries have demonstrated negative impacts
to the growth and development of the industry. Therefore, political changes and
regulations aim at reducing risks affecting operations and functions of the airline
industry.
 Economic: The 9/11 attacks left a major impact that the airline industry is yet to recover
from. The prolonged recession, fluctuation in oil prices and imminent global slowdown
are other debilitating factors that are the affecting the growth of the airline industry.
Airlines have to cope with declining passengers, high fuel prices, competition from low
cost airliners, labor disappearance, is also adversely affecting the global airline industry.
 Sociocultural: Customers are rapidly demanding for more luxury resources. This leads to
establishment of customer division i.e. first class passengers. This has also led to airport
expansion to provide first class amenities and demand or bigger planes.
 Technological: Aviation industry is expanding to ensure planes can cover longer distance,
consume less fuel and carry more capacities. Above pilots, need help of systems to run
the plans smoothly. Need for online booking facilities
 Ecological: The world is currently developing fast economically hence the emergence of
newer markets and destinations. His has led the introduction of new aviation business
models
 Legal: Aviation industry is introducing eco-friendly resources such as plans with
minimal emission to protect the environment. Airports are also being restructured to use
less energy and emit less toxic wastes. 

Combine and major analysis: