Etihad Airways is a flag carrier UAE airline and aviation company. The airline started its business in 2003. The company has a fleet size of approximately 94 aircraft and offers 77 destinations in various countries and regions across the globe. Today, we’ll discuss the PESTLE analysis of Etihad Airways; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Etihad Airways
Some of the main political factors in the Etihad Airways PESTLE analysis are as follows;
I-Government Support
Etihad Airways is UAE’s flag carrier aviation company and the airline has very strong financial support and backing from the Abu Dhabi and UAE governments. The government’s financial support and backing played a key role in the worldwide growth and success of the brand.
II-Regional Political Environment
Etihad Airways is operating its business world. However, the Middle Eastern region has very complex regional politics from the neighboring countries. However, it impacts the company’s safety and security concerns, flight routes, and operational costs.
III-Political Relationship
Etihad Airways has established very good and effective political relationships with other regional and neighboring countries. It helps the company to smoothly perform its operations in terms of air traffic routes, keep up with the demand of the market, and low cancellation of flights.
Economical Factors Affecting Etihad Airways
Some of the main economic factors in the Etihad Airways PESTLE analysis are as follows;
I-Global Economic Trends
The global economy is shifting towards environmental sustainability and a shared economy. The sharing of rides and resources would help people to decrease wastage and have a limited impact on the environment. Such trend economic trends have decreased the overall ticket sales of the airline industry including Etihad Airways.
II-Oil Prices
Oil and fuel are one of the leading expenses of Etihad Airways. On the other hand, the oil price market is highly inconsistent and the fuel prices keep on changing throughout the year. A small in fuel price would increase the expenses, sales, and profitability of the airline.
III-Industry Competition
Etihad Airways is facing intense industry competition from other airline brands like Fly Dubai, Emirates Airline, and others. They have established a strong market share and a very loyal database of customers; their market presence is negatively impacting sales.
Social Factors Impacting Etihad Airways
Some of the main social factors in the Etihad Airways PESTEL analysis are as follows;
I-Cultural Diversity
The UAE and Dubai region has become a highly culturally diverse region from people all over the world. Etihad Airways deals with a very highly culturally diverse population and passengers. The airline brand promotes and endorses cultural diversity in its advertisement campaigns.
II-Traveling Behavior
The consumer market trends have been shifting towards fuel-efficient, electric, and sustainable modes of transportation. It imposes a significant challenge on the airline brand to keep up with the growing customer market trends. It has reduced the sales of airlines due to changing customer market trends.
III-User Experience
Speaking of customer market trends, customers have become highly cautious about their user experience in flight. They notice and observe every small detail because it has a great impact on the overall flight experience. However, they comprise of flight entertainment, food, staff behavior, and others.
Technological Factors Affecting Etihad Airways
Some of the main technological factors in the Etihad Airways PESTEL analysis are as follows;
I-Flight Entertainment
Etihad Airways should invest a significant amount of capital resources in the in-flight entertainment technological system. They comprise of LED screens and touch display devices at the back of every seat; customers can watch and listen to their favorite music or entertainment. It allows the company to improve the overall user experience.
III-Advanced Aircrafts
Etihad Airways is investing a significant amount of capital resources in the development of its aircraft. They are comprised of employing AI, ML, data analytical systems, and other web tools and applications; they help the company to provide a smooth flight experience to the customers.
Legal Factors Impacting Etihad Airways
Some of the main legal factors in the Etihad Airways PESTEL analysis are as follows;
I-Aviation Regulations
Etihad Airways should comply with air traffic, traveling routes, and security regulations of different countries. It helps the company to smoothly perform its worldwide destination routes and provide air travel service to the customers.
II-Data Privacy and Protection Laws
Etihad Airways deals with a vast variety of private data of individual customers and passengers. The database breach and cyber attack on the company’s firewall would not only expose the company’s private data but also jeopardize the trust and confidence of millions of customers.
Environmental Factors Affecting Etihad Airways
Some of the main environmental factors in the Etihad Airways PESTEL analysis are as follows;
I-Carbon Emission
Etihad Airways and other airlines contribute significantly to the contribution of the highest amount of carbon emission rate to the environment. The aviation brand needs to work on the development of fuel-efficient aircraft and use fuel-efficient technology to decrease the carbon impact on the environment.
Conclusion: Etihad Airways PESTLE Analysis |PESTEL Analysis of Etihad Airways |External Environmental Analysis of Etihad Airways | Strategic Analysis of Etihad Airways
After an in-depth study of the pestle analysis of Etihad Airways; we have realized that Etihad Airways is the world’s leading airline. If you are learning about the Etihad Airways PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
