Virgin Atlantic is a British Airways and airline company. The airline started its business operations in 1984. The company has a fleet size of approximately 42 aircraft and provides 32 destinations in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Virgin Atlantic; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Virgin Atlantic
Some of the main political factors in the Virgin Atlantic PESTLE analysis are as follows;
I-Government Regulations
The government regulations are very strict for the airlines when it comes to air travelers and passengers. They comprise aircraft repair and maintenance on time, cabin crew training programs, standardized flight operations, and safety and security protocols. Virgin Atlantic needs to comply with the government regulations and policies of different countries to perform its operations smoothly.
II-Air Service Agreement
In order to smoothly perform and run the international air routes, Virgin Atlantic needs to sign an international air service agreement with various countries. They keep changing the terms and conditions of the agreement and it impacts the aviation expansion operations and the route network for the airlines.
III-Brexit Deal
Virgin Atlantic is a British aviation company and the British government has recently signed the Brexit deal which led the country to get out of the EU. It means no more free trade and travel among the other neighboring European countries. However, the aviation brand needs to comply with the trade regulatory requirements, legal documentation, and other protocols to travel across Europe.
Economic Factors Affecting Virgin Atlantic
Some of the main economic factors in the Virgin Atlantic PESTLE analysis are as follows;
I-Economic Downturn
The global economy has experienced the worst recession in recent years and it hit the aviation industry to the core. It was due to the lockdown and shutdown of businesses and companies, international air travel bans, and a lot of other health and safety regulations and standardization. It significantly impacted the business operations, retail sales, revenue, and profitability of the airline.
II-Fuel Price
The fuel price market is highly volatile and the fuel price keeps changing regularly and daily. Virgin Atlantic requires a massive quantity of fuel to keep its aircraft running and smoothly performing international trips. A small change in fuel price would negatively impact the revenue and profitability of the airline.
III-Competitive Pricing
The aviation industry has become highly competitive with multiple airlines offering similar air travel services to the passengers. In order to maintain a market competitive position, Virgin Atlantic needs to offer the market competitive pricing to the passengers for the air travel service. The competitive pricing strategy is good for sales and customers, and it limits the company’s revenue and profitability.
Social Factors Impacting Virgin Atlantic
Some of the main social factors in the Virgin Atlantic PESTEL analysis are as follows;
I-Traveling Trends
The trend of international traveling, exploring the world, and experiencing new cultures and regions worldwide is increasing. It presents a great opportunity for the airline brand Virgin Atlantic to offer various types of international travel and hospitality service package deals to visitors. It would help the aviation company to attract a lot of new potential customers and visitors.
II-Customer Expectations
The customer expectations for the quality of hospitality service are very high. They comprise luggage handling, time punctuality, amenities, in-flight service, and various other services. Virgin Atlantic should offer a variety of services to customers to improve their air travel experience and customer satisfaction level.
III-Culture and Language
Customer needs, preferences, and demands are variable and they’re highly dependent on the cultural differences of customers. Virgin Atlantic is operating its business worldwide; the airline brand needs to keep in mind the cultural factor while offering services to the customers. The company should make sure that its services are culturally relevant.
Technological Factors Affecting Virgin Atlantic
Some of the main technological factors in the Virgin Atlantic PESTEL analysis are as follows;
I-In-flight Entertainment
Virgin Atlantic is investing a significant amount of capital resources in the in-flight entertainment service. It comprises of touch entertainment screen at the back of every seat, access to a variety of music and videos, complimentary drinks, and other services. It would help them to improve the customer satisfaction level and offer a better in-flight experience.
II-Online Booking
Virgin Atlantic is investing in the development of centralized and digital platforms. It allows the aviation brand to offer online booking services to the customers, easily check out the status of their flight, and various other services. It would help the aviation brand to offer a seamless user experience to the passengers and the air travelers.
III-Aircraft Technology
Virgin Atlantic should regularly upgrade its aircraft fleet size and it comprises of investing the fuel-efficient technology. It allows the aviation brand to smoothly perform its operations without any delays and disruptions and offers a great quality experience to the customers.
Legal Factors Impacting Virgin Atlantic
Some of the main legal factors in the Virgin Atlantic PESTEL analysis are as follows;
Regulatory Compliance
Virgin Atlantic needs to comply with the regulatory requirements of different countries. They comprise of international route network agreements, safety and security regulations, cabin crew standards, data privacy, and other legal requirements. Regulatory compliance would help the aviation brand to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Virgin Atlantic
Some of the main environmental factors in the Virgin Atlantic PESTEL analysis are as follows;
Sustainability Initiative
Virgin Atlantic has made a strong commitment to environmental sustainability initiatives. They comprise fuel-efficient aircraft, biodegradable packaging, recycling of waste and material, and renewable sources of energy. It would help the aviation brand to keep up with the environmental sustainability protocols and requirements.
Conclusion: Virgin Atlantic PESTLE Analysis |PESTEL Analysis of Virgin Atlantic |External Environmental Analysis of Virgin Atlantic | Strategic Analysis of Virgin Atlantic
After an in-depth study of the pestle analysis of Virgin Atlantic; we have realized that Virgin Atlantic is the world’s leading aviation brand. If you are learning about the Virgin Atlantic 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.
