Singapore Airlines is a flag carrier airline and aviation company. The airline started its business in 1947. The company has a fleet size of 156 aircraft and they provide 76 destinations in various parts of the world. Today, we’ll discuss the PESTLE analysis of Singapore Airlines; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Singapore Airlines
Some of the main political factors in the Singapore Airlines PESTLE analysis are as follows;
I-Aviation Agreement
Singapore Airlines needs to sign the aviation agreement and treaties with various countries. It allows the aviation brand to perform its operations smoothly and expand into various countries by making regional alliances. However, countries and partners change the terms and conditions of the agreement and treaties to ensure smooth operations without any disruption and delays.
II-Government Regulations
Government regulations, aviation industry standards, policies, and requirements are very strict for airlines and aviation companies. They focus on passengers’ safety, repair and maintenance of aircraft fleet, quality standards, healthy food, and other services. However, Singapore Airlines needs to comply with the government regulations of different countries and the aviation industry standards.
III-Geopolitical Risks
Singapore Airlines should become aware of the geopolitical tension and conflicts among various countries and regions. It allows the company to avoid meddling in the affairs of various countries and geographical regions. It is the best strategic approach for the brand to smoothly perform its operations.
Economic Factors Affecting Singapore Airlines
Some of the main economic factors in the Singapore Airlines PESTLE analysis are as follows;
I-Economic Downturn
The global economy and the aviation industry have experienced the worst economic crisis in recent years due to the pandemic. The worldwide lockdown, shutdown of businesses and companies, and airline travel ban had reset the global economy to the zero stage. Many businesses and companies are still suffering from the impact of the crisis.
II-Fuel Price
Singapore Airlines requires a massive quantity of fuel and oil to smoothly perform its air travel operations in various countries and regions. The fuel price market is highly volatile and it keeps changing oil prices regularly. A small change in the oil price would significantly increase the cost and expenses of the airline, and negatively impact the company’s sales, revenue, and profitability of the company.
III-Corporate Travel
Corporate and business tours are the main sources of income for the airlines. In order to attract corporate clients in the Asian and Southeast Asian markets, Singapore Airlines should offer various types of corporate traveling packages to the companies. It allows them to increase their sale and target new segments of the customer market.
Social Factors Impacting Singapore Airlines
Some of the main social factors in the Singapore Airlines PESTEL analysis are as follows;
I-Travel Culture
The traveling and tourism trends have been increasing among the customer market. People have become curious about learning about various regions and cultures, and they want to explore the world to gain key insight. It presents a great opportunity for Singapore Airlines to offer global and world tour packages to target various segments of the customer market.
II-Quality Service Demand
The demand for quality and premium airline service has been increasing significantly. Singapore Airlines should pay heed to improving the quality of service to the passengers and air travelers. The premium quality service would help the aviation brand to smoothly perform its operations without any disruption and delays.
III-Cultural Sensitivity
Singapore Airlines is operating its aviation and air travel business in various countries across the globe. The aviation company should become familiar with the cultural differences of various countries. For instance, the Muslim country’s market wants halal food and they avoid alcoholic drinks. The airline should offer them relevant services relevant to the needs and demands of customers.
Technological Factors Affecting Singapore Airlines
Some of the main technological factors in the Singapore Airlines PESTEL analysis are as follows;
I-In-Flight Entertainment
Singapore Airlines needs to upgrade its in-flight entertainment system by installing touchscreen displays in front of their screens. The upgraded entertainment system would offer a vast variety of entertainment and music selection to the passengers. It makes their traveling experience luxurious and comfortable and attracts a significant portion of the customer market.
II-E-Ticketing
Singapore Airlines has invested a significant amount of capital resources in the development of its web platform. It allows them to offer online ticketing, retail sales, online flight booking, and rescheduling services to customers. Online flight booking has made traveling and flights much simpler and more convenient for customers.
III-Operational Efficiency
Singapore Airlines is employing the latest and advanced technological tools and equipment like AI, ML, data analytics, IoT, and others. It allowed the aviation brand to smoothly and efficiently perform its operations to reduce the wastage of resources.
Legal Factors Impacting Singapore Airlines
Some of the main legal factors in the Singapore Airlines PESTEL analysis are as follows;
Regulatory Compliance
Singapore Airlines should comply with the government regulations of different countries. It comprises of aviation standards and requirements, passenger safety, data security, user data privacy, labor laws, quality services, and others. The regulatory compliance would help the aviation brand to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Singapore Airlines
Some of the main environmental factors in the Singapore Airlines PESTEL analysis are as follows;
Sustainability Initiative
Singapore Airlines needs to make a strong commitment to environmental sustainability. They need to take eco-friendly steps like renewable sources of energy, fuel-efficient aircraft, biodegradable packages, and others. Environmental sustainability initiatives would help the airline brand to keep up with the growing sustainability initiatives.
Conclusion: Singapore Airlines PESTLE Analysis |PESTEL Analysis of Singapore Airlines |External Environmental Analysis of Singapore Airlines | Strategic Analysis of Singapore Airlines
After an in-depth study of the pestle analysis of Singapore Airlines; we have realized that Singapore Airlines is the world’s leading aviation company. If you are learning about the Singapore Airlines 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.
