EasyJet is a low-cost carrier British multinational company. Sir Stelios Haji Loannou founded the aviation company in 1995. The airline brand has a fleet size of approximately 336 aircraft and it offers 157 destinations in various countries across the globe. Today, we’ll discuss the PESTLE analysis of EasyJet; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting EasyJet
Some of the main political factors in the EasyJet PESTLE analysis are as follows;
I-Brexit Deal
EasyJet is a British airline and aviation company. The Brexit deal has allowed the UK to get out of Europe and it means an end to the free trade and free movement across Europe. As a British airline, it makes things highly difficult for EasyJet to run and operate its business aviation business across Europe. Now, the aviation brand needs to comply with other regulatory hurdles and restrictions as a foreign brand.
II-Government Policies
The government policies and regulations of different countries are very strict for the aviation companies and the airlines. They keep changing their policies and protocols depending on the type of political government that comes into power. For instance, they may change the licensing protocol and other documentary requirements. EasyJet should keep in mind the changing regulations of different countries to avoid any type of regulatory issues.
Economical Factors Affecting EasyJet
Some of the main economic factors in the EasyJet PESTLE analysis are as follows;
I-Economic Crisis
The 2020 pandemic crisis had a devasting impact on the airline industry due to the worldwide lockdown, shutdown of businesses, and social distancing protocols. EasyJet also experienced significant losses just like other aviation companies.
II-Currency Exchange Rate
EasyJet earns a significant amount of sales and capital revenue from the international and global markets. The value of the British Pound is higher and almost equal to other European currencies. On the other hand, the current exchange rate keeps fluctuating depending on various political and economic factors. A slight change in the currency exchange rate would significantly impact the cost, expenses, revenue, and profitability of the brand.
III-Oil Prices
Just like the currency exchange rate, the oil price market is highly inconsistent and keeps on fluctuating depending on various political and economic factors. Fuel and oil are the top sources of energy creation and keep the engine of aircraft running. EasyJet needs millions of liters of oil and fuel to keep performing their flight and destination operations smoothly without any delays and disruption.
Social Factors Impacting EasyJet
Some of the main social factors in the EasyJet PESTEL analysis are as follows;
I-Sexism
There are very limited female pilots in the aviation industry and it makes the aviation industry vulnerable to the attack of sexism. Different airlines have launched various types of programs for women to develop an interest among women to become pilots. The sexist and male-dominated types of tags are not good for the brand position position of EasyJet.
II-Customer Service
Many airlines have received a lot of criticism from many customers for providing poor customer service. They could be in the form of flight delays, long waiting times, flight cancellation not allowed, and non-refunding of the full ticket price to customers on timely cancellation of flights. EasyJet should keep in mind these types of concerns and complaints, and try to address them.
III-Digital Presence
In order to improve customer experience, EasyJet has developed a web application to maintain its digital presence. It allows the company to timely inform customers about flight delays, scheduling, and re-scheduling, and they could connect with the brand.
Technological Factors Affecting EasyJet
Some of the main technological factors in the EasyJet PESTEL analysis are as follows;
I-Mobile Boarding
EasyJet has recently introduced a mobile boarding option for customers. It allows the company to decrease the boarding time to a great extent. Customers need to download the mobile application on their smartphones and be aware of the latest information.
II-Drones and Sensors
EasyJet has installed advanced drones and sensors in its aircraft. They help the airline to inspect passengers and the aircraft automatically; otherwise, the manual inspections would consume a lot of time and valuable resources. The drone technology allowed the company to achieve efficiency in its operations.
III-VR Technology
The number of aircraft technicians, engineers, and experts is very low. EasyJet is employing VR (virtual reality) technology; where the VR presence of technicians and experts would help the company to resolve various types of issues without their physical presence.
Legal Factors Impacting EasyJet
Some of the main legal factors in the EasyJet PESTEL analysis are as follows;
I-Cyber Attack Incident
EasyJet experienced a notorious cyber attack incident back in 2020. The hackers got the private and sensitive data of over 9 million users and customers like their addresses, credit card number details, and other secure information. However, it badly exposed the poor database, firewall, and security system of the airline.
II-Air Regulations
EasyJet should comply with the air and aviation regulations of different countries to smoothly perform its various operations without disruption. Along with aviation regulations, the airline should also comply with the data privacy and protection regulations to protect and secure the private data of millions of customers.
Environmental Factors Affecting EasyJet
Some of the main environmental factors in the EasyJet PESTEL analysis are as follows;
I-Carbon Emission
EasyJet and other aviation companies contribute significantly towards high carbon emissions and polluting the environment. The airline is working on the development of electrically powered airplanes and using efficient fuel to decrease the carbon impact and reduce the carbon emission rate.
Conclusion: EasyJet PESTLE Analysis |PESTEL Analysis of EasyJet |External Environmental Analysis of EasyJet | Strategic Analysis of EasyJet
After an in-depth study of the pestle analysis of EasyJet; we have realized that EasyJet is the world’s leading low-cost carrier brand. If you are learning about the EasyJet 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.
