Emirates Airlines is a flag carrier of the UAE’s aviation company. Ahmed Bin Saeed Al Maktoum founded the aviation company in 1985. The airline has a fleet size of approximately 249 aircraft and it offers 152 destinations in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Emirates Airlines; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Emirates Airlines
Some of the main political factors in the Emirates Airlines PESTLE analysis are as follows;
I-Government Support
Emirates Airlines is a state-owned Aviation Company and it receives a lot of support and funding from the rich UAE government during difficult economic circumstances. Government backing plays a key role in the growth and development of aviation companies. However, it helped the company in terms of regulatory compliance, training programs, and others.
II-Trade Regulation
Emirates Airlines is operating its business in various countries across the globe. The airline should be familiar with the trade policies, international air route agreements, taxation, and import and export regulations of various countries. Regulatory compliance would help the company to smoothly perform its international air traveling operations.
III-Political Unrest
The stable political environment plays a key role in the growth and development of the airlines. For instance, when the country is on the verge of political turmoil, high-security threats, roadblocks, procession, and other violent activities; then it doesn’t attract the attention of travelers. Aviation companies would avoid traveling to such countries and regions.
Economical Factors Affecting Emirates Airlines
Some of the main economic factors in the Emirates Airlines PESTLE analysis are as follows;
I-Fuel Prices
Emirates Airlines requires a massive quantity of fuel and oil to keep its aircraft running. On the other hand, the fuel price and the oil market are highly unstable; they keep changing their prices regularly. A small change in the oil price would have a massive impact on the cost, expense, and sale of the airline.
II-Global Economy
The global economy has been going through an economic recession for the past few years. It had badly impacted the business operation of Emirates Airlines due to worldwide lockdown, the shutdown of business, and air traveling bans. Things have gone back to normal recently, but the aviation company has a long way to go to recover from the losses.
III-Airline Industry Growth
According to an estimate, the growth of the airline industry and the total number of air travelers will reach 8.2 billion people by the end of 2030. It presents a great growth opportunity for the aviation brand Emirates Airlines to expand its air traveling operations into the global market. It would help the company to amplify its customer market reach, network, and sales.
Social Factors Impacting Emirates Airlines
Some of the main social factors in the Emirates Airlines PESTEL analysis are as follows;
I-Traveling Trends
Tourism and traveling trends have been increasing significantly in recent years due to various factors. People have shown a great interest in traveling and exploring the world, learning about different cultures, and experiencing the world with their own physical presence. It presents a great opportunity for Emirates Airlines to offer world tour packages to international travelers and to attract their attention.
II-Price Conscious
A vast majority of the air traveling market is highly price sensitive, and they make or break their traveling plan plans based on the air travel fare. People have shown a great interest in the low-cost air traveling flights and airlines. In fact, it has made air travel budget-friendly and it allowed them to travel the world and visit their favorite places.
III-Marketing Campaigns
Emirates Airlines runs various types of marketing and advertisement campaigns to attract the attention of the customer market. The aviation brand offers various types of air traveling packages to family members, solo travelers, businesses, and corporate individuals. However, the objective is to amplify its customer market reach, network, and sales.
Technological Factors Affecting Emirates Airlines
Some of the main technological factors in the Emirates Airlines PESTEL analysis are as follows;
I-Advanced Technology
Emirates Airlines invests a significant amount of capital resources in the latest technology to update its aircraft. It comprises of latest in-flight entertainment system, improved hospitality service, repair and maintenance of aircraft, and installation of the latest tech tools and equipment. However, the objective of implementing the latest advanced technology is to improve the user experience and achieve efficiency through its operations.
II-Navigation System
Emirates Airlines is implementing the latest and most advanced navigation system and aviation technology in its aircraft. It helps the airline to perform its air traveling operations under low visibility, cloudy, and bad weather conditions. Investment in navigation technology would help the airline expand its operation into new regions, countries, and markets.
III-Support System
Emirates Airlines has invested a significant amount of capital resources in the latest technology and support system. It comprises online chatbots, a web platform, and online flight booking and schedule adjustment facility, and other information regarding flights. An advanced support system would help the company to provide a better user-friendly experience.
Legal Factors Impacting Emirates Airlines
Some of the main legal factors in the Emirates Airlines PESTEL analysis are as follows;
Regulatory Compliance
Emirates Airlines needs to comply with the government regulations of different countries. They comprise aviation licenses, international air traveling routes agreements, taxation, import and export policies, trade regulations, and others. Regulatory compliance would help the company to smoothly perform its operations with limited disruptions and delays.
Environmental Factors Affecting Emirates Airlines
Some of the main environmental factors in the Emirates Airlines PESTEL analysis are as follows;
Sustainability Initiative
Emirates Airlines consumes a massive quantity of oil and contributes significantly to air and environmental pollution. They need to make a strong commitment to the environmental sustainability initiative and take steps like fuel-efficient aircraft, renewable sources of energy, biodegradable packaging, and others. Environmental sustainability initiatives would help the company to amplify its customer market reach, network, and sales.
Conclusion: Emirates Airlines PESTLE Analysis |PESTEL Analysis of Emirates Airlines |External Environmental Analysis of Emirates Airlines | Strategic Analysis of Emirates Airlines
After an in-depth study of the pestle analysis of Emirates Airlines; we have realized that Emirates Airlines is the world’s leading aviation company. If you are learning about the Emirates 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.
