Ryanair Pestel

Complete a PEST(EL) analysis as preparation for a scenario planning exercise next week. POLITICAL: †¢Due to severe security measures, they had to cancel 279 flights and refunded 2. 7mâ‚ ¬. A loss of 1. 9mâ‚ ¬ in reduced bookings †¢Aer Lingus was fundamentally opposed to a merger with Ryanair, even if it raises its price †¢12. 6 % of the shareholding controlled by Aer Lingus, whose members rejected the offer by a 97% majority vote †¢Opposed to the BAA airport monopoly plans to build a 4bn gold plated Taj Mahal at Stansted SOCIAL: †¢Europe’s leading budget airline August 2006, Air Transport World magazine- most profitable airline in the world †¢72% negative response from a poll of readers of the Financial Times for one of its initiatives †¢In 2006, its employees count by more than 700, to 3. 500 people, comprising over 25 different nationalities †¢In 2006, it was voted the world’s least favourite airline because of the unfrien dly staff, delays and poor legroom †¢The airline formerly refused to provide accommodation or meal vouchers when flights were cancelled or delayed, until it became illegal to do so in 2005ENVIRONMENTAL: †¢Deploying more efficient aircraft that use less fuel and produce less pollution †¢Concerns about greenhouse gases from carbon emissions †¢Replace its fleet of old aircraft with new, more environmentally-friendly aircraft, reducing the average age of its fleet to 2. 4 years †¢New aircraft produced 50% less emissions, 45% less fuel burn and 45% lower noise emissions per sea ECONOMIC: Its average paid was 49612â‚ ¬, a higher figure than any other major European airline †¢August 2006, Air Transport World magazine- most profitable airline in the world †¢Cost-cutting/yield-enhancing measures for passenger check-in and luggage handling could save more than 1â‚ ¬ per passenger †¢Web based check-in and priority boarding, save costs on check-in s taff and airport facilities, as well as time †¢By tailoring rosters, they maximised productivity and time off for crew membersTECHNOLOGICAL: †¢Web based check-in and priority boarding †¢Fleet of over 100 new Boeing 737-800 aircraft and firm orders for a further 138 new aircraft to be delivered over the next six years †¢Stronger passenger safety: body searched, banned from carrying liquids and gels in their carry-on luggage LEGAL: †¢Complying with EU regulations which impose a ceiling on pilot flying hours to prevent dangerous fatigue †¢In litigation with various airport over landing charges Accused it of misleading passengers on its website by exaggerating the prices of its competitors in making comparisons †¢Following flight cancellations due to increase in security measures, they decided to file two legal cases against UK government †¢In 2005, new legislation that offered compensation cost to passengers affected by delays, cancellations or d enied boarding