1. Introduction

• Industry: Aviation, Budget Airline• 1st budget Airline in Europe inspired by the U.S Budget

Airline, Southwest Airlines• Leadership: Michael O’Leary (CEO)• Company Vision: “To firmly establish itself as Europe's

low fare, schedule passenger airline through continued improvements and expanded offerings of its low fare service”

• Company Mission: “To become Europe's most profitable low cost airline by rolling-out proven low fare, no-frills service in all markets in which we operate to the benefit of passengers, people and stake-holders”

2. External Environment AnalysisPESTEL

Explanation Supporting Case Evidence O T

POLITICAL

Increase flow of migration which leads to increase

passengersEuropean Union expansion

Tighten security Security systems regularly monitored & maintained

ECONOMIC

Increased operation cost affection growth &

profitabilityRise in fuel prices

Reduction in distribution costs from

customers adapting to online check-ins

Depreciation of US dollars

2. External Environment AnalysisPESTEL

Explanation Supporting Case Evidence O T

SOCIAL

More people travel from region –to-region for work,

leisureEuropean Union expansion

Increased operating market, segmentation and

productivityEuropean Union expansion

People can fly frequently Low fares strategy

TECHNOLOGICAL

Enhancing revenue through ancillary services

Availability of satellite Television & Internet services on flights

Change market focusfrom third-party agents to

on-line bookingsTechnology expansion

2. External Environment AnalysisPESTEL

Explanation Supporting Case Evidence O T

ENVIRONMENTALNoise level controls, globalwarming, green house gas

effectsSocial responsibility policies &environmental protection laws

LEGAL

New rules to cover overbooking that result in

boarding denials to passengers by

airlines

European Union regulation

Company's image and reputation

EU decision at the Central London Country Court, a disabled man won a

landmark case

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2. External Environment AnalysisConclusion on PESTEL

• The most significant PESTEL factor would be

Technology.

• Whilst fast changing technology seems like a threat, it

would be an opportunity for companies who have the

agility to innovate fast

• Overall, the PESTEL is favourable due to the

opportunities in new technology and positive economic

climate

3. SWOT

Strengths - Low cost operation- New and maintained aircrafts (low

turnaround time)- Good financial health

Opportunities- Low airfares enable customers to switch to

budget carriers during recession period- Online services increase sales while

reducing unit cost and provide convenience to passengers

- Selling ancillary products during the flight that has high margins

Weaknesses- Poor customer service- Negative reputation and controversial

advertising and publicity- Too dependent on internet website

Threats- Increase of government tax and airport

charges- Increase in fuel charges- Global recession