The European Budget Airline Industry

The European Budget Airline Industry 1. Macro Factors Impacting the European Budget Airline Industry In establish to evaluate the study macro factors that jar the European budget air passage industry, the PESTEL poser has been applied. Political, Economic, Technological and Environmental factors have the most turn on the industry. 1. Political EU Regulation and Aviation Taxes moderate advert EU and local government enactments/policies have a signifi give the gatet impact on the European budget airway industry. For instance, on 17 February 2005 a new EU regulation (261,2004) came into effect allowing surviveengers to be compensated should they experience a delay, cancellation or denied boarding (OHiggins, 2007). Ryanair stated that numbering compensation comprise the airline €century Million in 2010 and as a result they introduced a €2 charge per passenger in April 2011 (Ryanair.com, 2011). The 1997 deregulation of the EU policy which rest ricted non national carriers from flying passengers between airports in the same orbit has enabled European budget airlines to operate more channels. The addition of members into the EU, such as Croatia scheduled for July 2013 (Europa, 2011), will support further opportunities for route expansion and growth.

Fig 1 infra illustrates Ryanairs speedy growth since 1995 as a result of the deregulation and EU expansion: [pic] Figure 1 Ryanair passenger numbers vs. course of instruction (data source: Ryanair.com) Aviation taxes mickle out by the EU and local governments also impact the European budget airli ne industry e.g. Air passenger Duty (APD) e! nforced as a duty of strickle by the UK government and carbon copy permits under the EU climate change policy. Most airlines pass on the cost of such taxes to the consumer with Ryanair charging €12 per seat to sink in the APD as of Feb 2012. However, there is a limit to the extent airlines can drill this strategy before consumers start to consider ersatz modes of transport. inclined this, budget...If you want to get a full essay, order it on our website: BestEssayCheap.com

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