The European Budget Airline Industry

The European Budget Airline Industry 1. Macro Factors Impacting the European Budget Airline Industry In establish to esteem the study macro factors that jar the European budget air duct industry, the PESTEL poser has been applied. Political, Economic, Technological and Environmental factors have the most bow on the industry. 1. Political EU Regulation and Aviation Taxes forte electrical shock EU and local government prescripts/policies have a signifi give the gatet impact on the European budget flight path 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 upshoting compensation toll the airline € carbon Million in 2010 and as a result they introduced a €2 charge per rider in April 2011 (Ryanair.com, 2011). The 1997 deregulation of the EU policy which restric ted non national carriers from flying passengers between airports in the same orbit has enabled European budget airlines to operate much channels. The addition of members into the EU, such as Croatia scheduled for July 2013 (Europa, 2011), will impart further opportunities for route expansion and growth.

Fig 1 beneath 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 represent out by the EU and local governments also impact the European budget air line industry e.g. Air rider Duty (APD) enfo! rced as a duty of move 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 kick in this strategy before consumers start to consider ersatz modes of transport. disposed this, budget...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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