PESTLE analysis for Air Asia airline

PESTLE for airline
Place: Vietnam
Producers: Trang – Duyen - Ha
PESTLE
Political influences
Economical influences
Sociological influences
Technological influences
Legal influences
Environmental influences
Political
Open solution from government

The priority of government

The only one military system
In detail
Vietnam is considering many positive solutions to improve airline company
Airline industry can get more benefits

The priority of government can impact on the promotion
Attract passengers & healthy competition with other partners

Vietnam just has only one military system => easy to protect the air space


Beside the support
Vietnam has still reluctance with using foreign airlines
=> Hard to invest
Strict about environmental regulations
Economic InFluence
Wages salary
Economic growth
Unemployment rate
Oligopoly market
EconoMic Influence
Minimum wages salary is lower
Economic Growth
The economic in Vietnam is growing up annually
15% up in airline market
The unemployment rate
This rate in Vietnam is high
Asia Airline invests to Vietnam ‘s market
=> more opportunities for workers to have jobs
Oligopoly market
Vietnam AirLine
Stand for 97% of total value
Tend to be monopoly
Asia Airline
Hard to compete
A small share holder in whole air industry
3. Sociological influences
Opportunities
Opportunities
Threats
The majority of population is young people
The low rate of those flying - Potential market
The most modern kind of transportation
The safest kind of transportation
Tourism – Many traditional festivals per year 7.966
The most modern kind of transportation – more luxurious services
Innovation
luxury
The Percentages of those flying in countries
The low rate of those flying - Potential market
,
,
the safest kind of transportation
no robbery
no terrorism
Tourism
Many traditional (about 7,966) festivals per year
A lot of traditional familial celebrations, eg: ancient`s death anniversary
The incresing demand of Vietnamese travelling abroad.
The rising demand of foreign tourists visiting Vietnam.
3. Sociological influences
Threats
Language: Vietnamese
Lack of profession, experiences and skills
A weak ability of suffering cold gases
A long-term investment
Language: Vietnamese – Vietnamese staffs
Vietnam Airline Institute
Most Vietnamese staffs have lack of profession, experiences and skills
retraining
hiring foreign pilots
Tropical weather –People have a weak ability of suffering cold gases
A long-term investment
4. Technological influences
Opportunities
Opportunities
Threats
The fastest kind of transportation
Some modern and big international airports with systems of equipment implemented advanced technology for the biggest and modernest aircrafts
big international airports and advanced technology
Tan Son Nhat, Noi Bai, Da Nang…
many big planes: B747, B767, B777, A350, A380…
Vietnam Airline signed contracts to buy 4 aircrafts Airbus 380 and also buy 8 and rent 11 aircrafts Boeing Dreamliner 787
4. Technological influences
Threats
Few Vietnamese pilot, some of them can drive very big planes.
A few airports and very few international airports
Many airports are too old-fashioned to welcome modern aircrafts
few Vietnamese pilot, some of them can drive very big planes - Hire foreign pilots.
A FEW AIRPORTS AND VERY FEW INTERNATIONAL AIRPORTS

MANY AIRPORTS ARE TOO OLD-FASHIONED TO WELCOME MODERN AIRCRAFTS =>THE DIFFICULT DEVELOPMENT OF DOMESTIC ROUTES

5. Legal influence
Opportunities
threats
Opportunities

The increasing foreign trading (imports and exports) makes aviation industry a potential market
Petrol’s price on market is another factor supporting the establishment of new airline.
Increasing foreign trade
Increasing foreign trade
The more other countries invest in Vietnam, the more important transportation is.

Low petrol’s price
Compared with the world market, Vietnamese legal price of petrol is still lower.
5. LEGAL INFLUENCES
ThreatS
Restricted employment due to lack of legal institutes.
Legislation states that there are several airports which cannot be used.
High taxation
RESTRICTED EMPLOYMENT
The only institute.
Location: Ho Chi Minh City -> lack of access and limited opportunity for vocational training in different cities.
MILITARY AIRPORTS CANNOT BE USED
Only used for military purposes.
(safety, political reasons)
HIGH TAXATION
Considerably high
Suffer from taxation 1,4 – 3 times higher than other countries.
6. Environmental influences
Opportunities
THREATs
Opportunity

Currently no particular environmental legislation about amount of emission is applied.

No particular legislation on emission
Emission tax law in EU
Offer flexible respond for business.
4. ENVIRONMENTAL INFLUENCES
THREATS
Threats

1. Pollution
2. Access to materials
POLLUTION
CO2 is directly released to the sky
Noise pollution around areas where business is run.
Land pollution
ACCESS TO MATERIALS
- Large area for airports to build airways and other essential departments.
references
http://www.indexmundi.com/vietnam/demographics_profile.html
http://news.zing.vn/kinh-doanh/air-mekong-s-theo-got-hang-khong-ha-dung/a296923.html
http://www.sggp.org.vn/vanhoavannghe/2012/8/295322/
http://www.dalat-info.vn/TIPC-Lamdong-VITIC-CMS-SYSTEM.gplist.82.gpopen.30436.gpside.2.asmx
http://talkvietnam.com/2012/10/increase-in-foreign-tourists-to-vietnam/#.UP1L92dWqnY
http://www.vaa.edu.vn/
http://www.tinmoi.vn/thi-truong-hang-khong-viet-nam-day-tiem-nang-011054169.html
http://en.news.vn/economy/business/30473-vietnam-airlines-plans-to-buy-airbus-a380-.html
http://www.baomoi.com/Chat-luong-phi-cong--Nhung-bat-cap-can-thao-go-Bai-3-Hoc-vien-khong-co-hoc-vien/45/4349178.epi
http://www.vietnamairlinestickets.com/blog/news/vietnam-airlines-books-to-buy-and-lease-the-boeing-787-9-dreamliner-aircraft.html
http://dtinews.vn/en/news/018/19540/airlines-in-vietnam-struggle-to-employ-pilots-.html
http://www.vietnamairliness.com/p/iem-en.html

The end
Producers: Trang – Duyen - Ha