PESTLE analysis of Ryanair Political this aspect represented a considerable advantage in that the European Union is a completely stable

e political region and the EU integration has allowed the carrier to expand its activity and routes. On the other hand the airline is affected by the decisions posed by other political organizations like the OPEC, the organization that unite the oil producing countries and that decide on the oil coots, determining its output quantity, distribution and global supply chain. The incredibly high cost of fuel has strongly affected Ryanair revenues showing how the industry is particular sensitive to oil cost fluctuation. 2. Economic one of the most relevant indicators is represented by the increase pro capita income, which let transpire increasing possibility for the industry. Currency fluctuation, especially with reference to the fuel hedging activity put in place by Ryanair, could affect the carrier strategy and bring in business risk. The migration trend within the European region none the less, can bring benefits to the airline development and revenues. 3. Social is currently mainly characterised by demographic trends, particularly the ageing population and by changing consumers preferences, which are quite difficult to predict and very much linked to the prices of the service. The ageing population factor is likely to impact the travel industry in the next decade and to cause a shift in land transport, easier to access, to use and allowing movements to central town/city areas. Another uncanny social trend is represented by the tendency that every time a terrorism act is carried out, people prefer to avoid travelling. 4. Technological the video conferencing system could deter business people to travel in many circumstances, but not leisure travelers. It must be said that technology has been crucial for Ryanairs success and it is likely to be important also in the future. Internet has allowed Ryanair to avoid lots of costs but also the aircraft new generation engines, will help with the cost reduction strategy.

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Legal has had and could still have negative effect on the carriers activity, the emission constraints set by the European Commission, its implementing and monitoring antitrust law and policies and the EU legislation on working time regulations will sooner or later affect Ryanairs policy and could seriously threaten its revenue. Environment more attention is provided to the environment in terms of both emission and noise pollution. The presence of non-profit organization fostering and endorsing laws on quality of air, supported by the EU could represent a future threat mostly on implementation of new taxes. Ryanair has already given evidence of being sensitive to the issue and adopting the necessary measures to control the phenomenon.

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