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PESTLE Analysis of Airbus

PESTLE Analysis of Airbus Commercial Aircraft Business Airbus Commercial Aircraft Business external environment analysis.

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neel
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618 views

PESTLE Analysis of Airbus

PESTLE Analysis of Airbus Commercial Aircraft Business Airbus Commercial Aircraft Business external environment analysis.

Uploaded by

neel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PESTLE Analysis

PESTLE Analysis of Airbus Commercial Aircraft Business

Introduction

When we think of Airbus Commercial Aircraft, we usually think


of luxury and opulence as well as comfort and convenience. However,
beneath the veneer, the airlines worldwide are caught in a cycle of
higher operating costs, lower profits, and decreasing margins because of
the various factors discussed in this article.
Commercial Aircraft
Airbus’ diverse product line includes everything from passenger
jetliners to freighters and private jets. They are setting the standard for
the modern aviation industry.
Political
Impact of Brexit due to uncertainty
EU has not decided custom rules and there is still delay in
paperwork of Brexit, this has rendered uncertainty to Airbus. It can even
exit from Britain Air Markets where it has 25 sites. Extra costs have
been incurring due to delay in
deliveries of aircrafts parts.
Therefore, whole cross border
supply chain can be disturbed.
Airbus also has 4000 engineer
employees near Bistol.
(Worker movement can be
effected due to Brexit, so
business will suffer.) As
increase in costs will cause
decline in revenue.

Heightened global security threat


There is increase in global and region-based tensions due to
adverse geo-political developments and threats of terror. Many Region
controlling Power such as China, India, Japan and Middle Eastern
powers will probably invest in defense in future. Therefore, there are
huge chances of revenue growth and opportunities for Airbus-
Commercial Aircrafts.
Economical
Exchange rate has become a big threat to the Airbus commercial
aircrafts flights. The turbulence of an exchange rate makes it impossible
for airlines to match in transaction and timing of foreign currency
expenses.  Main factors that have helped Airbus commercial
flights sustain its growth rates and profitability include higher
investment in strategic areas, growing focus on customer experience and
the ability to adapt its business and operating model to the changing
economic situation.

 (Airbus Group annual revenue for 2019 was $78.935B)


Social
Demographic analysis shows that there is shortage of technical
labor in developed markets.  Millennial generation’s emergence into the
consumer class has resulted in major social changes.  Consumers have
become much more demanding. Other types of factors in the society
apart from the social image can also take a direct toll on the aviation
industry. The fear of coronavirus has already hit the business hard. Far
reaching corporate social responsibility initiatives are need to be
introduced.
Technological
Airline Aircrafts Business Company has rightly expanded
digitalization of services.
 Airbus maintains nine jetliner final assembly lines (FALs) at five
locations worldwide, producing the full range of the company’s
single-aisle and wide-body product lines.
 Airbus has revealed three concepts for the world’s first zero-
emission commercial aircraft, which could enter service by 2035.

Legal
 Unavailability of intellectual property rights adversely affect products
and services.
 Export laws across the operating are very extensive, which results in
more costs ratio.
 The Company generates a substantial proportion of its revenues
through various consortia, joint ventures and equity holdings.
 Production of military aircraft and space equipment is subject to the
risk of product liability and warranty claims in the event that any of
its products fails to perform as designed.
 Commercial aircraft business of airbus requires complying with
applicable anti-bribery laws and regulations in jurisdictions around
the world where it does business.
Environmental:
Environmental protection includes costs to prevent, control,
eliminate or reduce emissions to the environment, waste management,
the content of the Company’s products, and reporting and warning
obligations. Despite compliance with all applicable laws and
regulations, the Company’s reputation may also be affected by the
public perception of environmental impacts of the Company’s products
in operation (such as the emission of greenhouse gases or noise) and of
the local environmental impacts of Airbus and its supply chain industrial
operations on local air and water quality.

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