Chapter 4

External Forces Affecting Air Carrier Operations

Introduction

Airlines must cope with a myriad of outside forces that can adversely impact their successful attainment of profitability. National and global economic conditions, fuel prices, terrorism, and national politics are just some of the uncontrollable factors that airline managers must deal with on multiple levels. Collectively, these can be examined using a Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) framework, which will provide a broad perspective on opportunities and threats that surround the industry. These factors cannot be controlled by management, but they must be understood if the firm is to prosper in an uncertain world. Each will be ...

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