PESTLE analysis for Air Asia airline

<span class='text_page_counter'>(1)</span>R FO. R I A. A A E N R L T T T : IE S V S M. R : E E E P LAC DUC P. P. R. O. N. G. E N I L –. D. U. Y. E. N. -. H. A.

<span class='text_page_counter'>(2)</span> PESTLE 1. Political influences 2. Economical influences 3. Sociological influences 4. Technological influences 5. Legal influences 6. Environmental influences.

<span class='text_page_counter'>(3)</span> L PO. L A C I IT. • Open solution from government • The priority of government • The only one military system.

<span class='text_page_counter'>(4)</span> IN DETAIL Vietnam is considering many positive solutions to improve airline company Þ Airline industry can get more benefits The priority of government can impact on the promotion Þ Attract passengers & healthy competition with other partners Vietnam just has only one military system => easy to protect the air space.

<span class='text_page_counter'>(5)</span> BESIDE THE SUPPORT. Vietnam has still reluctance with using foreign airlines => Hard to invest. Strict about environmental regulations.

<span class='text_page_counter'>(6)</span> O N O EC. IC M. E U L F IN • • • •. E C N. Wages salary Economic growth Unemployment rate Oligopoly market.

<span class='text_page_counter'>(7)</span> ECONOMIC INFLUENCE. Minimum wages salary is lower.

<span class='text_page_counter'>(8)</span> ECONOMIC GROWTH The economic in Vietnam is growing up annually 15% up in airline market.

<span class='text_page_counter'>(9)</span> THE UNEMPLOYMENT RATE. This rate in Vietnam is high Asia Airline invests to Vietnam ‘s market => more opportunities for workers to have jobs.

<span class='text_page_counter'>(10)</span> 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.

<span class='text_page_counter'>(11)</span> L A IC. G LO S O E I C NC O E s S e U . ti i L 3 F tun IN ppor ats O. re h T. • •. Opportuniti The majority of population is young people es 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.

<span class='text_page_counter'>(12)</span> THE MAJORITY OF POPULATION IS YOUNG PEOPLE (SOURCE: CIA WORLD FACTBOOK). Age distribution in vietnam in 2012. 0-14 years 15-64 years 65 years and over.

<span class='text_page_counter'>(13)</span> THE MOST MODERN KIND OF TRANSPORTATION – MORE LUXURIOUS SERVICES I N N OVAT I O N. LUXURY.

<span class='text_page_counter'>(14)</span> T H E L O W R AT E O F T H O S E F LY I N G POTENTIAL MARKET , , THE PERCENTAGES OF THOSE FLYING IN COUNTRIES. Vietnam flying not flying. Australia flying not flying.

<span class='text_page_counter'>(15)</span> N O R O B B E RY. THE SAFEST KIND OF TRANSPORTATIO N NO TERRORISM.

<span class='text_page_counter'>(16)</span> 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..

<span class='text_page_counter'>(17)</span> 3.. O I C O S. G O L. L A IC. e r h T. I. N E U L NF. S E C. s t a  Language: Vietnamese  Lack of profession, experiences and skills  A weak ability of suffering cold gases  A long-term investment.

<span class='text_page_counter'>(18)</span> LANGUAGE: VIETNAMESE – VIETNAMESE STAFFS VIETNAM AIRLINE INSTITUTE.

<span class='text_page_counter'>(19)</span> MOST VIETNAMESE STAFFS HAVE LACK OF PROFESSION, EXPERIENCES AND SKILLS HIRING FOREIGN RETRAINING. PILOTS.

<span class='text_page_counter'>(20)</span> A longterm investme nt. TROPICAL WEATHER –PEOPLE HAVE A WEAK ABILITY OF SUFFERING COLD GASES.

<span class='text_page_counter'>(21)</span> G LO O S N E H C C N E E ies T U 4. FL tunit IN ppor ats O. re h T. L A IC. •. Opportuniti The fastest eskind of transportation. •. Some modern and big international airports with systems of equipment implemented advanced technology for the biggest and modernest aircrafts.

<span class='text_page_counter'>(22)</span> 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.

<span class='text_page_counter'>(23)</span> Click icon to add picture. 4.. O N H C TE. LO. L A IC G. e r h T. s t a. N E U L F N I. S E C.  Few Vietnamese pilot, some of them can drive very big planes.  A few airports and very few international airports  Many airports are too oldfashioned to welcome modern aircrafts.

<span class='text_page_counter'>(24)</span> FEW VIETNAMESE PILOT, SOME OF THEM CAN DRIVE VERY BIG PLANES - HIRE FOREIGN PILOTS..

<span class='text_page_counter'>(25)</span> A FEW AIRPORTS AND VERY FEW INTERNATIONAL AIRPORTS MANY AIRPORTS ARE TOO OLDFASHIONED TO WELCOME MODERN AIRCRAFTS =>THE DIFFICULT DEVELOPMENT OF DOMESTIC ROUTES.

<span class='text_page_counter'>(26)</span> E U FL. L A. 5.. O. G UN E L RT P. P. T. O. H. R. E. A. T. S. INS. IT. IE. E C N Opportunities 1.The increasing foreign trading (imports and exports) makes aviation industry a potential market 2.Petrol’s price on market is another factor supporting the establishment of new airline..

<span class='text_page_counter'>(27)</span> INCREASING FOREIGN TRADE.

<span class='text_page_counter'>(28)</span> INCREASING FOREIGN TRADE The more other countries invest in Vietnam, the more important transportation is..

<span class='text_page_counter'>(29)</span> LOW PETROL’S PRICE Compared with the world market, Vietnamese legal price of petrol is still lower..

<span class='text_page_counter'>(30)</span> L A. . 5. G E L TS T. H. R. E. A. IN. E U L F. S E C N 1. Restricted employment due to lack of legal institutes. 2. Legislation states that there are several airports which cannot be used. 3. High taxation.

<span class='text_page_counter'>(31)</span> RESTRICTED EMPLOYMENT - The only institute. - Location: Ho Chi Minh City -> lack of access and limited opportunity for vocational training in different cities..

<span class='text_page_counter'>(32)</span> MILITARY AIRPORTS CANNOT BE USED Only used for military purposes. (safety, political reasons).

<span class='text_page_counter'>(33)</span> HIGH TAXATION - Considerably high - Suffer from taxation 1,4 – 3 times higher than other countries..

<span class='text_page_counter'>(34)</span> E. M N O S R E I C S V E NI T I N E E U UN . 6 FLO R T S INO P P R E A T T. H. L A T N. Opportunity Currently no particular environmental legislation about amount of emission is applied..

<span class='text_page_counter'>(35)</span> NO PARTICULAR LEGISLATION ON EMISSION - Emission tax law in EU - Offer flexible respond for business..

<span class='text_page_counter'>(36)</span> L A T EN M N O S R E I C V N N E E U . L 4 F AT S IN H R E T. Threats 1. Pollution 2. Access to materials.

<span class='text_page_counter'>(37)</span> POLLUTION - CO2 is directly released to the sky - Noise pollution around areas where business is run. - Land pollution.

<span class='text_page_counter'>(38)</span> ACCESS TO MATERIALS - Large area for airports to build airways and other essential departments..

<span class='text_page_counter'>(39)</span> REFERENCES •. •. http:// news.zing.vn/kinh-doanh/air-mekong-s-theo-got-hang-khong-ha-dun g/a296923.html. •. •. http:// www.dalat-info.vn/TIPC-Lamdong-VITIC-CMS-SYSTEM.gplist.82.gpope n.30436.gpside.2.asmx. •. am/#. UP1L92dWqnY. •. •. http:// www.tinmoi.vn/thi-truong-hang-khong-viet-nam-day-tiem-nang-0110 54169.html. •. -buy-airbus-a380-. html. •. 9178.epi. •. http:// www.vietnamairlinestickets.com/blog/news/vietnam-airlines-books-to -buy-and-lease-the-boeing-787-9-dreamliner-aircraft.html.

<span class='text_page_counter'>(40)</span> D N :T. E ERS. C E U THR O D P. R. A. N. G. –. D. U. Y. E. N. -. H. A.

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