PESTEL Analysis - The aeronautical sector

Extract

[...] There are two main divisions in the aeronautics industry, namely Aviation and Aerospace. Aviation, which includes both civil and military aviation, is the most widely used and well known around the world and encompasses not only the production and maintenance of aircraft, but extends to airlines, support business and military divisions making use of these machines. Aerospace is a more specialised and highly technical industry which deals with flight beyond the Earth's atmosphere. This industry is not only involved with the development and manufacture of spacecraft but also ground stations, launch facilities, space stations and satellites. [...]

[...] Generally, the more income the higher the demand is for travel. Air travel has become more and more common, be it for business or leisure, and is vital for any country's economy. In order for airlines to increase their market share and bolster their brand names, they need to pay attention to the finer details such as seating capacity, space between seats, on-time performance, catering and customer service, both inflight and at the airport. Foreign militaries constitute the largest customers of the aeronautical industry with the next most important buyers being commercial airlines, the largest being American, European, Asian Pacific Rim carriers. [...]

[...] PESTEL Analysis – The Aeronautical Sector I. Introduction A. The Aeronautical Sector Aeronautics is the science around the designing, building and flying of aircraft. Ranging from non-powered aircraft to supersonic space transport, and it is one of the world's largest industries in terms of product output, employment and monetary value globally. The freedom of flight opened up new frontiers, enabling us to travel more freely within the confines of our own atmosphere and later on beyond those confines into outer space. [...]

[...] Worldwide the industry is predicted to see up to 6 billion passengers making use of the aviation industry every year in the next decade. Air travel has become safer and more convenient, although this has been slightly negatively affected by events such as 9/11 and disease outbreaks like the COVID-19 pandemic, it remains a growing industry. With globalisation, the number of business travellers has seen a steady increase and accounts for the vast majority of customers for most airline companies. Loyalty and corporate programs are a great way for airlines to attract and keep this business. [...]

[...] The aerospace industry is generally heavily unionised which has a major legal impact on companies. Conclusion The aviation industry has faced major financial issues after the global economic crises, 9/11, and more recently the COVID-19 outbreak. The cost of flight cancellations closed borders and increased screening and security measures have had a huge impact on the profitability of airlines. However, aviation remains the fastest form of international transport for both passengers and cargo and is a service that is needed by billions of people around the world on a daily basis. [...]