Pestel analysis Airbus, France, Germany, England, American giant Boeing, military aspect, civilian component, Airbus company, international relations, economic factors, political factors, commercial flights, technological innovation
The Airbus company operates in the aeronautics sector, which includes a civilian component and a military component. Airbus was created in 1969, following an agreement between several European powers, notably France, Germany and England. The head office is located in France, near Toulouse. The objective stated, at the time, was to compete with the American giant Boeing in a market with good growth prospects. This growth expected at the time concerns the two aspects mentioned above. Regarding the military aspect, the European countries lost the majority of their fleet during the Second World War, and they are seeking to renew their military fleet. Regarding the civilian side, at the end of the Second World War, commercial air transport was booming.
[...] This PESTEL analysis shows that technological innovation is the area that needs to be developed by Airbus. Despite these innovations, Airbus is subject to economic and political conditions for which it has no control over the elements. In the medium term, through its investments, Airbus will have to ensure that the health crisis does not lead to a decline in air traffic, further supported by ecological awareness in all European countries. Bibliography and references Airbus: key company figures, all results (abcbourse.com) Airbus Revenue Surpasses Boeing for the First Time in History The echoes The European giant Airbus in figures - L'Express L'Entreprise Global air traffic, meteoric growth not about to stop (theconversation.com) Airbus: orders stall, the Covid-19 crisis weighs - Capital.fr Airbus: a strong order book despite the crisis - Capital.fr Airbus. [...]
[...] In the short term, however, the company is dependent on this political decision. Civilian component, a restriction on commercial flights Concerning the civilian component, Airbus is subject to the directives of the various countries in which these planes circulate. In June 2020, France adopted a restrictive policy on short-distance flights in France. In fact, the airways will be closed for any connection that can be made by train in less than 2.5 hours. This law, with an ecological aim, results in the suppression of part of the air traffic. [...]
[...] In the medium term, economic consequences are to be expected. This social aspect of the military sale can also lead to temporary bans on the sale of arms. This is the case, for example, with the indefinite ban on the sale of arms to Saudi Arabia implemented by Germany and which is directly linked to the murder of a journalist. Airbus is, therefore, dependent on these external factors. The Democratization of Commercial Flights Beneficial to Airbus Over the past twenty years, the emergence of low-cost airlines for carrying out commercial flights, has largely contributed to the growth in air traffic linked to commercial flights. [...]
[...] PESTEL Analysis - Airbus A. Political The turnover of the Airbus company is divided into 3 major sectors: Europe represents 32% and Asia-Pacific each represents 32% of orders in 2019, followed by 17% in North America. Thus, the policies in force in these sectors and international relations have a strong impact on the bottom line of the company. Military Component, a Restriction on Sales In 2019, Germany declares an embargo on arms sales in Saudi Arabia. Airbus would be impacted in the short term for an amount of 2.5 billion Euros for the suspension of sales of A400M. [...]
[...] The Helicopter branch represents of turnover. This predominance of the civil party is linked to the importance of the growth of commercial air traffic, in the order of per year on a global scale between 2018 and 2019. By 2038, manufacturers are banking on a doubling of the number of passengers, suggesting an equally significant increase in orders in the years to come. In 2019, the order book for the coming years was up compared to the previous year of it is linked to civil aviation. [...]
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