3. Overview of the industry
Air transport services for travelling passengers
and/or freight
Large and growing industry
Scheduled airlines carried 1.5 billion passengers
last year
In the past decade, air travel has grown by 7% per
year
Recognized with an air operating certificate or
license issued by a governmental aviation body
4. Overview of the company
Kingfisher Airlines began its operations on 9 May
2005
On December 19th, 2007 Air Deccan and
Kingfisher Airlines decided to merge.
Kingfisher Airlines is one of the only seven airlines
awarded 5-star rating by Skytrax
Kingfisher operates more than 375 daily flights to
71 destinations, with regional and long-haul
international services.
5. PESTE Analysis
Political and Legal factor
Industry Company
Open sky policy Tension with neighboring
countries
Terrorism fear Effect of 9/11
Airport slot
Factor Direction Time Level of
Probability impact
Political +ve very long term very high
and high
Legal
6. PESTE Analysis
Economical factor
Industry Company
Increase in demand as world Contribution to the Indian
economy grows economy
Rising cost of fuel Investment in the
sector of aviation
High operation costs due to low Growth of the middle income
demand group family affects the aviation
sector
Factor Direction Time Level of
Probability impact
Economic slightly high short high
-ve term
7. PESTE Analysis
Social factor
Industry Company
Ageing population Employment opportunities
Fashion in holidays Varied income groups
Changing family structure Job market
(western society)
Factor Direction Time Level of
Probability impact
Social +ve high long term very high
8. PESTE Analysis
Technological factor
Industry Company
Video conferencing Satellite based navigation
system
Internet Online ticket booking
Growth of e-commerce and
e-
ticketing
Factor Direction Time Level of
Probability impact
Technologic -ve high long term very high
al
9. PESTE Analysis
Environmental factor
Industry Company
Climate change Tourism saturation
Global warming Dependency on weather
Carbon Dioxide emission
Factor Direction Time Level of
Probability impact
Environment -ve high long term high
al
