PEST Analysis for Sri Lankan Airlines
Political Factors
War/Conflicts:
We had a war over 3 decades, it was over in 2009.on that period
we did not had that much of foreigners in to our country.
Political stability:
In Sri Lanka the government is very stable at present, the
government is doing many development programs to the
country.
Economical factors
Inflation:
Currently Sri Lankan Inflation decreasing rapidly so people got more
money to spend. Because of this there have been increase on air
travel.
Unemployment:
Unemployment rate is increasing so its going to be a easy for Sri
Lankan Air lines to recruit labors for lower wages.
Taxation :
VAT can increase the final price of the Air ticket. So the demand could
fall due to higher ticket price.
Social Factors
Income Level:
Personal income level has increased over passed few years due to
economic development 7.2, which has led to a significant increase in
luxury products.
Labor Mobility:
Each year, more than 200,000 Sri Lankan labors fly overseas to work, most
of them heading for the Middle East.
Buying Behavior:
Buying Economy products (Transit), cost of the ticket in Sri Lankan airlines
is relatively higher than other local and most of international airlines which
come to Sri Lanka.
Technological factors
EASA maintenance:
Over 30 years of experience in industry, EASA certified Line and Base
Maintenance Services in Sri-Lankan airlines.
Ex: new engines, auxiliary power units, technical line support covers,
appearance enhancement.
5s:
In Sri-Lankan air lines 5s creates an environment that is more conducive,
clean and tidy. all workers have to treat 5S as culture - resulting in work
becoming faster and easier. A major attraction of 5S is that it does not
involve large capital investment.
E- Booking:
Through its website www.srilankan.aero the airline provides Online
Booking, Ticketing and Check-in facilities that give passengers the
convenience of planning their travel experience through any PC or laptop.
Environmental Factors
Green effect:
Ozone effects:
-Air traffic contributes to the green house effect & the depletion of the
ozone layer.
-Air crafts release millions of tons of particulates (ashes) from
burning of “dirty” fossil fuels & this occur green effect and by increase in the
green effect helps to “Global warming
Natural resources depletion:
-Air Pollution due to emissions occurred by air traffic.
-Depletion of the ozone layer.
(Ozone layer protect people ,plants and animals from the damaging
ultraviolet radiation of the sun.)
Legal Factors
Frame work of Industry
Change of legislation
-Today Sri Lankan air lines comes directly under the Government.
-Aviation Policy:
Must concern about the Environmental Unit of International Air transport
Association (IATA), The global aviation industry’s governing body.
-Green Policy with the concept of “Go Green”.
Thank You