Pest analysis of cathay pacific airways

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Pest analysis of cathay pacific airways

Cathay Pacific Airways Limited Cathay Pacific or "the company" is a Hong Kong-based international airline, offering scheduled passenger and cargo services to destinations in 39 countries and territories. It is headquartered in Lantau, Hong Kong and employed approximately 29, people as on December 31, Cathay Pacific is a Hong Kong-based international airline, offering scheduled passenger and cargo services to destinations in 39 countries and territories.

The company has a wide-spread operational network, which enables it to gain access to key markets as well as expand its customer base.

Also, the strong fleet operations allow the company to boost its margins by effective utilization of its asset base. However, a drastic change in the prices of the fuel can have a serious impact on Cathay Pacific expenses which may in turn impact its profitability and marigns.

Opportunities The global tourism industry has witnessed a strong recovery since its downfall due to recession in The recovery is primarily boosted by improved economic conditions worldwide.

Thus, an expanding end market auger well for Cathay Pacific as it is well positioned to capitalize on the growing global tourism industry. Strong outlook of Asia-Pacific airlines industry The Asia-Pacific airlines industry showed healthy growth over the last couple of years with the exception of The industry is expected to continue the growth with high grow rates in the forthcoming years up to Furthermore, the performance of the industry is forecast to accelerate, with an anticipated CAGR of As Cathay Pacific has a strong network in Asia-Pacific, it can leverage the positive outlook of airlines industry in the Asia-Pacific region and enhance its revenues in the near future.

Fair outlook for the global air freight market The global air freight sector is forecast to achieve fair growth rate over the forecast period to The air freight sector recovered from substantial decline in by posting strong growth in value and volume in the past few years.

Furthermore, the performance of the sector is forecast to accelerate, with an anticipated CAGR of 1.

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Thus, the growing air freight sector provides a significant opportunity for the company to further strengthen its topline and gain competitive advantage over its peers.

Threats Volatility in jet fuel prices Jet fuel forms the main raw material used in the airline industry. The demand for petroleum and related products has historically been cyclical and sensitive to the availability and prices of oil and related feedstock. Historically, international prices of crude oil and refined products have fluctuated widely due to many factors that are beyond the control of companies such as Cathay Pacific.

Moreover, the global jet fuel prices have seen a considerable increase over the past few years. Furthermore, the political turmoil in the Middle East has impacted the oil prices. Moreover, Fuel is the biggest single cost for Cathay Pacific and accounted for Hence, a drastic change in the prices of the fuel can have a serious impact on Cathay Pacific"s expenses which may in turn impact its profitability and margins.

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Intense competition and price discounting The airline industry is highly competitive. The principal competitive factors in the airline industry are fares, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, code-sharing relationships, capacity, in-flight entertainment systems and frequent flyer programs.

Airline profits are sensitive to even slight changes in average fare levels and passenger demand. Cathay Pacific's competitors include traditional network airlines, low-cost airlines, regional airlines and new entrant airlines.

In addition, price competition between airlines occurs through price discounting, fare matching, increased capacity, targeted sale promotions and frequent flyer travel initiatives. A relatively small change in pricing or in passenger traffic could have a disproportionate effect on an airline's operating and financial results.

Therefore, intense competition may erode the market share of the company and may also increase pricing pressure which may distress its earnings. Regulatory constraints The airline industry is highly regulated. Airlines are subject to extensive regulatory and legal compliance requirements that result in significant costs.

The company's operations are subject to numerous domestic and international laws, regulations, and restrictions. Cathay Pacific has operations in many parts of the world and operates in a highly regulated environment. Non-compliance with these laws, regulations, and restrictions could expose the company to fines, penalties, suspension, or debarment, which could have a material adverse effect.

The company expects to continue to incur expenses in connection with complying with government regulations. Additional laws, regulations, taxes, and airport rates and charges have been proposed from time to time that could significantly increase the cost of airline operations or reduce the demand for air travel.

If adopted, these measures could result in increased costs of compliance, which in turn would increase obligations on Cathay Pacific and thus adversely impact its margins.We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Oct 01,  · Qantas Airlines Essays (Examples) As such, adopting the stated recommendations in the analysis will help reduce the threats facing the Qantas Airlines significantly because of the Global Financial Crisis. Cathay pacific airways first class and business class seat reviews.

Pest analysis of cathay pacific airways

(). STEP 5: PESTEL/ PEST Analysis of Aviation Spare Parts Supply Chain Management Optimisation at Cathay Pacific Airways Limited Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well.

Cathay Pacific.

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Cathay Pacific was one of the first airlines to monitor and publicly report its environmental performance. It began monitoring performance in In , Cathay was responsible for a total of million tonnes of CO 2 (tCO 2) emissions, bringing a .

Latest breaking news, including politics, crime and celebrity. Find stories, updates and expert opinion. As a follow-up to Tuesday’s post about the majority-minority public schools in Oslo, the following brief account reports the latest statistics on the cultural enrichment of schools in Austria.

Vienna is the most fully enriched location, and seems to be in roughly the same situation as Oslo. Many thanks to Hermes for the translation from

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