EasyJet Airline exam note Essay Example | Topics and Well Written Essays - 1500 words

EasyJet Airline exam note - Essay Example A PEST analysis of the organisation is carried out to establish the macro-environmental impact on the firm. EasyJet operates in more than 30 countries that have do not have trade restrictions. This increases revenue since the firm can cover more areas. Due to the global terror threat, Germany, the United Kingdom, France, Israel, and Spain among other countries have put restrictions to ensure passenger safety. This has reduced travels to some extent. Governments have also put baggage restrictions for airlines along with passengers (Taneja, 2012, p.56; easyJet, 2013). The firm complies with various tax policies in its areas of operation. Most of the tax regulations are favourable to the firm, thus impacting positively on the flight operations. For example, the corporate tax policy in Europe is business-friendly. This has also enabled the process of optimisation in service delivery to meet the customer needs and requirements regardless of existing precedents and territories on implementing the system (Jones, 2012, p.34). The reduction of fuel costs have made the firm increase its revenue due to reduced operational costs, thus reducing the cost of capital for the firm (easy Jet, 2014). The reduction in fuel costs has also increased competition in the aviation industry as various airlines have reduced the ticket prices, thus making more customers use service and also leading to price wars (Katie, 2013, p.123). Besides, globalisation is projected to boost air traffic in the long run. More people are projected to travel due to increased interconnection among people across the globe. In the same way, as Europe becomes integrated; the introduction of the single currency is expected to bring more business to easyJet (easyJet, 2014). The Euro is used in over 19 nations among the member states of the European Union. The financial reports evidence that the firm is improving economically. At the moment, pound is against the