Pest Analysis

1865 Words8 Pages



Introduction 3

History 3

Growth 3

PEST Analysis 4

Political Factors 4

Economic Factors 5

Social Factors 5

Technological Factors 6

Analyze your findings 7

Strategies pursued by the business to control PEST factors: 7

Recommendations 8

References 8
Oman Air


Oman Air is the flag carrier of the Sultanate of Oman, based in Muscat, in which the government holds 33.8% stake. It operates scheduled domestic and international passenger services, as well as local air taxi and charter work. Its main hub is at the Seeb International Airport, Muscat. The airline is member
…show more content…
The immediate results were a huge drop in air traffic due to safety & security concerns of the people. o International airlines are greatly affected by trade relations that their country has with others. Unless governments of the two countries trade with each other, there could be restrictions of flying into particular area leading to a loss of potential air traffic.

Economic Factors

Business cycles have a wide reaching impact on the airline industry. During recession, Oman Air is considered a luxury & therefore spending on air travel is cut which leads to reduce prices. During prosperity phase people indulge themselves in travel & prices increase.
After the September 11 incidents, the world economy plunged into global recession due to the depressed sentiment of consumers. In Oman, the recession did not make any huge impact even though Oman Air also had a % of loss. Because some companies in Oman due to recession the top level managers were given economic class tickets instead of business class plane tickets. So there is number of decrease in the travelers during recession time.
The loss of income for airlines led to higher operational costs not only due to low demand but also due to higher insurance costs, this prompted the industry to lay off employees, which further fuelled the recession as spending decreased due to the rise in unemployment.

Social Factors

The changing travel habits of people

More about Pest Analysis

Get Access