2.1 Analysis of external environment:
The aircraft industry faces a broad set of environment which affected by PESTLE forces. Management Paradise pointed out in 2011 that regulations by the United States and European governments may prove to be major driving forces for order of new aircrafts and engines. The same way the deregulation of European airlines which begun in early 1990s, holds the promise of expand market prospects for smaller regional jets. Commercial Airplanes manufactures heavily reply on subsidies .Boeing and Airbus are on the debate of unfair subsidies. Factors like increasing fuel costs, congestions and other environmental restrictions, higher security and insurance costs to show the risk of terrorism can be consider as economic factors. Reluctance to fly, need to rebuild confidence in air travel are social forces. Due to expanding market reach at economies of scale in production lines, E-commerce methods of selling tickets are technological forces
| The Porter’s five forces model is useful to access the competitiveness of the airlineindustry. It can review the competition in the industry.
1. Threat of New Entrants: The threat from new entry in aircrafts manufacturing industry is low as it is extremely difficult and due to high development costs. The huge capital and knowledge are required for newcomers.Boeing and Airbus are manufacturers for commercial jets industry and supply the whole demand to the world, the entry for new comer in super-jumbo segment will be very risky as two legend companies has already made their…