rformance is highly dependent on the economies of foreign countries and their related macroeconomic factors, which may trigger a sudden rise and fall of demand. Opportunities Acquisition of new aircrafts in the fleet will lead to an increase in the operational capabilities of the airline and in terms of the number of routes covered. Acquisition of new aircrafts will also lead to an increase in the frequency of operations of the flight on the multiple routes, that are currently serviced by the airline It is assumed that with the increase in frequency of flights, passengers will be able to opt for variable timings due to the increase in number of flights for a particular route. Threats Qatar Airways has been impacted due to the uprising of the Arab Spring and hike in fuel prices. Continued civil disruptions in the Middle East countries coupled with the hike in fuel prices will collaborate to form a dynamic macroeconomic threat factor for the airline and can hamper the airline’s performance and operational efficiencies in its multiple routes in the short as well as in the long term. The global economic slowdown has impacted Qatar airways and it has decided to postpone the IPO offer for the reputed airlines (Arab News, 2012). This will, to some extent hamper the sentiments in the global market and may hamper the reputation of the company for a short term period. The slowdown in the economies of the developed countries of the western world may hamper the profit performance and revenue generation for the state based airline in the years to come. Competition can also rise in the international arena where prominent players like Lufthansa Airlines, British Airways, Emirates and Southwest Airlines are existent strongly in their regional areas PESTLE Analysis Political The...
The global economy is going through a phase of slowdown since the middle of 2011, thanks to the fears arising out of the Euro Zone crisis. As an impact of this slowdown, there has been a significant decline in the amount of profits generated for the current year. Also, there has been a significant amount of slowdown in the amount of air freight movements that has happened over the period of last one year. Also, the civil disturbances happening in connection with the Arab Spring Uprising in the Middle East region is impacting the business of the airways in a negative manner.
The business of Qatar airways may continue to face a grave danger in the coming days if the continued civil unrest due to the emergence of Arab Spring uprising is not mitigated. Though most of the flights are outward and covers routes for six continents across the globe, but still the social image of the country and the Middle East region is embedded with it. Also, as an upshot of the civil uprising, more severe macroeconomic factors like the hike of oil prices is affecting the business of airline industry. Though Qatar airways has a governmental backing and has a stronghold in the market, but still it is going be affected in the long run. Also, due to the continued civil unrest in the Middle East region, morale of the employees working as on board staff of the airways can be severely hit as their families may come in the path of danger and harm caused by the civil uprising.