Strategic Alliances in the Aviation Industry

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Introduction
Strategic alliance is an agreement between two or more companies or parties to help each
other in order to grow and attain the objectives. The agreement is also followed by the
aviation industry due to which they get many benefits with some challenges. In this report,
the discussion is made on the case study of strategic alliances in the aviation industry.
Aviation industry is one of the major drivers behind the rapid globalisation of the world
business. The alliance also helps to grow and attain the high success in the economy
(Thompson, 2019).
In this report, the internal and external analysis will be done with the help of strategic tools in
order to evaluate the effect of strategic alliance in aviation industry.
Analysis
PESTLE Analysis
Political
It has been seen that there are strict rules and
regulation in the countries regarding the
aviation industry. Every country has their
own rules and regulation regarding the
industry due to it is also difficult to follow
the rules and regulation of different country
while travelling to other country.
Several policies are developed to protect the
passengers from incident in the aviation
industry. That is necessary for the industry to
Economical
As per the case study, it has been seen that
economic factors have a deep influence on
the airline industry. The economic recession
and inflation have a great impact on the
industry.
Economic disagreement is a worldwide
movement for the privatisation of state
owned airlines.
It is observed that the aviation industry also

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follow those rules and regulation.
Insecurities or war factors always affects
the industry. The decisions of government
and the political decision affect the
industry negatively that is why; the
industry has high risk (Equity Master,
2007).
struggled with the increasing labour demand
in the part of employees.
Social
The aviation industry also creates the social
values. The culture follows and shown by
the aviation industry as per the nation creates
the social values.
Demand of consumer is change with the
developing time. The industry also
satisfied the consumers demand (Aviation
benefits, 2018).
Technological
The aviation industry is totally relies on the
technology. The industry also meets the
consumer’s requirement by adopting the
advance technology.
The online booking system and check-in
services through their hand held devices or
electronic doors are the example of advance
technology adopted by the industry.
Legal
Laws are developed foe air traffic and the
safety and security of passengers.
There are many regulations for the industry
in order to travel safe along with the high-
quality of services.
There are many crashers incidents are happen
due to which the government put the rules
Environmental
Ecological factors have a positive impact in
the airline industry. Fuel is a major
environmental factor that affects the industry
because it is the main expenditure source.
The airline has to invest more in develop the
environment environmentally friendly and
fuel efficient aircraft.