PESTLE Analysis of Emirates Airlines

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Introduction
This essay brings out discussion on the external environment of the Emirates Airlines. The
external environment covers various factors such as political, social, economic, technology,
environment, and legal factors. PESTLE analysis is an important tool used by the company to
support decisions regarding expansion, and leveraging the capabilities to execute the
decisions related to the growth of company. The airline renowned as Emirates is based on
Dubai (United Arab Emirates). This airline is the subsidiary of the Group emirates which is
owned by government of Investment Corporation of Dubai (Cui, Wei, and Li, 2016).
PESTLE analysis of Emirates Airlines
The airlines earn a high revenue of at least $12 billion with maintaining the workforce of
40,000 people. In addition, there are huge opportunities for the employees as they can
enhance their skills and abilities to the workforce grow their careers. The analysis helps to
understand the situation of industry that can affect the growing enterprises (Walker, Kelly,
and Beckert, 2009).
Several political factors affecting the business environment is various International airlines
who operate their flights in six continents are exposed to various political developments at
global level. The increasing global risk concern and other terror attacks that are prevailing in
Europe and other areas of the globe can decrease the demand for the air travel. The company
controls several flights in the emerging countries such as Africa, Iraq, and other Southeast
Asian region with a stable political environment. The demand can be halted of these flights
by any political change or the security issues. Any political change or other security issues in
these countries can halt demand for the flights (Ardakani, Nejatian, Farhangnejad, and Nejati,
2015). Moreover, the Trump administration travels have banned various Muslim country
people are expected to diminish the Middle Eastern airline`s load on the flights to the US.
The political situations include wars and other economic situations that are occurring in the
country. Emirates can also earn huge profit due to the recent political and economic stability
(Walker, Kelly, and Beckert, 2009). Emirates is bound by many political factors such as
Emirates airline holds the property of Dubai government. It leads the airlines to follow laws
issued by the government. Emirates signed contracts with other nations so that the routes
must be opened to the world. Moreover, their services are also impacted by the terrorism and

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wars. Governments have imposed and restricted the regulation especially for the outside
transporters (Redpath, O'Connell, and Smith, 2017).
Several Economic factors affecting the business of the Emirates airline is an international
airline and it receives its revenue in multiple currencies. Sudden movement in exchange rate
and fluctuation in various macroeconomic conditions can give a changed revenue. Moreover,
the economy of UAE is fuelled by the country`s oil industry. In addition to this, recent other
investments in other sectors attempt to make other investments business that is more
attractive centre that indirectly impacts and benefits the airlines in the regions. The declining
oil prices are considered as a progressive development for Emirates however, reducing the
demand for the premium travel to Dubai (Squalli, 2014). The economic conditions of a
country affect the availability of capital, profit, and demand forecast. Emirates is among the
competitive airlines that can attract the various industries to invest to make the airline more
profitable. Emirates operate in stable and favourable economic conditions. Moreover, there
are many airlines that have faced crashes and other severe conditions, but the Emirates have
strived to manage a better economic situation. Apart from the unfavourable conditions faced
by several airlines, emirates are the one that has not faced any aviation downturn or any
economic conditions (Whyte, and Lohmann, 2015). This is because the company has great
marketing strategies that were used to promote Dubai that has become famous for the tourist
destination. Good economic conditions is an important factor that uses modern and well-
equipped airports. The UAE government invests a generous amount for the developments for
two main airports in Abu Dhabi and Dubai (Connell, 2006).
Several social factors include the tastes, preferences, and the demand of the people. Social
change affects the services of the airlines and welcomes particular threats. Factors include the
demographics changes that rely on sex, age, religion, region in which they live, and number
of employees working in the organisation. The increased population lead to increase in airline
profits because more people travel to other countries. Moreover, the population should also
have appropriate disposable income to travel to airlines. Rapid increase in world`s population
is an important factor that shapes the demand for air travel. As the airline operates for the
society, emirates strategize to recruit and retain the UAE nationals. Moreover, emirates
always remained an active player in regulating the program for its workforce. It also ensures
employment opportunities to the people in the society (Connell, 2011). The most lucrative
segment of travelling are the baby boomers who engage in career ladders and frequent
business travel. An increasing generation, the millennial who emerged with an insatiable