Key Issues Affecting the Airline Sector and Business Sustainability

Report
1

Table of Contents
Introduction......................................................................................................................................3
Key issues affecting airline sector:.........................................................................................3
PESTEL model and two issues:.............................................................................................4
Key issues affecting business sustainability. Positive and negative impact on sustainability5
Reflection...............................................................................................................................5
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................6
2

Introduction
Aviation industry is changing very fast and is adopting as per the specific requirements of
external environment. UK has third largest aviation network across different parts of the world. It
provides large number of benefits to economy and growth of a particular country in recent years.
The present report is based on making analysis of the key issues that are affecting the present
airline sector and the way they are having an impact on the present functioning of various
airlines (Karaman, Kilic and Uyar, .2018). Further the impact on sustainability of airlines
industry is evaluated to achieve significant growth in coming future time period. There is
reflection to evaluate the issue sharing in the course of report and conclusion drawn based on
overall discussion of various issues discussed al through the report.
Key issues affecting airline sector:
Supply chain is one of the key issues affecting the present scenario of aviation industry.
There are supply chain stifles that is required to be keep up because of increasing demand and
the ramp up production activities on the aviation industry. There is presence of volatility in the
economic and geopolitical environment that is increasing and leading towards labour shortage in
the background of aviation industry (Baum and Auerbach, 2017). The aviation industry is
vulnerable to external factors that include economic conjunctures and political tension. In the
commercial aviation sector there is sustained economic growth and political stability that is
leading to underlying factors affecting the long term growth of air traffic. Though the global
economy has rise from the financial crises in the year 2007 and 2008 but still the economic
outlook is reasonable and remains very uncertain.
Political issues: The factors like US china trade is causing high amount of instability across
markets in world. The economies have started to show signs of potential silo down in economies
like china that is part of worlds largest economies have recently reduced their GDP growth
targets.
In Europe the financial markets have experience a series of disruption that is a major concern for
Euro zone countries ability and leading to higher budget deficit that is required to pay off the
sovereign debt obligations.
The aviation industry is facing series of challenges in coming future. Such as, uncertainty of
brexit has affected aviation industry. The no deal brexit has changed the overall political
3