Aviation Policy and Strategy Analysis: Air France's Approach

This report provides a comprehensive analysis of Air France's aviation policy and strategy, focusing on its operations and market dynamics, particularly in the African context. It begins with an introduction to the aviation sector and the significance of policy formulation. The main body of the report encompasses a PESTLE analysis of the African aviation industry in relation to Air France, examining political, economic, social, technological, environmental, and legal factors. It also includes a Porter's Five Forces analysis to assess the competitive landscape, evaluating factors such as competitive rivalry, the threat of new entrants, bargaining power of suppliers and buyers, and the threat of substitutes. Furthermore, the report applies the BCG matrix to evaluate Air France's strategic business units, categorizing routes and markets as stars, cash cows, question marks, and dogs. The report concludes with a summary of the key findings and implications for Air France's policy and strategic decisions, highlighting the airline's approach to passenger and cargo transport, its route network, and its competitive positioning in the global market. The analysis considers various challenges and opportunities, including geopolitical, commercial, regulatory, and cultural characteristics of each country where Air France operates.

AVIATION POLICY &
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis........................................................................................................................3
Porters Five Forces Analysis.......................................................................................................5
BCG MATRIX............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Aviation sector has been considered as the complex which is regulated by government
which have formation if intrinsic components of international along with domestic policy. This is
helping in generating the sustainable level of employment along with importantly key market
linkages for trade, tourism for the local economies. On the other hand, the evaluation of policy is
considered to be the study along with proper level of formulation and implementations. This
have major level of requirement in term of the careful of empirical study.
In the report, there will be the prior level of analysis of air France policy on the African
destinations with the implication. This is will have clear suggestion regarding he evaluation of
various factor which should be taken into consideration while making the policy.
MAIN BODY
The company air France is the key player at the global level have the identification in three
main areas of activities that is such as the passenger transport, cargo transport as the aircraft
maintenance. The company is succeeding to have the air flight operations towards destination by
operating for different 91 countries (Albers and et.al.,2017). The company main activity is in
terms of the passengers which have the drawing the balanced level of structures.
For the 2020 summer season, the company is serving for 35 destinations around 280 flight
per week. As the part of effective level of commitments, the company is providing the customer
the best level of travelling routes which have the personalised level of attention along with
customized services both at board and at airport.
Air France offers a more generous baggage allowance than on the rest of the long-haul
network, to most African destinations -
• La Première: 3 items of baggage, each weighing less than 32kg;
• Business: 2 items of baggage, each weighing less than 32kg;
• Premium Economy: 2 items of baggage, each weighing no more than 23kg;
• Economy: 2 items of baggage, each weighing less than 23kg.
The company have taken the major level of consideration regarding the present on all
flights by providing the level of commercial assistances to passenger by taking in account all
geopolitical, commercial, regulatory and cultural characteristics of each country.
PESTLE Analysis
Pestle analysis of Africa for aviation industry in reference of air France airlines.

Political factor
As the above pestle analysis, it is stated that’s the Africa have the strong level of influence
with government powers. As from the more level of political interferences due to African
governments, the airline industry’s is facing more level of sustainable loss, over politicisation,
over staffing, lack of a clear development strategy and bureaucratic management. Air France
politically motivated to have non-viable routes as playing strategic roles in growing economic
relationship and energizes in BRIC countries. Consequently, political interference has
significantly impacted on the performance of airlines
Economic factor
Their existence of economic factor is playing an important role as it is not immune for
handling the economic pressure. The factor such as the rand/dollar exchange and growth in GDP
sector has plays important role in performance of airline industry. Since it is difficult to have the
forecast the exchanges rates as the depreciation of the rand have negativity impacted the fuel
prices in south Africa. In addition to that it has also impacted rhea ticket sales because the sales
volume and cost structure of airlines is dependent on foreign exchange fluctuations.
Social factor
The social factor have the effect on the attitude of customers towards the air transports. The
growth of incomes of black middle class of SA have increased the demand to South Africa’s
Black Economic Empowerment (BEE) program which was initiated after the end of apartheid to
reduce the inequality of the country’s black population (Wagner, and Walton, 2016).
Technological factor
Technology has the direct level of relationship with safety and conveniences impacted on
the performance of airlines due to improved communication facilities which have reduced the
need to fly for meetings leading to fewer people flying to business destinations because they can
simply hold a conference call or Skype meeting. So the air France has the made the certain level
of policy to make the business grow.
Environmental Factor
The aircraft have the clear level of contribution in having the accurate level of pollution
environment which is insurance of the emitting heat, noise and the gases which have clear
contributions to the respective climate changes. So to have the management for the global
warning crisis, the aviation in Africa have been put into the stricter control in order to have the

aircraftmen which have the minimum level of carbon emission along with face hefty penalties.
The South African Government introduced a tax of up to R120 per tonne on carbon dioxide
emissions. The government official have been trying to have reductionist which is helpful in
contrasting the demand through increase the fairs in place of the expanded the airport's capacity.
Legal Factor
The legal factor have the clear implication of the performance of airlines. There is regulation of
several laws which is turning out to be more strict day by day (Ward and et.al., 2019). The SAA
is facing level of similar claimed from complain which have the simultaneously increase in the
capacity in order to reduction prices which has claimed 15.5%. In order to have the stoppage
level of trafficking introduced the strict vis dysregulation. As per the new regulations which have
the destination broacher to have proper mainstream of retranslations on intergeneration tour
operators along with travel agents which have been removed. The performance of airline in
southern Africa is further hampered by restrictive Bilateral Air Service Agreements (BASAs)
that tend to impede air transport service expansion between southern African countries.
Porters Five Forces Analysis
The air France has the identification for major level of progress which have introductions
of many carriers which have inclusion of fleets an airbus A330 and A380. The company is being
identified as the largest Europeans airline 25.5% of the market shares. The company has the
proper level for identification 204 destinations along with shaving the fleet of 5225 jets. This
have turned out the company as ones of most competitive airlines which is considered to be
continuously working on respective level of innovation in order t have the experience of the
passenger better (Dougan, 2016).
So as per the analyses of the porter five force model are such as-
Competitive Rivalry is high
This industry is considered to have level of competitiveness as there are more than 150
registered airlines as per IATA. It is also considered as the stagnant industry which have the
decreasing level of tourism as the conspirator is offering better level of product and services
which is basically based on product differentiation ans cost leadership. There is high level of
competition dues ti the high level of exit barriers as the player have the to have major difficulty
in order to leave industry as the campy is facing major leveler of losses. So the air France should
have major focus of the making remarkableness services to customer as per lowest airfares.

Threat Of New Entrant Is Low
This sector is considered as the premium level sector at the international level along with
more level of strict safety along with safety regulations which have easy misconduct ion. The
license fees which have high entry (Stevenson and Marintseva 2019). This industry has the major
requirement of large capital investment. There is Establishment experienced with have the crew
pilots and license in vacationist authorities. On the other hand, the access to the airport are not
considered as easy task which have dedicated the airport services to get space. On the other
hand, the barrier of entry will have proper establishment for the established airlines. There
should be proper development of the trust on performance of airlines in which entry are
considered to be higher.
Bargaining Power Of Suppliers In High
For the industry of airlines in having the clear inclusion of the manufacturing of the jet along
with use of spare producers and fuel. This have the suppliers as well the development of airlines
under the management of strict regulations as there is limited sense of companies regarding the
supply of respective spare products. Hence, the bargaining power of the supplier is considered to
be higher. There is long termed agreements wit supplier as the switching cost is very high. The
suppliers of the air France have inclusion Boeing an airbus.
Bargaining Power Of Buyer High
As the number of the buyer in this industry in considered to very high as the inclusion of
the buyer are such as the valuable customers. As per the purpose of buyer, there is nor level of
switch cost (Mhlanga and Steyn, 2017). This is because of the emergence o the low cost airlines
which have made it easier for customers t have proper level of booking of the tickets. There are
many levels of airline which re flying on same level of air routes along with providing the wide
varsity and differentiation in services. So it provided the better level of evaluation and selection
of buyer which is considered to as perfect as per all aspect. In order to have the air Frances have
introduction of loyalty programmer for customer which makes the sensuality over the return over
customers.
Threat Of Substitute Is High
The substitutes of air France is the presence of low fare airlines along with high speed trains,
boats and the cars. This factor has the clear considerations of the various level of factor which
are such as the time consuming and cost consideration of particular journeys. On the other hand

the alternative are considerer to be more level cheaper as the result the buyer were to in hurry to
have the buying of any respective suit the switch cost is losses as the developmental of new
technologies are decreasing the replacements of businessmen men to travels.
BCG MATRIX
This matrix helpful in strategic tool which is in aid for company to have proper
identification along with allotting of resources as the bard portfolio for the development of
effective business unit (Izinyon ans et.al., 2018.). The company air Frances have the proper level
for segmentation in identifying the efficient markets along with finding routes which having
potential growths at low market share
Stars
The routes of the air France are considered as the stare. This have the development in
commencement of the 22% of market shares as been rated as top five airlines after its effective
merger with KLM. This route has the helpful in generating more level of cash as the route have
the potential growth rate.
Cash Cows
There is more successful routes in the mature market which is helpful in generation
profits. The company is trying to have the improvement in economy experiences which make the
economy traveller a positive campsite of services. The business is trying to first class to be the
luxurious ones along the promising the company experience to be wonderful.
Question Mark
The company is trying to have the market in more level of Africa destination which is
been marked as the question marks as per its growth rates. This is being identified as the
emerging market which have potential market shares in order to became star. The company want
to invest the more this routes which is growing market share (Bawazeer, 2018).
Dogs
The company have been identified as the dog in more level of poor performances the company
have declarative level of policy making along with inclusion in existing level of services which
making the company more loss and poor as er the economy.

CONCLUSION
From the above file it can be concluded that air France is key player at global level with
identification in three main areas of activities such passenger transport, cargo transport as the
aircraft maintenance. Air France offers a more generous baggage allowance than on the rest of
the long-haul network. It is difficult to have the forecast the exchanges rates as the depreciation
of the rand have negativity impacted the fuel prices in south Africa. The simultaneously increase
in the capacity in order to reduction prices which has claimed 15.5%. The air Frances have
introduction of loyalty programmer for customer which makes the sensuality over the return over
customers identified as the emerging market to invest the more this routes which is growing
market share.

REFERENCES
Albers, S. and et.al., 2017. Strategic management in the aviation industry. Routledge.
Wagner, S.M. and Walton, R.O., 2016. Additive manufacturing’s impact and future in the
aviation industry. Production Planning & Control, 27(13). pp.1124-1130.
Ward, S.,and et.al., 2019. Developing Innovative Strategies for Aviation Education and
Participation (No. Project 01-34).
Dougan, M., 2016. A political economy analysis of China's civil aviation industry. Routledge.
Stevenson, I. and Marintseva, K., 2019. A review of Corporate Social Responsibility assessment
and reporting techniques in the aviation industry. Transportation Research Procedia, 43,
pp.93-103.
Mhlanga, O. and Steyn, J.N., 2017. Impacts of the macro environment on airline operations in
southern Africa.
Izinyon, A., Glatz, G., Jakob, J.M. and Stephan, K., 2018. Aircraft Lease Opportunities in
Emerging Economies.
Bawazeer, K., 2018. Retracted: The role of knowledge management in raising the efficiency of
pilots' performance in the aviation industry: a comparative study. Journal of Fundamental
and Applied Sciences, 10(4S), pp.628-631.
Bawazeer, K., 2018. Retracted: The role of knowledge management in raising the efficiency of
pilots' performance in the aviation industry: a comparative study. Journal of Fundamental
and Applied Sciences, 10(4S), pp.628-631.