This article maximize your understanding of the Airline industry with our detailed PESTEL Analysis of Kenya Airways, designed to reveal the key drivers of success and failure
Kenya airways is an African airline providing a top class travelling experience to its guests worldwide. The mission of this airline is to enhance the sustainable development of Africa. The airline gives the top priority to its customers by considering their safety and respect at the most. Following is the PESTLE Analysis of this airline which explains various factors that can affect the performance of its business.
Political Factors
Any political crisis can affect the performance of the national carrier of Kenya. Being a corruption prone country, Kenya government has been unable to control the bureaucracy and the labor unrest resulting in the higher business operational costs. The progressive tax system in Kenya results in access of wealthy people to various products and services only. The airline demands various initiative from the government for carrying on its sustainable business.
Economic Factors
In the recent years, Kenya airways has faced the record breaking losses due to various economic factors involved. The foreign exchange losses occurred due to the capital restrictions in Nigeria and Sudan. The fluctuation of the African currencies is also another reason. But now the company is moving in the right direction and the things are changing. The higher inflation rate and corruption has also worsened the economic condition.
Social Factors
With the increasing tourism and travelling worldwide, the latest generation is calling for different travelling preferences. Kenya airways is therefore working towards providing high quality customer service to suit the individual needs. The airline is providing maximum comfort and in- flight entertainment to its clients. The airline mission is to promote the wellbeing of all the age groups in Kenya. It has made some successful efforts towards the access of clean water and sanitation and building of the health facilities thus reducing the spread of various diseases
Technological Factors
Kenya airways is using the latest technology and innovation to create the fuel efficient aircrafts. The aircrafts are designed with the ultra-modern travelling accessories to make the journey memorable for the guests. With the use of online presence, the airline has made the entire process of booking and reservation easy. The state of the art lounges of the Kenya airways are established to meet the exact flyer needs where 24/7 internet is available. It has recently implemented the group booking technology from Sabre Corporation for streamlining the booking processes.
Legal Factors
Although Kenya lacks a comprehensive legal framework still the airline has to comply with various legislative pressures while entering into other countries. These include labor laws, environment laws and trade restrictions. Recently the labor unions in Nigeria have threatened to shut down the flight operations for introducing the performance based leave clause. Many multinational companies are advocating the environmental controls for the aviation services in Kenya. The airline is also required to comply with the drug trafficking laws imposed by the Kenya civil aviation authority.
Environmental Factors
Kenya airways is working at its best to minimize the effect of the aviation services on the environmental changes and biodiversity. The airline is establishing successful relationships with the organizations which are working towards preservation of the environment and the resources. The aircrafts are being designed with less noise, low carbon emission and lesser fuel consumption using the modern technology. The planting of thousands of trees is another such initiative for a sustainable development.