abhishreshthaa
Abhijeet S
Pest Analysis On Cathay Pacific Airway : Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place.[1] The airline's operations include scheduled passenger and cargo services to 114 destinations in 36 countries worldwide, including codeshares and joint ventures, with a fleet of 126 wide-body aircraft, consisting of Airbus A330s and A340s, Boeing 747s and 777s. The airline also operates fifth freedom flights from Bangkok and Taipei, its major focus cities. Its wholly-owned subsidiary, Dragonair, operates to 29 destinations in the Asia-Pacific region from its Hong Kong base. In 2009, Cathay Pacific and Dragonair operated 56,000 flights, carrying nearly 25 million passengers and over 1.52 million tonnes of cargo and mail.
The airline was founded on 24 September 1946 by American Roy C. Farrell and Australian Sydney H. de Kantzow, with each man putting up HK$1 to register the airline. The airline made the world's first non-stop transpolar flight flying over the North Pole in July 1998, and it also operated the maiden flight to arrive at the new Hong Kong International Airport. The airline celebrated its 60th anniversary in 2006; and as of October 2009[update], its major shareholders are Swire Pacific and Air China. It is reciprocally one of the major shareholders of Air China.
Cathay Pacific is a founding member of the Oneworld alliance, with its subsidiary, Dragonair, as an affiliate member. The airline was awarded with a Five Star Airline ranking and 2009 Airline of the Year by Skytrax.
PEST Analysis
* Cathay Pacific Airways Limited
Political. Observers will see a continuing progression in the ruinous steps which have forced the industry into a socio-politico-economic corner. Whether this is related to flat demand or to the industry’s creation of an ever-wider range of products that many buyers seem to care little about, there is a problem. The industry is likewise linked closely to the policies of governments, the earnings of banks. Little wonder then that so many emerging countries are keen to develop a sector that deals with the regulation of products introduced by the company or that there is such a political pressure to protect it in the developed countries. The world’s airline industry is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The industry’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear.
In the aspect of Pfizer Inc., it has dealt with political factors rather brilliantly. It continues to provide very satisfactory benefits and wages for its 115,000 employees. Pfizer continues to cater to the needs of their employees and their families. They provide benefits and fitting wages and overtime. Also, Pfizer continues to recognize its responsibility to the government. It continues to pay its annual taxes in order to lessen political strife.
Economic. For much of the developed world, and increasingly for the developing world, the airline industry is a pillar industry, a flag of economic progress. Without the existence of the airline industry, it would be quite impossible to aid the existence of other sectors. One must remember that the aspect covered by the airline industry is something not to be toyed with. It includes the wellbeing of all, thus, no other sector would continue to exist if this sector is annihilated from the whole of the economic world. The airline industry has been a core industry, a unique economic phenomenon, which has dominated not only the twentieth century, but also the fancy of the centuries even before modern civilization began. However, the industry now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities. For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly desirable one.
As for Cathay Pacific, Its investment in different countries can trigger different outcomes for it. The economy usually depends on stability of the economy itself and currency stability. But if the country chosen by Cathay Pacific to host its production has minimal salary demanding workforce, it would be a great choice.
Social. The world’s airline industry affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of transport and communication, changing the ways people lives and work. The social value of the elevated sense of communication and globalization that this industry brings involves the value of the people being brought back together after many years, even centuries of living isolated, among many others. For most of its existence the airline industry has been a model of social discipline and control and it is not just that the airline sector offers a ‘pillar’ of something else. There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. The airline has the role to play in helping develop the impairment of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.
In the context of Cathay Pacific, the world is in continuous need of quality services and transport. Though the world contains varied audiences, it is impossible that none would like to know what other places look like. No matter what concept or religion they believe, a community in need will always seek out the help of people around the world.
Technological. Cathay Pacific is dedicated to technological excellence for its products and services. It was one of the first airlines to provide in-flight email. It also offers online ticketing and check-in, a downloadable timetable, and the notify flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The permit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon arrival at Hong Kong International Airport. Its in-flight entertainment system offers more than 20 video channels and an audio/video on demand system for First and Business class passengers. It was voted "World's Leading Use of In-flight Technology" in the World Travel Awards 2003 poll of 80,000 travel industry professionals.
The airline was founded on 24 September 1946 by American Roy C. Farrell and Australian Sydney H. de Kantzow, with each man putting up HK$1 to register the airline. The airline made the world's first non-stop transpolar flight flying over the North Pole in July 1998, and it also operated the maiden flight to arrive at the new Hong Kong International Airport. The airline celebrated its 60th anniversary in 2006; and as of October 2009[update], its major shareholders are Swire Pacific and Air China. It is reciprocally one of the major shareholders of Air China.
Cathay Pacific is a founding member of the Oneworld alliance, with its subsidiary, Dragonair, as an affiliate member. The airline was awarded with a Five Star Airline ranking and 2009 Airline of the Year by Skytrax.
PEST Analysis
* Cathay Pacific Airways Limited
Political. Observers will see a continuing progression in the ruinous steps which have forced the industry into a socio-politico-economic corner. Whether this is related to flat demand or to the industry’s creation of an ever-wider range of products that many buyers seem to care little about, there is a problem. The industry is likewise linked closely to the policies of governments, the earnings of banks. Little wonder then that so many emerging countries are keen to develop a sector that deals with the regulation of products introduced by the company or that there is such a political pressure to protect it in the developed countries. The world’s airline industry is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The industry’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear.
In the aspect of Pfizer Inc., it has dealt with political factors rather brilliantly. It continues to provide very satisfactory benefits and wages for its 115,000 employees. Pfizer continues to cater to the needs of their employees and their families. They provide benefits and fitting wages and overtime. Also, Pfizer continues to recognize its responsibility to the government. It continues to pay its annual taxes in order to lessen political strife.
Economic. For much of the developed world, and increasingly for the developing world, the airline industry is a pillar industry, a flag of economic progress. Without the existence of the airline industry, it would be quite impossible to aid the existence of other sectors. One must remember that the aspect covered by the airline industry is something not to be toyed with. It includes the wellbeing of all, thus, no other sector would continue to exist if this sector is annihilated from the whole of the economic world. The airline industry has been a core industry, a unique economic phenomenon, which has dominated not only the twentieth century, but also the fancy of the centuries even before modern civilization began. However, the industry now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities. For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly desirable one.
As for Cathay Pacific, Its investment in different countries can trigger different outcomes for it. The economy usually depends on stability of the economy itself and currency stability. But if the country chosen by Cathay Pacific to host its production has minimal salary demanding workforce, it would be a great choice.
Social. The world’s airline industry affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of transport and communication, changing the ways people lives and work. The social value of the elevated sense of communication and globalization that this industry brings involves the value of the people being brought back together after many years, even centuries of living isolated, among many others. For most of its existence the airline industry has been a model of social discipline and control and it is not just that the airline sector offers a ‘pillar’ of something else. There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. The airline has the role to play in helping develop the impairment of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.
In the context of Cathay Pacific, the world is in continuous need of quality services and transport. Though the world contains varied audiences, it is impossible that none would like to know what other places look like. No matter what concept or religion they believe, a community in need will always seek out the help of people around the world.
Technological. Cathay Pacific is dedicated to technological excellence for its products and services. It was one of the first airlines to provide in-flight email. It also offers online ticketing and check-in, a downloadable timetable, and the notify flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The permit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon arrival at Hong Kong International Airport. Its in-flight entertainment system offers more than 20 video channels and an audio/video on demand system for First and Business class passengers. It was voted "World's Leading Use of In-flight Technology" in the World Travel Awards 2003 poll of 80,000 travel industry professionals.
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