Political analysis; inspects the guidance of government, it is Policies, rules, and regulation on the industry or association with reference to virgin Atlantic airline it can be debated that several political factors such as taxation policies, labour low, customer policies and trade restrictions forced by the government have had great impact to airline industry. According to Verging airline management they are expression with various political challengers when business spread in to foreign countries compare to UK,( ex; USA & Australia) .this most of the political challengers are embrace licensing, bureaucracies set by the UK and foreign governments also increased parameter and control of business operation by government.
Economic analysis; Virgin Atlantic airline has been challenged with hard competition from other firms in the industry, for example, the organization was required to lower its flight rates following an analysis of prices for air travels by its major opponents in the air transport industry such as American Airlines and UK Airways. because of this competition in 1990 “Atlantic airline offered first class ticket at business class prices, inventions included limousine pick up for first class passengers and seat back video entrainment systems for economy class passengers ” .This new decision creates an opportunity to win the economic competition and get more profit & customers
Social factors, British Airways, Atlantic airways and other airlines such as EasyJet have already requested the EU and the French government to advance an action plan to minimize the effect of ATC attacks on passengers (The Guardian 2017). A number of ATC union strikes hit France in 2016 due to social unrest over a series of disputed labour reforms from the Socialist government, causing Virgin Atlantic to cancel many flights to and over France The peak summer season in 2016 was operationally difficult for many airlines including Virgin Atlantic, largely due to social factors outside of the airline’s control particularly, air traffic controller (ATC) strikes in France
Technologic analysis: Further as Jones (2009) has argued, the Internet makes industry competition perfect because it allows passengers to compare airfares of different airline companies with just a few clicks, which in effect affects pricing ability, according to Gal-Or (2011).Nevertheless, the internet also offerings a cost-cutting chance for Virgin which is why it recently launched AIR4, Virgin Atlantic’s major technological revolution in company history, which saw Virgin invest in IT based passenger service systems such as a new mobile app, self-service booking technology and improved kiosk functionality (Annual report 2016).
Legal environment: During the December 2016, Virgin Atlantic pilots decided to take industrial action in a row over union recognition after the pilots union, Professional Pilots’ Union (PPU) which represents over 70% of Virgins 900 plus pilots, demanded to be the only exclusively recognized union for Virgin’s pilots and for British Airline Pilots Association to be derecognized (The Guardian 2016).
Environmental Factors People are much attentive of the effects of climate change since people of all nations have knowledgeable some form of negative disaster; from floods, drought extreme record breaking hot temperatures, record breaking sub-zero temperature etc, that have been credited by scientists to global warming. Virgin Atlantic like many other airlines faced sustained working disruption in June last year (2016) as well as January 2017 due to adverse weather conditions, in particular thunderstorms in South East England, which led to a cancellation of flights to and from London Heathrow and Gatwick and a delay in many other flights (Swinnerton 2017).