PESTEL Analysis 1 - IKEA's India Business

PESTEL Analysis 2 - Indigo's India Business

PESTEL Factor Implication to Organization Significance Likelihood Total

Element

Political Stability of Govt. intervention in the airline's operations 4 2 8

govt. in the
country

Economic Growth in Growth of India's aviation sector is positively correlated with India's 5 4 20
India's GDP GDP

Increase in fuel prices, price sensitive consumers, bank's hesitation to

lend to aviation sector - all contribute negatively

Societal Large no. of Increase in disposable income contributes positively 4 4 16

people
travelling in Required changes in etiquette from AC trains to flights requires
flights additional resources on the airline’s part

India's demographics with a very high percentage of young population

is promising for the airline industry

Technological Flights being grounded due to breakdowns during hot and humid 5 4 20
weather

Environmental Extreme and fluctuating weather conditions leads to escalating 3 4 12

maintenance costs

High fuel consumption and emissions contribute negatively to the

environment

Legal Indian aviation industry does not have a robust regulatory mechanism 3 1 3
in place