PEST Analysis for Sri Lankan Airlines

Political Factors
 War/Conflicts:

We had a war over 3 decades, it was over in 2009.on that period

we did not had that much of foreigners in to our country.

 Political stability:

In Sri Lanka the government is very stable at present, the

government is doing many development programs to the
country.
Economical factors
 Inflation:

Currently Sri Lankan Inflation decreasing rapidly so people got more

money to spend. Because of this there have been increase on air
travel.

 Unemployment:

Unemployment rate is increasing so its going to be a easy for Sri

Lankan Air lines to recruit labors for lower wages.

 Taxation :

VAT can increase the final price of the Air ticket. So the demand could
fall due to higher ticket price.
Social Factors
 Income Level:

Personal income level has increased over passed few years due to
economic development 7.2, which has led to a significant increase in
luxury products.

 Labor Mobility:

Each year, more than 200,000 Sri Lankan labors fly overseas to work, most
of them heading for the Middle East.

 Buying Behavior:

Buying Economy products (Transit), cost of the ticket in Sri Lankan airlines
is relatively higher than other local and most of international airlines which
come to Sri Lanka.
Technological factors
 EASA maintenance:
Over 30 years of experience in industry, EASA certified Line and Base
Maintenance Services in Sri-Lankan airlines.
Ex: new engines, auxiliary power units, technical line support covers,
appearance enhancement.

 5s:
In Sri-Lankan air lines 5s creates an environment that is more conducive,
clean and tidy. all workers have to treat 5S as culture - resulting in work
becoming faster and easier. A major attraction of 5S is that it does not
involve large capital investment.

 E- Booking:
Through its website www.srilankan.aero the airline provides Online
Booking, Ticketing and Check-in facilities that give passengers the
convenience of planning their travel experience through any PC or laptop.
Environmental Factors
 Green effect:
 Ozone effects:

-Air traffic contributes to the green house effect & the depletion of the
ozone layer.
-Air crafts release millions of tons of particulates (ashes) from
burning of “dirty” fossil fuels & this occur green effect and by increase in the
green effect helps to “Global warming

 Natural resources depletion:

-Air Pollution due to emissions occurred by air traffic.
-Depletion of the ozone layer.
(Ozone layer protect people ,plants and animals from the damaging
ultraviolet radiation of the sun.)
 Legal Factors

 Frame work of Industry

 Change of legislation

-Today Sri Lankan air lines comes directly under the Government.
-Aviation Policy:
Must concern about the Environmental Unit of International Air transport
Association (IATA), The global aviation industry’s governing body.

-Green Policy with the concept of “Go Green”.

Thank You