Pest Analysis Online
Oman Air is the flag carrier of the Sultanate of Oman, based in Muscat, in which the government holds 33.
8% stake. It operates scheduled domestic and international passenger services, as well as local air taxi and charter work.Its main hub is at the Seeb International Airport, Muscat. The airline is member of the Arab Air Carriers Organization. History Oman Air was established in 1970 and started operations in 1993 as Oman Airline following a merger of Gulf Air’s Light Aircraft Division and Oman International Services.
Its inaugural flight was from Muscat to Salalah. Oman Air commenced its international operations in July 1993, with a flight to Dubai. In the same year, the airline started its services to India, with a flight to Trivandrum. In 2001, Oman Air became the first International foreign Airline to fly to Kochi, India.Oman Air was the first airline in the Gulf to introduce the brand new Boeing NG 737 aircraft series. It was also the first ever airline to offer intra-Gulf commuter services. Oman Air’s origins date back to 1993. Since then, we have been maintaining a very high standard of professionalism. Growth Oman Air can look back on an eventful history.
It includes many glorious moments but the course of events has not always been smooth. History is always a reflection of people and their times. The challenges facing air transport have become increasingly complex, yet Oman Air has always found the strength to learn and renew itself.In the year of 1970 Oman International Services (OIS) commences civil aircraft handling services at the old Beit Al Falaj Airport. Lately Seeb international airport partially constructed. As of now Oman Air has around 22 fleets in different category and operates 296 flights a week within a network of 36 destinations in 19 countries.
There was a 20% increase in the staff strength in mainly operational areas and the coming years will see numbers continuing to rise to cope with the Company’s planned expansion.Development of a master plan to provide for a new Head Quarters Building plus associated structures to house General Training, Flight Stimulator and Cabin Crew Training Centre as well as staff accommodation, recreational and social facilities, and a clinic and welfare centre, provision of a new engineering facility, purpose built to Oman Air’s requirement that will provide a four bay aircraft hangar and associated workshops which the Company hopes to develop into a Maintenance Repair and Overhaul. PEST AnalysisPEST analysis stands for “Political, Economic, Social, and Technological analysis” and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
Political Factors Political interference has to be present everywhere. Given below are a few of the political factors with respect to the Oman airline industry: oThe airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travelers, regarding traveling to a particular country. oThe most significant political event however has been September 11.The events occurring on September had special significance for the airline industry since airplanes were involved. The immediate results were a huge drop in air traffic due to safety ; security concerns of the people.
oInternational airlines are greatly affected by trade relations that their country has with others. Unless governments of the two countries trade with each other, there could be restrictions of flying into particular area leading to a loss of potential air traffic. Economic FactorsBusiness cycles have a wide reaching impact on the airline industry. During recession, Oman Air is considered a luxury ; therefore spending on air travel is cut which leads to reduce prices. During prosperity phase people indulge themselves in travel ; prices increase. After the September 11 incidents, the world economy plunged into global recession due to the depressed sentiment of consumers.
In Oman, the recession did not make any huge impact even though Oman Air also had a % of loss.Because some companies in Oman due to recession the top level managers were given economic class tickets instead of business class plane tickets. So there is number of decrease in the travelers during recession time. The loss of income for airlines led to higher operational costs not only due to low demand but also due to higher insurance costs, this prompted the industry to lay off employees, which further fuelled the recession as spending decreased due to the rise in unemployment. Social FactorsThe changing travel habits of people have very wide implications for the airline industry. In a country like Oman, there are people from varied income groups.
Especially, since Oman having different nationally people with different culture and various religions and every individual traveling by the airline would expect customization to the greatest possible extent. Oman Air has ever been keen to provide travelers with useful information relating to lifestyle, healthcare, entertainment, travel and tourism, all packed in our in-flight magazine Wings of Oman.Oman air continues to play an important role in boosting domestic tourism through its continued efforts promoting and sponsoring various forums and events held throughout Oman. One important event is Salalah Khareef Festival, which is an important festival that marks the commencement of the Khareef season. Oman plays a pivotal role in promoting Dhofar Govern ate in general and Salalah Khareef Festival in particular.
This year, Oman Air is the Official Carrier, and a Diamond Sponsor for the festival and as in the past, has always contributed in sponsoring this event since inception.The National Carrier has offered several carefully tailored packages with sensible prices and affordable amenities for the visitors, making available many opportunities to enjoy the varied festival activities. Oman Air is providing fun, low fare, and no frills airline. The major element of its success was the augmented marketing mix which it used very effectively. Technological Factors Oman Air has contributed more to the technological advance of commercial aviation than any other airline.
But during its formative years, when aviation was yet young, Oman Air was always in the vanguard of progress. We have had numerous achievements in the past twelve years. Oman Air successfully completes the International Air Transport Association’s Operational Safety Audits. Oman Air attributes the successful completion of the audit to its conforming to the standards and regulations set by IATA. The increasing use of the Internet has provided many opportunities to airlines.Oman Air has introduced a service through the internet, e-ticketing is the most convenient options for the travelers.
Customer can own their ticket with best price and best available days. Oman Air having internet based services to its customer such as online ticket booking, updated flight information ; handling of customer complaints. A proposal for restructuring the existing airports at Muscat and plan for new airports at Nizwa, Sur ; Sohar will change the face of Oman. Muscat new airport is constructing with latest possible technologies.This will help in attracting investments in improving the infrastructure and services at these airports.
Oman Air has been started Sindbad Miles, Status Miles and Redeeming Miles programs to enhance the business and to provide maximum privileges to the customer. On-Air together with Oman Air recently celebrated a successful first flight using the full spectrum of mobile and WiFi Internet connectivity services based on Inmarsat Swift Broadband. The airline offered passengers an extensive range of services – GSM/GPRS together with WiFi InternetAnalyze your findings A PEST analysis is a useful technique for reviewing the external forces that impact on an organization. The technique offers a structured basis for reviewing the organization’s strategic direction and for considering future priorities. As per PEST analysis, I have understood the market growth or decline of Oman Air and the potential and direction of business. PEST subject should be a clear definition of the market being addressed, which might be from any of the following standpoints.
OmaAir aims to improve the working lives of workers and giving more chances to the local people as part of omanization. PEST analysis is a useful tool for analyzing the external environment surrounding Oman Air workers. It also helps to identify, understand and deliver proper training to the locals to work in the Air transportation market. Oman Air has worked hard to raise awareness of the economic benefits of local workers as well as the expatriates. In the case of the Oman Air, as a part of Oman Sultanate, political factors play a key role in shaping its activities and priorities.Economic factors influence its spending decisions, social factors shape the demand for the Oman Air’s services and technological developments can offer innovative solutions to some of the challenges in managing a modern Air traffic network.
By understanding these factors in the external environment, the Oman Air can shape its activities appropriately. This is reflected in the current programs of Oman Air like Sindbad and Vision 2010 with tourism department which brings together many of the innovations to maximize use of the current infrastructure.Strategies pursued by the business to control PEST factors: Corporate-level strategies involves determining in what business or businesses, the firm expects to compete. For companies with a single market or a few closely related markets, the corporate-level strategy involves developing an overall strategy. The corporate-level strategy then involves making decisions on whether to add divisions and product lines to manage the business’s portfolio of businesses. At Oman Air is committed to exceed the expectations of valuable customers and stake holders by building a “First Choice Airline”.
To provide a safe, reliable and seamless flying experience, enhanced by warm and friendly customer services, without compromising on quality and profitability. As the national carrier OmanAir committed to support the local community and to promote in-bound tourism to the Sultanate. Recommendations OmanAir as the countries only one airline has to increase the domestic flights to Salalah interior locations such as Nimr, Oil Fields, Hallaniyat islands and Masirah Islands. They should release more low cost flights to compete with other countries AirCarfts.As Oman air having so many tourism packages, they should contribute more in tourism sector to develop the Oman to one of the best tourist place in the world.