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Political The political environment is mainly associated with governments functions, and its influence on airlines, which interrupts

in the economy The September 11th terrorist attacks in America resulted the entry of rigorous governmental restrictions regards security rules. National and international governments can affect airline industry by regulation and policies. Airline companies have to know not only the domestic the laws and regulations but also the international ones. Wrld enrgy markets ar bcomng mr voltile due t th grwng oil rquirments f buoynt Chnese ecnmy, crtng tensin btween ntins.

Economic Deregulation and liberalisation of the airline industry has made the entry to new Competitors easier Due to the global recession the airline industry is unable to perform Well Air Passenger Duty (APD ) for passengers flying from a UK's airports was restructured and the new charges now take distance into account The oil price rise might add 100 million to British Airways costs Single currency established in Europe seems to boost airlines, as EU borders are opened and customers can use single currency . But not for BA.

Social

One of the factors is ageing population in UK

Low cost airlines started to fly to popular holiday destinations and charge considerably less.
Currently travelling abroad is very popular, however social preferences and attitudes may easy change Trends and fashion have dramatic impact on where people want to go on holiday, which can induce in airlines' competition.

Technological
The biggest technological impact on the airline industry is the rapidly expanding application of e-commerce Th ntrntinal Enrgy Agency sttes tht altrntive enrgy markets will b undrpnned b technlogical brakthrughs.

Revamping existing safety systems

Environmental

Grtr climte de-stabiliztins frm CO2 emssins ar leadng govrnments t encourage mr sustanable frms f enrgy. Kyot Agrement, signed n 1992, hs led t carbn funds nd emssin tradng n Eurpe nd arund th wrld, which s bcomng legal rquirment. Enrgy markets will see demnd ncrsng b almost 60 prcent, wth fssil fuels meetng most f ths, nd nuclear nd rnewable enrgy markets havng limted rltive cntributin.

Legal

European regulations have changed the compulsory retirement age. Recently BA has suffered strike actions and is aware of the implications that the trade unions can cause Legal regulations on customer rights EU 261 will have tremendous financial impact on airlines due to recent closure of European airspace.

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