A PESTLE Analysis of Aer Lingus

A PESTLE Analysis of Aer Lingus

Aer Lingus, the state-owned airline of the Republic of Ireland, is growing in a supportive environment of stability, opportunity, and national pride. Aer Lingus is part of a relatively unstable industry, but has many advantages over its competitors.

The government of the Republic of Ireland is a Parliamentary republic with membership in the European Union (EU). The country should not be confused with Northern Ireland, which is part of the United Kingdom and is the site of continuing unrest. Aer Lingus is the largest airline in Ireland. Being a fully state-owned enterprise, it enjoys the many benefits of government support. International political conflicts between some North Atlantic Treaty Organization (NATO) countries and the Organization of Petroleum Exporting Countries (OPEC) place the airline at risk of terrorist attacks, decreased wartime travel, and fuel price shocks.

“Ireland has been described as a ‘Celtic Tiger’ whose stellar economic growth rate during the past decade has given it one of the highest per capita GDP levels in the EU” (Schmitt 784). The stimulated economic environment is a combination of EU support, the attraction of foreign investment, and Ireland’s commitment to education and business development. “Ireland’s decision to join the European monetary system in 1979 assisted the process of lowering inflation rates towards EU levels” (Dineen and Garavan, 1994). Lower inflation facilitates better control of labor costs, lower costs of capital for investment, and greater economic stability.

Due to a combination of Irish pride and an openness to marrying those of other cultures, there are literally hundreds of millions of people around the world who could call Ireland “home”. Tourism is therefore a major Irish Industry, further supported by widespread proficiency in English among workers. Today on-line travel bookings, Euro-rail travel programs, and an emphasis on multi-cu



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