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very susceptible to the political environment of a country. A country with unstable political environment can cause doubts in the minds of the traveler to travel to that particular country. India in particular has had to go through a lot in the recent years with mounting tensions with its western neighbours. The 26/11 terrorist attack on the financial capital of India has a profound impact on the airlines industry. Another example of political factor causing problems for the Airlines Industry in India lies in the corrupt state of affairs that lies in the administration. Bribes have to be paid to obtain licenses and permits. Even recently, one of the most respectable businessmen in the world, Mr. Ratan Tata complained about the corruption problem which discouraged him to start his own Airline Company. It was alleged that the civil aviation minister had asked Mr. Tata a sum of INR 1.5 million as a bribe to give permit to start air services.

State owned airline companies suffer the most because of this problem as due to political pressure, the government companies have to give special consideration with respect to route selection, offering free seats to the ministers etc. The state owned airline companies cannot stand up to the archaic laws, regulations and trade unions which in past have held the state owned enterprises on ransom.

Currently, In terms of Investment FDI of 100% is allowed in the Airline Sector under the automatic route for Greenfield projects.

经济因素——Economic Factors

Airline Industry is greatly impacted by the business cycles. It is considered a luxury to fly during the recession which then leads to cuts in spending eventually leading to reduction in the air fares. During prosperity, People spend more and that leads to increase in air fares. Recent global recession has had a deep impact on all the major industries in the world. Aviation Industry too had its own share of set backs. Corporate travelers were cutting back on travel which would save costs and leisure travelers had deferred their travel plans. Even a company like Citibank in India had to cut down its costs to increase its profits for which even the top managers were allowed only to travel by train.

The loss of income due to economic factors forced the airline companies to execute the corporate restructuring program which resulted in several employees being laid off. Turnaround time, maintenance costs, jet fuels costs, staff costs, benefits costs etc. are some of the expenses which the airline companies have to take into consideration while pricing their air tickets. Anything below these costs the company losses which makes the company unsustainable in the industry/

社会因素——Social Factors

India, being a diverse country has people coming from different parts of the country with different culture, language, food and preferences. Airline industry need to understand this along with the fact that there are people with varied income group and their needs should be served accordingly. India is a land of extremes with people coming from different walks of life. For example, a person subscribing to Jain religion needs to be served a special Jain food and it could be kept in mind that the person sitting next to him can be a vegetarian. One of the finer examples can be drawn 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。