Norway Pestel

Political:

Traditionally,the Norwegian airline industry was subject to heavy restrictions. The government possessed control of ticket pricing, and provided certain companies exclusive rights to serve specific routes, which means that each route could only have a single airline operator.However, a breakthrough was made in 1987 when the Norwegian government decided to undertake deregulation measures in its domestic airline industry,and the Norwegian airline industry was liberalized in 1994.Norway signed bilateral agreements with US covering free pricing and market access for airlines In 2008, agreements between the EU and the US were signed, Norway joined the EU-US agreement in 2009, resulting in Norwegian airlines being allowed to set up flights within the EU, as well as between the EU and the US.

Economic:

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Fuel prices:

During global recessions and oil crises, the airline industry is usually affected severely.Aviation fuel represents the largest operating expense for low-cost airlines,However, aviation fuel costs‟ share of operating expenses varies greatly between airlines.(which we have to investigate more about easy Aviation fuel cost.i.e.low-cost competitor Ryanair‟s aviation fuel costs correspond to as much as 34.6 percent of total operating expenses )

Social :

According to DIBS‟ e-commerce survey (2010), 95 percent of all internet users in Norway, Sweden and Denmark regularly make online purchases. In addition, the average Norwegian e-shopper spends twice as much on e-commerce than a Spanish or French e-shopper. Moreover, 47 percent of all e-commerce in Norway is travel-related.

Technology:

The emergence of the internet as common property has proven to be quite a revolution for both airlines and its customers.As mentioned,the Norway market is characterized for having high internet penetration rates and e-commerce activity. Through the use of search engines, customers are now able to better compare prices and find the cheapest tickets on any...