Political
The airline industry operates in a highly regulated political environment where passengers are favored over the airlines. This is due to the fact that passenger safety is paramount and the political establishment have been made weary of the airlines and resorted towards strict regulations for their operations, due to their earlier inclinations towards monopolistic behavior. Furthermore, with there being more competition in the industry and regulations in demand, passengers are in a position where they can push for lower prices and amenities.

Economic
The 9/11 attacks left a major impact that the airline industry is yet to recover from. The prolonged recession, fluctuations in oil prices and an imminent global slowdown are other debilitating factors that are affecting the growth of the airline industry. Airlines have to cope with declining passengers, high fuel prices, competition from low-cost airliners, labor demands and soaring operating and maintenance costs. In addition, events such as the recent Malaysian airline disappearance, is also adversely affecting the global airline industry.

Social
Over the years, the millennial generation’s emergence into the consumer class has resulted in major social changes, more importantly in terms of service, where consumers have become much more demanding. Therefore, to meet the increasing demands of this segment, airlines have to stabilize their costs. Additionally, the passenger profile has changed as well with there being more economically minded passengers. When it comes to business class passengers, improved communication facilities have reduced the need to fly down for meetings.

Technological
With intense competition in the airline industry, latest technology must be adapted by airliners in order to survive in the already tough environment. Additionally, the use of latest technology in aircrafts