Explain How the Political, Legal and Social Factors Have Influenced Each Organisation to Adapt Its Activities

Explain how the political, legal and social factors have influenced each organisation to adapt its activities

Political Factors

Political factors are,

Easy Jet:

As over the years the EU has expanded and has become broader it has many important implications for airlines, such as:

I. The increase in oil prices and the changing of certain tax policies.

II. Moves toward a federal government for the EU will likely mean attempt to create heightened competition on a Europe-wide basis.

III. Airlines are now able to operate a base out of any European Country. Giving many more opportunities for expansion.

Fuel costs constitute a substantial proportion of easy Jet's total operating expenses and significant increases in fuel costs could materially affect easy Jet's operating costs. Both the cost and availability of jet fuel are subject to economic and political factors and events occurring throughout the world that easy Jet can neither control nor accurately predict. Although it is easy Jet's policy to hedge its fuel costs where appropriate, there can be no assurance that such hedging activity will protect easy Jet from the financial consequences of fuel cost volatility completely, and may limit the benefit that could be derived from significant decreases in the price of aviation fuel.

Airport access charges represent a significant operating cost to easy Jet. Any substantial increase in such charges could have a material adverse impact on results of easy Jet operations. Due to the application of competition law at EU and national levels, the airports easy Jet serves in the UK are specifically regulated. This means that all users of the airports are required by law to be treated in a non-discriminatory manner and therefore the ability of easy Jet or any other operator to negotiate preferential terms does not exist or is substantially restricted. However easy Jet has sought to negotiate the best arrangements it can make without regard to the arrangements made by other users of those airports. There can be no assurance that when these arrangements are due for renewal, regulatory intervention or other factors at these airports would not cause easy Jet's airport charges there to rise substantially.

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