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Contents 1. Introduction....................................................................2 2. PESTLE Analysis.............................................................3 3. Analysis of Competitive External Environment........................6 4. Internal Analysis.............................................................11 5. Conclusions and Recommendations....................................13 Introduction Aer Arann was founded in 1970 as a means of transporting passengers from the mainland to the Aran Islands. The company was purchased by Galway entrepreneur Padraig O'Ceidigh in 1994, and he set about transforming the airline. The business has subsequently upgraded its fleet and services to the status of a national carrier and currently serves 15 destinations in both the Irish and UK markets. It has successfully expanded its operation in recent years and is now one of the fastest growing regional airlines in Europe, with current annual turnover levels of €60m. The company was named Best Regional Airline for 2002. PESTLE Analysis Political Factors * In June 2002, Aer Arann successfully secured the renewal of its tender to operate three of the five Public Service Obligation routes until 2005. These routes are subsidised with an annual...

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