Report on Diamond Aircraft
Diamond Aircraft Industries Inc. is a General Aviation aircraft manufacturer that produces single and twin engine aircraft as well as single engine jet aircraft for the GA community. The following will be an analysis of the market environment for this organization, focusing on the Political, Economic, Social, Technological, and Environmental effects on the company.
Political Factors
Some obvious political factors that could have a significant effect on the market for general aviation aircraft producers include terrorism, deregulated marketing environment, and privatization just to name a few. For instance terrorism is having a major effect on the general aviation community. The Department of Homeland security is considering a proposal that general aviation airports would be required to have security assessments done looking for vulnerabilities and security risks (Lipton, 2007, pA11). Also all parked aircraft would be required to have ignition of propeller locks placed on them (Lipton, 2007, pA11). Another proposal is being made that could affect GA operators, specifically those flying charter, business or corporate (Lipton, 2007, pA11). Those traveling this way would be required to undergo terrorist-watch-list checks especially if they are flying into the U.S. from over-seas (Lipton, 2007, pA11).
Terrorism is the largest political factor affecting the market for general aviation aircraft producer. If the operators of these aircraft were required to go through the same level of security and scrutiny as passenger on large commercial flights even for short flights for personal reasons or recreational flying then the number of people willing to fly on GA aircraft or even the number of people willing to purchase these aircraft would suffer dramatically.
Economic Factors
The Economic environment plays a large part in the market for Diamond Aircraft. The sales of their aircraft could be affected by many factors in the economy. One such factor is the issue of user fees. The user fee has led to a near end to general aviation in other countries like Germany or Australia (Sickward, 2007, p20). The user fees are being proposed as a way to pay for the much needed upgrade of the current air traffic control system (Sickward, 2007, p20). However, most general aviators would prefer other methods to pay for it such as increased tax on fuel (Sickward, 2007, p20).
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