legal factors affecting airline industry

Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel. Aviation is a complex industry governed by an extensive regulatory environment. The pent-up demand for air travel in the United States is unlikely to subside with the emergence of the Omicron variant. Click a link to view its search results. Patent-pending digital pill may help flight crew know how passengers bodies are handling the flight. General 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. Its also impacted by issues like war, Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. That notice expires on July 28, but with the release of the draft rule, the environmental groups no longer have grounds to sue the administration to release a regulation on aviation pollution. Webfactors that impact on airline performances (Lohmann & Koo, 2013). Many of these materials are provided as searchable full-text PDFs. This is the third time in the past two years that this administration has taken major action to regulate greenhouse gases in a way that is legally defensible, reduces CO2 and protects American jobs, Andrew Wheeler, the head of the Environmental Protection Agency, said on a telephone call with reporters Wednesday morning. For more information on how we can assist with airline industry legal issues please contact us. But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. Article by Klemchuk LLP, an IP law firm. With the signature of the Glasgow Declaration on Climate Action, a new gold standard for tourism leaders, holds the pledge of more than 100 travel companies to deliver towards decarbonisation by 2050 and halve current CO2 emissions by 2030. The airline rules would be similar; critics say the substance of the proposal does little more than codify a set of standards largely created by the aviation industry itself, and is unlikely to diminish the industrys contribution to global warming. The 17th edition of the Global Risk Report unpacks some of the critical global tensions that may worsen the pandemics cascading impacts. This increasing cost of doing business, facing competition from low-cost airlines, abiding with the rules and regulations imposed by the government as well as changes in the profile and demand of consumers have led the industry to make its external factor analysis for meeting the industry requirements. The Global Risks Report 2022: Worlds Apart. To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. Note: We do not offer technical support for developing or debugging scripted downloading processes. In addition, private companies may also institute policies that affect the industry's viability, such as policies about fuel. voted to repeal a Department of Labor rule, antiquated systems to connect new sources of electricity, the Obama administration released a legal conclusion known as an endangerment finding, which determined that the planet-warming pollution produced by airplanes endangers human health by contributing to climate change. Therefore, legal factors can impact a business to a great extent. In this part of the series and the next part, well discuss two major events that had a profound impact on the U.S. airline industrythe terrorist attack in 2001 and deregulation in 1978. UAE bans its citizens from leaving the country without a booster shot, Hong Kong scraps Covid-19 masks to revive the regions financial hub, South Korea leads in Asias online travel market, Tourism leaders call for united global effort to decarbonise industry, Europes new ETIAS visa system postponed to early 2024, New online dashboard asses European cities cargo bike friendliness, Nationwide rail strike confirmed in Belgium for 10 March, Doha awarded Arab Tourism Capital for 2023. WebCommon legal issues faced in the airline industry include: Commercial and regulatory issues in connection with Federal Aviation Authority (FAA), Department of Transportation (DOT), Researching This is a quick guide designed to help you use resources from the Harvard Law School Library to research legal issues surrounding the regulation of the airline industry. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. Fuel is a very major expenditure of the industry and airlines are required to invest more in environmentally friendly and fuel-efficient aircraft. Fiscal policies such as excise taxes on airline tickets increase consumer 2020-2022 Travel Tomorrow - Flagship brand of. WebPESTLE Analysis of Airline Industry Political Environment. Government policies directly affect the airline industry. All companies in the airline industryincluding the top U.S. companies like Delta (DAL), United (UAL), American (AAL), Southwest (LUV) and JetBlue (JBLU)were negatively impacted by the 2001 terror attack. Publishers sometimes publish a series of books on a single topic. If U.S. aircraft manufacturers cannot have their products certified to the internationally agreed standards, U.S. airlines will not be able to purchase these aircraft for international service, she said. Apart from economic fluctuations, the airline industry has performed well and since 1980, it has experienced an average growth rate of 5% and the growth rate is expected to sustain. According to the International Air Transport Association (or IATA), the financial impact on the global and U.S. industry are as follows: Latest Southwest Airlines Co News and Updates. Mulder E (2015) A PEST analysis of external factors that affect the airline industry. A forecast update on the global commercial airline fleet and aftermarket for 2022. Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. Materials from the ProQuest Legislative Insight subscription database. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. All Rights Reserved. 85% of senior executives in Oliver Wymans annual maintenance, repair, and overhaul survey, the International Air Transport Association (IATA) put out a statement, a record number of passenger-to-freighter (P2F) conversions. These include fuel efficiency, the volatility of the global economy, passenger comfort and experience, airline infrastructure, global congestion, technological advancements, terrorism and climate change. The pandemic brought greater turbulence to the administrative aspect of traveling, adding extra bureaucracy starting with the Passenger Location Form (PLF) to the much-contested vaccine passports or certificates. Many laws have been proposed which regulates how the airlines treat its passengers. Your request has been identified as part of a network of automated tools outside of the acceptable policy and will be managed until action is taken to declare your traffic. Read those pages for additional information regarding the legal solutions our industry teams provide. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Monetary policies determine interest rates and an airlines ability to purchase aircraft. All companies in the airline industryincluding the top U.S. companies like Delta (DAL), United (UAL), American (AAL), Southwest (LUV) and JetBlue (JBLU)were negativelyimpacted by the 2001terror attack. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause. At EU level, the ReFuelEU Aviation initiative aims to boost the supply and demand for sustainable aviation fuels in the EU, in order to reduce aviations environmental footprint and enable it to help achieve the EUs climate targets. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. The Trump administrations adoption of the aviation pollution standard appears timed to avoid a lawsuit that would compel it to begin regulating airplane emissions. Along with this, however, has come a steady increase in flight cancellations due to labor shortages. WebAviation is a complex industry governed by an extensive regulatory environment. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. taxation changes, economic growth, inflation and tariff is the most important Now passengers prefer those airlines which are providing extended services at low fares. People may receive compensation for some links to products and services on this website. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. Well These issues are political. As a result, they require government intervention. In this part of the series and the next part, well discuss two major events that had a profound impact on the U.S. airline industrythe terrorist attack in 2001 and deregulation in 1978. Financial impact of September 11, 2001, on the airline industry Economic Factors - These factors represent the wider economy. Those standards are just a joke, said Clare Lakewood, an attorney with the Center for Biological Diversity, an advocacy group. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. The main government organizationthat is responsible for regulating all modes of transportation, including air, is the US Department of Transportation (DOT)(https://www.transportation.gov/), a federal executive agency. WASHINGTON The Trump administration on Wednesday made public the federal governments first proposal to control planet-warming pollution from airplanes, but the draft regulation would not push the airlines beyond emissions limits they have set for themselves. Its also impacted byissues likewar, terrorism, and the outbreak of diseasessuch as Ebola. Government Policies Government policies directly affect the airline industry. Thank you for your interest in the U.S. Securities and Exchange Commission. 2019 regulation on greenhouse emissions from power plants, April rule governing emissions from vehicle tailpipes. Economic factors have a deep influence on the airline industry. John F. O'Connell; George Williams (Editor), Attention All Passengers: The Airlines' Dangerous Descent -- and How to Reclaim Our Skies, Clipped Wings: Corporate Social Responsibility and the Airline Industry, From Lowlands to High Skies: a Multilevel Jurisdictional Approach Towards Air Law, Full Upright and Locked Position: Not-So-Comfortable Truths About Air Travel Today, Peter Belobaba (Editor); Cynthia Barnhart (Editor); Amedeo Odoni (Editor), International Air Carrier Liability: Safety and Security, Andrew J. Harakas; American Bar Association, Tort Trial and Insurance Practice Section Staff (Contribution by), Managing the Skies: Public Policy, Organization, and Financing of Air Traffic Management, The Principles and Practice of International Aviation Law, Progressive Commercialization of Airline Governance Culture, The Routledge Companion to Air Transport Management, Nigel Halpern (Editor); Anne Graham (Editor), https://guides.library.harvard.edu/aviation_regulation, Regulation of the Aviation Industry: Major Players, Title 14 of the Code of Federal Regulations, Researching Aviation Law Topics: Selected Treatises, Researching Aviation Law Topics: HOLLIS Searches, Researching Aviation Law Topics: Book Series, Researching Aviation Law Topics: Getting the Deal Through, Airline Deregulation Act of 1978: Selected Research Resources, https://www.transportation.gov/airconsumer, https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html, https://www.loc.gov/aba/cataloging/subject/, HOLLIS Subject Search: Aeronautics -- Commercial -- Deregulation, HOLLIS Subject Search: Aeronautics -- Law and Legislation, HOLLIS Subject Search: Airlines -- Deregulation, HOLLIS Subject Search: Airlines -- Management, HOLLIS Subject Search: Carriers -- Law and Legislation, HOLLIS Subject Search: Liability for Aircraft Accidents, HOLLIS Subject Search: Products Liability -- Airplanes, HOLLIS Subject Search: United States -- Federal Aviation Administration, Essential Air and Space Law (Eleven International Publishing), Getting the Deal Through: Air Transport - United States, Journal of Air Law and Commerce (Journal), Transportation Law Emerging Issues (Current Awareness Service), Transportation Safety and Insurance Law (Treatise), Airline Industry Information (Current Awareness Service), Aviation Tort and Regulatory Law (Treatise), Federal Aviation Administration Administrative Decisions and Guidance, US Code Annotated (USCA) - Title 49, Subtitle VII - Aviation Programs, Williston on Contracts: Contracts of Carriage by Sea and Air (Treatise), Airline Deregulation: Changes in Airfares, Service, and Safety at Small, Medium-Sized, and Large Communities, HeinOnline - Legislative History of the Airline Deregulation Act of 1978, ProQuest Legislative Insight - Legislative History of the Airline Deregulation Act of 1978. The letter L in the word Economic Factors Affecting the Airline Industry. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause. Legal Factors To operate in a society, a business must abide by laws. WebConsequently, these external factors may affect an airline performance at time, if they are unstable or unpredictable. Financially weak carriers even went into bankruptcy during the period. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. Operating costs are likely to increase in the short-run for both Why political and legal factors impact the airline industry. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Its also impacted by issues like war, terrorism, and the outbreak of diseasessuch as Ebola. These issues are political. Blog authored by Klemchuk LLP, a patent law firm. Additionally, technology also means that aircraft are lighter which provide speed and fuel economy. If he wins the presidency, his administration would most likely ignore the Trump proposal and write a new, more stringent one. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Fiscal policies such as excise taxes on airline tickets increase consumer prices, and that affects demand. This Discrimination law Copyright, patents / Intellectual property law Consumer protection and e-commerce Employment law Health and safety law Data Protection The Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework covers the six external factors that impact the airline industry. Anyone can read what you share. Financially weak carriers even went into bankruptcy during the period. According to an upcoming analysis by Mr. Rutherfords group, new aircraft had met the 2028 standard by 2016. WebIf you are denied boarding, your flight is cancelled or delayed for at least two hours, or your baggage is lost or damaged, you may be entitled to certain standards of treatment and compensation under the Air Passenger Protection Regulations. This section specifically discusses the US law of air transport. Moreover, airlines also struggled with increasing labour demands from the part of employees. Click the linked book title to view the book's record in the HOLLIS library catalog. The endangerment finding did not include the details of a regulation, but it set off a legal requirement under the Clean Air Act for the E.P.A. A former Blue Book trainee of the European Commission, Marta has a keen interest in EU and global affairs, and experience in reporting and interpreting information. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. How Times reporters cover politics. Political Factors We rely on our journalists to be independent observers. (https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html). Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. Failing to be tech-savvy can result in loss of clients. Harvard affiliates can click the link to order it through InterLibrary Loan. means that reaching carbon neutrality in 2050 means acting today. The results indicated that political, economic, technological and legal factors had a significant negative correlation (p<0.05) with airline performances whilst socio-cultural factors had a significant positive correlation (p<0.05) with airline performances. We rely on our journalists to be independent observers. Because the aircraft manufacturers around the world must demonstrate that they are in compliance with the United Nations standard, airlines in the United States had asked the Trump administration to enact a domestic version of that standard. Both economy and premium travelling declined. Experts defend that a significant reduction of the CO2 emissions of the aviation sector will require a holistic approach at the global level since aviation is primarily a global industry. These issues are political. To showcase and help us WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. All Rights Reserved. To allow for equitable access to all users, SEC reserves the right to limit requests originating from undeclared automated tools. Market Realist is a registered trademark. Other agencies that are also involved in this work, some of which fall under the DOT umbrella, include the following: Airlines for America (A4A) (http://airlines.org) is the major advocacy organization for the commercial aviation industry in the United States. It took the global airline industry five years to report its first net profit after the September 11, 2001 terror attack. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. My Efficient Planet: How Economic Factors Affect the Airline Industry. In addition, this Title includes regulations regarding airspace and air traffic. Bryan Watt, a spokesman for Boeing, called the new rule a major step forward for protecting the environment and supporting sustainable growth of commercial aviation and the United States economy.. Please declare your traffic by updating your user agent to include company specific information. Government Accountability Office (GAO) report to the Senate Committee on Commerce, Science, and Transportation, April 1996. Some governments provide subsidies that provide an unfair advantage and prices lower than market conditions would dictate. In order to meet the changing demands of consumers, airlines are required to incorporate changes. 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