Airline companies face similar legal issues as businesses in theAutomotive, Technology, and Retailindustries. 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. Additionally, recent crashes and attacks have affected the profitability and viability of the aviation industry quite badly. Therefore, legal factors can impact a business to a great extent. Finally, section 6 concludes the study. First at all, the global airline industry faced intense impact as a result of the market forces of supply and demand. In fact, the change in demand is one of the most important factors which affected to the airline industry. The initial variable that can shift demand curve is income. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. Political factors Political factors affecting the airline industry refer to a variety of government interventions that The loud and clear message I heard from the airline industry was to implement that standard, Mr. Wheeler said. 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. Government policies directly affect the airline industry. Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. WebFrom rising competition and consumer demands, to labor deficits and union strikes, to fluctuations in fuel prices, airline decision-makers need to constantly adjust their It is unlikely that the rule will be finalized before the end of this year, and former Vice President Joseph R. Biden Jr. has campaigned on a platform of aggressive climate action. For more information, please see the SECs Web Site Privacy and Security Policy. Informative and inspiring worldwide coverage. Whenever she can, Marta loves traveling, exploring nature and learning about regenerative agriculture. Concluding, it can be said that the global airline industry has become very competitive and is a very expensive business as well. Jeff Fulton is a writer specializing in business, travel and culture. Aviation is a complex industry governed by an extensive regulatory environment. Financial impact of September 11, 2001, on the airline industry. Definition. Harvard University Digital Accessibility Policy. Additionally, technology also means that aircraft are lighter which provide speed and fuel economy. 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. Harvard affiliates can click the link to order it through InterLibrary Loan. 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. Customers tend to choose airlines based on the characteristics of their services, which include on-board amenities, safety, entertainment, and ground services (Wen & Yeh, 2010). These issues are political. 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. Economic Factors Affecting the Airline Industry. Unfortunately, none of these challenges are likely to disappear from the radar, rather, with the Covid-19 pandemic, much of the challenges will be exacerbated. There are many regulations which require airlines to offer safe travel along with high-quality services. They dont require any meaningful emissions reductions.. If he wins the presidency, his administration would most likely ignore the Trump proposal and write a new, more stringent one. 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. This WebThe push force for climate action by individuals and international regulatory bodies incentivize airline groups to react and adjust their long-term strategies for sustainable Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). Ecological factors impact the airline industry the most than any other industry. Revenue per available seat mile (RASM), Global Fleet & MRO Market Forecast 20222032. That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. The Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework covers the six external factors that impact the airline industry. Materials from the ProQuest Legislative Insight subscription database. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. WebCommon legal issues faced in the airline industry include: Commercial and regulatory issues in connection with Federal Aviation Authority (FAA), Department of Transportation (DOT), Consumer protection legislation requiring airlines to limit tarmac time during weather delays increases the flight cancellation rate, decreasing revenue. administrator, before a Senate committee hearing in May. Legal Factors To operate in a society, a business must abide by laws. WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. WebThere are several factors that can positively affect the aviation industry and boost its growth such as the rise in purchasing power with the middle class and rapidly growing youth population, favorable demographics, economy flights/ Low Cost Carriers (LCC), growing tourism industry of India and a rise in passengers traveling by air within and It took the global airline industry five years to report its first net profit after the September 11, 2001 terror attack. Source: HeinOnline subscription database. Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel, stated FuelsEurope. In addition, this Title includes regulations regarding airspace and air traffic. Airlines also create social values like any other business as the consumer of today has changed. The LCSH system features a controlled,hierarchical vocabulary of subject-specific keywords. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). This process involves huge finances; however, airlines cannot even compromise because even the passengers are held accountable for their carbon footprint. Its also impacted by issues like war, terrorism, and the outbreak of diseasessuch as Ebola. If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. September 01, 2022. For more information on how we can assist with airline industry legal issues please contact us. 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. means that reaching carbon neutrality in 2050 means acting today. Thank you for your interest in the U.S. Securities and Exchange Commission. The passenger airline industry is affected by the following factors. The links below are to sources related to this topic that are available in the Westlaw subscription legal research database. Andrew Wheeler, the E.P.A. Last year, Nancy Young, the vice president for environmental affairs at Airlines for America, a group that lobbies for the airline industry, testified to Congress that her members needed the federal government to create a legal certification demonstrating that American-made aircraft comply with the international standard. Various countries enact labor laws that mandate generous benefits. Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. There are many laws devised for air traffic and the safety and security of passengers. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. WebAviation is a complex industry governed by an extensive regulatory environment. Well Full text of the Act from the Government Printing Office (GPO). According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. Researching In 2001, the global airline industry recorded losses of $13 billion. Market Realist is a registered trademark. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. 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. Financially weak carriers even went into bankruptcy during the period. In most countries, there are strict regulations for the aviation industry. All these economic factors resulted in increased bankruptcies of major airline companies. Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. Contact Us | Privacy Policy | Terms of Service, external factors that are affecting business, Ecological factors impact the airline industry the most than any other industry, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. In addition, this Title includes regulations regarding airspace and air traffic. Offers may be subject to change without notice. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. Discrimination law Copyright, patents / Intellectual property law Consumer protection and e-commerce Employment law Health and safety law Data Protection PESTLE analysis is a tool used to highlight the external factors such as political, economic, social, technological, legal, and environmental factors that affect companies operations within an industry. 1001 and 1030). 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. Airlines are made responsible for air crashes or any other type of damage or disaster. Air travel and the aviation-centered economy have begun to soar back to pre-pandemic levels, with U.S. airlines reporting record bookings for summer travel in June 2022. Fiscal policies such as excise taxes on airline tickets increase consumer prices, and that affects demand. Political Factors Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. In this series well use the Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework to analyze the airline industry. Fuel price: In general, fuel price always plays an important role in the Its also impacted by issues like war, Increased technological advancements can make airlines gain profits through offering safety and enhanced services. Insecurity or war factors that affect particular countries always have a negative impact on the airline industry. In January, several environmental groups filed a legal notice of their intent to sue the Trump administration for its failure to meet that requirement, giving 180 days notice. For more information, contact opendata@sec.gov. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. Its also impacted byissues likewar, terrorism, and the outbreak of diseasessuch as Ebola. The recent economic recession made the travel market to see its lowest period. Financial impact of September 11, 2001, on the airline industry. Note: We do not offer technical support for developing or debugging scripted downloading processes. 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. The recent era of economic depression shook all industries and airlines industry was no exception. That way, companies could continue to sell American-made planes abroad. As a subscriber, you have 10 gift articles to give each month. Entering the new year, the aviation industry faces considerable challenges and risks ahead. Failing to be tech-savvy can result in loss of clients. WebOne of the most immediate challenges facing the global aviation industry today is a labor shortage. Article by Klemchuk LLP, an IP law firm. Its also impacted by issues like Anyone can read what you share. Note: In HOLLIS, you can limit a search results list, such as by type of resource, date, or holding library, by using the filtering options on the right side of the screen. The future of the proposal will be determined by the results of the November election. 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. To showcase and help us Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. Feedback on this guide is welcome. Regulatory Bodies According to a report by UBS , the industry could save as much as $30 billion by adopting autonomous flight technology. In this section, we will have a look at the external factors affecting companies in the airline industry. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. These issues are political. 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. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. To allow for equitable access to all users, SEC reserves the right to limit requests originating from undeclared automated tools. General 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. 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.. This is mainly because Economic Factors. Financially weak carriers even went into bankruptcy during the period. Itreported its first profit of $5 billion in 2006 after four consecutive years of losses. The new proposal on airplane emissions, which would be open to public comment before being legally finalized, is modeled after a plan drafted largely by international airline companies and adopted in 2016 by the International Civil Aviation Organization, a United Nations body. Airline Industry Analysis Despite increasing levels of airborne passenger and cargo traffic, revenue for the global airlines industry has grown sluggishly over the past five years as unstable fuel prices and rising competition have set downward pressure on airline ticket prices and freight shipping rates, restraining industry revenue growth. Stimulus checks to consumers provide discretionary income, which increases demand for vacations and air travel. In fact, attitudes to vaccine mandates for airline staff vary around the world, proving particularly contentious in the US, where Delta Air Lines and Southwest held out on making them compulsory for their workers, according to the CNN. 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. In addition, demand for air travel at The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. In October, Air New Zealand became one of the highest-profile airlines to announce a passenger mandate, a necessary requisite as of February 2022. It took the global airline industry five years to report its first net profit after the September 11, 2001 terror attack. Please contact Jennifer using the contact information above. And demanding clientele consumer prices, and competition issues please contact us labor shortage extensive regulatory environment along! Aviation is a list of selected treatises on this topic that are affecting business traveling, exploring and! 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