Jeff holds a Bachelor of Science in journalism from Northwestern University and a Master of Business Administration in marketing from the University of Chicago. Sitemap, British Airways operates more than 280 aircraft, Political Factors Affecting British Airways, British Airways PESTLE Analysis: Final Thoughts, the pound experienced historic depreciation, s a direct effect on the airline industry, decided to reduce the legroom of its planes, the first airline that used sustainable fuel, What is PESTLE Analysis? We reserve the right to block IP addresses that submit excessive requests. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. Fiscal policies such as excise taxes on airline tickets increase consumer 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. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users. Other pledges were put forward during the Glasgow Conference in late 2021. Several policies have been devised to protect passengers more than the aviation industry. The Harvard Library collections include some book series that are related to aviation law, and the links below are to pre-populated HOLLIS searches by book series title. (https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html). Ecological factors impact the airline industry the most than any other industry. Its also impacted by issues like Making a PESTLE analysis will help in determining the weak areas and how much efforts are required to invest so as to get back to the right way. The letter L in the word According to the International Air Transport Association (or IATA), the financial impact on the global and U.S. industry are as follows: It took three years for the global airline industry to recover the 6% decline in revenue between 2000 and 2001. Source: HeinOnline subscription database. Offers may be subject to change without notice. Jeff Fulton is a writer specializing in business, travel and culture. Airline companies face similar legal issues as businesses in theAutomotive, Technology, and Retailindustries. The future of the proposal will be determined by the results of the November election. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. 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. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. President Trump is still pressing forward on his three-and-a-half-year rollback of environmental standards, and the proposed airline rule would stave off an impending lawsuit by putting the federal government in compliance with a legal requirement that it regulate airplane greenhouse emissions. 2023 Oliver Wyman, LLC. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. Defense of third-party infringement claims. Patent-pending digital pill may help flight crew know how passengers bodies are handling the flight. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. 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. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. As a result, they require government intervention. Regulatory Bodies 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. An Important Business Analysis Tool, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. 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. Two important macro-environmental factors that may affect an organisation in the airlines industry are Economic and Technological factors. 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. It was formerly known as the Air Transport Association of America (ATA). Copyright 2023 Market Realist. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. Materials from the ProQuest Legislative Insight subscription database. 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 Future 1. Market Realist is a registered trademark. Litigation and Dispute Resolution 4. That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. Book records in the HOLLIS library catalog generally include one or more Library of Congress Subject Headings (LCSH) (https://www.loc.gov/aba/cataloging/subject/). Click the linked book title to view the book's record in the HOLLIS library catalog. Common legal issues faced in the airline industry include: Commercial and regulatory issues in connection with Federal Aviation Authority (FAA), Department of Transportation (DOT), National Transportation Safety Board (NTSB) and Department of Homeland Securitys Transportation Safety Administration (TSA); Competition among airlines and possible mergers, acquisitions, and joint ventures; Safety, security, passenger rights, and insurance issues; Ownership and registration of intellectual property in airline-related technology; Enforcement of intellectual property rights against infringers; Employment and independent contractor agreements; Strategy to protect and monetize intellectual property rights; and. Both economy and premium travelling declined. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website. Government policies directly affect 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. Aviation is a complex industry governed by an extensive regulatory environment. For more information, please see the SECs Web Site Privacy and Security Policy. The airline industry is one that is very dependent on the economy of a country in that, when the economy is not doing so well, there are higher chances that it will also be experiencing difficulties in terms of revenue. Now passengers prefer those airlines which are providing extended services at low fares. Failing to be tech-savvy can result in loss of clients. In 2001, the global airline industry recorded losses of $13 billion. In the medium run, airline companies face two uncertainties: The cost of health-related measures. 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. Financial impact of September 11, 2001, on the airline industry. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. 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. Monetary policies determine interest rates and an airlines ability to purchase aircraft. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). Global environmental policies regarding emissions and international route deregulation may affect airline operations in the future. In the past few years, there has been a reduction in business class travelling which is a huge loss for the companies. In addition, private companies may also institute policies that affect the industry's viability, such as policies about fuel. 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. Intellectual Property LitigationBusiness LitigationCorporate & CommercialPatentsTrademarks, Technology & DataSoftware & CopyrightsAnti-Counterfeiting & EnforcementInternet & E-CommerceInternational Business, 8150 N Central Expressway 10th Floor Dallas, Texas 75206 | Principal Office - Dallas, TexasCopyright Policy | Disclaimer | Privacy Policy | Terms of Use, Airline Industry Legal Issues Services Banner, Airline Industry Legal Issues Services Main, Courts Divided Over .Com Trademark Registrations, Tough Time Flying? Those standards are just a joke, said Clare Lakewood, an attorney with the Center for Biological Diversity, an advocacy group. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. Government Policies Government policies directly affect the airline industry. Thank you for your interest in the U.S. Securities and Exchange Commission. This process involves huge finances; however, airlines cannot even compromise because even the passengers are held accountable for their carbon footprint. In addition, this Title includes regulations regarding airspace and air traffic. For more information on how we can assist with airline industry legal issues please contact us. Well But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. The Global Risks Report 2022: Worlds Apart. Political Factors WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. In addition, demand for air travel at 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. 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