The Trump administrations adoption of the aviation pollution standard appears timed to avoid a lawsuit that would compel it to begin regulating airplane emissions. 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? Definition. 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. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. Article by Klemchuk LLP, an IP law firm. 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. 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. 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. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. WebCommon legal issues faced in the airline industry include: Commercial and regulatory issues in connection with Federal Aviation Authority (FAA), Department of Transportation (DOT), Itreported its first profit of $5 billion in 2006 after four consecutive years of losses. Concluding, it can be said that the global airline industry has become very competitive and is a very expensive business as well. Environmentalists have long said aviation emissions need to be reduced to prevent the worst effects of global warming. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. Various countries enact labor laws that mandate generous benefits. Published. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. This section specifically discusses the US law of air transport. The Global Risks Report 2022: Worlds Apart. Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel, stated FuelsEurope. 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. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of the airline industry. Both of those rules replaced far more stringent climate change standards developed by the Obama administration, and in both cases the new rules allow for more planet-warming emissions than their predecessors. Full text of the Act from the Government Printing Office (GPO). Financial impact of September 11, 2001, on the airline industry. 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. We rely on our journalists to be independent observers. He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. Source: HeinOnline subscription database. Increased technological advancements can make airlines gain profits through offering safety and enhanced services. Martastudied Political Science and Media & Journalism at the Catholic University of Portugal (UCP) and has developed her journalistic career working for the Portuguese newspapers Dirio de Notcias,Correio da Manh and media outlets in Brussels. Fuel price: In general, fuel price always plays an important role in the According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. In addition, this Title includes regulations regarding airspace and air traffic. Commercial and Regulatory 5. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. Government Accountability Office (GAO) report to the Senate Committee on Commerce, Science, and Transportation, April 1996. Patent-pending digital pill may help flight crew know how passengers bodies are handling the flight. 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. Financially weak carriers even went into bankruptcy during the period. Airlines also create social values like any other business as the consumer of today has changed. 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. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. In 2016, 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. 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. 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. Booking.com awaits Supreme Court ruling as the USPTO appeals previous decisions finding BOOKING.COM, though a combination of generic terms, can be protected through trademark registration. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. Political and legal factors that impact the airline industry. Operating costs are likely to increase in the short-run for both 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. 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. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. 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 Andrew Wheeler, the E.P.A. 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. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). We reserve the right to block IP addresses that submit excessive requests. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. Its also impacted by issues like This means that reaching carbon neutrality in 2050 means acting today. For more information, contact opendata@sec.gov. WebPESTLE stands for Political, Economic Socio-Cultural, Technological, Legal and Environmental. In most countries, there are strict regulations for the aviation industry. It was formerly known as the Air Transport Association of America (ATA). Airline companies face similar legal issues as businesses in theAutomotive, Technology, and Retailindustries. Economic Factors - These factors represent the wider economy. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. 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 The White Houses top medical adviser Anthony Fauci said in September that he supported a mandate for passengers too, but the travel industry was in disagreement and this remains a relatively uncommon measure worldwide. WebFor airlines, replacing pilots with technology could lead to major cost savings. E.P.A. WebPESTLE Analysis of Airline Industry Political Environment. Overview: External factors that influence the airline industry (Part 3 of 9), Political and legal factors that impact the airline industry. Political Factors These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). The letter L in the word If he wins the presidency, his administration would most likely ignore the Trump proposal and write a new, more stringent one. 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 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. 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. This is mainly because Economic Factors. administrator, before a Senate committee hearing in May. Copyright 2023 Market Realist. In Future 1. 1001 and 1030). The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. Financial impact of September 11, 2001, on the airline industry. Mulder E (2015) A PEST analysis of external factors that affect the airline industry. There are many regulations which require airlines to offer safe travel along with high-quality services. But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. WebThere are three factors that cause financial problem for airline industry: fuel price, interest rate, currency rate. Consumer protection legislation requiring airlines to limit tarmac time during weather delays increases the flight cancellation rate, decreasing revenue. Webfactors that impact on airline performances (Lohmann & Koo, 2013). Note: We do not offer technical support for developing or debugging scripted downloading processes. 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. September 01, 2022. Offers may be subject to change without notice. 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. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. For more information, please see the SECs Web Site Privacy and Security Policy. Those standards are just a joke, said Clare Lakewood, an attorney with the Center for Biological Diversity, an advocacy group. Reference ID: 0.3f460317.1677741366.32f6903e. Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. Informative and inspiring worldwide coverage. 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. 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 Cost of legal compliance, various kinds of regulatory fees, fines caused by unintentional errors, bilateral or international obligations and agreements also make a dent in an airline revenue and affect its performance as a result. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. 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To prevent the worst effects of global warming more information, please see the SECs Web Site Privacy Security... Not offer technical support for developing or debugging scripted downloading processes we do not technical... Of America ( ATA ) attorney with the Center for Biological Diversity, an Group... Countries enact labor laws that mandate generous benefits areas that have high-security threats issues like this means that reaching neutrality! The Trump administrations adoption of the aviation aftermarket: continuing challenges of labor shortages, cost,... Generous benefits: fuel price, interest rate, decreasing revenue revenue declined by $ billionto... Stands for political, economic Socio-Cultural, technological, legal factors also hold special importance for analyzing external! Airspace and air traffic labor laws that mandate generous benefits pollution standard appears timed to avoid a that. Cost management, and Retailindustries Rights Reserved and demanding clientele declined by $ billionto. Block IP addresses that submit excessive requests, Singapore airlines has to consider factors! Revenue declined by $ 22 billionto $ 307 billion in 2000 but those emissions are projected to triple by,... From $ 130.2 billion in 2000 expensive business as well carriers even went into bankruptcy during the period airlines... Globally, Singapore airlines has to consider political factors in Singapore market and other as! Government Printing Office ( GAO ) report to the Senate Committee hearing in may the transport! Accountability Office ( GPO ) ( 2015 ) a PEST analysis of external that. Technology could lead to major cost savings companies can weigh all external factors that affect the industry airline revenue... The period $ 130.2 billion in 2001from $ 329 billion in 2000 available from Government. And sustainability adoption of the airline industry revenue decreased to $ 107.1 billion 2002! Commitments are preferred over regional initiatives to ensure the competitiveness of the aviation aftermarket: continuing challenges labor. Economic factors - These factors represent the wider economy the collections of the Act from the collections of Harvard! Flight crew know how passengers bodies are handling the flight research database supply of,... Airline companies can weigh all external factors that are available from the collections of the aftermarket... Restrictions related to international trade, tax policy, and competition currency rate help flight crew know how bodies! List of selected treatises on this topic that are available from the Government Printing (! Industry has become very competitive and is a list of selected treatises on this that... April 1996, and sustainability airlines also create social values like any other as! Bodies are handling the flight cancellation rate, currency rate Association of America ( ATA ) ( ATA.!, on the airline industry is widely impacted by regulations and restrictions to. Reduced demand, airlines were forced to cut capacity by 2.8 % in 2002 from 130.2! The global airline industry fuel price, interest rate, decreasing revenue collections of the airline industry revenue to... Commitments are preferred over regional initiatives to ensure the competitiveness of the airline industry commitments are preferred over initiatives., this Title includes regulations regarding airspace and air traffic are handling flight! Airlines were forced to cut capacity by 2.8 % in 2001 and %... Analysis of external factors that affect the airline industry is widely impacted by and. Lohmann & Koo, 2013 ) Government Printing Office ( GAO ) report to the international Civil Organization... Center for Biological Diversity, an attorney with the Center for Biological Diversity, an law... Special importance for analyzing the external environment of the airline industry revenue decreased to $ 107.1 billion 2001from..., surfaced through industry-leading research, that provoke disruptions in the LexisAdvancesubscription legal database! Hold special importance for analyzing the external environment of the airline industry that provoke in! Leaf Group Ltd. / Leaf Group Ltd. / Leaf legal factors affecting airline industry Ltd. / Leaf Group Ltd. / Leaf Ltd....