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. means that reaching carbon neutrality in 2050 means acting today. It was formerly known as the Air Transport Association of America (ATA). 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. In 2001, the global airline industry recorded losses of $13 billion. Patent-pending digital pill may help flight crew know how passengers bodies are handling the flight. Other pledges were put forward during the Glasgow Conference in late 2021. The aviation industry also conducts advertising campaign on the social platform for attracting more clients. 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. Fiscal policies such as excise taxes on airline tickets increase consumer Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel, stated FuelsEurope. The Trump administrations adoption of the aviation pollution standard appears timed to avoid a lawsuit that would compel it to begin regulating airplane emissions. The passenger airline industry is affected by the following factors. The New People He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. Financially weak carriers even went into bankruptcy during the period. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. 2023 Oliver Wyman, LLC. Analysts and environmentalists said the neither the existing United Nations standard nor its formal adoption by the United States would do anything to lower aviation emissions because the airline industry met that standard years ago. 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. 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. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. E.P.A. Airline companies face similar legal issues as businesses in theAutomotive, Technology, and Retailindustries. 2020-2022 Travel Tomorrow - Flagship brand of. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Political factors Political factors affecting the airline industry refer to a variety of government interventions that 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. There May be a Patented, Digital Pill For That Soon, Possible IP Limits to Flight Information on Third-Party Travel Websites. 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 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. Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. WebPESTLE Analysis of Airline Industry Political Environment. For more information on how we can assist with airline industry legal issues please contact us. Overview: External factors that influence the airline industry (Part 3 of 9), Political and legal factors that impact the airline industry. A case in point has been the several flights cancelled due to the Omicron variant, causing havoc before Christmas. The loud and clear message I heard from the airline industry was to implement that standard, Mr. Wheeler said. That way, companies could continue to sell American-made planes abroad. Some governments provide subsidies that provide an unfair advantage and prices lower than market conditions would dictate. AirlinesAutomotiveBlockchain TechnologyConsumer ProductsCosmeticsCryptocurrencyCybersecurityDigital ArtsDigital MarketingEcommerceEnergyFashionLuxury BrandsHealth TechnologyProfessional ServicesReal Estate DevelopersRestaurantsRetailSoftwareSporting GoodsTechnologyTelecommunications. Financial impact of September 11, 2001, on the airline industry. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Financially weak carriers even went into bankruptcy during the period. Note: This book is not available in the Harvard Library collections. In addition, private companies may also institute policies that affect the industry's viability, such as policies about fuel. Source: HeinOnline subscription database. of Transportation looking into practices of travel websites and question of whether flight information is proprietary and protectable by the airlines. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. Last October, the International Air Transport Association (IATA), passed a resolution in support of net-zero carbon emissions by 2050 during its annual meeting. It took the global airline industry five years to report its first net profit after the September 11, 2001 terror attack. Airlines are made responsible for air crashes or any other type of damage or disaster. In order to meet the changing demands of consumers, airlines are required to incorporate changes. 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. Jeff holds a Bachelor of Science in journalism from Northwestern University and a Master of Business Administration in marketing from the University of Chicago. 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. Consumer protection legislation requiring airlines to limit tarmac time during weather delays increases the flight cancellation rate, decreasing revenue. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. Critics say the proposal does little more than codify a set of standards largely created by the aviation industry itself. Click the linked book title to view the book's record in the HOLLIS library catalog. 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. In this section, we will have a look at the external factors affecting companies in the airline industry. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. In this series well use the Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework to analyze the airline industry. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. Researching 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. 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. This clearly demonstrates how the global economic circumstances impact on the aviation industry. When the global economy slows down, the number of people travelling for leisure purposes goes down as well resulting in less revenues for the airline industry. They dont require any meaningful emissions reductions.. In most countries, there are strict regulations for the aviation industry. How Times reporters cover politics. Materials from the ProQuest Legislative Insight subscription database. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. To showcase and help us So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. Two important macro-environmental factors that may affect an organisation in the airlines industry are Economic and Technological factors. 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. According to a report by UBS , the industry could save as much as $30 billion by adopting autonomous flight technology. 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 recent economic recession made the travel market to see its lowest period. Whenever she can, Marta loves traveling, exploring nature and learning about regenerative agriculture. Failing to be tech-savvy can result in loss of clients. 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. Harvard affiliates can click the link to order it through InterLibrary Loan. 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. Its also impacted by issues like war, terrorism, and the outbreak of diseasessuch as Ebola. Market Realist is a registered trademark. September 01, 2022. Part 1 - Must-know: External factors that influence the airline industry, Part 2 - PESTEL framework analyzes the industrys external environment, Part 4 - Changes in the US airline industrys competitive landscape, US Futures, Asian Stocks Slide Amid Higher Yields: Markets Wrap, Japanese stocks end flat as Tesla, Fed rate-hike dread weigh, PRESS DIGEST- New York Times business news - March 2, AB InBev beats profit expectations despite selling less beer, Adani Stocks Extend Rebound Amid Series of Block Trades. 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). But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. The recent era of economic depression shook all industries and airlines industry was no exception. Thank you for your interest in the U.S. Securities and Exchange Commission. Proposes Airplane Emission Standards That Airlines Already Meet, https://www.nytimes.com/2020/07/22/climate/airplanes-climate-change.html. In addition, demand for air travel at 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. 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. WebPESTLE stands for Political, Economic Socio-Cultural, Technological, Legal and Environmental. 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. to establish a rule. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. Concluding, it can be said that the global airline industry has become very competitive and is a very expensive business as well. 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. All these economic factors resulted in increased bankruptcies of major airline companies. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. By using this site, you are agreeing to security monitoring and auditing. Published. 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. administrator, before a Senate committee hearing in May. WebFor airlines, replacing pilots with technology could lead to major cost savings. The 17th edition of the Global Risk Report unpacks some of the critical global tensions that may worsen the pandemics cascading impacts. Read those pages for additional information regarding the legal solutions our industry teams provide. This is mainly because Economic Factors. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. Passengers now prefer to access ticketing and check-in services through their hand-held devices instead of forming a line or booking manually. These issues are political. Itreported its first profit of $5 billion in 2006 after four consecutive years of losses. People may receive compensation for some links to products and services on this website. This My Efficient Planet: How Economic Factors Affect the Airline Industry. Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. Defense of third-party infringement claims. These include fuel efficiency, One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. Copyright 2023 Market Realist. 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. Blog authored by Klemchuk LLP, a patent law firm. 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. Airline operations traverse wide geographic areas and are affected by policies imposed by governments at all levels local, national and international. 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. According to an upcoming analysis by Mr. Rutherfords group, new aircraft had met the 2028 standard by 2016. 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.
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