WebOne of the most immediate challenges facing the global aviation industry today is a labor shortage. Its also impacted by issues like Jeff Fulton is a writer specializing in business, travel and culture. Critics say the proposal does little more than codify a set of standards largely created by the aviation industry itself. 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. Several policies have been devised to protect passengers more than the aviation industry. For more information, contact [email protected]. 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. In 2001, the global airline industry recorded losses of $13 billion. 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. 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. Read those pages for additional information regarding the legal solutions our industry teams provide. 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. The Trump administrations adoption of the aviation pollution standard appears timed to avoid a lawsuit that would compel it to begin regulating airplane emissions. 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. Air travel accounts for about 2.5 percent of global carbon dioxide emissions, a far smaller share than emissions from passenger cars or power plants. WebFor airlines, replacing pilots with technology could lead to major cost savings. Note: We do not offer technical support for developing or debugging scripted downloading processes. Defense of third-party infringement claims. In most countries, there are strict regulations for the aviation industry. Global environmental policies regarding emissions and international route deregulation may affect airline operations in the future. My Efficient Planet: How Economic Factors Affect the Airline Industry. 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 How Times reporters cover politics. 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. 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. Political and legal factors that impact the airline industry. 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. All Rights Reserved. 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. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. Click a link to view its search results. There are many laws devised for air traffic and the safety and security of passengers. In this series well use the Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework to analyze the airline industry. Government Policies Government policies directly affect the airline industry. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. Well These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. 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.. 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. Legal Factors To operate in a society, a business must abide by laws. Researching Andrew Wheeler, the E.P.A. Moreover, airlines also struggled with increasing labour demands from the part of employees. 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. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. If you are an affiliate of Harvard Law School, you are welcome to contact us at [email protected] for additional help. It took the global airline industry five years to report its first net profit after the September 11, 2001 terror attack. 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. 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. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. The Global Risks Report 2022: Worlds Apart. 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. Please declare your traffic by updating your user agent to include company specific information. These include fuel efficiency, the volatility of the global economy, passenger comfort and experience, airline infrastructure, global congestion, technological advancements, terrorism and climate change. In this section, we will have a look at the external factors affecting companies in the airline industry. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of 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. 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 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 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. 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? Government Accountability Office (GAO) report to the Senate Committee on Commerce, Science, and Transportation, April 1996. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). Dept. Increased technological advancements can make airlines gain profits through offering safety and enhanced services. Two important macro-environmental factors that may affect an organisation in the airlines industry are Economic and Technological factors. Litigation and Dispute Resolution 4. a plan drafted largely by international airline companies and adopted in 2016 by the International Civil Aviation Organization, a United Nations body. Informative and inspiring worldwide coverage. Operating costs are likely to increase in the short-run for both The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. 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. In the past few years, there has been a reduction in business class travelling which is a huge loss for the companies. means that reaching carbon neutrality in 2050 means acting today. The LCSH system features a controlled,hierarchical vocabulary of subject-specific keywords. The future of the proposal will be determined by the results of the November election. Market Realist is a registered trademark. We rely on our journalists to be independent observers. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. To showcase and help us These include fuel efficiency, In addition, demand for air travel at According to a report by UBS , the industry could save as much as $30 billion by adopting autonomous flight technology. Fuel is a very major expenditure of the industry and airlines are required to invest more in environmentally friendly and fuel-efficient aircraft. Therefore, legal factors can impact a business to a great extent. Aviation is a complex industry governed by an extensive regulatory environment. If he wins the presidency, his administration would most likely ignore the Trump proposal and write a new, more stringent one. Add me to Travel Tomorrow's mailing list. 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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