Click the linked book title to view the book's record in the HOLLIS library catalog. 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. Jeff holds a Bachelor of Science in journalism from Northwestern University and a Master of Business Administration in marketing from the University of Chicago. Staving off a lawsuit, the Environmental Protection Agency has proposed new regulations to hold airlines to the carbon dioxide emissions standards they created. Copyright 2023 Market Realist. Its also impacted by issues like This Airlines also create social values like any other business as the consumer of today has changed. Offers may be subject to change without notice. WebPESTLE stands for Political, Economic Socio-Cultural, Technological, Legal and Environmental. Airlines are made responsible for air crashes or any other type of damage or disaster. In this series well use the Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework to analyze the airline industry. administrator, before a Senate committee hearing in May. The Global Risks Report 2022: Worlds Apart. 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? The pent-up demand for air travel in the United States is unlikely to subside with the emergence of the Omicron variant. The shortfall is being felt in every category from pilot, to baggage handler, to ticket agent, to flight attendant, to aircraft mechanic. Please contact Jennifer using the contact information above. Financial impact of September 11, 2001, on the airline industry. Concluding, it can be said that the global airline industry has become very competitive and is a very expensive business as well. Economic Factors Affecting the Airline Industry. Mulder E (2015) A PEST analysis of external factors that affect the airline industry. Fuel price: In general, fuel price always plays an important role in the Government policies directly affect the airline industry. 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. Note: This book is not available in the Harvard Library collections. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. 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. People may receive compensation for some links to products and services on this website. Last October, the International Air Transport Association (IATA), passed a resolution in support of net-zero carbon emissions by 2050 during its annual meeting. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. 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. The links below are to pre-populated searches of the HOLLIS catalog by LCSH keyword. WebPESTLE Analysis of Airline Industry Political Environment. WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. We rely on our journalists to be independent observers. Legal Factors To operate in a society, a business must abide by laws. Passengers now prefer to access ticketing and check-in services through their hand-held devices instead of forming a line or booking manually. The letter L in the word One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. 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. 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. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of the airline industry. 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 General 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. Insecurity or war factors that affect particular countries always have a negative impact on the airline industry. 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. It was formerly known as the Air Transport Association of America (ATA). 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. 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. 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. Feedback on this guide is welcome. Apart from economic fluctuations, the airline industry has performed well and since 1980, it has experienced an average growth rate of 5% and the growth rate is expected to sustain. The passenger airline industry is affected by the following factors. My Efficient Planet: How Economic Factors Affect the Airline Industry. 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. Those standards are just a joke, said Clare Lakewood, an attorney with the Center for Biological Diversity, an advocacy group. Andrew Wheeler, the E.P.A. 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. 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 airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Operating costs are likely to increase in the short-run for both 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. 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? 2023 Oliver Wyman, LLC. Moreover, airlines also struggled with increasing labour demands from the part of employees. All these economic factors resulted in increased bankruptcies of major airline companies. Fuel is a very major expenditure of the industry and airlines are required to invest more in environmentally friendly and fuel-efficient aircraft. 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 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. 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. That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. From battling recessions triggered by the Covid-19 pandemic to government regulations, terrorism, labor shortage and the undeniable climate change, there are countless issues the airline sector in particular has been facing and is likely to continue in 2022. Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. Reference ID: 0.3f460317.1677741366.32f6903e. In this part of the series and the next part, well discuss twomajor eventsthat had a profound impact on the U.S. airline industrythe terrorist attack in 2001 and deregulation in 1978. 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. In this section, we will have a look at the external factors affecting companies in the airline industry. 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. Well 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. Commercial and Regulatory 5. 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. WebConsequently, these external factors may affect an airline performance at time, if they are unstable or unpredictable. Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users. These include fuel efficiency, 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. 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 As a subscriber, you have 10 gift articles to give each month. Materials from the ProQuest Legislative Insight subscription database. 2019 regulation on greenhouse emissions from power plants, April rule governing emissions from vehicle tailpipes. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. Revenue per available seat mile (RASM), Global Fleet & MRO Market Forecast 20222032. Published. 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. Therefore, legal factors can impact a business to a great extent. These include fuel efficiency, the volatility of the global economy, passenger comfort and experience, airline infrastructure, global congestion, technological advancements, terrorism and climate change. E.P.A. We reserve the right to block IP addresses that submit excessive requests. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. These factors made it difficult to generate profits. 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. 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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