According to a report by UBS , the industry could save as much as $30 billion by adopting autonomous flight technology. 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. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. 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. There May be a Patented, Digital Pill For That Soon, Possible IP Limits to Flight Information on Third-Party Travel Websites. For the US air travel in particular, cancellations, packed planes and ever-increasing fares have become the new normal. General 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. Several policies have been devised to protect passengers more than the aviation industry. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. As a result, they require government intervention. Ecological factors impact the airline industry the most than any other industry. 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. E.P.A. Economic factors have a deep influence on the airline industry. These include fuel efficiency, Airline operations traverse wide geographic areas and are affected by policies imposed by governments at all levels local, national and international. This The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. Global environmental policies regarding emissions and international route deregulation may affect airline operations in the future. 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. Political and legal factors that impact 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. 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. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. Staving off a lawsuit, the Environmental Protection Agency has proposed new regulations to hold airlines to the carbon dioxide emissions standards they created. 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 Many of these materials are provided as searchable full-text PDFs. In order to meet the changing demands of consumers, airlines are required to incorporate changes. Fiscal policies such as excise taxes on airline tickets increase consumer prices, and that affects demand. Along with this, however, has come a steady increase in flight cancellations due to labor shortages. In addition, this Title includes regulations regarding airspace and air traffic. He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. AirlinesAutomotiveBlockchain TechnologyConsumer ProductsCosmeticsCryptocurrencyCybersecurityDigital ArtsDigital MarketingEcommerceEnergyFashionLuxury BrandsHealth TechnologyProfessional ServicesReal Estate DevelopersRestaurantsRetailSoftwareSporting GoodsTechnologyTelecommunications. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. There are many laws devised for air traffic and the safety and security of passengers. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of the airline industry. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. Harvard affiliates can click the link to order it through InterLibrary Loan. Blog authored by Klemchuk LLP, a patent law firm. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. 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. 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. 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. 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. Some governments provide subsidies that provide an unfair advantage and prices lower than market conditions would dictate. 2023 Oliver Wyman, LLC. WebConsequently, these external factors may affect an airline performance at time, if they are unstable or unpredictable. WebSome of the legal factors that American Airlines Group Inc. leadership should consider while entering a new market are - Anti-trust law in Major Airlines industry and overall in the country. Political Factors All Rights Reserved. Financial impact of September 11, 2001, on the airline industry. In addition, demand for air travel at Published. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. 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. 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 this section, we will have a look at the external factors affecting companies in the airline industry. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. Airlines are made responsible for air crashes or any other type of damage or disaster. 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. In addition, this Title includes regulations regarding airspace and air traffic. 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. Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. As the single most important cost, policies affecting both fuel supply and price greatly affect airline viability. 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. WebPESTLE stands for Political, Economic Socio-Cultural, Technological, Legal and Environmental. 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. Increased technological advancements can make airlines gain profits through offering safety and enhanced services. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. Offers may be subject to change without notice. They dont require any meaningful emissions reductions.. Overview: External factors that influence the airline industry (Part 3 of 9), Political and legal factors that impact 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. For more information, please see the SECs Web Site Privacy and Security Policy. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. 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. 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. Insecurity or war factors that affect particular countries always have a negative impact on 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. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). 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. The LCSH system features a controlled,hierarchical vocabulary of subject-specific keywords. 2020-2022 Travel Tomorrow - Flagship brand of. 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 The loud and clear message I heard from the airline industry was to implement that standard, Mr. Wheeler said. In Future 1. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. 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. Monetary policies determine interest rates and an airlines ability to purchase aircraft. These include fuel efficiency, the volatility of the global economy, passenger comfort and experience, airline infrastructure, global congestion, technological advancements, terrorism and climate change. 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. That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel, stated FuelsEurope. In most countries, there are strict regulations for the aviation industry. Thank you for your interest in the U.S. Securities and Exchange Commission. 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. The recent economic recession made the travel market to see its lowest period. Well 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. In this series well use the Political, Economic, Social, Technological, Environmental, and Legal (or PESTEL) framework to analyze the airline industry. Fiscal policies such as excise taxes on airline tickets increase consumer Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. Read those pages for additional information regarding the legal solutions our industry teams provide. 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? My Efficient Planet: How Economic Factors Affect the Airline Industry. Please declare your traffic by updating your user agent to include company specific information. Legal Factors To operate in a society, a business must abide by laws. Mr. Wheeler said he was referring to a 2019 regulation on greenhouse emissions from power plants and an April rule governing emissions from vehicle tailpipes. Note: This book is not available in the Harvard Library collections. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. 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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