1.7 Are airports state or privately owned? It is also worth being mindful of the role that Artificial Intelligence (AI) may play in the future of the aviation industry. According to the US Bureau of Transportation Statistics, airline travel in the US has increased 15% from 2007 to 2017, while flight prices are seeing all-time lows. Looking wider, the impact is being felt, Since the retirement of Concorde, the area of commercial supersonic flight has remained quiet. Airline companies alone have had to spend a great deal of time and money revising their policies,. EU regulators (and therefore in all likelihood the UK competition authorities at the present time) consider that the degree of competitive constraint imposed by one-stop services varies according to the route and assesses the precise impact of competing one-stop flights on the parties joint venture on a route-by-route basis. Security concerns and airspace restrictions can affect airlines far from the conflict zone. In 2018, Boeing predicted demand for 790,000 new pilots over the next 20 years. As for the disasters and accidents, on most occasions, Airlines are held responsible. MBA PESTEL : South African Airways (B) PESTEL / PEST Analysis PESTLE analysis is the perfect tool to analyze the impact of the macroeconomic variables mentioned above on a company. As a final thought for 2022, we are likely to see a continued increase in air rage and related safety incidents. During the first half of 2021, there were 3,000 such incidents in the US (according to the Federal Aviation Administration) much more than normal. Recent Reforms Affecting Australia Airlines - LawTeacher.net PESTLE Analysis of the Global Aviation Industry - Management Study Guide Automation is yet another factor affecting the airline industry as people make use of Skype features or hold a conference call instead of travelling. Added to this, sector wages remain low and the cost of living is increasing. They need to upgrade continuously and incorporate the green flight ideas as much as possible. Insecurity or war factors that affect particular countries always have a negative impact on the airline industry. Environmental impact of the aviation industry worldwide - Statista The business legal environment plays a very important role in determining the success of any businesses around the globe. What Airlines Should Consider to Avoid Legal Issues When Navigating The airline industry needs to do regular technical up-gradation of their system and work on the communication with the air traffic. Certain airports will require a licence to levy airport charges, and the CAA can impose such conditions on that licence as it deems necessary to promote competition (e.g. United Kingdom Chapter These clauses have to be read extremely closely in order to determine whether they enable a party to suspend their obligations. 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. To that end, lease terms and conditions conventionally contain an indemnification of the owner/lessor of a relevant aircraft against losses and/or claims it incurs as a result of a repossession action. The United Kingdom recently announced its plans to invest 300 million to develop greener forms of air travel. It is also not clear how long parties must wait before being able to rely on frustration does a few months delay in being able to perform a duty render the contract impossible or must they wait longer? On the positive side, though, charter companies are likely to see new interest from businesses hiring aircraft. (https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html). Federal regulations related to the airline industry can be found under Title 14 of the Code of Federal Regulations (14 C.F.R.) Given the pace at which AI technology is developing, it is feasible that it may begin to be implemented by airlines and airport operators commercially within the next few years to streamline parts of the passenger experience; for instance, scanning passengers through departures to their designated seats. The, The ongoing Russia Ukraine conflict is affecting aviation in many ways. The fees payable are, since August 2012: A merger fee is not payable if the merger involves the acquisition of an interest that is less than a controlling interest and the CMA has investigated the acquisition on its own initiative. Nevertheless, it is common market practice (also in order to manage certain risks arising due to conflicts of law and legal systems as they apply to these most mobile assets) for engine owners and financiers to require entry into a contractual recognition of rights agreement governed by English law between the relevant parties as a condition to installing an engine on a different airframe. Like most other businesses, the airline industry is also affected by the nation's unstable political condition. 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. Micro And Macro Environmental Factors | ipl.org It is also worth noting that by adopting the Alternative A insolvency regime (with a 60-day waiting period for the asset to be returned to the creditor), the UK has furthermore decided to grant additional protection to financiers and lessors in a debtor insolvency scenario. Data subjects, such as individual passengers, now have further rights under the GDPR, including the right to: (a) access a copy of the information comprising their personal data; (b) object to processing that is likely to cause them damage or distress; (c) prevent processing for direct marketing; (d) object to decisions being taken by automated means; (e) have inaccurate personal data rectified, blocked, released or destroyed; (f) have personal data deleted where continued processing is unnecessary (the right to be forgotten); (g) request that certain data, which is processed by automated means, is transferred to a different controller; and. Whilst the regulator is the same in all three cases, there are different regulations and standards which have to be adhered to by operators in these different sectors. Some types of aviation contracts, such as operating leases and aircraft charter agreements, are more likely to contain force majeure clauses. The Court of Justice of the European Union (CJEU) ruled that the defence could be relied upon because the circumstances could not have been avoided even if all reasonable measures were taken. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. Social Factors Affecting Airlines | Getaway USA - The Arizona Republic Civil Aviation (Access to Air Travel for Disabled Persons and Persons of Reduced Mobility) Regulations 2007 Statutory Instrument No 1895 2007. The upgraded proposal includes a discussion on establishing more sustainable and efficient flight paths, which can reduce up to 10% of air transport emissions as well as lessen the additional costs and delays that occur due to the current air traffic control capacities. There are two types of operating licence: Type A; and Type B. Customs and excise authorities may detain an aircraft to enforce their charges against an operator. Several different international and UK Government bodies have a role in the environmental regulation of aviation in the UK. The Department for Transport (in exercising the authority of the Secretary of State for Transport) is the governmental body responsible for civil aviation. As in many industries, an unpredictable situation like this is very hard to manage. Future Cultural Challenges for Airlines and Airports - Gugin The Secretary of State has a general responsibility for organising, carrying out and encouraging measures for the development of civil aviation and the related aviation industry, for the promotion of its safety and efficiency, for research into questions relating to air navigation, and for the safeguarding of the health of persons on board aircraft. Internal And External Factors That Effects On Emirates | Bartleby Internal emergency, war, or political instability can hinder the business of any airline company. Fla. 2021). gain, the company offered to acquire a stake in the China Eastern Airlines against 7.3 billion Hong Kong Dollars that . much more than normal. This Regulation establishes the rules on compensation and assistance to passengers in the event of denied boarding, long delay of flights, and cancellation. In the UK, Brexit has caused increased problems. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. On the other hand, consumer law in itself makes a business for some private watchdog companies. 1.8 Do the airports impose requirements on carriers flying to and from the airports in your jurisdiction? Managementstudyguide.com. Technological factors affecting Air Canada. It is very crucial to do the PESTEL analysis. In a similar vein, in October 2017 the Court of Appeal rejected Emirates arguments and held that non-EU airlines are liable under Regulation 261 where a flight departing from the UK is delayed by at least three hours at the final destination, as a result of a missed connection outside Europe (Gahan/Buckley v Emirates [2017] EWCA Civ 1530). Nevertheless, limited case law on the subject is exclusively related to real estate (that is, immovable assets) and there is perceived to be little or no risk as a matter of English law to loss of or prejudice to title when aircraft engines are installed on a different airframe. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. Materials from the ProQuest Legislative Insight subscription database. The Court held that the claimant was entitled to compensation. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. There are three factors that cause financial problem for airline industry: fuel price, interest rate, currency rate. Political legal factors that affect the airline industry - StudyMode If the relevant mortgagor is a company registered in England and Wales, in order to obtain all the protections conventionally afforded to a mortgagee, it will be necessary to also register the relevant mortgage at Companies House pursuant to the provisions of the Companies Act 2006, as it will become void against an appointed insolvency agent of the mortgagor (whether an administrator, a liquidator or a secured creditor). Overweight and obesity will challenge airports and airlines in the future. Furthermore, the Secretary of State has responsibility for advising on, and where appropriate, implementing Orders of Council (made by the Crown) to effect international obligations and standards in UK domestic legislation. The creditor will have to demonstrate, inter alia, that there is a real risk of dissipation of the debtors assets other than in the usual course of the debtors business, and that the value of the debt is commensurate with that of the aircraft. Available at: https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html (Accessed 16 June 2021). In 1995 45% of the US population was overweight. In addition, and by way of further potential protections, if it can be demonstrated to the court that a risk exists or that the relevant aircraft is treated in a way which frustrates the rights of a mortgagee or lessor (for example, removal by an operator of the aircraft from the jurisdiction or by a clear and material degradation of the condition of the aircraft in the circumstances), it is possible to apply to the court, on an expedited basis, for an interim injunction ordering detention of the aircraft by the mortgagor/lessee until judgment regarding repossession of the aircraft has been given by the court. Civil Aviation (Provision of Information to Passengers) Regulations 2006 Statutory Instrument No 3303 2006. There are no collateral rights of enforcement as a matter of law without a court order, and accordingly the exercise of such rights on a self-help basis usually requires the person in possession or control of the aircraft (or aviation asset) to cooperate with that exercise. Available at: https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry (Accessed 21 June 2021). In June 2014, the Court of Appeal held that a technical problem is not considered to be an extraordinary circumstance under Regulation 261 and accordingly cannot be used as a basis for an airline to escape from its obligation to compensate passengers for long delays, cancellations, rerouting and/or denied boarding (Jet2.com v Huzar [2014] EWCA Civ 791). In LE v Transport Aereos Portugueses SA, where a violent and unruly passenger caused a flight delay, the defendant successfully argued that they were not liable to pay compensation and sought to rely on Article 5(3), which is the extraordinary circumstances defence. Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. costs savings through joint operations or improved services); (b) consumers should receive a fair share of those benefits (e.g. The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. However, air quality policy and regulation is devolved, with individual strategies for England, Scotland, Wales and Northern Ireland. At the national level, codeshare cases were investigated by the Italian National Competition Authority (see the Alitalia/Volare case and the Alitalia/Meridiana case). There have been certain extents where some of the operators in the . London City Airport is owned by a Canadian consortium which is comprised of AIMCo, OMERS, Ontario Teachers Pension Plan and Wren House Infrastructure Management. There are many regulations which require airlines to offer safe travel along with high-quality services. Civil proceedings which include a claim for damages in respect of personal injuries must not be started in the High Court unless the value of the claim is 50,000 or more. With the implementation of the GDPR, the DPA 2018 and the PNR Directive (and the national variations), operators need to continue to review and monitor their mechanisms, processes and procedures in place to ensure compliance with new legislative requirements around the collection and provision of data and the secure handling, retention and use of it. In the event that the defendant is established out of the jurisdiction, the court may permit a claim form to be served on the defendants agent provided that an agent for service of process has been appointed and that agents authority has not been terminated. 1.4 Is air safety regulated separately for commercial, cargo and private carriers? The most notable recent example occurred at Gatwick in December 2018 when drone sightings caused the cancellation or diversion of around 1,000 flights in the space of 36 hours, affecting over 140,000 passengers. It should be mentioned that the airline was named one of Canada's Best Diversity Employers in 2018 (Air Canada, 2020). Users of airports are subject to airport charges, which are regulated by the CAA under the Civil Aviation Act 2012 and the Airport Charges Regulation 2011. 3.1 What rights of detention are available in relation to aircraft and unpaid debts? These have defined the relevant market in decisions regarding the aviation sectors as follows: Origin and Destination (O&D) City Pairs. There have been recent developments in relation to Regulation 261 in case law. The requirement for improvement is now uncertain under English law. There are narrow exceptions to this general rule. Fuel is one of the main costs of airline operation (around 30% by some estimates), and any increase has the potential to significantly affect profitability. 3.2 Is there a regime of self-help available to a lessor or a financier of an aircraft if it needs to reacquire possession of the aircraft or enforce any of its rights under the lease/finance agreement? In addition, this Title includes regulations regarding airspace and air traffic. However, it often provides non-conclusive prima facie evidence. 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). The Environment Agency and Natural England are the two bodies with responsibilities in these areas. If so, what are the conditions to such title annexation and can owners and financiers of engines take pre-emptive steps to mitigate the risks? There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple. They are licensed and regulated by the CAA. 4.11 Is there any legislation governing the denial of boarding rights and/or cancelled flights? This was not due to weather or terrorism, but instead an outage of the NOTAM system. The UK GDPR has enhanced notification provisions around data losses and breaches, as well as allowing the relevant data protection regulators the authority to levy significantly increased fines for non-compliance with the provisions of the Regulation. Anthropologies parent entity Urban Outfitters has already been penalized for attempting to make employees work for free, so repeating this might result in a run-in with the law (and for example, fines). Different issues are addressed by different bodies and, in the UK, the following laws and standards apply: The EU ETS and CORSIA are of particular relevance to aircraft owners and financiers in addition to the operators of aircraft affected as they may give rise to certain rights of UK regulators to detain and sell aircraft for failure to comply with the regulations, although it appears that the previous statutory right to do so for failure to pay EU ETS penalties appears to have been removed under the UK ETS. Aviation Law > What environmental factors affect the airline industry? Firstly, the aviation industry has rebounded post-COVID much faster than many anticipated. 2.9 To what extent is there a risk from the perspective of an owner or financier that a lessee of aircraft or other aviation assets in your jurisdiction may acquire an economic interest in the aircraft merely by payment of rent and thereby potentially frustrate any rights to possession or legal ownership or security? This factor creates peer pressure, which has recently boosted the tourism industry. As at the time of writing, the airports website stated that [w]e are currently consulting with investors, government, airline customers and regulators on our next steps. The delay therefore occurred wholly outside the UK. Similarly, the mortgagee of an aircraft registered with the CAA may take peaceful possession of an aircraft following a similar default and it will then, in addition, have the power to sell the relevant aircraft if such power is properly and expressly described in the relevant mortgage agreement. Many of these materials are provided as searchable full-text PDFs. COVID-19 has introduced additional risks to an industry already well used to having to manage them. In order to meet the changing demands of consumers, airlines are required to incorporate changes. 4.7 Are state subsidies available in respect of particular routes? Furthermore, a person or corporate body acquiring an interest is exempt from paying a merger fee if, in its most recent financial year before the time the fee would become payable, it meets the criteria for small or medium-sized enterprises, as defined by reference to certain provisions in the Companies Act 2006. The Passenger Name Record Data and Miscellaneous Amendments Regulations 2018, which came into force on 25 May 2018, implemented the PNR Directive in the UK.
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