legal factors affecting airline industry

This is affecting airlines, airports, and other companies globally - but the situation is particularly acute in Europe and the UK so far. Currently, about 11.3 million people are working in the airline industry, and it also has the potential to create more jobs in the future due to its growth. The government has set up some strict rules and guidelines for the operation of an airline which can ensure the utmost security of the passengers. A joint venture between airline competitors would, therefore, have to satisfy the four exemption criteria of section 9 CA 1998 and (save for where such venture relates to exclusively UK routes or operations) Article 101(3) TFEU. Ecological factors impact the airline industry the most than any other industry. 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. In practice, this is not a commonly used doctrine as there is a very high threshold to prove it. Macroeconomic Factors Affecting Apple Company 2241 Words | 9 Pages. Use EdrawMax Online to create a PESTEL analysis diagram, or create any other diagram with ease! Macroeconomic Environment in Boeing and Airbus - GraduateWay Mhlanga and Steyn (2017) found that South African Airways was ordered to pay more than 104 million Rand in. This is not a short-term problem and nor is it limited to London Heathrow. Force majeure clauses are designed for an event that may occur out of a partys control and which result in a party no longer being able to perform its obligations under the contract. 2021. The Civil Aviation (Chargeable Air Services) (Records) Regulations 2001 govern the format and content of the aircraft movement log, which must be kept at any airport pursuant to section 88 of the Civil Aviation Act 1982. What are the key forces in the general and industry environments that affect Southwest's choice of strategy? They had until the end of September 2021 to apply for equivalent national UK trademark protection. Examples include the legality of pyramid schemes, and laws governing importation and exportation. The leg from Canada to the USA was delayed because of a delay to a previous leg of the aircrafts journey, which was not the one on which the passenger travelled: the passengers flight from the UK to Canada was unaffected. If you are an affiliate of Harvard Law School, you are welcome to contact us at research@law.harvard.edu for additional help. The airline industry has been hit particularly hard, as the number of people flying in the This is a market power test, requiring that there should be effective competition outside of the joint venture. Alike on legal front, air transport is regulated by several laws and regulations. Foreign-domiciled companies may operate in the UK without registering a UK company or branch. 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. Border controls and checks will become more strict, too, with the removal of free movement. Search fees are currently 31 per aircraft and are revised on an annual basis. They have also allegedly stolen designs from merchants on Etsy. It is clear that developments in the data protection space involving the collection, retention, processing and use of personal specifically, PNR data will continue to feature as a major area of concern and focus for airlines and airports in the future, let alone the next two years. Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. Again, permission to appeal is required. 1.4 Is air safety regulated separately for commercial, cargo and private carriers? The data controller may appeal the imposition of a fine to the Information Rights Tribunal. the meaning and effect of Regulation 261 is determined by reference to European case law made before 31 December 2020, but the English courts are able to depart from retained CJEU case law and general principles where they consider it appropriate to do so. 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. Furthermore, there is a new accountability principle in the GDPR which specifically requires data controllers and processors to take responsibility for complying with the principles and to have appropriate processes and records in place to demonstrate that they comply. A patent may be filed online or in hard copy. The UK competition authorities in all likelihood at the present time will follow an analysis similar to that of the CJEU and the EC. The category and level of court to which an appeal is to be made depends on the level of the court making the decision which is being appealed. The price of oil, and aviation fuel with it, has risen significantly since 2020. Any plans are subject to public consultation and the airport would have to apply for a development consent order for this proposal to go ahead. This is a consideration in light of the pandemic, as it is unknown how long the impact to the aviation industry will continue, and it may become clearer over time whether parties are able to rely on this. Further guidance on the requirements for registration of aircraft on the United Kingdom Register of Civil Aircraft is available at www.caa.co.uk. State of the U.S. With regard to non-overlapping block space and interlining agreements, these are viewed by EU regulators as pro-competitive and have been accepted subject to commitments by the EC in several merger clearance decisions pursuant to Regulation 139/2004 (please see: Air France/KLM, Case COMP/M. As regards favourable tax treatment on the disposal of aircraft, no particular tax rules or regulations apply at present, although the effects of such taxation can be optimised by thoughtful tax planning strategies. There is no domestic legislation prohibiting the detention of commercial transport aircraft. No, there are no sector-specific rules applying to aviation. It requires more systematic collection, use and retention of PNR data on air passengers, and therefore has an impact on the rights to privacy and data protection. Pestle Analysis of Virgin Atlantic Airline - GradesFixer In February 2011, the EC also opened an investigation on the codeshare arrangement between Brussels Airlines and TAP Air Portugal, which is still ongoing. All these economic factors resulted in increased bankruptcies of major airline companies. The impact of aviation on the environment has also continued to be discussed more widely this year, and has featured in cases such as the proposed Heathrow expansion. In addition, the CAA advises the UK Government on aviation issues, represents consumer interests, conducts economic and scientific research and produces statistical data. A search of the United Kingdom Aircraft Mortgage Register for entries registered against relevant aircraft can be made by submitting a CAA Form CA350 (obtained from www.caa.co.uk) to the CAA. There are domestic and international flights. The priority notice remains valid for 14 working days from and including the date of entry, and during this period either the relevant aircraft mortgage must be registered or a further priority notice entered. The external factors impacting airline profits - Outside Insight Interestingly, the coronavirus pandemic is thought to have encouraged this new proposal, as there have been calls to reform air traffic management in order to make it easier to adapt traffic capacities in accordance with demand (or a lack of, as has been the case during the pandemic). 3280, paragraph 158 (j); Lufthansa/SNAirholdings, Case COMP/M. The airline companies must be well aware of them and abide by those rules to avoid legal proceedings. 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 Civil Aviation Act 1982 and the Air Navigation Order 2009 stipulate that where an aerodrome is open for public use, the aerodrome must be available to all, on equal terms, whether they are foreign or domestic carriers. And according to the research and analysing, economy factors and political factors might be the two key drivers. Yes. If you want to analyze the situation in which a business finds itself, environmental analysis is a great place to start. However, it is possible, and will in many cases be advisable, to notify the CMA, since if a merger may result in a substantial lessening of competition in the UK market, failure to obtain prior clearance risks a reference to a more in-depth investigation and analysis by the CMA (known as a Phase 2 investigation), with the possible consequences described below, which may include a requirement that the purchaser divests. 4.15 What global distribution suppliers (GDSs) operate in your jurisdiction? The risk of cyber terrorism or data attacks is a real threat these days. Pledges to half carbon emissions are leading to changes in aircraft technology, fuel, and even aircraft tracking and spacing. 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. Fla. 2021). These are the macroeconomic factors that can affect a company's performance. Like other industries, airline industries are also get affected by social conditions. Heathrow Airport Ltd has stated that they still wish to construct the runway, despite the coronavirus pandemic and, in January 2021, the Supreme Court reversed the Court of Appeals decision that the planned expansion of Heathrow Airport was unlawful on climate change grounds, and determined that the UK Government had taken proper account of the UKs climate change commitments. 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. Also, you can find substantial PESTEL templates in our template community to have a quick start. The reason for this is because the airline industry has a major role to play . Pirates of the Caribbean Series In June 2018, Parliament approved the plans for the third runway at Heathrow. 1.2 What are the steps which air carriers need to take in order to obtain an operating licence? In order for the licence to be granted, the CAA must be satisfied that the applicant fulfils the conditions set out in EU Regulation 1008/2008, including that: 1.3 What are the principal pieces of legislation in your jurisdiction which govern air safety, and who administers air safety? This is broadly the position also in relation to VAT applicable to the importation of aircraft into the United Kingdom, except where the aircraft has been imported previously into a Member State of the EU and is classified to be in free circulation for customs purposes. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. Ch 3 Strategic Management Flashcards | Quizlet However, in February 2020, the Court of Appeal ruled that the UK Government had failed to assess the impact of the expansion on international climate change agreements, notably the 2016 Paris Agreement. Failing to be tech-savvy can result in loss of clients. Source: HeinOnline subscription database. The rates of APD . At the national level, codeshare cases were investigated by the Italian National Competition Authority (see the Alitalia/Volare case and the Alitalia/Meridiana case). The labor problems threaten to limit revenue growth if carriers are forced to cancel routes or reduce frequency. 'A Concise PEST Analysis for Airline Industry', PESTLE Analysis, [online]. Get 22% Off before it's gone >>, https://pestleanalysis.com/pest-analysis-for-airline-industry/, https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html, https://notesmatic.com/airlines-industry-pestel/, https://www.marketingtutor.net/airline-industry-pestle-analysis/, https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry, The Complete Guide To Understand IDEF Diagram. PROFILE OF THE FILIPINO MARKET Population 95.8M Area 298,170 sq km GDP per Capita USD 2,614 Tourists Arrivals 4.3M Domestic Air Passengers Int'l Air 20.6M Passengers 16.7M LCC Penetration Rate (Domestic) 78.40% LCC Penetration Rate (Int'l) 28.30%. (d) the agreement should not eliminate effective competition. Recent Reforms Affecting Australia Airlines - LawTeacher.net India got its first airline in 1932. There are many laws devised for air traffic and the safety and security of passengers. Pratap, A., 2021. The rising cost of oil and other necessary machines can impact the airline industry. These factors include demographic, socio-cultural, economic, political-legal and also the natural factors. Southwest Airlines Co. PESTEL & Environment Analysis any rights and interests existing prior to ratification of the CTC will retain their priority without the need for registration. There is growing political instability in the Middle East and Asia too. There are complications as well for pilots. In most countries, there are strict regulations for the aviation industry. If so, what obligations, broadly speaking, are imposed on the airport authorities? The CAA regulates all aviation activity (apart from military). This type of application may be made without notice to the operator of the relevant aircraft if the mortgagee or the lessor (as the case may be) can demonstrate the urgency of the matter to the court in accordance with the applicable Civil Procedure Rules. Aviation Laws and Regulations Report 2022-2023 USA These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). Travelport, Amadeus, Sabre, etc. As with all other UK businesses, airports have to meet legislative standards in relation to water quality, waste and protecting the natural environment. Nevertheless, for the time being the United Kingdom is signatory to a number of Double Tax Treaties with other nations, the effect of which varies but which typically reduces the rate of withholding taxes payable in various jurisdictions of tax residency on outbound operating lease and finance lease rentals, as well as loan repayment interest, connected with the financing of aircraft assets. Type B operating licences may also be granted to operators of larger aircraft with a limited scope of activity. There are various pieces of legislation that must be adhered to in relation to noise. The CAA will then confirm, in writing, to the applicant once an aircraft mortgage registration application is successful. It can be debated that several political factors such as taxation policies, labor low, customer policies and trade restrictions forced by the government have a great . PESTLE analysis is the perfect tool to analyze the impact of the macroeconomic variables mentioned above on a company. Requests from the airport for airlines to restrict ticket sales were not well made. As for the disasters and accidents, on most occasions, Airlines are held responsible. A further 6 million was removed due to British Airways response to the breach, and a 4 million reduction due to the ICOs updated regulatory approach in response to coronavirus, which aims to take into consideration the impact of the coronavirus pandemic and the present economic situation on the economic situation on the organisation. No company wants the publicity that goes with disruptive passengers, abuses of staff, and emergency situations affecting flights. AirlinesAutomotiveBlockchain TechnologyConsumer ProductsCosmeticsCryptocurrencyCybersecurityDigital ArtsDigital MarketingEcommerceEnergyFashionLuxury BrandsHealth TechnologyProfessional ServicesReal Estate DevelopersRestaurantsRetailSoftwareSporting GoodsTechnologyTelecommunications. Looking wider, the impact is being felt, Since the retirement of Concorde, the area of commercial supersonic flight has remained quiet. Oil prices hit a 13-year high in March 2022, although they has fallen back since then. Operation of Air Services in the Community Regulations 2009 Statutory Instrument No 41 2009. Government regulation regarding airport security, emissions and taxes is one of top issues negatively impacting global airlines' revenues over the next 18 months. Speaking in July about the Heathrow cuts, CEO John Holland-Kaye was honest about the problems. Chief among these reforms would be the decentralisation for the early 90s . 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. The Court will only intervene if the arbitrators decision is obviously wrong or the question is one of general public importance and the decision of the tribunal is at least open to serious doubt. The principal legislation relating to investigation of air accidents includes: The AAIB has the power to require the detention and preservation of evidence, and has powers of enquiry. The significant distinction between the doctrines of force majeure and frustration is that frustration ends the entirety of the contract, whereas force majeure may discharge a party from a standalone obligation. Generating Better Profit Margin for an Airline Industry - SpendEdge The CAA is responsible for administering air safety on a day-to-day basis, in its own capacity and for and on behalf of EASA. Terrorism likewise remains a threat, and the risk increases with more political instability. The CMA has a wide range of powers, including to prevent the merger proceeding or divestment if the proceeding has already taken place. Databases may be protected by copyright and/or database rights. The impact of the economic crisis has affected the operation of Airline industry and has drastically reduced its earnings and revenues. This includes what is intended to happen with the aircraft or aviation asset following a default by the lessee, and there is little prospect of a lessee successfully arguing that it has inadvertently obtained an interest in the property of a third party. 160,000, where the UK turnover is over 120 million. The relevant market may vary according to the type of passengers: premium and non-premium passengers; or time-sensitive and non-time-sensitive passengers. Trademarks, patents and designs are registrable with the IPO. 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. No. Liens are not registrable. The AAIB is an independent part of the Department for Transport. EU Regulation 376/2014 on the investigation and prevention of accidents and incidents in civil aviation. For this purpose, cross-sectional data analysis was applied, and the test was performed on Turkey. PESTEL analysis airline industry can show how legal issues can impact their business: The PESTEL analysis airline industry shows how the business has a broad scope for growth with a few minor negative issues. Emirates airlines and Middle East aviation system will face strong challenges with global aviation during the coming years. , . The airline companies are all about hospitality and services. The limits of liability for air carriers pursuant to the Montreal Convention have been subsequently amended by way of the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2009. 'A PESTLE analysis of the aviation industry', notesmatic, [online]. 2.8 Does your jurisdiction make use of any taxation benefits which enhance aircraft trading and leasing (either in-bound or out-bound leasing), for example access to an extensive network of Double Tax Treaties or similar, or favourable tax treatment on the disposal of aircraft? There is no right of appeal to the courts on a question of fact. The market definition for airports is based on a catchment area of airports considered substitutable by passengers. Nous, Yahoo, faisons partie de la famille de marques Yahoo. Among the changes to data protection legislation implemented via the GDPR, some key points include: i) requiring freely given, specific, informed and unambiguous consent from a data subject which must be as easy to withdraw as it is to give; ii) the provision of clear and unambiguous information regarding what the data is to be used for, how long it is to be used for and the requirement to set out exactly what the data subjects rights are in relation to the personal data they provide; iii) maximum fines for breach of the GDPR are the higher of 4% of annual global turnover or 20 million; iv) requiring organisations which engage in regular and systematic monitoring of data subjects on a large scale to appoint a data protection officer (also known as a DPO); and v) the requirement for those processing personal data to be accountable and provide adequate technical and organisational measures to protect any personal data held. 1.9 What legislative and/or regulatory regime applies to air accidents? The closure of airspace has also given many operators flight planning issues and increased operating costs. This process involves huge finances; however, airlines cannot even compromise because even the passengers are held accountable for their carbon footprint. As a Regulation, it has direct effect in each EU Member State as well as the Member States of the European Economic Area (EEA). The airlines need to improve their systems and flights to decrease harmful emissions. Certified copies of the entries on the Mortgage Register are available at 31 per aircraft. Available at: https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry (Accessed 21 June 2021).

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