Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. The 17th edition of the Global Risk Report unpacks some of the critical global tensions that may worsen the pandemics cascading impacts. 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. 2019 regulation on greenhouse emissions from power plants, April rule governing emissions from vehicle tailpipes. Materials from the ProQuest Legislative Insight subscription database. If you are an affiliate of Harvard Law School, you are welcome to contact us at research@law.harvard.edu for additional help. 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. Two important macro-environmental factors that may affect an organisation in the airlines industry are Economic and Technological factors. For more information on how we can assist with airline industry legal issues please contact us. 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? The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). In the medium run, airline companies face two uncertainties: The cost of health-related measures. All companies in the airline industryincluding the top U.S. companies like Delta (DAL), United (UAL), American (AAL), Southwest (LUV) and JetBlue (JBLU)were negatively impacted by the 2001 terror attack. 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. There are many laws devised for air traffic and the safety and security of passengers. Discrimination law Copyright, patents / Intellectual property law Consumer protection and e-commerce Employment law Health and safety law Data Protection In Future 1. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. 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. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. 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. Its also impacted byissues likewar, terrorism, and the outbreak of diseasessuch as Ebola. 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. Copyright 2023 Market Realist. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). Add me to Travel Tomorrow's mailing list. Informative and inspiring worldwide coverage. For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. Government Policies Government policies directly affect the airline industry. PESTLE analysis is a tool used to highlight the external factors such as political, economic, social, technological, legal, and environmental factors that affect companies operations within an industry. Itreported its first profit of $5 billion in 2006 after four consecutive years of losses. The recent economic recession made the travel market to see its lowest period. 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. Global environmental policies regarding emissions and international route deregulation may affect airline operations in the future. 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. People may receive compensation for some links to products and services on this website. Its also impacted by issues like war, terrorism, and the outbreak of diseasessuch as Ebola. He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. 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. They dont require any meaningful emissions reductions.. Click a link to view its search results. We rely on our journalists to be independent observers. 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. Last October, the International Air Transport Association (IATA), passed a resolution in support of net-zero carbon emissions by 2050 during its annual meeting. In most countries, there are strict regulations for the aviation industry. AirlinesAutomotiveBlockchain TechnologyConsumer ProductsCosmeticsCryptocurrencyCybersecurityDigital ArtsDigital MarketingEcommerceEnergyFashionLuxury BrandsHealth TechnologyProfessional ServicesReal Estate DevelopersRestaurantsRetailSoftwareSporting GoodsTechnologyTelecommunications. In 2001, the global airline industry recorded losses of $13 billion. Source: HeinOnline subscription database. In October, Air New Zealand became one of the highest-profile airlines to announce a passenger mandate, a necessary requisite as of February 2022. Financial impact of September 11, 2001, on the airline industry. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. Please declare your traffic by updating your user agent to include company specific information. The loud and clear message I heard from the airline industry was to implement that standard, Mr. Wheeler said. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). Economic factors have a deep influence on the airline industry. Commercial and Regulatory 5. Feedback on this guide is welcome. 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. Ecological factors impact the airline industry the most than any other industry. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. In addition, demand for air travel at Both economy and premium travelling declined. Global commitments are preferred over regional initiatives to ensure the competitiveness of the aviation sector and its supply of fuel. Revenue per available seat mile (RASM), Global Fleet & MRO Market Forecast 20222032. In this section, we will have a look at the external factors affecting companies in the airline industry. Other pledges were put forward during the Glasgow Conference in late 2021. Regulatory Bodies The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Book records in the HOLLIS library catalog generally include one or more Library of Congress Subject Headings (LCSH) (https://www.loc.gov/aba/cataloging/subject/). That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. This section specifically discusses the US law of air transport. Critics say the proposal does little more than codify a set of standards largely created by the aviation industry itself. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. means that reaching carbon neutrality in 2050 means acting today. 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. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. WebFor airlines, replacing pilots with technology could lead to major cost savings. 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. Operating costs are likely to increase in the short-run for both Therefore, legal factors can impact a business to a great extent. The links below are to pre-populated searches of the HOLLIS catalog by LCSH keyword. Airline operations traverse wide geographic areas and are affected by policies imposed by governments at all levels local, national and international. 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.. Fuel is a very major expenditure of the industry and airlines are required to invest more in environmentally friendly and fuel-efficient aircraft. 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. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. 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. Political factors Political factors affecting the airline industry refer to a variety of government interventions that Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. Dept. Those standards are just a joke, said Clare Lakewood, an attorney with the Center for Biological Diversity, an advocacy group. Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. All Rights Reserved. Government policies directly affect the airline industry. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Entering the new year, the aviation industry faces considerable challenges and risks ahead. 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. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. As a result, they require government intervention. Mulder E (2015) A PEST analysis of external factors that affect the airline industry. The letter L in the word The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. 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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