legal factors affecting airline industry legal factors affecting airline industry

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. Minimum wage laws can limit the various different employment possibilities a company can offer, child labour laws can affect the way tight-knit home businesses in third world countries operate, and dismissal laws can make firing employees (for whatever reason, perhaps unproductivity) that bit harder. SpendEdge. It was formerly known as the Air Transport Association of America (ATA). Regulation 261 establishes common rules on compensation and assistance to be given to passengers in the event of cancellation or long delay. 'PESTLE Analysis of the Global Aviation Industry', PESTLE Analysis, [online]. The once open Russian market is now very restricted and increasingly isolated. Political Factors Affecting Airline Industry Political factors affecting airline industry refer to a variety of government interventions that may hinder or enhance the operations of air transport. A public consultation on the effects of the expansion of Heathrow followed that decision. There is no minimum period for which controllers must hold personal information; rather, they must securely delete personal data when that personal data is no longer necessary for the purposes for which it was collected. It applies to all the people living in the region regardless of their nationalities. Current risks and threats to the aviation industry - Flightworx Looking wider, the impact is being felt, Since the retirement of Concorde, the area of commercial supersonic flight has remained quiet. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of the airline industry. The EU is now pushing ahead with a new proposal being made by the EC on 22 September 2020 for the Single European Sky initiative. Managers have ______ direct influence over external forces in the firm's general environment than those in the firm's task environment. 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. The aviation industry is a rapidly growing sector of the economy. The UK implements the relevant requirements by way of the legislation discussed below. The labor problems threaten to limit revenue growth if carriers are forced to cancel routes or reduce frequency. 40,000, where the UK turnover is less than 20 million; 80,000, where the UK turnover is between 20 million and 70 million; 120,000, where the UK turnover is between 70 million and 120 million; and. The companies can take on some corporate responsibilities and include environment-conscious messages in their campaigns. 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. The airline sought to defend a claim for compensation for delay on the basis that the Captain was unexpectedly unwell and this amounted to extraordinary circumstances. However, where a merger falls outside the turnover thresholds of the EU Merger Control Regulation 139/2004, but falls within the definition of relevant merger situation within the Act (see below), the CMA will have jurisdiction to investigate it within four months of completion or the date it was made public, whichever is later (discussed below). These forms of combined travel are protected as a package under the Directive; in particular, where the travel services are booked at the same time and as part of the same booking process or where they are offered for an inclusive price. The airlines also need to keep an eye on the comfort of the passengers. 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. For the sake of completeness, it should be noted that the Bills of Sale Acts 1878 and 1882 allow seizure of an aircraft (or aviation asset) on the occurrence of certain events of default (as specified in the Acts) relating to a security bill of sale. 1.5 Are air charters regulated separately for commercial, cargo and private carriers? If the CMA believes that a merger has resulted or may be expected to result in a substantial lessening of competition, and satisfactory undertakings cannot be agreed with the parties, the CMA will evaluate the competitive effects of the merger and may, where it believes the merger has or may result in a substantial lessening of competition in the UK market, refer the merger for an in-depth Phase 2 investigation. The CAA regulates all aspects of the aviation industry. 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 acute impact that coronavirus is having on the aviation industry means that pieces of legislation such as Regulation 261/2004 (Regulation 261) have become particularly significant this year. Search fees are currently 31 per aircraft and are revised on an annual basis. 4.12 What powers do the relevant authorities have in relation to the late arrival and departure of flights? When business travel does recover, many expect it to look quite different. 'A PESTLE analysis of the aviation industry', notesmatic, [online]. A party may appeal to the High Court on a question of law arising out of the arbitral award. Note: This book is not available in the Harvard Library collections. Passenger safety is one of the leading legal concerns in the US airline industry. As the global economic recession deepened, financial and economic constraints were negatively affecting the aviation industry in UK. In 2020, the majority of passenger . b) a ground handing company providing, as its primary function, any of the handling services listed in EU Directive 96/67/EC directly to an airport user for scheduled commercial flights at a commercial airport in England for a site or sites located in England. 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. 4.1 How does your jurisdiction approach and regulate joint ventures between airline competitors? There 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 How Air Cargo is Revolutionising the Global Economy, Infrastructure For Sustainable Aviation Fuel, How the Ukraine war is affecting aviation traffic. 4.16 Are there any ownership requirements pertaining to GDSs operating in your jurisdiction? PDF Impacts of the macro environment on airline operations in southern Africa They play a big part in deciding how businesses operate and what profits they receive, as well as how customers behave. A big aspect of their proposal involves further development of electronics. There is no prohibition of vertical integration between air operators and airports. The supreme court of European union has imposed compensation on emirates airlines amounting to million of pounds. To summarise, in order to fly a drone in the UK: 4.14 To what extent does general consumer protection legislation apply to the relationship between the airport operator and the passenger? Aviation in the United Kingdom - Lexology 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. 2.4 As a matter of local law, is there any concept of title annexation, whereby ownership or security interests in a single engine are at risk of automatic transfer or other prejudice when installed on-wing on an aircraft owned by another party? Tensions remain high, and the confined aircraft cabin is never a good place for that. UK Civil Aviation (Investigation of Military Air Accidents at Civil Aerodromes) Regulations 2005. it is to be given a purposive construction taking recitals into account; the process of interpretation includes provisions of international law incorporated into Regulation 261 by reference; and. 2.7 How are the Conventions applied in your jurisdiction? The Civil Aviation Act 1982 provides for a salvage lien on an aircraft where any services are rendered in assisting, or in saving life from, or in saving the cargo or apparel of, an aircraft in or over the sea or any tidal water, or on or over the shores or any tidal waters, according to the national and international regulatory framework of the law of maritime salvage. In certain circumstances, these rights of detention will also include a power of sale of the relevant aircraft, or attach to the rest of the operating fleet of which the aircraft is a part despite different ownership. Since then, a qualifying aircraft must be: i) used by an airline operating for reward chiefly on international routes; or ii) used by a State institution and of a weight of not less than 8,000kg and neither designed nor adapted for use for recreation or pleasure. Indian Laws relating to Airline Industry - Legal Desire The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces. At the time of writing, there is guidance from bodies such as EASA and the CAA on disinfection, quarantine and social distancing. 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. In most instances, the trial judge will be considered best placed to judge the facts of the case. How economic factors affect the aviation industry - Phdessay If you want to analyze the situation in which a business finds itself, environmental analysis is a great place to start. There are narrow exceptions to this general rule. While tourism was mostly seen as a form of wanderlust or bonding experience, today it is a way to express social class and purchasing power through social media. in respect of maintenance or repair of the aircraft or in respect of an unpaid purchase price for the aircraft) has been satisfied. 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? 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. In addition, the Airport and Ground Operations Support Scheme (AGOSS) to fund certain essential payments is available to: a) a commercial airport situated within England with a valid commercial licence from no later than 27 October 2021 that operated at least 12 scheduled commercial passenger flights in 2019; and. Here are a few ecological issues that can potentially affect the airline industry: Though the legal issues may not have much to do directly with the growth of airline companies, indirectly, it can severely impact their business. For financial years beginning on or after 1 January 2016 and, if the directors of the acquirer so decided, financial years beginning on or after 1 January 2015, the acquirer qualifies as small or medium-sized if it, or the group of which it is a member (as defined in section 474 of the Companies Act 2006), has satisfied certain criteria laid down by the CMA (which is more fully detailed in the relevant section of the government website: www.gov.uk). Government policies directly affect the airline industry. 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. Anyone travelling in 2022 will likely have seen issues with staff shortages. The European Aviation Safety Agency (EASA) has authority in respect of aviation safety regulation within European Union (EU) Member States pursuant to Regulations having direct application (see Regulation 216/2008). The data controller remains legally responsible for the processing of personal data by the data processor. The definition of a serious irregularity includes exceeding the arbitrators powers, failure to comply with the general duties imposed on the arbitrator or failure to deal with all the issues. 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. , . Analysis of Singapore airlines on various factors Source: HeinOnline subscription database. Another political factor influencing the tourism industry worldwide is tax incentives. AirlinesAutomotiveBlockchain TechnologyConsumer ProductsCosmeticsCryptocurrencyCybersecurityDigital ArtsDigital MarketingEcommerceEnergyFashionLuxury BrandsHealth TechnologyProfessional ServicesReal Estate DevelopersRestaurantsRetailSoftwareSporting GoodsTechnologyTelecommunications. In this series we'll use the Political, Economic, Social, Technological, Environmental, and. Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors. We will discuss each of them below through PEST analysis it is a useful tool that help to understand the industry situation as a whole. PESTEL Analysis of the Airline Industry Sample Essay It is also worth being mindful of the role that Artificial Intelligence (AI) may play in the future of the aviation industry. 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. 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. There is growing political instability in the Middle East and Asia too. Shaw, A., 2021. 5.1 In your opinion, which pending legislative or regulatory changes (if any), or potential developments affecting the aviation industry more generally in your jurisdiction, are likely to feature or be worthy of attention in the next two years or so? All these economic factors resulted in increased bankruptcies of major airline companies. No, there are no sector-specific rules applying to aviation. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. It will also give them an opportunity of getting investors. where the value of the turnover in the UK of the enterprise being taken over exceeds 70 million. The rules help to protect the environment and to ensure the safety of the passengers. However, in dealing with the concerns of mortgagees, it is possible to seek to manage the risks of detention and sale of a registered aircraft by way of contractual obligations of owners and operators limiting the creation of liens to permitted liens. Thereafter, permission may be sought directly from the appeal court. The principles of financing and leasing (whether operating or finance leasing) are well established under English law and particularly in the case of clearly-drafted agreements setting out the basis for acquisition of title in an aircraft or other aviation assets. This exception does not apply if the merger parties notified the acquisition by submitting a merger notice. 4.15 What global distribution suppliers (GDSs) operate in your jurisdiction? 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. Pursuant to the UK domestic legislation the Civil Aviation (Denied Boarding, Compensation and Assistance) Regulations 2005 the CAA is empowered to pursue enforcement proceedings against an airline for non-compliance with the European rules. On the other hand, consumer law in itself makes a business for some private watchdog companies. The relevant aircraft mortgage, once registered with the CAA, will then take its priority from the date of registration of the original priority notice. The change was outside the parties control. Finally, and notwithstanding the foregoing, it is important to acknowledge that Brexit has granted the UK some autonomy to apply its own rules and regulations independent of the EC. Around the world, the number of people flying increased by 6.6% in 2017. Much of this is related to mask-wearing, but other continuing restrictions are causing upset to passengers. All the major GDSs operate in the UK, e.g. The claimant must file at court a notice with the claim form, containing a statement of the grounds on which it is entitled to serve the claim form out of the jurisdiction. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. 2.1 Does registration of ownership in the aircraft register constitute proof of ownership? 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%. Failure to install, maintain and use the proper equipment to enable aircraft to take off and land safely will attract liability, and there may be liability to passengers of aircraft which crash if there is a failure to have or to use adequate rescue equipment. Department of Transportation and Federal Aviation Administration are the main regulatory bodies that oversee airline operations and related laws.