Copyright 2023 Market Realist. Passengers now prefer to access ticketing and check-in services through their hand-held devices instead of forming a line or booking manually. Government policies directly affect the airline 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. Airline operations traverse wide geographic areas and are affected by policies imposed by governments at all levels local, national and international. 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. Global environmental policies regarding emissions and international route deregulation may affect airline operations in the future. Materials from the ProQuest Legislative Insight subscription database. As a result, they require government intervention. Legal Factors To operate in a society, a business must abide by laws. One such example is a PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) framework which is discussed below. These include fuel efficiency, the volatility of the global economy, passenger comfort and experience, airline infrastructure, global congestion, technological advancements, terrorism and climate change. People may receive compensation for some links to products and services on this website. Its also impacted byissues likewar, terrorism, and the outbreak of diseasessuch as Ebola. As the single most important cost, policies affecting both fuel supply and price greatly affect airline viability. The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. The passenger airline industry is affected by the following factors. Airline manufacturers praised the rule. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. Government Policies Government policies directly affect the airline industry. In addition, this Title includes regulations regarding airspace and air traffic. Source: HeinOnline subscription database. Discrimination law Copyright, patents / Intellectual property law Consumer protection and e-commerce Employment law Health and safety law Data Protection 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. 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). We reserve the right to block IP addresses that submit excessive requests. These include fuel efficiency, Critics say the proposal does little more than codify a set of standards largely created by the aviation industry itself. Please declare your traffic by updating your user agent to include company specific information. For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. This
In this section, we will have a look at the external factors affecting companies in the airline industry. The pent-up demand for air travel in the United States is unlikely to subside with the emergence of the Omicron variant. To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. Analysts and environmentalists said the neither the existing United Nations standard nor its formal adoption by the United States would do anything to lower aviation emissions because the airline industry met that standard years ago. These issues are political. As a result, they require government intervention. 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. Financial impact of September 11, 2001, on the airline industry As a subscriber, you have 10 gift articles to give each month. Researching of Transportation looking into practices of travel websites and question of whether flight information is proprietary and protectable by the airlines. The links below are to sources related to this topic that are available in the Westlaw subscription legal research database. Consumer protection legislation requiring airlines to limit tarmac time during weather delays increases the flight cancellation rate, decreasing revenue. 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. We rely on our journalists to be independent observers. A forecast update on the global commercial airline fleet and aftermarket for 2022. Now passengers prefer those airlines which are providing extended services at low fares. voted to repeal a Department of Labor rule, antiquated systems to connect new sources of electricity, 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. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. 2023 Oliver Wyman, LLC. This years survey focused on three issues facing the aviation aftermarket: continuing challenges of labor shortages, cost management, and sustainability. Litigation and Dispute Resolution 4. Andrew Wheeler, the E.P.A. Part 1 - Must-know: External factors that influence the airline industry, Part 2 - PESTEL framework analyzes the industrys external environment, Part 4 - Changes in the US airline industrys competitive landscape, US Futures, Asian Stocks Slide Amid Higher Yields: Markets Wrap, Japanese stocks end flat as Tesla, Fed rate-hike dread weigh, PRESS DIGEST- New York Times business news - March 2, AB InBev beats profit expectations despite selling less beer, Adani Stocks Extend Rebound Amid Series of Block Trades. 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. Below is a list of selected treatises on this topic that are available from the collections of the Harvard Library. Political and legal factors that impact the airline industry. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. Click a link to view its search results. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. Various countries enact labor laws that mandate generous benefits. Offers may be subject to change without notice. But those emissions are projected to triple by 2050, according to the International Civil Aviation Organization. Note: We do not offer technical support for developing or debugging scripted downloading processes. 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