This is mainly because Economic Factors. means that reaching carbon neutrality in 2050 means acting today. In order to meet the changing demands of consumers, airlines are required to incorporate changes. 1001 and 1030). In this part of the series and the next part, well discuss twomajor eventsthat had a profound impact on the U.S. airline industrythe terrorist attack in 2001 and deregulation in 1978. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. WebDemand for air travel is also affected by factors such as economic conditions, war or the threat of war, fare levels and weather conditions. With the signature of the Glasgow Declaration on Climate Action, a new gold standard for tourism leaders, holds the pledge of more than 100 travel companies to deliver towards decarbonisation by 2050 and halve current CO2 emissions by 2030. The endangerment finding did not include the details of a regulation, but it set off a legal requirement under the Clean Air Act for the E.P.A. This is the third time in the past two years that this administration has taken major action to regulate greenhouse gases in a way that is legally defensible, reduces CO2 and protects American jobs, Andrew Wheeler, the head of the Environmental Protection Agency, said on a telephone call with reporters Wednesday morning. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). This means that reaching carbon neutrality in 2050 means acting today. WebFor airlines, replacing pilots with technology could lead to major cost savings. Automation is yet another factor affecting the airline industry as people make use of Skype features or hold a conference call instead of travelling. Feedback on this guide is welcome. Jeff holds a Bachelor of Science in journalism from Northwestern University and a Master of Business Administration in marketing from the University of Chicago. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). Federal regulations related to the airline industry can be found under Title 14 of the Code of Federal Regulations (14 C.F.R.) Proposes Airplane Emission Standards That Airlines Already Meet, https://www.nytimes.com/2020/07/22/climate/airplanes-climate-change.html. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. Note: In HOLLIS, you can limit a search results list, such as by type of resource, date, or holding library, by using the filtering options on the right side of the screen. WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. Revenue per available seat mile (RASM), Global Fleet & MRO Market Forecast 20222032. If you are an affiliate of Harvard Law School, you are welcome to contact us at research@law.harvard.edu for additional help. A former Blue Book trainee of the European Commission, Marta has a keen interest in EU and global affairs, and experience in reporting and interpreting information. Financial impact of September 11, 2001, on the airline industry. WebCommon legal issues faced in the airline industry include: Commercial and regulatory issues in connection with Federal Aviation Authority (FAA), Department of Transportation (DOT), President Trump is still pressing forward on his three-and-a-half-year rollback of environmental standards, and the proposed airline rule would stave off an impending lawsuit by putting the federal government in compliance with a legal requirement that it regulate airplane greenhouse emissions. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. Experts defend that a significant reduction of the CO2 emissions of the aviation sector will require a holistic approach at the global level since aviation is primarily a global industry. We reserve the right to block IP addresses that submit excessive requests. The letter L in the word This process involves huge finances; however, airlines cannot even compromise because even the passengers are held accountable for their carbon footprint. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. In most countries, there are strict regulations for the aviation industry. to establish a rule. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. This section specifically discusses the US law of air transport. 2023 Oliver Wyman, LLC. Blog authored by Klemchuk LLP, a patent law firm. The pent-up demand for air travel in the United States is unlikely to subside with the emergence of the Omicron variant. 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. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. In addition, this Title includes regulations regarding airspace and air traffic. Fiscal policies such as excise taxes on airline tickets increase consumer prices, and that affects demand. Weve uncovered eight burgeoning archetypes, surfaced through industry-leading research, that provoke disruptions in the way the world thinks and what it values. Political factors Political factors affecting the airline industry refer to a variety of government interventions that 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. That plan required a 4-percent reduction in fuel consumption of new aircraft starting in 2028 compared with 2015 deliveries. 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/). Financially weak carriers even went into bankruptcy during the period. 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. 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. Moreover, airlines also struggled with increasing labour demands from the part of employees. 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. These issues are political. Well Mulder E (2015) A PEST analysis of external factors that affect the airline industry. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. This is a major obstacle as airlines will start losing customers in areas that have high-security threats. For more information on how we can assist with airline industry legal issues please contact us. Materials from the ProQuest Legislative Insight subscription database. Air travel accounts for about 2.5 percent of global carbon dioxide emissions, a far smaller share than emissions from passenger cars or power plants. 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. These include supply decisions by oil suppliers, refinery expansion by oil companies and government decisions to open offshore drilling and fund alternate fuel research. Stimulus checks to consumers provide discretionary income, which increases demand for vacations and air travel. Publishers sometimes publish a series of books on a single topic. Its also impacted by issues like Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. Challenges prior to the Covid-19 era cope up with the increasing fuel prices ) PEST... 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