Additionally, technology also means that aircraft are lighter which provide speed and fuel economy. 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). Frustration of a contract will only occur if: If frustration is proven, it results in the contract ending immediately and all outstanding obligations being discharged. 2.1 Does registration of ownership in the aircraft register constitute proof of ownership? The past few years have seen increasing levels of flight disruption due to extreme weather events, and more of this remains a real risk.Changing wind patterns will also lead to more turbulent flights and potentially more complex flight planning. The General Data Protection Regulation (Regulation 2016/679) (the GDPR), the UK GDPR (as incorporated into UK law via the European Union (Withdrawal) Act of 2018) and the UK Data Protection Act 2018 (DPA 2018) govern the collection and use of personal data in the UK. In a similar vein, in October 2017 the Court of Appeal rejected Emirates arguments and held that non-EU airlines are liable under Regulation 261 where a flight departing from the UK is delayed by at least three hours at the final destination, as a result of a missed connection outside Europe (Gahan/Buckley v Emirates [2017] EWCA Civ 1530). Social factors have a profound impact on businesses, as well as the overall marketplace. 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? The Civil Aviation Act 2012 has introduced a new system of economic regulation of airport operators. Proposals to amend Regulation 261 have been under consideration for several years but remain to be finalised. 1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports? The data controller may appeal the imposition of a fine to the Information Rights Tribunal. Political environment. The Court analysed the position under English law and overruled the defendants submission that Lipton v BA City Flyer was wrongly decided insofar as claims decided after the end of the transition period should be decided on the basis of Regulation 261 as amended by the 2019 Amendment Regulations. Civil Aviation (Access to Air Travel for Disabled Persons and Persons of Reduced Mobility) Regulations 2007 Statutory Instrument No 1895 2007. Like most other businesses, the airline industry is also affected by the nation's unstable political condition. As for the disasters and accidents, on most occasions, Airlines are held responsible. Speaking in July about the Heathrow cuts, CEO John Holland-Kaye was honest about the problems. Cutting off the problems before they arise will be a growing focus of many airlines. Materials from the ProQuest Legislative Insight subscription database. Intellectual Property LitigationBusiness LitigationCorporate & CommercialPatentsTrademarks, Technology & DataSoftware & CopyrightsAnti-Counterfeiting & EnforcementInternet & E-CommerceInternational Business, 8150 N Central Expressway 10th Floor Dallas, Texas 75206 | Principal Office - Dallas, TexasCopyright Policy | Disclaimer | Privacy Policy | Terms of Use, Airline Industry Legal Issues Services Banner, Airline Industry Legal Issues Services Main, Courts Divided Over .Com Trademark Registrations, Tough Time Flying? Where an individual has suffered material or non-material damage due to a data controllers breach of the UK GDPR, that individual is entitled to claim compensation from the data controller or processor. Fuel is one of the main costs of airline operation (around 30% by some estimates), and any increase has the potential to significantly affect profitability. The impact of a government shutdown likely was never a top concern for airline risk managers before, but the recent 35-day shutdown the longest in history made clear that a non-functioning federal government has big implications for airline safety, efficiency and profitability. In this series we'll use the Political, Economic, Social, Technological, Environmental, and. It does allow the exercise of extant (or existing) rights to repossess chattels such as aircraft and aviation assets without the need for a court order, however there are conditions to that and a person seeking to exercise rights on this basis can only do so peaceably and lawfully. There are some short waivers in place, but the impact is getting closer. In practice, this is not a commonly used doctrine as there is a very high threshold to prove it. 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. 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 CMA has an administrative (non-binding) timetable, to which it usually adheres, to take a decision on a notified merger within 40 working days of receiving a complete notification. The Air Passenger Rights and Air Travel Organisers Licencing (Amendment) (EU Exit) Regulations 2019 will directly transpose Regulation 261 into English law. Moving away from COVID, there are, of course, other factors to consider. The coronavirus pandemic will continue to impact the aviation industry, as legislation and regulatory guidance will develop in order to adapt to the new world that we are now facing. Considering the vast regions that many airlines operate, the business environment is often regulated by on the political atmosphere in a particular market. Looking slightly ahead, several other new aircraft are coming onto the market. The UK has left the European Union (EU), but there is still plenty of related disruption to sort out. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. India got its first airline in 1932. The technical issues, and subsequent grounding, of the Boeing 737 MAX is a very good example of this. The limited case law in English law, which applies as precedent to the matter of the priority of aircraft liens and statutory detention rights, suggests strongly that an aircraft lien or statutory detention right will take priority over a registered aircraft mortgage. There are several reasons for this. The state of the airline industry is strong. There are three factors that cause financial problem for airline industry: fuel price, interest rate, currency rate. 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. Government Policies. Civil Aviation (Denied Boarding, Compensation and Assistance) Regulations 2005 Statutory Instrument No 975 2005. The court will serve the claim form (subject to certain exceptions, for example, where the claimant has notified the court that the claimant wishes to serve it). An appeal to the Supreme Court followed, and the judgment to that appeal was delivered on 15 January 2021. T he airline industry will wear the scars of the coronavirus pandemic for a very long time.. On 19 March, Qantas announced it was grounding its entire international fleet. On 2 December 2015, a provisional deal was reached by the European Parliament and Council on an EU Directive regulating the use of Passenger Name Record (PNR) data for the prevention, detection, investigation and prosecution of terrorist offences and serious crime, and was endorsed by the Civil Liberties, Justice and Home Affairs Committee on 10 December 2015. The UK has an Intellectual Property Office (IPO). 3.2 Is there a regime of self-help available to a lessor or a financier of an aircraft if it needs to reacquire possession of the aircraft or enforce any of its rights under the lease/finance agreement? In addition, on 27 October 2016 the Commission closed an investigation it had opened in February 2011 on free-flow parallel hub-to-hub codeshare arrangements between Lufthansa and Turkish Airlines, finding: that Lufthansa and Turkish Airlines did not have full marketing rights to each others seat inventory; that they applied differing pricing strategies; and that the codeshare accounted for only a marginal share of the parties sales on the relevant routes. The concept of force majeure is closely linked to the concept of frustration. The Court of Appeal found that availability of airline crew was inherent in the airlines operations and absence for sickness, regardless of whether that occurred before or whilst on duty, did not amount to an extraordinary circumstance. The UK has a relatively low threshold of originality for a work to be considered an original work which is protected by copyright. However, there is often a provision for the contractual obligations to be terminated if a force majeure event continues for a certain amount of time. Since the end of the 1980s many reforms have affected the industry, transforming it from the rigid government mandated duopoly of the 80s into the relatively open market that exists today. Under the Civil Aviation Act 1982, the person managing or owning an aerodrome may detain an aircraft where its operator has not paid the applicable airport charges in respect of that aircraft, or of any other aircraft, which that operator operates. EU Regulation 376/2014 on the investigation and prevention of accidents and incidents in civil aviation. A change in circumstances has occurred after the contract was formed. In case you havent already, be sure to read up on Political Factors, Economic Factors, Social Factors, Technological Factors, and Environmental Factors before continuing on. The Secretary of State has statutory powers relating to aviation security (see, for example, the Aviation and Maritime Security Act 1990). Eight insurers had some of their policy wording considered by the court. 1.11 Are there any specifically environment-related obligations or risks for aircraft owners, airlines, financiers, or airports in your jurisdiction, and to what extent is your jurisdiction a participant in (a) the EU Emissions Trading System (EU ETS) or a national equivalent, and (b) ICAOs Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)? costs savings through joint operations or improved services); (b) consumers should receive a fair share of those benefits (e.g. Thereafter, permission may be sought directly from the appeal court. 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. Airline companies face similar legal issues as businesses in theAutomotive, Technology, and Retailindustries. 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. The availability and costs of aviation fuel remain one of the major economic factors affecting the airline industry for decades. Restrictions should be proportionate; and. Otherwise, they may see a sharp decline in passenger numbers. If so, what are the conditions to such title annexation and can owners and financiers of engines take pre-emptive steps to mitigate the risks? Issues regarding payment entirely depend on the drafting of the clause. In addition, local authorities play a role at the local level, as do various governmental agencies and bodies such as the Environment Agency and Natural England; and. As with all other UK businesses, airports have to meet legislative standards in relation to water quality, waste and protecting the natural environment. Does this depend on the value of the dispute? These clauses have to be read extremely closely in order to determine whether they enable a party to suspend their obligations. 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. The impact of the economic crisis has affected the operation of Airline industry and has drastically reduced its earnings and revenues. In a connected world, conflicts can have more far-reaching effects too. 'A Concise PEST Analysis for Airline Industry', PESTLE Analysis, [online]. Air transport started in the 1920s. The UK is a party to the Chicago Convention 1944. Article 15 of the Convention further provides for equality of charges for use of aerodromes. It can harm their image and have some negative impact on their business. Civil and criminal cases will be heard in separate courts. Travelport, Amadeus, Sabre, etc. Airline Industry Legal Issues. 1.9 What legislative and/or regulatory regime applies to air accidents? Like other industries, airline industries are also get affected by social conditions. Nevertheless, there are various challenges that the airline industry faces which includes high operational costs, regulatory frameworks and demanding clientele. Certified copies of the entries on the Mortgage Register are available at 31 per aircraft. 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. The different services appeal to different passenger groups with varying travel needs and price sensitivities. With global operations and operating at the leading edge of technical development, operators are exposed to wide-ranging and unpredictable events. Of course, one of the major events in 2022 has been the war in Ukraine. In 2020, the majority of passenger . 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. Some of the legal factors that Southwest Airlines Co. leadership should consider while entering a new market are - Anti-trust law in Regional Airlines industry and overall in the country. gain, the company offered to acquire a stake in the China Eastern Airlines against 7.3 billion Hong Kong Dollars that . As a service-providing industry, the airlines can incorporate constant technological changes to improve their services. The EC based their decision on the fact that the Code no longer reflects market reality and that it may be revised in the future. Data controllers must ensure that data is processed in accordance with six data protection principles in the DPA 2018; namely that personal data is: (b) obtained only for specified, explicit and legitimate purposes; (c) adequate, relevant and not excessive for the purposes; (e) not kept for longer than is necessary; and. The aviation industry is particularly susceptible to external economic factors because it affects and depends on a substantial number of industries. Defense of third-party infringement claims. Overweight and obesity will challenge airports and airlines in the future. The Directive was approved by Parliament as a whole on 14 April 2016 and by the Council of the EU on 21 April 2016. Department of Transportation and Federal Aviation Administration are the main regulatory bodies that oversee airline operations and related laws. The UK implements the relevant requirements by way of the legislation discussed below. The PESTEL analysis of the airline companies can show how the external factors have affected them. United Kingdom. Different issues are addressed by different bodies and, in the UK, the following laws and standards apply: The EU ETS and CORSIA are of particular relevance to aircraft owners and financiers in addition to the operators of aircraft affected as they may give rise to certain rights of UK regulators to detain and sell aircraft for failure to comply with the regulations, although it appears that the previous statutory right to do so for failure to pay EU ETS penalties appears to have been removed under the UK ETS. Harvard University Digital Accessibility Policy. On the positive side, though, charter companies are likely to see new interest from businesses hiring aircraft. 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. Booking.com awaits Supreme Court ruling as the USPTO appeals previous decisions finding BOOKING.COM, though a combination of generic terms, can be protected through trademark registration. 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. Technological factors affecting Air Canada. 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. Civil disputes concerning personal injury or property damage may be pursued in the Queens Bench Division of the High Court or in the County Court in accordance with the criteria summarised below. Whatever the next restrictions are, there is unlikely to be much forthcoming government support for the industry or workers. Londons Stansted had previously been required to hold a licence but since April 2014 the CAA has held that it no longer meets the market power requirements and is no longer required to hold a licence. In the case of companies running international flights, the impact can be deeper and more long-lasting. 1. It is also worth being mindful of the role that Artificial Intelligence (AI) may play in the future of the aviation industry. Passenger numbers would increase from 45.7 million to 6875 million by 2038 if the runway project went ahead. Chief among these reforms would be the decentralisation for the early 90s . The ICO issued the first UK enforcement notice under the GDPR in July 2018 on a Canadian data company. Most of the countries have multiple operating airline companies, which makes it a highly competitive market. How does this affect businesses though?, you might ask. If proved, an airline will be liable to a fine not exceeding 5,000 for each offence. The price of oil, and aviation fuel with it, has risen significantly since 2020. Similarly, the principle for international transfers of personal data previously contained in the DPA 1998 is now dealt with separately in Chapter V of the GDPR. h-_Silo5N\eOouBZ=E#}CqQB&l'Eyz. All these economic factors resulted in increased bankruptcies of major airline companies. South African Airways (B) case study PESTEL analysis includes macro environment factors that impact the overall business environment - Political, Economic, Social, Technological, Environmental, and Legal factors. The delay therefore occurred wholly outside the UK. The registration fees for such priority notices vary according to the MTOW of the subject aircraft, and are currently as follows (subject to revision annually): The relevant registration fee is applied by the CAA on a per aircraft basis. Contributor, P., 2021. 160,000, where the UK turnover is over 120 million. Added to this, many workers have preferred not to return to the industry. The DPA 2018 further sets out derogations and exemptions to the GDPR that will apply in the UK. The airline companies must be well aware of them and abide by those rules to avoid legal proceedings. A fee is payable to the CMA in respect of relevant merger situations. 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. Moreover, airlines also struggled with increasing labour demands from the part of employees. Broadly, the DPA 2018 applies to the processing (such as obtaining, recording, holding, using, disclosing or erasing) of personal data. Practice Areas > Patent-pending digital pill may help flight crew know how passengers bodies are handling the flight. The outcome will continue to be of interest as a number of other airlines have announced similar introductions to incentivise the use of their own, or new distribution capability, booking systems. Also, because the industry involves operating between borders, then economic factors from other parts of the world other than the domestic market also affect it. 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. A request for permission to appeal can (and if appeal is to be sought, should) be made to the lower court at the hearing at which the decision to be appealed is made. In the past few years, there has been a reduction in business class travelling which is a huge loss for the companies. This has an impact on carriers, as it has a scope which extends beyond the traditional holiday package booked through a tour operator, and covers many other forms of combined travel (for example, fly-drive holidays and flight-hotel bookings). Liens are not registrable. , Yahoo, Yahoo. As outlined in question 1.1 above, this Regulation protects passengers in the event of cancellation or long delay. See, for example, the EU Regulations: 216/2008 (as amended; Basic Regulation); 7/2013 (rules for airworthiness of aircraft and products and certification of design and production organisations); 1321/2014 (continuing airworthiness and approval of involved organisations and personnel); 2015/445 (aircrew); and 859/2009 (EU-OPS operating safety requirements and standards). A relevant merger situation under the UK merger rules arises where: With the exception of special cases of mergers involving newspapers, broadcasters or water companies, there is no obligation to notify proposed or completed mergers. 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. The Chicago Convention is integrated into English law and applicable in the jurisdiction as a matter of international law. Full text of the Act from the Government Printing Office (GPO). No. Please contact Jennifer using the contact information above. Here are 7 professional tips that can, Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? This will in any event and inevitably increase the prospect of parallel investigations, while both the CMA and the courts will be at liberty to determine the extent to which they follow the EU approach (or not). The risk of cyber terrorism or data attacks is a real threat these days. In response to this, the European Technology & Travel Services Association filed a formal complaint with the European Ombudsman against the EC in July 2018. If the clause does not explicitly address costs being recoverable in the occurrence of a triggering event, the general common law position is that costs are not recoverable. Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. Another political factor influencing the tourism industry worldwide is tax incentives. Certain airports will require a licence to levy airport charges, and the CAA can impose such conditions on that licence as it deems necessary to promote competition (e.g. Due to the pandemic, many countries have temporarily suspended flights from other countries. 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. Furthermore, a person or corporate body acquiring an interest is exempt from paying a merger fee if, in its most recent financial year before the time the fee would become payable, it meets the criteria for small or medium-sized enterprises, as defined by reference to certain provisions in the Companies Act 2006. SQ!eDNZ= )/cw@,q=Vdb@2#^ 1F*+Dd2 W_WMuOFb #edx-{~IDBl>mk_7Yfs5e6yon`N@) 9 ]Rw* R;Om56txFY$.cD;lzX^]BwSE2_1?g82fVaP$m$@x(\>#${FC*Z{kaA%I U(tST3"~5P=x}x"own~EU6u;xD%-xw;EBXE}nrA[sFP&$Sp$DY.&.h!4UP V\@I[Q,[O__}6on?v..>X~8>{?=W+[HV=V"+A 'z,h^19kH)N,Aj4TT|yomz[|hpYy|(|1?o+|Af|0tHM|YnmpCz6E &AIA1 h9#'fbH$e.t"Jzo\JqWns73,}:p The . The AAIB is an independent part of the Department for Transport. 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. In addition, this Title includes regulations regarding airspace and air traffic. The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. Air Canada takes it as a strength. A court order obtained in this way reduces any risk of liability of the lessor or the mortgagee (as the case may be) of the relevant aircraft to third-party claims for compensation for losses due to a repossession (in the case of aircraft in scheduled operation in particular, such losses can be substantial), assists with ensuring the cooperation of the CAA with their issuing of necessary permissions for the continued flight of the aircraft affected, and is also presentable to any prospective third-party purchaser of the aircraft as proof of the right of the mortgagee, or indeed the owner, to sell the aircraft with good title, free of any trailing interests of the relevant mortgagor or lessee (subject to any other third-party rights over the relevant aircraft). The primary economic factors that affect the business environment of Singapore Airlines include the emerging markets of Asia as well as the strengthening SGD (Singapore Dollar) in comparison to different foreign currencies. With its global reach, reliance on technology, manpower, and heavy use of oil, it is exposed to many risks and threats. Under Part 1 Article 4(3) of the Air Navigation Order 2009, an aircraft must not be registered or continue to be registered in the United Kingdom if it appears to the CAA that: (a) the aircraft is registered outside the United Kingdom and that such registration does not cease by operation of law when the aircraft is registered in the United Kingdom; (b) an unqualified person holds any legal or beneficial interest by way of ownership in the aircraft or any share in the aircraft; (c) the aircraft could more suitably be registered in some other part of the Commonwealth; or. The number of enforcement notices and penalties issued by the ICO under the GDPR is expected to rise, especially in the aftermath of the ICOs investigation concerning the data breach at British Airways in August 2018 that resulted in the account numbers and personal information from around 500,000 customers being stolen. This avoids additional administrative hurdles resulting from the ratification of the CTC, but at the same time means that it is not possible to register such pre-existing interests. For more information on how we can assist with airline industry legal issues please contact us. There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple.
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