legal factors affecting airline industry legal factors affecting airline industry

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. The proposal has made some progress with the CAA providing a written judgment in May 2020 to confirm that there would be no change to the design of flight paths in or out of the airport as a result of the new runway, which would have been an extensive process to undertake. The DPA 2018 repealed the UK Data Protection Act 1998 (the DPA 1998). 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. Linked to staff shortages, there are growing problems with the busiest airports reaching capacity. 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. It's still running with the name of Air India. 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. As outlined in question 1.1 above, this Regulation protects passengers in the event of cancellation or long delay. The DPA 2018s jurisdictional scope includes persons who: (b) have an office, branch or agency in the UK; or. 4.8 What are the main regulatory instruments governing the acquisition, retention and use of passenger data, and what rights do passengers have in respect of their data which is held by airlines and airports? Government policies directly affect the airline industry. The airline industry has mounted publicity campaigns and engaged in lobbying in order to try to influence a reduction in APD rates, which the industry views as being too high. For airlines and operators, there are changes to ownership and operation, with companies becoming much more restructured to their own regions. Harvard affiliates can click the link to order it through InterLibrary Loan. 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. Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors. As the aviation business can be profitable in the long term, the government may want to invest. 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. 1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports? The LCSH system features a controlled,hierarchical vocabulary of subject-specific keywords. In summary: (a) the agreement should generate efficiency gains for the parties or promote economic progress (e.g. As at the time of writing, the airports website stated that [w]e are currently consulting with investors, government, airline customers and regulators on our next steps. Thereafter, permission may be sought directly from the appeal court. 3280, paragraph 158 (j); Lufthansa/SNAirholdings, Case COMP/M. 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). 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. Read those pages for additional information regarding the legal solutions our industry teams provide. As for the disasters and accidents, on most occasions, Airlines are held responsible. capping the percentage by which charges at a particular airport may be increased, by a certain percentage or by reference to a particular index (such as the Retail Price Index)). In addition, as much of the aviation law in the UK stems from the EU, it will be important to keep a close eye on the development of plans post-Brexit. The importance of technological factors can be understood from the heavy use of technology in the global airline industry. Security concerns and airspace restrictions can affect airlines far from the conflict zone. These requirements came into force on 30 November 2019 and this registration must be renewed annually. Available at: https://www.marketingtutor.net/airline-industry-pestle-analysis/ (Accessed 21 June 2021). In the UK, Brexit has caused increased problems. The company needs to set a research team that can work on creating a more environment-friendly aircraft. In response to this, the European Technology & Travel Services Association filed a formal complaint with the European Ombudsman against the EC in July 2018. They have also allegedly stolen designs from merchants on Etsy. 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. Nevertheless, limited case law on the subject is exclusively related to real estate (that is, immovable assets) and there is perceived to be little or no risk as a matter of English law to loss of or prejudice to title when aircraft engines are installed on a different airframe. 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. For example, consumer law results in large companies having to dedicate a fair amount of their resources into putting out detailed information about their products and policies. Many workers who would usually take up employment in the sector have been unable to. The PESTEL analysis of the Airline industry can give an idea about how multiple external factors like politics, economy, sociology, technology, ecology, and law can affect the business of an airline company. (g) firms carrying on business in Scotland; in this sub-paragraph firm has the same meaning as in the Partnership Act 1890 (c39). They are privately owned. The acronym PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. ICLG - Aviation Laws and Regulations - United Kingdom Chapter covers common issues in aviation laws and regulations - including aircraft trading, finance and leasing, litigation and dispute resolution. 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. Databases may be protected by copyright and/or database rights. Article 26 and Annex 13 to that Convention make provisions for the investigation of air accidents. 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. New airline Breeze Airways has had to increase pay by over 10% and expand recruitment to Australia to secure new pilots for its fleet (as reported by, As a final thought for 2022, we are likely to see a continued increase in air rage and related safety incidents. During the first half of 2021, there were 3,000 such incidents in the US (according to the. ) In Lipton & Anor v BA City Flyer Ltd [2021] EWCA Civ 454, the English Court of Appeal detailed how Regulation 261 claims will operate in the UK following Brexit. Flights across the US were grounded recently following an issue never experienced before. The Civil Aviation Act 1982 and the Air Navigation Order 2009 stipulate that where an aerodrome is open for public use, the aerodrome must be available to all, on equal terms, whether they are foreign or domestic carriers. Most destinations still require a negative coronavirus test result to be produced before flying or upon arrival, and it remains to be seen how long this guidance will be in place. The EC considers that Business and First Class tickets on one hand, and Economy on the other, are two different product markets. Similar to economic or political factors, legal factors also hold special importance for analyzing the external environment of the airline industry. There is also a statutory duty for an airport operator to take care, in all reasonable circumstances, to see that a visitor shall be safe in using the premises for the purposes for which he is invited, or permitted, by the operator, to be there. Social factors have a profound impact on businesses, as well as the overall marketplace. In these circumstances, the mortgagee or the lessor (as the case may be) will be required to provide a cross-indemnity for any third-party claims arising from a sudden detention of the aircraft (not, however, in favour of the relevant mortgagor, lessee or operator of the relevant aircraft, on the basis that it is assumed that an appropriate indemnity from such party has already been given in respect of, among other things, losses arising from the repossession of the relevant aircraft following a default). 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. Individuals wishing to fly drones must also pass an online test once every three years. The majority of cases arising out of the finance or lease of aircraft will be heard by the Commercial Court. The UK has a relatively low threshold of originality for a work to be considered an original work which is protected by copyright. (d) the agreement should not eliminate effective competition. 1.5 Are air charters regulated separately for commercial, cargo and private carriers? Airlines operate in a political environment that's very regulated and restricted. It can add to the clear image of any aviation company. The different services appeal to different passenger groups with varying travel needs and price sensitivities. The government taxes that are being imposed among other regulatory measures help to promote economic growth and to protect consumers from exploitation and other illegal factors. The AAIB reports to the CAA and other civil aviation authorities having responsibility for oversight of any aspect of the accident. Read the full PESTLE analysis of Tesco here. In such a case, however, competition rules particularly prohibiting abuse of a dominant position (section 18 CA 1998 and/or Article 102 TFEU) will prohibit any discriminatory charges for access to airport infrastructure, or denial of access where this affects trade and is not objectively justified. English law as a rule recognises the concept of accession, which is similar to the nature of an annexation of title, for example by the owner of an aircraft to which an engine owned by another party is affixed. In the UK and Europe, Brexit is a leading one. Pledges to half carbon emissions are leading to changes in aircraft technology, fuel, and even aircraft tracking and spacing. 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. A party may appeal to the High Court on a question of law arising out of the arbitral award. It will also give them an opportunity of getting investors. Type B operating licences are for operators of aircraft with 19 or fewer seats; Type A operating licences are for operators of aircraft with 20 or more seats. Let me begin with the state of the airline industry. If there is not a force majeure clause in a contract, a party can argue that they are unable to meet contractual obligations due to the contract being frustrated. , , . . In particular, airlines remain subject to restrictions in aircraft operations and safety that remain outside of their control. Some intellectual property disputes may be heard initially by the IPO. If a company can secure a tie-up with the government, that can be highly beneficial for them. They are simply the factors that affect businesses as a consequence of, or in direct relation to, governmental laws. Recruiting staff into the industry quickly has been difficult. The links below are to pre-populated searches of the HOLLIS catalog by LCSH keyword. The more usual course of action from a practical point of view is therefore to obtain a court order notwithstanding the rest. They are currently as follows (and are subject to revision annually): For aircraft mortgages which attach to a number of aircraft, the CAA registration fee is levied on the heaviest aircraft by MTOW, plus 184 for each additional aircraft attached. The price of oil, and aviation fuel with it, has risen significantly since 2020. The UK will no longer be able to exert an influence through the Single Sky Committee, but will continue to be able to participate more indirectly, such as through its involvement in standardisation bodies such as EUROCAE and ETSI. The general competition rules (principally those contained in the CA 1998 and closely modelled on Articles 101 and 102 TFEU) apply fully to aviation as they do to other sectors. RadcliffesLeBrasseur LLP, Philip Perrotta Insecurity or war factors that affect particular countries always have a negative impact on the airline industry. Subject to the limited exceptions mentioned below, there is no statutory regime of self-help rights as a matter of English law. due to ethical reasons), we are here concerned with socio-cultural factors where two or more people are interacting in the workplace. There has been pressure on the government to change immigration rules for the sector, but this seems unlikely. Shortages of ground staff, including security, baggage handling, and ramp agents, have led to significant delays in processing passengers and in handling flights. A fee is payable to the CMA in respect of relevant merger situations. Most of the tourists are not interested in visiting countries that have threats due to political conditions. in 2016 it was 73% Almost all countries can record tremendous growth in the number of overweight and obese people. 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. The Environment Agency and Natural England are the two bodies with responsibilities in these areas. 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. On the other hand, consumer law in itself makes a business for some private watchdog companies. Firstly, the aviation industry has rebounded post-COVID much faster than many anticipated. Legacy airlines that rely on filling lucrative business and first class cabins will need to rethink pricing models. They are licensed and regulated by the CAA. 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 EC based their decision on the fact that the Code no longer reflects market reality and that it may be revised in the future. Subject to the above, pursuit of a claim in the High Court is appropriate where: A case may be started in the Commercial Court only if it fulfils the characteristics of a commercial claim; namely any claim arising out of the transaction of trade and commerce, including any claim relating to a business document or contract, the export or import of goods or the carriage of goods by land, sea, air or pipeline. 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? Pirates of the Caribbean Series The aviation industry has always faced significant risks and challenges. Copyright protection applies to original works upon creation of the work, without the need for registration (copyright is not registrable in the UK). For more information on how we can assist with airline industry legal issues please contact us. 3.5 What types of remedy are available from the courts or arbitral tribunals in your jurisdiction, both on i) an interim basis, and ii) a final basis? 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. trading) of aircraft in England and Wales. 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. PESTEL analysis airline industry can show how technical issues can work upon the growth of the airline industry: The significant environmental factor that has been a concern for environmentalists is its CFC emission. Terrorism does not have to involve physical hijacking, though. If there are airline accidents, and if that is related to the companys carelessness, their business may get severely affected. There are two types of operating licence: Type A; and Type B. Force majeure clauses are designed for an event that may occur out of a partys control and which result in a party no longer being able to perform its obligations under the contract. As per the latest record, more than 5000 airlines are operating worldwide with ICAO codes. 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? The change is fundamental to the root of the contract (, As a result, performance of the contract would be illegal, impossible, or radically different (, two or more enterprises cease to be distinct in essence, the transfer from one party to another of an enterprise, which is broadly defined to include business activities of any kind; and either: as a result of the merger, the combined enterprises will supply or acquire 25% or more of any goods or services in the UK or a substantial part of the UK; or an existing share of supply of 25% or more will be enlarged (section 23 of the Enterprise Act 2002) (it should be noted that the share of supply test is not a market share test but, rather, focuses on the share of supply of the most narrow reasonable description of goods or services); or. There is a 500,000 cap on the amount of damages that can be claimed (although this can be waived if agreed by the parties). 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. However, UAE is the safest country in the region and it has the . 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. In most instances, the trial judge will be considered best placed to judge the facts of the case. Most of the countries have multiple operating airline companies, which makes it a highly competitive market. 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. The data controller must notify the relevant authority without undue delay and, where feasible, not later than 72 hours after having become aware of it. 4.11 Is there any legislation governing the denial of boarding rights and/or cancelled flights? General examples of Legal Factors affecting business include: Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Laws have been introduced to prevent companies from Tesco from changing product prices without informing customers, Recently, there has been a crackdown on misinformation in product discounting (e.g. We cannot ignore the major threat that continues to affect the aviation industry. Southwest Airlines, 6:21-cv-01008-PGB-DCI (M.D. In terms of the Civil Aviation Act 2012, an airport operator that has, or is likely to acquire, substantial market power requires a licence from the CAA. Thats why were writing this series of articles about each one of the categories, including their definitions, importance, and plenty of examples.