When the Brexit transition period ended on 31 December 2020, European trademark-holders were automatically granted cloned UK registrations. Oil prices hit a 13-year high in March 2022, although they has fallen back since then. Firstly, the aviation industry has rebounded post-COVID much faster than many anticipated. the CAA for unpaid airport and air navigation charges, the UK Environment Agency for unpaid penalties under the European Emissions Trading Scheme, and HM Revenue & Customs in respect of unpaid taxes). 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. 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. 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. Fiscal policies such as excise taxes on airline tickets increase consumer prices, and that affects demand. It may lead the companies to lower their prices, and as a result, thousands can lose their job. Airports have a responsibility for managing the noise impact of aircraft. There is no right of appeal to the courts on a question of fact. 'A Concise PEST Analysis for Airline Industry', PESTLE Analysis, [online]. 3770, paragraph 196). 1.8 Do the airports impose requirements on carriers flying to and from the airports in your jurisdiction? 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. The fees payable are, since August 2012: A merger fee is not payable if the merger involves the acquisition of an interest that is less than a controlling interest and the CMA has investigated the acquisition on its own initiative. Airline companies alone have had to spend a great deal of time and money revising their policies,. Even in the case of a conditional sale where rental payments are effectively instalment payments of the purchase price, it is well understood in law that a seller is protected if the lessee defaults and that a seller maintains ownership of the asset and can claim repossession and all the other benefits of ownership notwithstanding many months or even years of possession and payment by the lessee beforehand. 1.2 What are the steps which air carriers need to take in order to obtain an operating licence? 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. We look forward to working with you on future editions.Peter Lyck, Partner - Nielson Norager, 2002-2023 Copyright: ICLG.com | Privacy policy | Cookie policy. As the airline industry continues to grow, they need to pay more attention to improve their service. Additionally, recent crashes and attacks have affected the profitability and viability of the aviation industry quite badly. There are many regulations which require airlines to offer safe travel along with high-quality services. Chief among these reforms would be the decentralisation for the early 90s . But, in any case, any airline operating there is facing serious disruption to their normal sales and customer management plans. 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. Note: This book is not available in the Harvard Library collections. There is not a statutory definition of a force majeure event, but these typically include provisions for issues such as the weather (flood, drought, earthquake or other natural disaster), terrorist attacks and war, governmental acts, and most fittingly for the current environment, pandemics and epidemics. 3.3 Which courts are appropriate for aviation disputes? 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. Let me begin with the state of the airline industry. 1.7 Are airports state or privately owned? The legislation applicable to UK merger control is the Enterprise Act 2002 (the Act). At the time of writing, there is guidance from bodies such as EASA and the CAA on disinfection, quarantine and social distancing. 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. This will depend entirely on the CTC and its requirements in the case of an aircraft, debtor location or aircraft registration in a CTC country (and compliance with the formalities set out in Article 7 of the CTC), and an aircraft mortgagee may be able to rely on the rights and remedies available under the CTC for such international interest in the relevant aircraft. 4.11 Is there any legislation governing the denial of boarding rights and/or cancelled flights? The DPA 2018 further sets out derogations and exemptions to the GDPR that will apply in the UK. Whilst there is no longer a principle for individuals rights in the DPA 2018, this is dealt with separately in Chapter III of the GDPR and states that personal data must be processed in accordance with the rights of data subjects. To register aircraft on the United Kingdom Register of Civil Aircraft, a Form CA1 (see www.caa.co.uk) is submitted either by the owner or by the so-called charterer by demise (by virtue of a relevant loan, lease, hire or hire purchase) eligible to register in accordance with the Air Navigation Order 2009 [see Endnote 1]. where the value of the turnover in the UK of the enterprise being taken over exceeds 70 million. 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. Another important source of law is European legislation, which has direct application in the UK concerning safety aspects of aircraft, operators, maintenance and design organisations, and personnel in commercial transport. Commercial claims (see below) should be pursued in the Commercial Court of the Queens Bench Division of the High Court, or in the County Court. 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, the Secretary of State has responsibility for advising on, and where appropriate, implementing Orders of Council (made by the Crown) to effect international obligations and standards in UK domestic legislation. 2.3 Are there any particular regulatory requirements which a lessor or a financier needs to be aware of as regards aircraft operation? This is according to a bi-annual Sabre Airline Solutions survey of executives at nearly 80 regional and global airlines worldwide who were asked to rank what positively and negatively impacts airline revenue Mergers (including, acquisitions and full-function joint ventures) are not subject to a system of mandatory notification in the UK. 4.6 Are there any sector-specific rules which govern the aviation sector in relation to financial support for air operators and airports, including (without limitation) state aid? Many felt they were not well treated and have moved to look for work in other growing areas. 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. 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. Copyright protection applies to original works upon creation of the work, without the need for registration (copyright is not registrable in the UK). At the national level, codeshare cases were investigated by the Italian National Competition Authority (see the Alitalia/Volare case and the Alitalia/Meridiana case). 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. '>IX]awn Ok%!L:DB 3BL3embBR[;wS{Lm,VZyVex0r9IqCa]TIR.l V7 NGM#aQ2KD%gNg~x`"ad[B"6tg5[/n#j]bBye 196^[N h2"M(H,yUW JqL>u#oJ Below is a pestle analysis for the airline industry that can help anyone understand the conditions in this industry. Passenger numbers would increase from 45.7 million to 6875 million by 2038 if the runway project went ahead. It can be debated that several political factors such as taxation policies, labor low, customer policies and trade restrictions forced by the government have a great . Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. A patent may be filed online or in hard copy. It is also not clear how long parties must wait before being able to rely on frustration does a few months delay in being able to perform a duty render the contract impossible or must they wait longer? These factors made it difficult to generate profits. In June 2014, the Court of Appeal held that a technical problem is not considered to be an extraordinary circumstance under Regulation 261 and accordingly cannot be used as a basis for an airline to escape from its obligation to compensate passengers for long delays, cancellations, rerouting and/or denied boarding (Jet2.com v Huzar [2014] EWCA Civ 791). Individuals wishing to fly drones must also pass an online test once every three years. Neither the EC and the European National Competition authorities (EU regulators) nor the UKs Competition & Markets Authority (CMA) have blocked airline alliances yet, which are usually considered to produce substantial efficiencies and consumer benefits, but have, often following lengthy investigations and negotiations with the parties, required commitments from the parties, to be satisfied that the alliance qualifies for exemption and, in particular, that competition is not significantly affected or eliminated. 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 Chicago Convention is integrated into English law and applicable in the jurisdiction as a matter of international law. 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. In a connected world, conflicts can have more far-reaching effects too. 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. The United Kingdom was a signatory to the Chicago Convention in 1944 and it was ratified on 1 March 1947 prior to its effective date of 4 April 1947. Legal factors are external factors which refer to how the law affects the way businesses operate and customers behave. The impact of the economic crisis has affected the operation of Airline industry and has drastically reduced its earnings and revenues. The delay therefore occurred wholly outside the UK. international standards developed by ICAO, such as and including ICAOs Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA); legislation from the EC, although following expiry of the Brexit transition period a new UK Emissions Trading System (UK ETS) came into force replacing the UKs participation in the EU ETS such that both now have relevance to aviation operations in the UK; national legislation from Parliament and administered by government departments such as the Department for Trade, the Department for the Environment, Food and Rural Affairs (DEFRA), and the Department for Energy and Climate Change. Read those pages for additional information regarding the legal solutions our industry teams provide. 'A PESTLE analysis of the aviation industry', notesmatic, [online]. 1. 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. Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. The majority of cases concerning death, serious injury or serious property damage claims arising out of air accidents will be heard by a Court of the Queens Bench Division of the High Court. As regards the lessor of an aircraft registered with the CAA, theoretically it is permitted to take enforcement action to repossess the aircraft following a default by the lessee concerned on the relevant lease terms, without enforcing through the courts, i.e. 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. Article 26 and Annex 13 to that Convention make provisions for the investigation of air accidents. The more usual course of action from a practical point of view is therefore to obtain a court order notwithstanding the rest. The party seeking to rely on the clause must demonstrate that they have been engaged in the particular event (Channel Island Ferries Ltd v Sealink UK [1998]). 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. The companies must take advantage of technological innovations to offer a satisfactory service to their passengers. Broadly, the DPA 2018 applies to the processing (such as obtaining, recording, holding, using, disclosing or erasing) of personal data. These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). The term socio-culture refers to the combination, or interaction, of social and cultural elements. They did note that if the passenger had displayed this behaviour before or during boarding, it should not be classified as an extraordinary circumstance, as the pilot has authority to refuse a passenger from boarding or to ask them to disembark. Border controls and checks will become more strict, too, with the removal of free movement. The ICO utilised this power to full effect in July 2019 when it announced its biggest fine to date of 20 million over a personal data breach by British Airways that involved the theft of around 400,000 passengers data (see also question 5.1 below). Both economy and premium travelling declined. (https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html). PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. 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. 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. 1.9 What legislative and/or regulatory regime applies to air accidents? However, at the same time, the number of passengers is declining, which can show a negative result in the long run. In June 2018, Parliament approved the plans for the third runway at Heathrow. The UK has left the European Union (EU), but there is still plenty of related disruption to sort out. Speaking in July about the Heathrow cuts, CEO John Holland-Kaye was honest about the problems. The . As part of the application procedure, the CAA may request additional information in order to process an application for registration (for example, a certified copy of a bill of sale evidencing the ownership of the aircraft to be registered). 3.1 What rights of detention are available in relation to aircraft and unpaid debts? At many airports, there have been delays for passengers of many hours leading to missed flights and further problems for airlines. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents).