Legal Landscape Of Air Charter Transportation

The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.

The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth,

The following laws have been developed over a number of years and occasionally come about as responses of cases being highlighted in the media:

1. Is the air taxi industry poised for take-off? What customer segments are most likely to lead to success?

A lucrative industry is always a target for investors looking at investment. One of the foremost factors in consideration while looking at the attractiveness of an industry is the threat of new entrants. In the airlines industry, this was a major threat a few years ago. The airlines operating in the industry were limited and the industry had few players like Indian Airlines and Jet Airways. However, as the industry had scope for accommodating more players, many players joined the fray. The airlines industry however comes with its fair share of barriers. The investment in the airlines is very huge and acts as a major barrier to entry. Bundled with it were different permits for running an airline company from the civil aviation company and FDI

The airline is state owned enterprise so they need to adhere to the supply chain prescripts when procuring services as legislated by the Public Finance Management Act. The supply chain procedures needs to be fast paced and respond to the needs of the changing environment that the airline operates under. Inappropriate conduct should be dealt with in accordance with the

The Air Transportation System has been reformed by the introduction of the Next Generation Air Transportation System (NextGen). This system is supposed to be implemented in the country by 2025. The system revises air routes and updates it to satellite system management; the promotion of usage of GPS technology for navigation, route length shortening, time reduction, and fuel saving, etc.

3) Domination on international routes: The Government of India has restricted the usage of traffic rights when flying international routes to Air India. This prevents other private carries from attaining competitive advantage in global market (Bhatia et. al 2003).

The civil aviation industry of world has expanded its wings by letting in private organisations. Privatisation in the domestic and the international circuit can help in foreseeing the future of the aviation industry at a mark up rise, and gaining

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

Lucky Air being new in the field and operating on a small geographical area has to burden a lot of costs. The restriction on expansion of the company makes it necessary for the airlines to lease the airplanes at a high cost and the taxes ranging from 2%-10% makes it a challenge to manage its finances. The monopoly of ‘Civil Aviation Oil’ for fuel and “National Development Reform Commission’ for aircraft leasing puts a burden on the budget of the airline companies as they may dictate the terms of their services as they see fit.

The report is designed to understand the working practices of the two government bodies in the field of aviation i.e. US Federal Aviation Administration and General Civil Aviation Authority. The two authorities have a sole responsibility for the control and regulation of civil aviation in their respective countries. The report will discuss the operations specification similarity as well as contrast between the two bodies along with a brief understanding of their functions and procedure. The study will analyze the difference and reasons to those, along with that some recommendation will be suggested to improve those regulations.

Along with the continuing liberalization of air transport regulation, the protection and improvement of airline passenger rights has gained greater importance, particularly but not exclusively in major markets. A significant number of States, in recent years, have adopted regulatory measures that address some of the issues such as denied boarding

It may be lower risk in in the aviation markets because of entry regulations that a high level of governmental barriers to open the freedom of flights, also the industry needs high fixed costs and assets of airline operation, but based on the increasing demand of travelers by air, it's given the high intensity of rivalry.

In the past few years, the commercial air carriers have formed strategic alliances with each other which were not possible before this due to the previous regulations.