Issues on Aviation Carriers or Industries

Abstract
In the contemporary world, the aviation industry has experienced a great deal of changes and transformations in the legal, ethical and business realm. One of the prevailing contentious issues is the impact of the Brexit in the industry. A declaration has been made that from the start of 2019, the UK will be considered a third country and for that reason EU aviation rules and regulations will stop being applicable in the United Kingdom. This means UK airline carriers will not be given access to air transport agreements between the EU and third countries. Similarly, airline carriers EU will stop having any airline traffic rights to, from and past the UK. It is palpable that there will be considerable trade-off between national autonomy and the accessibility to the single aviation market of the European Union. However, the magnitude of this aspect remains to be seen in the future.
Introduction
The patterns of business actions and behaviour continue to significantly have an impact on the covering of law and ethics. Ranging from regulations, ethical decisions, mergers and acquisitions, the issues of law and ethics remain at the pole position of business, government, and sports (Emerson, 2015). For instance, the Federal Communications Commission (FCC) was overwhelmed with remarks and reactions on a suggested rule that would have permitted usage of cell phones on airplanes. In reaction to the uproar and turmoil from flight attendants, pilots, as well as passengers, the independent agency failed to broadcast and disseminate the rule (Jennings, 2015). In recent times, the aviation industry has faced a great deal of business legal, regulatory, and even ethical issues. One of the key issues that continues to have an impact on the industry is a Brexit aviation crisis. Brexit takes into account the forthcoming withdrawal of the United Kingdom from the European Union as the nation’s electorate in recent times took a vote to leave the European Union. This move has prompted several business, statutory, regulatory, as well as judicial issues, which have also affected the airline industry (Centre for Aviation, 2016).
The aviation and travel industries are international industries that are impacted by global trade and politics. As a result, any significant alterations associating to political agreements, trade or regulation have a likelihood of influencing the dynamics of the industry. The result obtained from the United Kingdom referendum has given rise to uncertainty over the manner in which the U.K and the EU aviation industries will continue to conduct their business operations as well as have collaborations in a manner that is mutually beneficial. This is largely for the reason that the removal of the UK from the EU, the nation’s aviation sector could go through a refurbishment that may necessitate major modifications in the way it operates (Deloitte, 2017). One of the major legal and regulatory issues facing the aviation industry in this regard encompasses the collaborations between the UK, which is one of the largest aviation markets in the world, and the global aviation industry. Notably, The European Common Aviation Area (ECAA), an institution which the UK has been a member as part of the EU nations, has played a significant role and made major contributions to the growth and development of the UK civil aviation space. Subsequent to the Brexit, it implies that this particular membership would be revoked except in the event that different agreements are put in place.
In accordance to Walker (2017), there continues to be legal and regulatory issues in the airline industry especially with the European Commission Directorate-General for Mobility and Transportation giving the affirmation that at the outset of 2019, the UK will be deemed a third country and therefore aviation rules and regulations will cease to be applied in the United Kingdom. The inference of this is that airline carriers in the UK will no longer be granted accessibility to air transport treaties between the EU and third countries, irrespective of whether such agreements have been discussed directly by the EU or through a joint act of the Member States. In a similar manner, airline carriers in the European Union will cease to have any airline traffic rights to, from and past the UK. Moreover, all of the airline licenses for business operation, air transport covenants and aviation certificates will also become annulled (Gerrard, 2017).
This is a major issue for airline carriers across the globe. It is imperative to note that there is significant integration and harmonization within the airline industry. The prevailing accessibility to different markets in tandem with the liberties enjoyed by various stakeholders in the airline sector are bound to experience adverse impacts of the Brexit (Dentons, 2017). Taking into consideration the substantial uncertainties, especially regarding the context of a conceivable withdrawal arrangement, all of the airline carriers and operators within the airline industry have to expect legal consequences emanating from prevailing applicable rules of law within air transport now at the time when the UK will become a third country. This particular status is progressively more becoming a crisis for the aviation industry (Ford, 2017).
In the recent periods, liberal policies buttressed by the accessibility to single market as well as the increased level of bargaining power have been beneficial aspects to the aviation industry not just in the UK and EU but also globally. Imperatively, this has given rise to the significant growth and development of low-cost carriers that have come to be a reckoning force in the airline industry. With the issue of Brexit in line, it is expected the intra-EU together with the EU-UK routes of both the low-cost carriers in the UK and elsewhere in the world will be affected (Deloitte, 2017). Some of these deals might have an adverse impact on operational efficiencies and also hamper airline carriers in their business operations (HFW, 2017). Some of the key risks that presently being considered include the lack of continued connectivity between the EU and the UK. This is a major legal and ethical issue for the reason that it will result in the loss of traffic rights, which is a fundamental issue in the airline industry. Notably, it will have an adverse impact on airline carriers based in the UK owing to the reason that they would cease being permitted to land their aircrafts in Europe (Centre for Aviation, 2016; The Guardian, 2017).
Conclusion
In conclusion, Brexit is bound to have an impact on different facets of the airline industry not only in the short-term and medium-term but also in the long run. Moreover, with the UK being a major player in the airline industry, these effects are expected to have a global impact. From a business, legal and ethical perspective, this is bound to be a significant challenge for airline carriers as it could preclude them from undertaking long-term decisions. Without a doubt, it can be noted that there will be significant compromise between the aspect of national sovereignty of the UK and gaining access to the single aviation market of the European Union. However, the magnitude of this aspect remains to be seen in the future.



References
Centre for Aviation. (2016). Brexit and aviation Part 1: Open Pandora's box and anything can happen. But status quo is likely. Retrieved from: https://centreforaviation.com/insights/analysis/brexit-and-aviation-part-1-open-pandoras-box-and-anything-can-happen-but-status-quo-is-likely-288477
Centre for Aviation. (2016). Brexit up in the air: implications for aviation as the UK votes to leave the European Union. Retrieved from: https://centreforaviation.com/insights/analysis/brexit-up-in-the-air-implications-for-aviation-if-the-uk-votes-to-leave-the-european-union-262860
Deloitte. (2017). The UK aviation and travel sector: Why does Brexit Matter? Retrieved from: www2.deloitte.com
Dentons. (2017). Brexit and the aviation industry Up in the air?
Emerson, R. W. (2015). Business law (6th ed.). Hauppage, NY: Barron’s Educational Series.
Federal Regulations, Ethics, and the legal System.
Ford, J. (2017). UK must accept its post-Brexit status as a third country. Financial Times. Retrieved from: https://www.ft.com/content/3f88d134-6a20-11e7-bfeb-33fe0c5b7eaa
Gerrard, G. (2017). What will Brexit mean for the UK airline industry? The Telegraph. Retrieved from: http://www.telegraph.co.uk/business/2017/03/22/will-brexit-mean-uk-airline-industry/
HFW. (2017). ARE THE SKIES BECOMING ANY CLEARER? Retrieved from: http://www.hfw.com/downloads/HFW-BREXIT-Considerations-Aviation.pdf
Jennings, M. M. (2015). Business: Its legal, ethical, and global environment (10th ed.). Stamford, CT: Cengage Learning.
The Guardian. (2017). The longer Brexit stays up in the air, the higher the risk flights will be grounded. Retrieved from: https://www.theguardian.com/business/2017/sep/03/brexit-stays-up-in-air-higher-risk-flights-grounded-airline-rights