Analysis of Bulgaria Air and the Eastern-European Airline Industry
International Strategic Management
1. Legislation and regulatory rules in the industry
Bilateral air service agreements remain the primary vehicles for liberalizing international air transport services. In the past 15 years more than 157 “open skies” agreements have been concluded between 96 states, the US being one of the states in 82 of the cases.
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 compensation; assistance to passengers in the event of delays and cancellation; price transparency; and access for disabled passengers.
At the industry level, many airlines have adopted voluntary commitments (i.e. non-legally binding self-regulation) to clarify or improve their policies or practices with regard to certain customer services (such as fare offers, ticket refunds, denied boarding, flight delays and cancellations, baggage handling, response to complaints, and special passenger needs), often in response to public pressure and to avoid regulatory measures.
The most relevant regulations in the industry are listed below:
To protect consumers, Regulation 1008/2008 bans price discrimination on the basis of the place of residence or the nationality of the customer or the place of establishment of the travel agent. In practical terms, this means that for the same product – i.e. the same seat on the same flight booked at the same moment – there should be no price differences based on the place of residence or the nationality of the passenger. To guarantee the safety of travelers and social protection of the personnel, the regulation introduces clear and stringent rules on the leasing of aircraft registered in third countries,
1. Legislation and regulatory rules in the industry
Bilateral air service agreements remain the primary vehicles for liberalizing international air transport services. In the past 15 years more than 157 “open skies” agreements have been concluded between 96 states, the US being one of the states in 82 of the cases.
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 compensation; assistance to passengers in the event of delays and cancellation; price transparency; and access for disabled passengers.
At the industry level, many airlines have adopted voluntary commitments (i.e. non-legally binding self-regulation) to clarify or improve their policies or practices with regard to certain customer services (such as fare offers, ticket refunds, denied boarding, flight delays and cancellations, baggage handling, response to complaints, and special passenger needs), often in response to public pressure and to avoid regulatory measures.
The most relevant regulations in the industry are listed below:
To protect consumers, Regulation 1008/2008 bans price discrimination on the basis of the place of residence or the nationality of the customer or the place of establishment of the travel agent. In practical terms, this means that for the same product – i.e. the same seat on the same flight booked at the same moment – there should be no price differences based on the place of residence or the nationality of the passenger. To guarantee the safety of travelers and social protection of the personnel, the regulation introduces clear and stringent rules on the leasing of aircraft registered in third countries,
References: http://site.securities.com/php/search/doc?pc=BG&dcid=348432080&cmpy=1403156&name=analysisresearch&ptyp[]=TA&ptyp[]=TJ&ptyp[]=TNA&username=bg-aubg http://centreforaviation.com/analysis/bulgaria-air-strengthens-its-european-network-with-new-e-jets-but-cost-reduction-is-also-essential-75294