Political Influences on Airline Industry

Political Isues:

The government interventions in various types of factors could consider as the political issues that affect the airline industry. Those factors include war, terrorism, international trade or tax policy.

• International trade:

o International trades that involve agreements between countries could conducive to airline operations.

o The latest One Belt One Road (OBOR)that signed between China and 64 other countries such as SEA region countries like Malaysia could provide the business opportunity and investments in many industries include airline industry.

(http://www.thestar.com.my/news/nation/2017/05/21/prospering-with-belt-and-road-malaysia-is-one-of-64-countries-to-reap-the-benefits-of-chinas-initiat/)

o Due to decisions of both countries government, the AirAsia could become the first foreign airline is given the permission to establish and operate a low-cost courier in China.

o The economic in China and Malaysia are influenced by government policies. (Liao Tiong Lai, minister of transport Malaysia, http://www.thestar.com.my/news/nation/2017/05/21/prospering-with-belt-and-road-malaysia-is-one-of-64-countries-to-reap-the-benefits-of-chinas-initiat/)

o Airline industry could flourish and benefit under this because the interaction between those countries will be more aggressive after this agreement signed.

o Besides that, the ASEAN Economic Community (AEC) which established in year 2015 increase the interdependence of the Asean countries, the airline industry could play a role to link all the countries in this region together, and help in the region collaborate.

o The leading light which refer to AirAsia enable the connectivity that AEC looking for.

(http://www.ge.com/reports/post/93343717588/global-trade-expanding-the-future-of-flight/)