Business Environment – Coursework Example
How European Union Impacts On both British and Virgin Airlines The European Union Impacts On both British and Virgin Airlines
European Union policies and legislation have contributed to the development and affected airlines plying its region in equal measures. While non-members airlines do not see such importance, British and virgin Atlantics airlines enjoy the presence of European Union policies. For instance, British airline has formed business alliance with other like-minded aviation transport to ease extreme overhead costs that an organization cannot sustain when it remains independent outside the European Union trading zone. Moreover, European Union policy has helped to foster cross-border aviation agreement amongst its organizations notably British and virgin Atlantic airlines. Such an agreement has led to an increased competitiveness by enhancing efficiency of each link to the aviation transport system thus creating more value to customers and more returns to the airlines. Besides, both the British and Virgin Atlantic airline fall under the protectorate of the European Union sales act that recognizes trans-boarder commodities as dispatches. The act enables the two airlines to reap economies of scale through circulation of products free from the subject of VAT (GBPC, 2013).
According to GBPC (2013), the European Union trade agreement has also greatly contributed to the development of the two airlines by unlocking their economic potentialities through empowering free access foreign airports. Such empowerment increases the productive catchment area of customers. Besides, the removal of legal obstacles to trade and liberal travel policies has contributed to the beneficial effect by exposing both the British and Virgin airlines to international competition. Ultimately, the union allows for liberal alliance of the two airlines and other aviation related companies in working together to combat both technical and safety standards in the member airports, which also acts as a yardstick for customers sustainability and more returns to the organizations.
Great Britain. Parliament. House of Commons. (2013). Aviation strategy: first report of session 2013-14. Vol. 1, Report, together with formal minutes. London: Stationery Office.