Latest updates
Court rules EU Flight Delay Compensation Regulation claim cannot be enforced as breach of contract
Bersenas Jacobsen Chouest Thomson Blackburn LLP- Canada
- 11 September 2019
A recent decision from the Ontario Small Claims Court marks the first time that a Canadian court has considered whether EU air passenger rights legislation can be enforced outside Europe. This decision will be of interest to carriers operating flights between Canada and Europe, as it holds that a tariff that does not expressly incorporate the EU Flight Delay Compensation Regulation will not expose a carrier to breach of contract claims brought in Canada for declining to pay compensation under the regulation.
Compensation must be offset against compensation for damages according to national law
Arnecke Sibeth Dabelstein- Germany
- 04 September 2019
The Federal Court of Justice recently issued a verdict stating that compensation under the EU Flight Delay Compensation Regulation must be offset against compensation claims made under national law that were caused by the same incident. The court's judgment is welcomed, as it prevents passengers from being overcompensated and provides greater legal certainty while balancing the interests of airlines and customers.
Aircraft repossession in bankruptcy – Brazilian judiciary's inconsistent treatment of lessors
Basch & Rameh- Brazil
- 28 August 2019
A number of recent aircraft repossession actions have demonstrated that a majority of judges have correctly recognised lessor rights to repossession in the face of apparent lease agreement defaults. However, these decisions have not clearly cited the Cape Town Convention as their basis. The Brazilian judiciary's failure to unify repossession actions against a bankrupt lessee in a single court has meant that some lessors are subject to minority view decisions that can be upheld on appeal.
Court of Appeal decision on economic duress in aviation market
Vedder Price LLP- United Kingdom
- 28 August 2019
A recent Court of Appeal decision regarding a claim of economic duress against an airline reinforced the fundamental importance of ensuring contractual clarity and certainty as a matter of English law. For companies operating in the aviation sector, where there may be an unequal power dynamic, parties will be unable to look to economic duress to undo a lop-sided bargain unless there is some unlawful action or provable bad faith on the part of the party with greater power.
New drone regulations to come into force in 2020
Shay & Partners- Taiwan
- 28 August 2019
Further to the Unmanned Vehicles Technology Innovation Experimentation Act, which entered into force on 1 June 2019, a new regulation for drone use under the latest amendment to the Civil Aviation Act will take effect on 31 March 2020. Among other requirements, under the new act, drone operators in Taiwan will need to register with and pass an exam conducted by the Civil Aeronautics Administration to obtain an operator licence.
OFAC issues Iran-Related Civil Aviation Industry Advisory
Cozen O'Connor- USA
- 14 August 2019
The US Treasury Department's Office of Foreign Assets Control (OFAC) recently issued its Iran-Related Civil Aviation Industry Advisory. The advisory seeks to inform the civil aviation industry of potential exposure to US enforcement actions and economic sanctions for engaging in or supporting unauthorised exports to Iran or designated Iranian airlines. While no new restrictions have been announced, the advisory's publication could signal that the OFAC is taking a greater interest in the Iranian aviation sector.
Supreme Court upholds air traffic controller conviction
Proton Legal LLC- Switzerland
- 14 August 2019
The Supreme Court recently dismissed an appeal against the conviction of an air traffic controller for negligent disruption of public transport. In so doing, the court established a new precedent that allows for criminal prosecution and conviction for operational incidents that result in neither injury nor damage. As this decision makes it difficult for aviation professionals to treat their mistakes as learning opportunities, it is a major step backwards for aviation safety.
What is considered a cancelled flight under the Aviation Services Law?
Levitan, Sharon & Co- Israel
- 14 August 2019
The Small Claims Court recently rejected two passengers' claim that their flight should be considered a cancelled flight under the Aviation Services Law. The case examined whether an airline should pay compensation for a missed connecting flight when passengers book two flights from the same company with a short connection time.
Airport of destination no safe haven for claims under Montreal Convention
AKD The Netherlands- Netherlands
- 07 August 2019
The Amsterdam Court of Appeal recently denied jurisdiction against an airline and its ground-handling agent in a case concerning a claim for loss of cargo from the agent's premises at Amsterdam Airport Schiphol. The judgment is relevant for claimants seeking to bring a case against air carriers and their ground-handling agents before the court of the place of destination under Article 33 of the Montreal Convention 1999.
High court clarifies aviation regulator's dispute resolution jurisdiction
SKRINE- Malaysia
- 07 August 2019
The Kuala Lumpur High Court recently granted summary judgment for a combined sum exceeding RM40 million for outstanding passenger service charges. In coming to this decision, the court dealt with the jurisdiction of the nation's aviation regulator to resolve disputes between aviation service providers prescribed under the Malaysian Aviation Commission Act 2015.
No fun in the sun: Trump administration further restricts aviation traffic to Cuba
Cozen O'Connor- USA
- 10 July 2019
The Department of Treasury's Office of Foreign Assets Control (OFAC) and the Department of Commerce's Bureau of Industry and Security recently announced rules designed to further restrict travel to Cuba, including eliminating a sub-category of authorised travel to Cuba entitled 'people-to-people educational travel'. These changes significantly restrict non-commercial aviation traffic to Cuba going forward for all persons subject to the OFAC's jurisdiction.
Judicial review leave principles reaffirmed as high court dismisses AirAsia's leave application
SKRINE- Malaysia
- 10 July 2019
The Kuala Lumpur High Court recently dismissed a judicial review leave application brought by AirAsia Berhad and AirAsia X Berhad (collectively, AirAsia) against the Malaysian Aviation Commission, with Malaysia Airports (Sepang) Sdn Bhd being named as the second respondent. AirAsia argued that the passenger service charge rates prescribed in the regulations were ceiling rates rather than fixed rates and, as such, AirAsia was not required to pay the revised amount.
General ban on operation of night-time flights removed
Studio Pierallini- Italy
- 03 July 2019
The Administrative Supreme Court recently ruled on the operation of night-time flights for civil purposes over Italian national territory, issuing a milestone decision that put an end to a 20-year regulatory dispute. The decision means that Italian airports now have parity with those located in other EU member states and has removed the negative effect that the ban had had on competition.
Aircraft tyre damage caused by foreign object on runway constitutes extraordinary circumstance
Arnecke Sibeth Dabelstein- Germany
- 03 July 2019
In a recent preliminary ruling, the European Court of Justice held that a foreign object such as a screw or nail on an airport runway which damages an aircraft represents an extraordinary circumstance under the EU Flight Delay Compensation Regulation. According to the court, such incidents exempt air carriers from the obligation to pay passengers compensation in the event of denied boarding and flight cancellation or long delays.
Passenger rights
Mazlan & Murad Law Associates- Maldives
- 26 June 2019
Since Maldivian law contains no compulsory terms and conditions for domestic air carriage, air carriers are free to determine the conditions of carriage. As long as such terms do not violate any other Maldivian laws, they are valid and binding between passengers and consignees. Therefore, it is essential for passengers and consignees to understand the conditions of carriage and their rights in case of an accident, damage or loss of passengers or cargo.
Government reopens negotiations on overflight fees and airspace management
Callenders & Co- Bahamas
- 19 June 2019
The Bahamas' flight information region airspace comprises tens of thousands of miles and is subject to significant overflight activity. Moreover, it is one of the most important airspaces and is worth millions in revenue. To further enhance the civil aviation sector, the government is seeking to create a self-funded and sustainable management programme in order to collect overflight fees, while paying the US Federal Aviation Administration a fee for the management of its airspace.
Civil aviation security: new regulations take effect
SKRINE- Malaysia
- 19 June 2019
The Civil Aviation (Security) Regulations 2019 (Security Regulations) recently entered into force. Among other things, the regulations have established new aviation security authorities, implemented national security programmes and introduced new security and screening controls. Passengers, operators (including aerodrome operators), ground handlers and other persons who fail to comply with the Security Regulations could face a fine of up to RM200,000 or up to five years' imprisonment (or both).
Canada's Air Passenger Protection Regulations coming into force
Bersenas Jacobsen Chouest Thomson Blackburn LLP- Canada
- 19 June 2019
Following several rounds and many months of consultations, the government recently announced that the Air Passenger Protection Regulations (APPRs) developed by the Canadian Transportation Agency have been finalised. The APPRs apply to all flights within, from or to Canada, whether operated by a Canadian or foreign airline. Once in effect, the regulations will impose obligations on carriers in cases of tarmac delays, denied boarding and delayed and cancelled flights.
Aircraft repossession: judiciary fails to uphold local law or Cape Town Convention
Basch & Rameh- Brazil
- 12 June 2019
Following developments earlier in 2019, aircraft repossession has continued to be in the spotlight – yet again with regard to the Oceanair Linhas Aéreas SA (commonly known as 'Avianca Brazil') bankruptcy and, in particular, the experience of lessors that sought repossession of leased aircraft therefrom. In this case, and contrary to Avianca Brazil's pre-bankruptcy experience, a bankruptcy court failed to uphold the express provisions of the Bankruptcy Law 2005 and the Cape Town Convention
Proposed class action takes aim at airport fees paid by airline employees
Bersenas Jacobsen Chouest Thomson Blackburn LLP- Canada
- 05 June 2019
Three dozen Canadian airports may be on the hook for fees charged to airline employees flying on employee travel passes. A proposed class action has been commenced in the Federal Court of Canada claiming compensation for airline employees who paid certain fees which the representative plaintiff claims should not have been paid pursuant to agreements signed by the defendant airports.
