The majority of cases arising out of the finance or lease of aircraft will be heard by the Commercial Court. The Civil Aviation Authority (CAA) is responsible for the regulation of aviation safety in the UK, determining policy for the use of airspace, the economic regulation of Heathrow, Gatwick and. The more usual course of action from a practical point of view is therefore to obtain a court order notwithstanding the rest. There are a number of bodies which have the authority to regulate, administer and control civil aviation. London City Airport is owned by a Canadian consortium which is comprised of AIMCo, OMERS, Ontario Teachers Pension Plan and Wren House Infrastructure Management. These are: Under the Climate Change Act 2008, the Department for Business, Energy and Industrial Strategy is responsible for setting carbon budgets for different industries. Certified copies of the entries on the Mortgage Register are available at 31 per aircraft. The Court held that the claimant was entitled to compensation. UK competition law in its own right reproduces in virtually identical form EU competition law and systems of competition law enforcement, sections 2 and 9 of the UK Competition Act 1998 (CA 1998) setting out provisions similar to the prohibition of anticompetitive agreements and the exemption criteria (Articles 101(1) and 101(3) of the Treaty on the Functioning of the European Union (TFEU)). Even in the case of a conditional sale where rental payments are effectively instalment payments of the purchase price, it is well understood in law that a seller is protected if the lessee defaults and that a seller maintains ownership of the asset and can claim repossession and all the other benefits of ownership notwithstanding many months or even years of possession and payment by the lessee beforehand. The UK implements the relevant requirements by way of the legislation discussed below. the outcome of the claim is of importance to the public in general. The UK is a party to the Chicago Convention 1944, which provides for availability, so far as practicable, of aerodromes in its territory (Article 28) and equality of conditions for use of aerodromes for international and domestic aircraft (Article 15). The number of enforcement notices and penalties issued by the ICO under the GDPR is expected to rise, especially in the aftermath of the ICOs investigation concerning the data breach at British Airways in August 2018 that resulted in the account numbers and personal information from around 500,000 customers being stolen. United Kingdom. The relevant market may vary according to the type of passengers: premium and non-premium passengers; or time-sensitive and non-time-sensitive passengers. Databases may be protected by copyright and/or database rights. The Directive was approved by Parliament as a whole on 14 April 2016 and by the Council of the EU on 21 April 2016. You have rejected additional cookies. Federal Aviation Administration. The Chicago Convention is integrated into English law and applicable in the jurisdiction as a matter of international law. By way of example only, restrictions and taxes which apply to international but not domestic carriers. The UK bodies are chiefly: the Secretary of State for Transport; and the Civil Aviation Authority (CAA). UK EU Transition, and UK Civil Aviation Regulations. A party requires permission to appeal from a County Court or High Court decision. The significant distinction between the doctrines of force majeure and frustration is that frustration ends the entirety of the contract, whereas force majeure may discharge a party from a standalone obligation. The CAA acts in the regulation of aviation without detailed supervision by the Government. As outlined in question 1.1 above, this Regulation protects passengers in the event of cancellation or long delay. The DPA 2018s jurisdictional scope includes persons who: (b) have an office, branch or agency in the UK; or. For example, the continued effects of coronavirus may not be seen as unforeseeable for new contracts made after the initial pandemic outbreak, therefore if the events defined in a force majeure clause must be unforeseeable, it could be argued that any coronavirus-related issues do not suspend obligations. 5.1 In your opinion, which pending legislative or regulatory changes (if any), or potential developments affecting the aviation industry more generally in your jurisdiction, are likely to feature or be worthy of attention in the next two years or so? As at the time of writing, the airports website stated that [w]e are currently consulting with investors, government, airline customers and regulators on our next steps. Various regulatory bodies in the UK influence Heathrow's operations including: The Department for Transport responsible for UK aviation policy. Type B operating licences may also be granted to operators of larger aircraft with a limited scope of activity. However, it often provides non-conclusive prima facie evidence. The CAA exercises certain licensing and other powers under EU Regulations, notably in connection with operational safety and airworthiness. Air Carrier Liability (No 2) Regulations 2004 Statutory Instrument No 1974 2004. In addition, as much of the aviation law in the UK stems from the EU, it will be important to keep a close eye on the development of plans post-Brexit. Role of regulatory bodies, in relation to aviation: role of regulatory bodies (to establish the rules and regulations that govern the industry, to promulgate rules and regulations and to ensure compliance with rules and regulations) International Civil Aviation Organization (ICAO) Civil Aviation Authority (CAA) UK Border Force National Air . capping the percentage by which charges at a particular airport may be increased, by a certain percentage or by reference to a particular index (such as the Retail Price Index)). the CAA for unpaid airport and air navigation charges, the UK Environment Agency for unpaid penalties under the European Emissions Trading Scheme, and HM Revenue & Customs in respect of unpaid taxes). For example, London Heathrow is owned by Heathrow Airport Holdings Limited (formerly BAA) which is owned by FGP Topco Limited, a consortium led by Ferrovial SA; Aberdeen, Glasgow and Southampton airports are owned by AGS Airports Limited which is jointly held by Ferrovial SA (via Faero UK Holding Limited) and AGS Ventures Airports Limited; Manchester Airport is owned by Manchester Airports Group plc; and London Gatwick is owned by French VINCI Airports (majority shareholder) and Global Infrastructure Partners. 1.5 Are air charters regulated separately for commercial, cargo and private carriers? The airport operator is responsible for ensuring that the landing ground and runway remain clear of unmarked and unlit obstructions pursuant to the Air Navigation (Consolidation) Order 1923. Such permit will only be granted if the necessary traffic rights exist (under a bilateral international agreement or otherwise), and is also subject to satisfying the Department for Transport of compliance by the operator with administrative requirements relating to the carriers aircraft and its insurance arrangements. A joint venture between airline competitors would, therefore, have to satisfy the four exemption criteria of section 9 CA 1998 and (save for where such venture relates to exclusively UK routes or operations) Article 101(3) TFEU. The delay therefore occurred wholly outside the UK. In these circumstances, the mortgagee or the lessor (as the case may be) will be required to provide a cross-indemnity for any third-party claims arising from a sudden detention of the aircraft (not, however, in favour of the relevant mortgagor, lessee or operator of the relevant aircraft, on the basis that it is assumed that an appropriate indemnity from such party has already been given in respect of, among other things, losses arising from the repossession of the relevant aircraft following a default). There is no domestic legislation prohibiting the detention of commercial transport aircraft. There is very limited risk indeed that such a consequence will arise, subject to any considerations of a general nature which might arise as a result of the application of a reasonableness test under the Unfair Contract Terms Act 1977 (which would in turn be almost unheard of given the wide body of historical transacting and knowledge of terms and conditions which typify the aviation sector). Speak to our team on 0370 900 0100 from inside the UK, or +44 330 . There is no right of appeal to the courts on a question of fact. Consumer rights legislation will continue to strengthen in the UK as a result of the Consumer Rights Act 2015 and the ever-present bolstering of Regulation 261, primarily by the CJEUs interpretation of the Regulation, as now clarified to an extent by the 2016 Interpretative Guidelines, but also in relation to a revision to the Regulation (which remains to be agreed). The 4 steps of the . ICLG - Aviation Laws and Regulations - FAA is the Federal Aviation Administration. Nevertheless, in practice, it is generally advisable for the lessor or the mortgagee of a relevant aircraft registered with the CAA to pursue an application for repossession of the aircraft in court, particularly if there is any question as to whether a default has actually occurred and/or the relevant mortgagor or lessee of the aircraft concerned resists or is likely to resist repossession. UK Civil Aviation (Investigation of Military Air Accidents at Civil Aerodromes) Regulations 2005. it is to be given a purposive construction taking recitals into account; the process of interpretation includes provisions of international law incorporated into Regulation 261 by reference; and. The majority of cases concerning death, serious injury or serious property damage claims arising out of air accidents will be heard by a Court of the Queens Bench Division of the High Court. In the wake of recent drone incidents at airports, the UK Government has published amendments to the UK Air Navigation Order 2016 (ANO) so that: (1) Any drone weighing over 250g must be registered with the CAA and labelled with an operator ID. 1.7 Are airports state or privately owned? international standards developed by ICAO, such as and including ICAOs Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA); legislation from the EC, although following expiry of the Brexit transition period a new UK Emissions Trading System (UK ETS) came into force replacing the UKs participation in the EU ETS such that both now have relevance to aviation operations in the UK; national legislation from Parliament and administered by government departments such as the Department for Trade, the Department for the Environment, Food and Rural Affairs (DEFRA), and the Department for Energy and Climate Change. Londons Stansted had previously been required to hold a licence but since April 2014 the CAA has held that it no longer meets the market power requirements and is no longer required to hold a licence. The Secretary of State has a general responsibility for organising, carrying out and encouraging measures for the development of civil aviation and the related aviation industry, for the promotion of its safety and efficiency, for research into questions relating to air navigation, and for the safeguarding of the health of persons on board aircraft. A further 6 million was removed due to British Airways response to the breach, and a 4 million reduction due to the ICOs updated regulatory approach in response to coronavirus, which aims to take into consideration the impact of the coronavirus pandemic and the present economic situation on the economic situation on the organisation. The Secretary of State has statutory powers relating to aviation security (see, for example, the Aviation and Maritime Security Act 1990). This exception does not apply if the merger parties notified the acquisition by submitting a merger notice. This is generally effective in providing an early warning of any potential detention or retention of a relevant aircraft, and in ensuring the timely termination of the relevant operating agreement before liens are enforced. As a general rule, an arbitrator has the same powers as any court, and an arbitral tribunals decision is binding. The UK is a party to the Chicago Convention 1944. This type of application may be made without notice to the operator of the relevant aircraft if the mortgagee or the lessor (as the case may be) can demonstrate the urgency of the matter to the court in accordance with the applicable Civil Procedure Rules. As part of the application procedure, the CAA may request additional information in order to process an application for registration (for example, a certified copy of a bill of sale evidencing the ownership of the aircraft to be registered). Under the Air Navigation Order 2009, an aircraft registered in a State other than the UK must not take on board or discharge any passengers or cargo in the UK for valuable consideration without an operating permit granted by the Secretary of State. The proposal has made some progress with the CAA providing a written judgment in May 2020 to confirm that there would be no change to the design of flight paths in or out of the airport as a result of the new runway, which would have been an extensive process to undertake. 1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports? As regards the lessor of an aircraft registered with the CAA, theoretically it is permitted to take enforcement action to repossess the aircraft following a default by the lessee concerned on the relevant lease terms, without enforcing through the courts, i.e. Much of the domestic legislation originates from European legislation, and there is no aviation-specific policy (presumably on the basis that there are a number of contributors to poor air quality). It requires more systematic collection, use and retention of PNR data on air passengers, and therefore has an impact on the rights to privacy and data protection. The ICO enforced a then unprecedented 20 million fine on British Airways as a result of the breach. As a Regulation, it has direct effect in each EU Member State as well as the Member States of the European Economic Area (EEA). The fees payable are, since August 2012: A merger fee is not payable if the merger involves the acquisition of an interest that is less than a controlling interest and the CMA has investigated the acquisition on its own initiative. Please enter your comments below, or use our usual service contacts if a specific matter requires an answer. an O&D city pair (which generally are considered non-substitutable by a different city pair). Nevertheless, it is common market practice (also in order to manage certain risks arising due to conflicts of law and legal systems as they apply to these most mobile assets) for engine owners and financiers to require entry into a contractual recognition of rights agreement governed by English law between the relevant parties as a condition to installing an engine on a different airframe. Any dispute as to its implementation by the United Kingdom would be heard through the International Court of Justice. Pursuant to Part 1 Article 5(1), only the following persons are qualified to hold a legal or beneficial interest by way of ownership in an aircraft registered in the United Kingdom or a share in such an aircraft: (a) the Crown in right of HM Government in the United Kingdom and the Crown in right of the Scottish Administration; (e) bodies incorporated in some part of the Commonwealth and having their principal place of business in any part of the Commonwealth; (f) undertakings formed in accordance with the law of an EEA State which have their registered office, central administration or principal place of business within the EEA; or. The CTC entered into force in the United Kingdom and thereby became effective as United Kingdom national law on 1 November 2015 following its ratification on 27 July 2015, as implemented by the International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015 and several declarations. The CAA regulates all aviation activity (apart from military). For example, is there a distinction in your jurisdiction regarding the courts in which civil and criminal cases are brought? They are currently as follows (and are subject to revision annually): For aircraft mortgages which attach to a number of aircraft, the CAA registration fee is levied on the heaviest aircraft by MTOW, plus 184 for each additional aircraft attached. The United Kingdom Register of Civil Aircraft, maintained by the United Kingdom CAA, is not a register of legal ownership, and therefore registration of ownership does not constitute proof of ownership of a particular aircraft. In relation to codeshare agreements, neither national nor European competition laws provide specific rules; the legal test applied being based on the exemption criteria of Article 101(3) TFEU and/or the corresponding provisions of the competition laws of the EU Member States. For example: Aviation Industry Airports Regional East Midlands Airport (EMA) Aviation Industry Regulatory Bodies UK CAA At this level, it is clear that EMA has a regulatory obligation to comply with CAA regulations. In general terms, there are both (for historical reasons) legal and equitable remedies, and the following may be available: 3.6 Are there any rights of appeal to the courts from the decision of a court or arbitral tribunal and, if so, in what circumstances do these rights arise? The Civil Aviation Act 1982 provides for a salvage lien on an aircraft where any services are rendered in assisting, or in saving life from, or in saving the cargo or apparel of, an aircraft in or over the sea or any tidal water, or on or over the shores or any tidal waters, according to the national and international regulatory framework of the law of maritime salvage. It also has concurrent powers with the Competition and Markets Authority (CMA) to enforce competition law in relation to air traffic services and airport operation services. the aviation industry manages security risks effectively. 40,000, where the UK turnover is less than 20 million; 80,000, where the UK turnover is between 20 million and 70 million; 120,000, where the UK turnover is between 70 million and 120 million; and. Applicants for registration of a mortgage must complete and provide to the CAA a Form CA1577 (see www.caa.co.uk), together with a complete copy of the related aircraft mortgage deed (provided it has been certified as a true copy by the applicant). The fine was originally set to be 183 million, but was reduced by 150 million as the ICO undertook further research into the events leading to the data attack, and attributed less blame to British Airways than had initially been done. Frustration of a contract will only occur if: If frustration is proven, it results in the contract ending immediately and all outstanding obligations being discharged. To an alternate dispute resolution (ADR) body If the airline or airport does not have an agreement with an ADR, you can refer your complaint to the CAA Or take direct legal action For a visual representation of this process, see our process diagram. Today, 191 states worldwide are members of ICAO. Gatwick has confirmed that the second runway still forms part of its long-term recovery plans despite the impact of the coronavirus pandemic on aviation and travel and, at the time of writing, Gatwicks plans are at the stage of public consultation, which was scheduled to close on 1 December 2021. The PNR Directive obliges airlines to hand EU countries their passengers data in order to help the authorities fight terrorism and serious crime. Regulation 261 (as incorporated into UK law via the European Union (Withdrawal) Act of 2018) provides rules concerning compensation for denied boarding and/or cancelled or delayed flights. 4.17 Is vertical integration permitted between air operators and airports (and, if so, under what conditions)? An appeal to the Supreme Court followed, and the judgment to that appeal was delivered on 15 January 2021. Under Part 1 Article 4(3) of the Air Navigation Order 2009, an aircraft must not be registered or continue to be registered in the United Kingdom if it appears to the CAA that: (a) the aircraft is registered outside the United Kingdom and that such registration does not cease by operation of law when the aircraft is registered in the United Kingdom; (b) an unqualified person holds any legal or beneficial interest by way of ownership in the aircraft or any share in the aircraft; (c) the aircraft could more suitably be registered in some other part of the Commonwealth; or. At a macro European level, in May 2018 the European Commission (the EC) dismissed a complaint, brought against Lufthansas 2015 introduction of a 16 surcharge on seats booked through the global distribution suppliers, such as Travelport, Travelsky, Sabre and Amadeus, which alleged breach of Council Regulation (EC) 2299/89 on a code of conduct for computerised reservation systems (the Code). In 2020, the FCA brought a business interruption insurance test case in order to clarify issues of contractual uncertainty for policyholders and insurers during the coronavirus pandemic. This case reaffirms the CAAs decision to take enforcement actions against airlines in relation to passenger compensation. Regulators include bodies to which regulatory functions have been delegated, where the delegation is authorised by legislation and irrespective of whether the regulator is specified in the. There is also a statutory duty for an airport operator to take care, in all reasonable circumstances, to see that a visitor shall be safe in using the premises for the purposes for which he is invited, or permitted, by the operator, to be there. For the sake of completeness, it should be noted that the Bills of Sale Acts 1878 and 1882 allow seizure of an aircraft (or aviation asset) on the occurrence of certain events of default (as specified in the Acts) relating to a security bill of sale. The CMA has an administrative (non-binding) timetable, to which it usually adheres, to take a decision on a notified merger within 40 working days of receiving a complete notification. This work concludes that the current safety level of recreational General Aviation in the UK is acceptable viewed in terms of its unavoidably greater risk than commercial aviation, the much higher risk acceptability of voluntary . In the event that the defendant is established out of the jurisdiction, the court may permit a claim form to be served on the defendants agent provided that an agent for service of process has been appointed and that agents authority has not been terminated. The definition of qualifying aircraft was narrowed in January 2011 to bring the United Kingdom more in line with the rest of Europe. Fields marked with an asterisk (*) are required. As with its EU neighbours, legislation is a mix of local law, international treaties and EU Regulations and Directives. However, it is possible, and will in many cases be advisable, to notify the CMA, since if a merger may result in a substantial lessening of competition in the UK market, failure to obtain prior clearance risks a reference to a more in-depth investigation and analysis by the CMA (known as a Phase 2 investigation), with the possible consequences described below, which may include a requirement that the purchaser divests. Another important source of law is European legislation, which has direct application in the UK concerning safety aspects of aircraft, operators, maintenance and design organisations, and personnel in commercial transport. Civil proceedings which include a claim for damages in respect of personal injuries must not be started in the High Court unless the value of the claim is 50,000 or more. The initiative, which was launched in 2004, seeks to improve the European air traffic management system in order to reform the European airspace, from a perspective of capacity, efficiency and environmental impact. There is no automatic stay of execution of a judgment or order while appeal is pursued. Civil Aviation (Insurance) Regulations 2005 Statutory Instrument No 1089 2005. Search fees are currently 31 per aircraft and are revised on an annual basis. Similarly, the principle for international transfers of personal data previously contained in the DPA 1998 is now dealt with separately in Chapter V of the GDPR. Eight insurers had some of their policy wording considered by the court. The Air Accidents Investigations Branch (AAIB) is responsible for the investigation of civil aircraft accidents and serious incidents in the UK. Commercial claims (see below) should be pursued in the Commercial Court of the Queens Bench Division of the High Court, or in the County Court. The Enterprise Act 2002 is also applicable to aviation: it gives the CMA powers of enforcement in relation to consumer legislation. As with all other UK businesses, airports have to meet legislative standards in relation to water quality, waste and protecting the natural environment. Some types of aviation contracts, such as operating leases and aircraft charter agreements, are more likely to contain force majeure clauses. To access current UK civil aviation regulations, including AMC and GM, CAA regulatory documents, please use this link to UK Regulation. The UK has an Intellectual Property Office (IPO). (f) protected by ensuring that appropriate technical and organisational measures are taken against the unauthorised or unlawful processing of the personal data, as well as against accidental loss or destruction of, or damage to, personal data. To access current UK civil aviation regulations, including AMC and GM, CAA regulatory documents, please use this link to UK Regulation. To that end, lease terms and conditions conventionally contain an indemnification of the owner/lessor of a relevant aircraft against losses and/or claims it incurs as a result of a repossession action. 3.5 What types of remedy are available from the courts or arbitral tribunals in your jurisdiction, both on i) an interim basis, and ii) a final basis? Liens in favour of maintenance organisations are widely considered to arise in common law; however, in the majority of cases the right of lien is expressed contractually and there is no requirement for improvement. It is worth noting that, although it does not change any relevant provisions of English law as regards the creation of in rem security interests generally, that law will not apply to determine whether an international interest under the CTC is validly created. Find out about the Energy Bills Support Scheme, Air travel checklist for travel from the UK, Boost for aspiring young aviators as government provides funding for outreach programmes, Civil Aviation Authority annual progress report, Air passenger experience of security screening: 2019, Commercial spaceflight: insurance and liabilities requirements, See all transparency and freedom of information releases. The relevant aircraft mortgage, once registered with the CAA, will then take its priority from the date of registration of the original priority notice. There is a small claims track within the IPEC which is appropriate if the claim has a value of 10,000 or less. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. The DPA 2018 repealed the UK Data Protection Act 1998 (the DPA 1998). To register aircraft on the United Kingdom Register of Civil Aircraft, a Form CA1 (see www.caa.co.uk) is submitted either by the owner or by the so-called charterer by demise (by virtue of a relevant loan, lease, hire or hire purchase) eligible to register in accordance with the Air Navigation Order 2009 [see Endnote 1]. Subject to the limited exceptions mentioned below, there is no statutory regime of self-help rights as a matter of English law. Similarly, the mortgagee of an aircraft registered with the CAA may take peaceful possession of an aircraft following a similar default and it will then, in addition, have the power to sell the relevant aircraft if such power is properly and expressly described in the relevant mortgage agreement. The data controller remains legally responsible for the processing of personal data by the data processor. In addition, on 27 October 2016 the Commission closed an investigation it had opened in February 2011 on free-flow parallel hub-to-hub codeshare arrangements between Lufthansa and Turkish Airlines, finding: that Lufthansa and Turkish Airlines did not have full marketing rights to each others seat inventory; that they applied differing pricing strategies; and that the codeshare accounted for only a marginal share of the parties sales on the relevant routes. The EU is now pushing ahead with a new proposal being made by the EC on 22 September 2020 for the Single European Sky initiative. The ICO has the power to fine data controllers up to 17.5 million or 4% of annual worldwide turnover (whichever is higher) for breaches of the UK GDPR and DPA 2018.
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