4.6 Are there any sector-specific rules which govern the aviation sector in relation to financial support for air operators and airports, including (without limitation) state aid? Civil disputes concerning personal injury or property damage may be pursued in the Queens Bench Division of the High Court or in the County Court in accordance with the criteria summarised below. The Civil Aviation Authority (CAA) , the UK's independent aviation sector regulator, responsible for the price regulation of Heathrow, Gatwick and Stansted airports and more general consumer regulation . Aviation Law > The definition of a serious irregularity includes exceeding the arbitrators powers, failure to comply with the general duties imposed on the arbitrator or failure to deal with all the issues. 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. The Package Travel Directive (2015/2302/EU), which entered into force on 31 December 2015, became effective on 1 July 2018. (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. 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. This Regulation establishes the rules on compensation and assistance to passengers in the event of denied boarding, long delay of flights, and cancellation. In recognition of the need for more immediate action, in June 2016 the EC published Interpretative Guidelines on the Regulation, to clarify the understanding of passenger rights in this area. If proved, an airline will be liable to a fine not exceeding 5,000 for each offence. The Enterprise Act 2002 is also applicable to aviation: it gives the CMA powers of enforcement in relation to consumer legislation. Our enforcement powers are subject to where the incident happened. 1. The fact that it is written by practitioners, adds value."Prof. As a practical matter, the principles of the Chicago Convention are implemented at the national level in the United Kingdom by the CAA. In June 2018, Parliament approved the plans for the third runway at Heathrow. At the time of writing, there is guidance from bodies such as EASA and the CAA on disinfection, quarantine and social distancing. Conditions of use are imposed, as well as charges. The legislation applicable to UK merger control is the Enterprise Act 2002 (the Act). Starting from the top, we find the International Civil Aviation Organisation (ICAO), which is a United Nations agency. The acute impact that coronavirus is having on the aviation industry means that pieces of legislation such as Regulation 261/2004 (Regulation 261) have become particularly significant this year. This will depend entirely on the CTC and its requirements in the case of an aircraft, debtor location or aircraft registration in a CTC country (and compliance with the formalities set out in Article 7 of the CTC), and an aircraft mortgagee may be able to rely on the rights and remedies available under the CTC for such international interest in the relevant aircraft. The Civil Aviation (Chargeable Air Services) (Records) Regulations 2001 govern the format and content of the aircraft movement log, which must be kept at any airport pursuant to section 88 of the Civil Aviation Act 1982. 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. Restrictions should be proportionate; and. As outlined in question 1.1 above, this Regulation protects passengers in the event of cancellation or long delay. The more usual course of action from a practical point of view is therefore to obtain a court order notwithstanding the rest. In relation to b), there are no documentary taxes (e.g. However, the EU played a significant role in many other aspects of aviation. We are the enforcement body in the UK for the laws that cover air passenger rights when flights are delayed or cancelled, or when passengers are downgraded or denied boarding. This certificate testifies that the type of aircraft meets the safety requirements set by the European Union. Users of airports are subject to airport charges, which are regulated by the CAA under the Civil Aviation Act 2012 and the Airport Charges Regulation 2011. 160,000, where the UK turnover is over 120 million. The CAA was established in 1972, under the terms of the Civil Aviation Act 1971, following the recommendations of a government committee chaired by Sir Ronald Edwards. The CAA carry out inspections at EMA on a regular basis to ensure compliance and any shortfalls will be identified by the CAA . 1.9 What legislative and/or regulatory regime applies to air accidents? The UK implements the relevant requirements by way of the legislation discussed below. Article 15 of the Convention further provides for equality of charges for use of aerodromes. It is also not clear how long parties must wait before being able to rely on frustration does a few months delay in being able to perform a duty render the contract impossible or must they wait longer? Parties now also need to ensure that their agreement satisfies the exemption criteria of section 9 CA 1998 and (save for where the agreement relates to wholly-UK matters only) Article 101(3) TFEU, on which section 9 is closely based. 4.4 How does your jurisdiction approach mergers, acquisition mergers and full-function joint ventures? The UK GDPR has enhanced notification provisions around data losses and breaches, as well as allowing the relevant data protection regulators the authority to levy significantly increased fines for non-compliance with the provisions of the Regulation. 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)). Subject to airport security implementing sufficiently rigorous safeguards and complying with relevant standards, it is not outside the realms of possibility that this technology could be used in a similar fashion within commercial airports and by commercial operators in the near future. They are privately owned. It has set one for domestic aviation, but it is worth noting that international aviation is excluded from these. Neither the EC and the European National Competition authorities (EU regulators) nor the UKs Competition & Markets Authority (CMA) have blocked airline alliances yet, which are usually considered to produce substantial efficiencies and consumer benefits, but have, often following lengthy investigations and negotiations with the parties, required commitments from the parties, to be satisfied that the alliance qualifies for exemption and, in particular, that competition is not significantly affected or eliminated. In a similar vein, in October 2017 the Court of Appeal rejected Emirates arguments and held that non-EU airlines are liable under Regulation 261 where a flight departing from the UK is delayed by at least three hours at the final destination, as a result of a missed connection outside Europe (Gahan/Buckley v Emirates [2017] EWCA Civ 1530). 1.2 What are the steps which air carriers need to take in order to obtain an operating licence? UK - EU Transition, and UK Civil Aviation Regulations. The following is a list of regulators in the UK. 4.8 What are the main regulatory instruments governing the acquisition, retention and use of passenger data, and what rights do passengers have in respect of their data which is held by airlines and airports? Following a new report published by the Civil Aviation Authority (CAA) regarding airline refunds, The Consumer Council is urging the CAA to ensure airlines act responsibly towards their customers, and is urging consumers to act now to secure their refunds. Under the UK GDPR there is now a mandatory obligation for an airline to notify the Information Commissioners Office (ICO the regulatory body in charge of the DPA) of a data breach under Article 33. These liens are created both by statute and under common law, and they are also capable of creation by contract between parties. Civil Aviation (Allocation of Scarce Capacity) Regulations 2007 Statutory Instrument No 3556 2007. its principal place of business is located in the Member State whose competent licensing authority is to grant the operating licence; for an operator having its principal place of business in the UK, the CAA is the competent authority; it holds a valid air operator certificate issued by a national authority of the same Member State; it has one or more aircraft at its disposal through ownership or a dry lease agreement; its main occupation is to operate air services in isolation or combined with any other commercial operation of aircraft or the repair and maintenance of aircraft; its company structure allows the competent licensing authority to implement the relevant provisions of the Regulation; Member States and/or nationals of Member States own more than 50% of the undertaking and effectively control it directly or indirectly through one or more intermediate undertakings, except as provided for in an agreement with a third country to which the European Community is a party; it meets the financial conditions specified in Article 5 of the Regulation; it complies with the insurance requirements specified in Article 11 of the Regulation and in EU Regulation 785/2004; and. As regards favourable tax treatment on the disposal of aircraft, no particular tax rules or regulations apply at present, although the effects of such taxation can be optimised by thoughtful tax planning strategies. The Secure Aviation Data Information System (SADIS) supplies World Area Forecast System (WAFS) and OPerational METeorology (OPMET) data to aviation users in Europe, Africa, and parts of Asia. 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 are numerous other obligations imposed upon an airport operator by law of application not limited to aviation; for example, concerning employment, health and safety and disability discrimination. You have accepted additional cookies. In addition, certain specific rights are created by statute for relevant regulatory authorities to detain the aircraft (e.g. 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. Airport operators have also been held liable where there was a known hazard and no effective system to discover and disperse birds, leading to bird strikes. In addition, local authorities in the UK provide regulatory functions in a number of areas. 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. 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 Civil Aviation Act 2012 has introduced a new system of economic regulation of airport operators. Civil Aviation Authority Regulations 1991 Statutory Instrument No 1672 1991. A public consultation on the effects of the expansion of Heathrow followed that decision. The DPA 2018 creates several criminal offences, including (amongst others) unlawfully obtaining personal data, selling personal data obtained unlawfully, altering personal data to prevent disclosure to the data subject, failing to comply with an enforcement notice and making a false statement in response to an information notice. A party may challenge an arbitral award for lack of jurisdiction (section 67 of the Arbitration Act 1996). The DPA 2018 repealed the UK Data Protection Act 1998 (the DPA 1998). 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. As detailed above, the Montreal Convention became effective in the United Kingdom pursuant to the Carriage by Air Acts (Implementation of the Montreal Convention 1999) Order 2009 and it can be applied in the UK courts, without particular limitation, on that basis. We use necessary cookies to make our website work. Various regulatory bodies in the UK influence Heathrow's operations including: The Department for Transport responsible for UK aviation policy. See, for example, the EU Regulations: 216/2008 (as amended; Basic Regulation); 7/2013 (rules for airworthiness of aircraft and products and certification of design and production organisations); 1321/2014 (continuing airworthiness and approval of involved organisations and personnel); 2015/445 (aircrew); and 859/2009 (EU-OPS operating safety requirements and standards). These clauses usually suspend the obligation rather than terminate it completely. Community Air Carrier Liability Order 2004 Statutory Instrument No 1418 2004. An aircraft mortgage registered on the United Kingdom Aircraft Mortgage Register will take priority over all other non-registered or subsequently registered mortgages. A route of appeal lies from the Court of Appeal to the Supreme Court. 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. An appeal to the Supreme Court followed, and the judgment to that appeal was delivered on 15 January 2021. The CAA is an independent body responsible for economic, safety and consumer protection regulation, and airspace policy. United Kingdom. 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. ICAO was formed in 1944 when the Chicago Convention was signed, and initially had 52 member states. If the clause does not explicitly address costs being recoverable in the occurrence of a triggering event, the general common law position is that costs are not recoverable. 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 respect of maintenance or repair of the aircraft or in respect of an unpaid purchase price for the aircraft) has been satisfied. We also use cookies set by other sites to help us deliver content from their services. The Court held that the claimant was entitled to compensation. These clauses have to be read extremely closely in order to determine whether they enable a party to suspend their obligations. We are a public corporation, established by Parliament in 1972 as an independent specialist aviation regulator. These obligations are generally complemented by contractual monitoring rights, established in the relevant loan or lease agreements, which include requirements to provide statement of account letters, authorising information regarding relevant payments giving rise to liens, to be provided directly to the mortgagee by the relevant regulatory authority. 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. The General Data Protection Regulation (Regulation 2016/679) (the GDPR), the UK GDPR (as incorporated into UK law via the European Union (Withdrawal) Act of 2018) and the UK Data Protection Act 2018 (DPA 2018) govern the collection and use of personal data in the UK. 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. For financial years beginning on or after 1 January 2016 and, if the directors of the acquirer so decided, financial years beginning on or after 1 January 2015, the acquirer qualifies as small or medium-sized if it, or the group of which it is a member (as defined in section 474 of the Companies Act 2006), has satisfied certain criteria laid down by the CMA (which is more fully detailed in the relevant section of the government website: www.gov.uk). The CAA regulates all aspects of the aviation industry. The Civil Aviation Act 1982 and the Air Navigation Order 2009 stipulate that where an aerodrome is open for public use, the aerodrome must be available to all, on equal terms, whether they are foreign or domestic carriers. Passenger numbers would increase from 45.7 million to 6875 million by 2038 if the runway project went ahead. EU regulators (and therefore in all likelihood the UK competition authorities at the present time) consider that the degree of competitive constraint imposed by one-stop services varies according to the route and assesses the precise impact of competing one-stop flights on the parties joint venture on a route-by-route basis. Interestingly, the coronavirus pandemic is thought to have encouraged this new proposal, as there have been calls to reform air traffic management in order to make it easier to adapt traffic capacities in accordance with demand (or a lack of, as has been the case during the pandemic). It is also worth noting that EU countries have bilateral PNR agreements with third countries in the wake of terrorist attacks across the EU and in the USA. The registration fees for such priority notices vary according to the MTOW of the subject aircraft, and are currently as follows (subject to revision annually): The relevant registration fee is applied by the CAA on a per aircraft basis. The CTC is effective in the United Kingdom but will not be applied retrospectively, i.e. 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. 4.10 What are the mechanisms available for the protection of intellectual property (e.g. 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. 4.3 Does your jurisdiction have a notification system whereby parties to an agreement can obtain regulatory clearance/anti-trust immunity from regulatory agencies? Furthermore, a person or corporate body acquiring an interest is exempt from paying a merger fee if, in its most recent financial year before the time the fee would become payable, it meets the criteria for small or medium-sized enterprises, as defined by reference to certain provisions in the Companies Act 2006. They are licensed and regulated by the CAA. The CAA implements the ICAO SARPs in national legislation and is responsible for regulatory oversight. as a self-help remedy. We need to understand and ensure risks are managed in a system-wide way. 2.3 Are there any particular regulatory requirements which a lessor or a financier needs to be aware of as regards aircraft operation? CAA works independently from government. This avoids additional administrative hurdles resulting from the ratification of the CTC, but at the same time means that it is not possible to register such pre-existing interests. If an exemption is sought, specific details of the drone (including photographs and schematic diagrams) should be submitted to the CAA. 4.2 How do the competition authorities in your jurisdiction determine the relevant market for the purposes of mergers and acquisitions? The relevant aircraft mortgage, once registered with the CAA, will then take its priority from the date of registration of the original priority notice. The concept of force majeure is closely linked to the concept of frustration. First and Business Class ticket passengers are less price-sensitive than Economy ticket users. In addition, local authorities play a role at the local level, as do various governmental agencies and bodies such as the Environment Agency and Natural England; and. The public has come to rely on organizations such as the FAA to make decisions concerning equipment and cost which directly impact passenger safety. [8] En-route control centres [ edit] There are two control locations in the UK operated by NERL: This will in any event and inevitably increase the prospect of parallel investigations, while both the CMA and the courts will be at liberty to determine the extent to which they follow the EU approach (or not). 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. 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. 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. All the major GDSs operate in the UK, e.g. The data controller may appeal the imposition of a fine to the Information Rights Tribunal. The CAA is an independent body responsible for economic, safety and consumer protection regulation, and airspace policy. 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. It should be noted, however, that this priority position of an aircraft mortgage is nevertheless subject to certain other in rem rights (liens) of third parties to retain or detain the relevant aircraft until a claim for payment (e.g. You can change your cookie settings at any time. Airlines must ensure that a clearly legible and visible notice containing prescribed wording is displayed to passengers at check-in, and must provide passengers affected by denied boarding with a notice setting out the rules for compensation. The coronavirus pandemic will continue to impact the aviation industry, as legislation and regulatory guidance will develop in order to adapt to the new world that we are now facing. A long-running commission of enquiry, chaired by Sir Howard Davies, gave its recommendation in July 2015 that a third runway be built at London Heathrow. For example, is there a distinction in your jurisdiction regarding the courts in which civil and criminal cases are brought? Similarly, in May 2015, the EC accepted binding commitments offered by Air France/KLM, Alitalia and Delta all members of the SkyTeam airline alliance to address concerns over their transatlantic joint ventures with respect to capacity, schedules, pricing and revenue management and sharing of profit and losses, which have the object and effect of restricting competition on three routes, namely: (i) Amsterdam-New York; (ii) Rome-New York; and (iii) Paris-New York (COMP/39964 AF-KL/DL/AZ). 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). In October 2016, HM Government approved a third runway at Heathrow to expand the UKs airport capacity. The limited case law in English law, which applies as precedent to the matter of the priority of aircraft liens and statutory detention rights, suggests strongly that an aircraft lien or statutory detention right will take priority over a registered aircraft mortgage. Ad hoc funding by the UK Government for domestic flight routes is available to UK airlines where it can be demonstrated that it will boost regional links across the UK and create a positive economic impact in terms of employment and supply chain dynamics and structured as public service obligations (PSOs). The relevant market may vary according to the type of passengers: premium and non-premium passengers; or time-sensitive and non-time-sensitive passengers. 1 Answer. 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). 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 may be necessary for the claimant to obtain the courts permission in certain circumstances, e.g., where no agent for service of process is appointed, to serve a claim form on a defendant located outside the courts jurisdiction. In this case, a non-EU carrier was operating services from the UK to the USA via Canada, where the passenger was to make a connection. London City Airport is owned by a Canadian consortium which is comprised of AIMCo, OMERS, Ontario Teachers Pension Plan and Wren House Infrastructure Management. Assistance of the local police is routinely available to AAIB investigators to secure an accident site. EU Regulation 376/2014 on the investigation and prevention of accidents and incidents in civil aviation. An appeal from factual findings is usually difficult to pursue. Among the changes to data protection legislation implemented via the GDPR, some key points include: i) requiring freely given, specific, informed and unambiguous consent from a data subject which must be as easy to withdraw as it is to give; ii) the provision of clear and unambiguous information regarding what the data is to be used for, how long it is to be used for and the requirement to set out exactly what the data subjects rights are in relation to the personal data they provide; iii) maximum fines for breach of the GDPR are the higher of 4% of annual global turnover or 20 million; iv) requiring organisations which engage in regular and systematic monitoring of data subjects on a large scale to appoint a data protection officer (also known as a DPO); and v) the requirement for those processing personal data to be accountable and provide adequate technical and organisational measures to protect any personal data held. Drone-related offences are punishable by up to five years imprisonment. 1.8 Do the airports impose requirements on carriers flying to and from the airports in your jurisdiction? This includes what is intended to happen with the aircraft or aviation asset following a default by the lessee, and there is little prospect of a lessee successfully arguing that it has inadvertently obtained an interest in the property of a third party.
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