Certain air navigation and airport authorities have extensive, priority rights against an aircraft for debts owing to that entity, including debts arising through use of other aircraft. The effect of such priority rights is to adversely penalise owners/lessors and financiers who neither contributed to the incurred debt nor have the practical ability to prevent that debt from accumulating. AWG believes that owners/lessors and financiers - innocent parties - should not by virtue of property rights in aircraft be made liable for navigation and airport charges incurred by operators. 

AWG is engaging in policy discussions on this issue with relevant parties. An early position paper on this matter is posted on this site. Air Navigation Claims - Developed Position Paper.  Elements of that paper have been superseded, yet it reflects underlying AWG policy and potential legal concerns.

AWG divides its approach to these problems to focus on three areas: risk allocation, risk management, and risk mitigation.

Risk Allocation

On risk allocation, without limiting the general principles set out above, AWG takes issue with the existence and exercise of the so-called 'fleet lien', where an aircraft can be seized and sold for debts of an operator's fleet.  The lien has been exercised in the UK, including on behalf of debts owed to Eurocontrol.  AWG has submitted a document relating to the fleet lien in a case pending n the courts of the UK.  AWG is not a party to such proceedings but has made such submissions, with consent, as a third party intervener:  See "AWG Submissions on Fleet Lien".

Risk Management

On risk management, AWG has worked out an arrangement with Eurocontrol. With an airline’s express consent, Eurocontrol will send a lessor / financier an electronic file of that airline’s monthly statement of account. That will keep that lessor / financiers apprised of the general situation and could serve as an early warning of potential problems. That lessor / financier would be expected to review the statement, and, if possible, to advise on its accuracy or any anomalies to help ensure a realistic assessment of the accrual situation. Those wanting further information should contact the Central Route Charges Office of Eurocontrol.

AWG has also proposed the development of a more comprehensive enhanced information system (EIS). With an airlines’ consent, a creditor would be provided online with aircraft specific debt information. This proposal, while under review, is not being actively developed at present. It may be pursued in the future, depending on technical, legal, and cost / benefit considerations.

Risk Mitigation

AWG commented on various drafts of the now final EC Regulation on Common Charging System, (EC) No 1794/2006,  which entered into force on October 1, 2007.

Section 14(3) of that Regulation states that countries ‘shall … ensure that effective enforcement measures are applied {which} may include denial of services, detention, or other enforcement measures … in accordance with applicable law’.

This Regulation, if effectively implemented, has the potential to mitigate risks to owners and lessors, particularly if action other than liens are utilised by States.  AWG will be monitoring the implementation process.