Rules that have the effect of allowing air navigation and airport authorities to hold owners/lessors and financiers responsible for unpaid charges owed by the operator are inefficient and against general principles. One example of these are those granting authority and navigation entities priority or detention rights against aircraft.
AWG is committed to working with these authorities and other bodies to find alternative approaches that address our concerns, while ensuring effective collection of amounts needed to finance air navigation and airport systems.
The approach of AWG to these problems is divided into three areas: risk allocation, risk mitigation, and risk management.
Certain air navigation and airport authorities have broad priority and detention rights against an aircraft for debts owing to that entity, including debts arising through use of other aircraft (fleet lien).
The effect of such priority and detention rights is to penalize 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 are innocent parties and should not be made liable for navigation and airport charges incurred by operators.
The threshold question centers on the appropriate allocation of risk. AWG takes particular issue with the existence and exercise of rules that allocate risk to innocent parities, starting with but not limited to the fleet lien.
Risks related to liens and detention rights in favor of air navigation and airport authorities in respect of leased or financed aircraft, where not eliminated, need to be mitigated in practice. AWG supports the concept of security from operators in favor of airport and air navigation authorities where required by credit assessment, and, correspondingly, the timely application of that security in order to avoid accumulation of debt by such authorities.
Risks related to liens and detention rights in favor of air navigation and airport authorities in respect of leased or financed aircraft, where not eliminated or mitigated, need to be managed in practice.
AWG has proposed the development of a comprehensive enhanced information systems. With an airlines’ consent, a creditor should be provided with online aircraft specific debt information.
AWG played a central role in developing the Central Route Charges Office (CRCO). This program is designed as an efficient system that ensures the billing, collecting and disbursement of route charges to airspace users in the European Union member states. Authorized creditors are provided with required information, in line with AWG policy.