The spread of the COVID-19 virus (c-19), and the resulting regulatory and health-based restrictions on passenger air transport, have placed unprecedented stress on aviation requiring immediate governmental support and relief.
AWG, in consultation with other affected parties, has since March 2020 taken a range of actions to assist the air transport sector in addressing the economic impacts of the spread of c-19.
AWG issued a statement dated 22 October 2020 on guiding principles which it recommends to materially enhance the prospects for a successful airline restructuring.
These could apply to a voluntary, ad hoc process without the aid of court proceedings, or through a process involving a plan, scheme of arrangements, or other structure of any kind. That statement has been prepared by AWG as an elective guidance tool.
AWG is supportive of governmental aid to maximize liquidity to the air transport sector. The impact of c-19 on the air transport sector is unprecedented with travel restrictions being driven by the imperatives of public health concerns. These characteristics justify tailored government support until markets are able to self-adjust and correct, all in line with wider public health objectives. We support the efforts of IATA, A4A, and A4E and other airline groups around the globe.
It is imperative that legal stability be maintained during this period, especially that property interests and contract rights be fully respected.
AWG urges all authorities to ensure that government action respects such rights and interests, in general, and those subject to the Cape Town Convention (CTC), in particular. CTC’s provisions are designed to facilitate asset-based financing and leasing, whose principles will be even more important as and when the industry recovers following c-19. Precedent which is inconsistent with full CTC compliance, whether in or outside insolvency proceedings, will have long-term, material, and negative effects. They are to be avoided. Any emergency measures should not impact such property interests and property rights.
AWG stands ready to engage with all CTC contracting states to work through issues and ensure compliance, including in the insolvency context.
AWG also stands ready, in light of the above principles, to consult with governments in connection with any temporary emergency measure that may have the effect of impacting, in any way, the aviation financing and leasing sector. As part of that, AWG has published: (i) watchlists on this matter, and (ii) a modification to the methodology for the CTC compliance index.
AWG is actively involved in contributing to regulatory and industry efforts to ensure rapid return-to-service of aircraft in line with highest safety standards. This includes documentation, government consultations, and, to the extent permitted by compliance rules, exchange of information and experience. AWG cooperates with IATA in this area. See also AWG work on digital signed documents relating to return-to-service.
AWG submits comments to EASA on c-19 return-to-service items
Joint AWG ─ Aviareto proposal on acceptance, use and delivery of digital signature (trusted communication facility, c-19)
AWG and Aviareto have proposed a global approach trusted communication facility (TCF) platform for the acceptance, use, and efficient delivery of digital signatures to the aviation leasing and financing industry and government agencies. The initial focus on the TCF would be in aiding c-19 return to service of aircraft.
Following consultations with regulators and industry, the development of the TCF will now be rapidly acclerated. The TCF will be launched in phases during the first half of 2021. Attached is the joint statement on TCF released by AWG and Aviareto.
A presentation on establishing a TCF – c-19 recovery (Aircraft Return to Service) was made during ICAO’s c-19 webinar series on 17 June 2020. The presentation and webinar recording can be found here.
Airbus is communicating Covid-19 related guidance directly to operators and owners throutgh Airbus World.
Boeing is communicating Covid-19 related guidance directly to operators and owners through MyBoeingFleet.com (see in particular, Fleet Idea Exchange (FIX) ISO-10-20-31269.
Embraer is communicating Covid-19 related guidance directly to operators and owners through FlyEmbraer.com.
Useful links and information
- Aeronautical Repair Station Association:
AWG continues to work on schedule on its environmental, social and governance (ESG) project.
AWG, in consultation with others key members of the industry, continues to assess larger coordinative and cooperative initiatives relating to c-19. AWG is making available its tried and tested compliance program and ability to act swiftly, globally, and to the highest level of quality.