AWG monitors emerging issues and legal, regulatory, and policy items that may impact aviation financing and leasing.
These topics may be actively addressed by AWG, depending on facts and circumstances.
Emerging Issues and Legal, Regulatory and Policy Items
AWG closely follows developments in the field of financial regulatory reform, including those under Basel III, to determine the extent to which they impact on aviation financing and leasing.
The Federal Aviation Administration is currently reviewing the rules applicable to the use of non-citizen trusts (NCTs) in connection with aircraft registration. In view of the important role played by NCTs, a consultative group was formed under the aegis of AWG to contribute to the FAA's process. That group has submitted materials to the FAA and continues to engage in the FAA process.
AWG supports the OECD Anti-Bribery Recommendation (international business transactions). This support is expressed in line with Section B of Annex II thereof.
AWG is monitoring the challenges to, and implementation of, the German Air Travel Tax, as that act potentially imposes liability on a lessor / financier for the debts of an operator in certain cases.
AWG has organised the submission of an industry amicus brief to the U.S. Supreme Court on an important lessor liability matter. The brief supports a requested review of the recent Florida Supreme Court case of Vreeland v. Ferrer, 71 So.3d 70 (Fla. 2011). In Vreeland, the court held that the applicable US Federal statute (49 U.S.C. S. 44112(b)) did not pre-empt State law as regards an owner's / lessor's (vicarious) liability for injuries to or the death of persons on board an aircraft based on the theory that the death was not on land. AWG believes that a wider pre-emption policy was intended by and is embodied in the above-mentioned Federal statute (no liability for injuries or death unless the owner, lessor, or secured party is in possession or control of the aircraft), and that such is a central pillar in the regulatory framework for the leasing and financing industry, with economic consequences impacting all parties in the aviation sector.