In the airline business we cannot just pay for the results. We need to be equipped with knowledge and skills

Transcription

1 SPECIAL EDITION ISSUE 2 INTERNATIONAL DAILY 28 FEBRUARY 2018 LEGAL SYMPOSIUM 27 February - 1 March 2018 Bangkok, Thailand Thai minister opens 2018 symposium Thai Minister of Transport Arkhom Termpittayapaisith welcomed delegates to the IATA Legal Symposium 2018 in Bangkok on Wednesday morning, thanking both IATA and THAI Airways teams for putting together a constructive program. I know that to be in compliance with the law is the intention of every well-organized airline, but given the increasingly complicated legal and regulatory environment in which we operate, this simple intent is not always so simple to achieve, Mr. Arkhom said. In outlining Thailand s work on its own In the airline business we cannot just pay for the results. We need to be equipped with knowledge and skills aviation legal and regulatory environment, he announced the country s recent enactment of two new domestic aviation-related laws. The laws, enacted simultaneously, are the Act on International Carriage and the Act on Certain Offences Against Air Navigation. The first piece of law has resulted in Thailand s accession to the Montreal Convention This helps bring Thailand, THAI Airways International and all carriers into the international legal system for the standardization of liability for air carriage, when flying into Thailand, he said. The second piece of law was enacted due to several changes in handling practice of unlawful interference of international air transport, Mr. Arkhom said. He did not elaborate. However, he went on to say, we still have many more legal issues to deal with. Some are not limited to the airline industry, but our industry falls within the scope of their objectives. Competition laws affect many industries, but anti-trust provisions can be especially difficult for airline codeshare or alliance arrangements. (See story on p2.) Noting that ICAO s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will be a major issue for us in the coming years, he acknowledged that the scheme will bring with it a whole new range of regulations. Mr. Arkhom added that CORSIA was just one of many issues that will require a new range of expertise from Ministry of Transport staff. In the airline business, he continued, we cannot just pay for the results. We need to be equipped with knowledge and skills. The IATA Legal Symposium can help provide both through its challenging platform, he said. (For more on Thailand s commitment to aviation, see p3) KEEP UP TO DATE WITH ALL THINGS AIRLINES RELATED AT AIRLINES.IATA.ORG

2 2 IATA LEGAL SYMPOSIUM Codesharing under increasing scrutiny As regulatory scrutiny of airline codeshare agreements increases around the world, it is essential to educate regulators on the specifics of how proposed collaborations would work, panelists discussing the risks of codesharing have agreed. The breadth of elements and terms of codeshares vary widely, yet regulators lacking experience and knowledge of the industry may not be able to differentiate between a low-level, so-called vanilla codeshare and a significantly deeper integration of resources such as a Joint Business Agreement (JBA) said the panelists, representing airline in-house and external legal counsel organisations in a Wednesday morning session. Educate the regulators about different types of collaboration, suggested Martin Dajani, Vice President Legal, Americas, Etihad Airways. Providing that kind of understanding is particularly crucial for regulators who have little experience or knowledge of the sector, a common situation when government or regulatory organisations move their staffs regularly between portfolios. Also, perceptions vary between countries and regulatory organizations of competition issues, leading to different concepts of how codesharing should be regulated. While deeper integrations offer greater potential benefits to airlines, they also pose greater potential risks of scrutiny, commented session facilitator Anita Mosner, Partner, Holland & Knight. And when considering cooperating with another airline, the consideration needs to cover a variety of levels, she said, such as Where do we fit in the market? At the same time, codeshares with comparatively limited scope sometimes also attract prolonged scrutiny. One such instance is a codeshare between Brussels Airlines and TAP Air Portugal that has been under the eye of the European Commission since Panelist Frederic Louis of WilmerHale (Wilmer Cutler Pickering Hale and Dorr) characterized the commission s attitude toward codeshares as a lot of uneasiness, with the case involving Brussels and TAP having morphed several times since it was initiated seven years ago. Every 15 months, we received a massive request for information. For five years, we had no idea where it was going, Louis said. However, he added, the case has now moved on to the preparation of decision phase. Complicating the regulatory environment further is the evolving nature of partnerships including the departures of airlines from legacy alliances to form smaller ones and new operating models to reflect the present of lowcost carriers in the market. But the hope emerging from the panel was that competition authorities will begin to examine codeshares and other cooperative agreements in the light of customer benefits.

3 3 I ATA L E G A L S Y M P O S I U M Suvarnabhumi Airport Upgrades to Thai airports to increase air travel numbers M Don Muang International Airport ajor upgrades at two of Thailand s three largest airports w ill increase the number of air travelers multifold over the coming years, with greater connectivity between the trio on the horizon too, Tha i M i n ister of Tra nspor t A rk hom Termpittayapaisith said on Wednesday in remarks to Legal Symposium delegates. Don Muang, the forerunner of the 12-year-old Suvarnabhumi as Bangkok s primary airport, is being upgraded and positioned as a major short-haul airport, Mr. Arkhom said. It is located North of Bangkok. To the South East of Bangkok, serving tourist hub Pattaya and the country s manufacturing region, U-Tapao Airport will be upgraded to increase use from the current 3 million passengers per year. In addition to hosting civil air traffic, U-Tapao is used by the Thai military. Within five years, all 10 Metro lines will be completed, intercity rail will be here, and high-speed rail will be here U-Tapao Rayong Pattaya International Airport W W W. I A T A. O R G High-speed rail services will allow travelers transiting between Bangkok and U-Tapao to make the one-way journey in under an hour, Mr. Arkhom said. Within five years, he added, the high-speed rail as well as an intercity rail service and all 10 lines of Bangkok s Metro should be completed.

4 4 I ATA L E G A L S Y M P O S I U M Moments from Wednesday W W W. I A T A. O R G

5 5 I ATA L E G A L S Y M P O S I U M W W W. I A T A. O R G

6 6 I ATA L E G A L S Y M P O S I U M Legal Symposium 2018 W W W. I A T A. O R G

7 7 IATA LEGAL SYMPOSIUM Sunny today, keep eye out for risks, says Pearce is it about our house that needs fixing before the next storm? That was the question IATA Chief Economist What Brian Pearce asked his Wednesday morning audience at the beginning of his commentary on what lies ahead for the aviation industry in We think this year is going to be good, but there are risks on the horizon, Pearce said. Among the issues that should concern the industry, Pearce said, is protectionism from countries around the world, illustrated by policies in the US and the UK s Brexit. With regard to Brexit, he said, I d argue this is a symptom of what we ve been seeing over the last few years. What else should we be alert to? he asked. Debt is something we really ought to be keeping an eye on, high levels of debt in the developed world. Yet currently, he said, debt is no problem at all with debt servicing inexpensive and interest rates still low but they are rising. Will they rise faster than we expect? he asked. Another issue to keep watch on is the tightening up of labor markets, Pearce warned, saying A key challenge to profitability is the acceleration of costs we ve seen over the last 18 months. Law writing award winner inspired by symposium Pietro Benintendi, a master s in aviation law student at Leiden University s International Institute of Air & Space Law, is the winner of the Constance O Keefe Aviation Law Writing Award for 2018, sponsored by Studio Pierallini. Now in his second term of the one-year program at Leiden, Benintendi wrote his winning article on codesharing and liability under codesharing agreements. I was thrilled to win, he said. His prize included an all-expenses paid trip to Bangkok for the IATA Legal Symposium 2018, where he was recognized in front of the delegate audience on Wednesday afternoon. Once he completes the aviation law master s, he wants to work as closely with the aviation industry as I can, either in an in-house capacity with an airline or in a law firm with an aviation practice. I m an aviation geek, he said. He has previously qualified as a lawyer in Italy, and earned his bachelor s degree in civil law at the University of Turin. He served a three-year traineeship at Tosetto, Weigmann e Associati in Turin. Of the IATA symposium, Benintendi said he enjoyed all the sessions they were so good, with in-depth knowledge and very good practical insights. He said he wants to join the world of aviation law even more now. I m so excited I ve been studying these things, and now I m here. In March, he will compete on behalf of the Leiden university in the International Air Law Moot Court in Seoul.

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