Aviation & Aerospace Agenda: A collection of recent news and insights

Welcome to the latest edition of our Aviation & Aerospace Agenda - a dedicated platform where we highlight our latest updates, insights and details about upcoming events.

In this edition, we are delighted to launch our Aviation Podcast Series Flight Plan, where in Episode 1 our specialists explain the “No Re-Export to Russia clause” arising from EU sanctions on Russia and its impact on the aviation industry. 

You can also read about:

1. the UK Autumn Budget’s increases to Air Passenger Duty, and its impact on Business Aviation in particular;
2. the effects of crew exposure to cosmic radiation in light of a recent decision against an airline; 
3. the problem of counterfeit and unapproved parts in the aviation supply chain;
4. recent changes to Malaysian consumer protection legislation relating to air travel; 
5. navigating the pitfalls and ensuring best practice when drafting redelivery conditions in aircraft operating leases; and
6. cyber threats in the aviation industry and guidance to mitigate the risks of a cyber event.
    

In the spotlight

Aviation Podcast | Flight Plan - Episode 1: The No Russia Clause

We consider the No Re-Export to Russia requirement imposed by EU sanctions following the Russian invasion of Ukraine, explaining its background and potential risks for stakeholders in the aviation finance industry and beyond. This episode features Aron Dindol, Nick Harding, Kirstin MacDougall from the London aviation team and Anna Falk, from our sanctions team in Hamburg.

Listen here

Cyber threats in the aviation industry

The aviation industry has seen a surge in ransomware attacks in recent years and cyber incidents are a serious threat to business continuity, as was seen during the recent CrowdStrike outage in July 2024 which, although not caused by bad actors, brought chaos to many airlines as well as other industries. In this article our aviation and cyber teams highlight the threats facing the industry and offer some guidance on steps to mitigate the risk.

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Redelivery conditions in aircraft operating leases

Negotiating redelivery conditions is a critical part of the operating lease negotiation exercise. Redelivery conditions are, however, not always given the attention they deserve at the outset when drafting a lease. If they are not correctly drafted, the parties can end up with disputes as to what they mean and whether an aircraft complies with such conditions, or a lessee may incur substantial costs in putting an aircraft into a redelivery condition which is overly onerous or inappropriate. This makes the negotiation of these conditions crucial.

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Impact of the Malaysian Aviation Consumer Protection (Amendment) Code 2024 on airlines operating in Malaysia

On 28 August 2024, the Transport Minister of Malaysia, Anthony Loke announced that airlines operating in Malaysia will be required to offer customers the option of a refund of the original price of payment for flight delays of five hours or more. This new measure, along with other consumer protection measures, comes as a result of actions taken by the Malaysian Aviation Commission (“MAVCOM”) to enhance the Malaysian Aviation Consumer Protection Code 2016 (“MACPC 2016”).

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Navigating Cosmic Radiation risks to crew and implications for airlines following landmark ruling

A landmark decision on crew radiation exposure. Exposure of crew to cosmic radiation and safety measures for aircrew have been a topical issue for many years but are becoming increasingly important for airlines, pilot and flight attendants’ unions, international organisations and various government bodies

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Is Business Aviation under threat in the UK and European Union?

The United Kingdom’s Autumn Budget delivered by Chancellor Rachel Reeves on 30th October 2024 contained the widely anticipated rise in Air Passenger Duty (APD) but also a less widely expected headline increase in APD of a further 50% on private aircraft.

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Aircraft Parts Fraud: counterfeit and unapproved parts in the aviation supply chain and circumvention of sanctions

Aviation fraud has been in the spotlight in the last year with the criminal investigation into aircraft parts supplier AOG Technics in progress following a search and arrest in December 2023. In an industry where safety and confidence are paramount, it is essential that any instances of fraud and gaps in regulation are identified quicky and rogue operators taken out of the supply chain and dealt with firmly.

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