Background
With the exponential growth that the aviation sector has been experiencing over the past years, coupled with the occasional setbacks faced by it, the domain of aviation law has witnessed discussions raising a multitude of concerns: one of the primary concerns being aviation financing. The direct results of the advent of globalisation have been increased global connectivity and a rising need for well-connected network of transportation all over the world. Aircrafts have emerged as a clear winner in this scenario owing to the ease of travel, accessibility and faster commutations. Thus, the financing of the same becomes the logical corollary in terms of an investment option, requiring much deeper deliberation and presenting its own set of concerns.
The UNIDROIT Convention on the International Interests in Mobile Equipment (Cape Town Convention), along with its protocol on matters of Aircraft equipment, became effective in 2006, indicating significant development for the airline industry. These instruments have led to the creation of an international legal standard for transactions involving aircraft equipment, substantially contributing to increased global connection through the model known as “one flight away.” Aviation finance is a form of asset finance, which is quite different from other types of finance as it has certain unique nuances of specialised legal and structural specificities. Aircrafts are considered to maintain their future value relatively well compared to other assets and have a predictable likely market value during the term of any financing and many aircraft models are easily re-marketable. The operating lessors play a key role in the market because the cost of an aircraft means that many airlines do not have the financial status to allow them to purchase aircraft or even finance them. There are many aviation finance transactions that involve cross-border concerns and based on the surrounding circumstances, may yield a plethora of regulatory considerations singular to their specific situations. Matters pertaining to tax leasing, for instance, are common in aviation finance due to the high value of the assets involved and involve some of the aforesaid multitude of regulatory considerations. Not only this, there are also political factors that play a key part in aviation finance, whether by way of government support for the export of aircraft or via regulatory supervision, and since aircrafts are high value assets, prone to damage and capable of causing destruction—insurance is a vital concern for financiers.
Most aircrafts are acquired through leasing agreements where the financial burden is placed on the lessor through financing of heavy equipment in favour of the lessee. To ensure that lessees fulfil their obligation of payment, the leases often include “Hell or High-water” clauses that ensure payment by the lessee irrespective of any circumstantial change that might make it difficult for the lessee to pay. These clauses have assumed further significance following the COVID-19 pandemic, with the airline industry currently suffering from a severe cash crunch; as a result, it is difficult for airline companies to honour their existing and upcoming contractual obligations. In response, the companies are considering invoking force majeure in these contracts to avoid liability for non-performance. However, considering the nature of such contracts and the legal principles adopted in Private International Air Law, taking such measures might pose further challenges.
In light of such challenges and taking note of the contemporary relevance of the topic, the Centre for Aviation and Space Laws of the West Bengal National University of Juridical Sciences is organising an international conference to chart the current developments in this sector, the domestic and international challenges complicit in the present situation, and the legal ramifications of the same in the backdrop of the developments taking place, as well as to bridge the gap in legal literature and jurisprudence of this sector. The goal of this conference is to deliberate upon the challenges faced in aviation financing, the scope and extent of UNIDROIT and applicable domestic legal frameworks in addressing the relevant issues, as well as the future scope and implications for the government and private stakeholders involved.
The Conference would be held online via the Google Meet platform.
Programme Schedule
Inaugural Session [10:00 am – 11:00 am]
| 10:00 am – 10:10 am | Welcome Address by Prof. (Dr.) N. K. Chakrabarti, Hon’ble Vice-Chancellor, NUJS, Kolkata |
| 10:10 am – 10:25 am | Opening Remarks by Prof. (Dr.) Sandeepa Bhat B., Professor of Law & Director – Centre for Aviation & Space Laws, NUJS, Kolkata
Topic: Outlining the Concerns in Aviation Financing |
| 10:25 am – 10:40 am | Keynote Address by Dr. Hamza Hameed, Legal Consultant at UNIDROIT & Co-Chair, SGAC, Rome, Italy
Topic: Aircraft Protocol of the Cape Town Convention from the UNIDROIT Perspective |
| 10:40 am – 10:55 am | Special Address by Prof. (Dr.) Steven Truxal, Professor & Director – International Institute of Air and Space Law, Leiden University, The Netherlands
Topic: State Aid and Aircraft Finance: A Balancing Act |
| 10:55 am – 11:00 am | Vote of Thanks: Ms. Barsha Sinha, Researcher, Centre for Aviation & Space Laws, NUJS, Kolkata |
Technical Session – I
[11:00 am – 12:20 pm]
|
Time |
Name of the Resource Person/Paper Presenter |
Topic |
|
11:00 am – 11:15 am |
Dr. Attila Sipos Assistant Professor of Aviation Law, University of Sharjah, UAE |
Dealing with Jurisdiction and Applicable Laws in Aviation Financing |
|
11:15 am – 11:30 am |
Prof. (Dr.) Anna Masutti Professor of Air & Space Law, University of Bologna, Italy |
Difficulties of Civil Law Countries in Ratifying Cape Town Convention |
|
11:30 am – 11:45 am |
Mr. Adithya Variath Assistant Professor & Co-ordinator, Centre for Research in Air & Space Law, Maharashtra National Law University, Mumbai |
Aircraft Leasing Contracts and Force Majeure: Revaluating UNIDROIT Principles of International Commercial Contracts in a Post-Pandemic Era |
|
11:45 am – 12:00 noon |
Ms. Dhruvi Agarwal Hidayatullah National Law University, Raipur |
Concerns in Aviation Financing Related to Adoption of Green Technologies |
|
12:00 noon – 12:20 pm |
Question and Answers |
(Participants are allowed to post their questions in the chat box) |
12:20 pm – 1:30 pm: Lunch Break
Technical Session – II
[1:30 pm – 2:35 pm]
|
Time |
Name of the Resource Person/Paper Presenter |
Topic |
|
1.30 pm – 1:45 pm |
Prof. (Dr.) Patrick Honnebier Professor International Aviation Financing and Leasing Laws, University of Mississippi, LL.M. in Air and Space Law, U.S.A. and of Counsel at the firm Rep Law Aviation in Amsterdam, The Netherlands. |
Solving the Worst Case Scenario of Aircraft De-registration in India as Provided by the Cape Town Convention |
|
1:45 pm – 2:00 pm |
Dr. Divya Tyagi Head – V.S. Mani Centre for Aviation and Space Laws, Gujarat National Law University, Gujarat |
Developing India as an Aircraft Leasing Hub: Onboard in IFSC Gujarat and Set to Take Off |
|
2:00 pm – 2:15 pm |
Ms. Ishita Das Assistant Professor of Law, NALSAR University of Law, Hyderabad |
Airline Insolvencies In India: Construing The Legal Challenges |
|
2:15 pm – 2:35 pm |
Question and Answers |
(Participants are allowed to post their questions in the chat box) |
Technical Session – III
[2:45 pm – 4:00 pm]
|
Time |
Name of the Resource Person/Paper Presenter |
Topic |
|
2:45 pm – 3:00 pm |
Prof. Laura Pierallini Founder and Name Partner, Studio Pierallini Aviation Law Firm, Rome, Italy |
Title Transfer of an Aircraft |
|
3:00 pm – 3:15 pm |
Mr. Saurabh Sood Assistant Professor, School of Law, Bennett University, New Delhi |
Facilitating Aviation Finance by Rationalising Aviation Laws |
|
3:15 pm – 3:30 pm |
Dr. Andrea Trimarchi Aviation Law Researcher, University of Cologne, Germany |
Dispute Resolution in Aircraft Finance |
|
3:30 pm – 4:00 pm |
Question and Answers Vote of Thanks |
(Participants are allowed to post their questions in the chat box) |
Note:
- Time stipulated in this programme schedule is in Indian Standard Time [IST]. Resource persons and participants from abroad may please take note of it.
- All resource persons are requested to login at least 15 minutes before the beginning of their respective session. [Note: We would be glad to have your presence throughout the conference]
- All participants should login at least 15 minutes before the commencement of the Seminar. Certificate would be issued to only those participants who participate in all sessions.
- All power point slides (PPT) should be sent to casl@nujs.edu by 10 November 2022.
- All paper presenters should strictly adhere to the time limit.
- Organisers are not responsible for any problem with Internet connectivity. In case of loss of Internet connectivity during presentations, opportunity would be given to the next presenter.
Registration Details:
Registration Fee for Participants within India: Rs. 500/-
Registration Fee for Participants outside India: USD 20/-
* All charges relating to payment of registration fee are to be borne by the paper presenter/participant.
** Screenshot of the payment details should be uploaded during registration. Those who are exempted from payment of registration fee may upload NUJS identity card or CASL membership letter.
*** Registration fee, once paid, would not be refunded for any reason.
The registration fee has to be paid via online transfer to the following account:
Name: WBNUJS Centre for Aviation and Space Law
Account No: 066322010001131
Bank & Branch: Union Bank of India, Kolkata NUJS Branch
IFSC Code: UBIN0906638
SWIFT Code: UBININBBKOD
Invited resource persons, members of CASL (NUJS), faculty members and students of NUJS are exempted from the payment of the registration fee.
All presenters and observers are requested to mandatorily register themselves using this link for the purpose of the Conference [Copy paste the link on the web browser in case of any difficulty in the direct access].
Any communication regarding the Conference shall only be shared with those registered herein.
*Note: Certificate would be issued to only those paper presenters/participants who attend all sessions.
Contact Numbers: +919479390839 (Tanmay Roy) & +919870188306 (Tanmay Mehta)
Chief Patron:
Prof. Dr. N.K. Chakrabarti, Vice-Chancellor, NUJS
Organising Committee:
Prof. Dr. Sandeepa Bhat B. (Coordinator)
Ms. Aisiri Nanda
Ms. Aneesha Sharma
Ms. Medha Biswas
Mr. Sanyam Jha
Mr. Tanmay Mehta
Mr. Tanmay Roy
Mr. Umang Varshney