Publish time: Thu Dec 06 14:03:20 CST 2018
On November 28 2018, the symposium themed Hot Topics of Aviation Disputes and the launch of the Civil Aviation Dispute Resolution in China: An Annual Review and Preview (2018) jointly organized by the Beijing Arbitration Commission / Beijing International Arbitration Center (the “BAC”) and the Legal Committee of the China Air Transport Association (the “LCCATA”) was successfully held in Beijing. This event was based on the BAC’s annual report and the discussion was focused on hot topics such as disputes arising from aircraft sales and leasing, aircraft custody, aircraft maintenance, indemnity for damage to aircraft and ground services. It has attracted approximately one hundred professionals from major airlines, lease finance companies, colleges and dispute resolution practice.
The event
At the beginning of the event, Mr. Lin Zhiwei, Secretary General of the BAC, and Mr. Zhang Hua, Vice President of the LCCATA, delivered opening addresses, respectively.
Mr. Lin Zhiwei
Mr. Lin expected that the launch of the Civil Aviation Dispute Resolution in China: An Annual Review and Preview (2018) could provide a good opportunity for further discussion about how arbitration could play a more helpful role in the resolution of aviation disputes on the ground of exchanges on hot topics such as aircraft leasing. Meanwhile, the BAC also looked forward to jointly organization of regular symposia with the LCCATA, whereby both institutions could enjoy more professional exchanges on hot issues within the industry, reach industrial consensus, and establish industrial standards.
Mr. Zhang Hua
Mr. Zhang presented a brief introduction of the background and development of the LCCATA. In particular, he delivered thanks to the BAC that enjoyed a sound reputation in China and significant prestige and influence around the globe, for such opportunity of exchange. He expected the speakers to have an extensive dialogue, and a review and preview of aviation dispute resolution development, and thereby to summarize different business patterns, promote professional exchanges, and explore corresponding solutions.
Dr. Chen Fuyong
Session I of the symposium was on the Civil Aviation Dispute Resolution in China: An Annual Review and Preview (2018). Dr. Chen Fuyong, Deputy Secretary General of the BAC, acted as the moderator. Mr. Gao Feng, Partner of Grandall Law Firm Beijing Office, delivered a keynote speech, followed with comments by Mr. Zhao Jin, Deputy GM of Legal & Compliance Dept. of China Eastern Airlines, Ms. Ma Xuanling, Deputy GM of Legal & Standard Dept. of China Southern Airlines, Mr. Li Zhihong, Partner of Yingke Law Firm Shanghai Office, Mr. Xu Yongjian, General Counsel of China National Aviation Fuel Group Limited, and Ms. Li Chun, GM of Capital Airport Group Asset Management Co., Ltd., respectively.
Mr. Gao Feng
Mr. Gao Feng firstly reviewed the five well-chosen cases in the Annual Report concerning the validity of arbitration clause, disputes over trust contract in operation of aircraft, aircraft management contract, general aviation insurance contract, and indemnity for damage to property caused by UAV. The speech was given from perspectives of causes for disputes, core issues in dispute and adjudication approaches, providing suggestions for the prevention and resolution of aviation disputes. He particularly stressed that in light aviation disputes were featured with strong professionalism, high complexity, multiple parties and foreign related elements, arbitration was more favored for its procedural flexibility, requirement of confidentiality, respect to party autonomy, high professionalism and cross-border enforceability. Meanwhile, regulations with influence on the aviation industry would surely raise new requirements for the handling of aviation disputes, and thus require arbitration institutions to continuously learn about the industry, and follow up its development, so as to acquire trust with professionalism.
Mr. Zhao Jin
Ms. Ma Xuanling
Thereafter, with the topic of handling and trend of disputes over aviation passengers’ personal information protection, Mr. Zhao Jin made an introduction of the legislation and judicial practice on protection of aviation passengers’ personal information, and provided suggestions on the distribution of proof burden, the ways of undertaking civil responsibility and the construction of passengers’ personal information protection mechanism. Ms. Ma Xuanling pointed out on the ground of her practice experience that with the booming growth of the civil aviation industry, potential disputes were constantly on the rise, and due to the close connection of civil aviation units, civil aviation related disputes may be concerning the national strategy and technology, and thus strongly require for non-antagonistic and non-public dispute resolution mechanisms. With the gradual improvement of talent pool and the promotion of national strategy, the construction of diversified dispute resolution mechanism for aviation disputes should be accelerated.
Mr. Li Zhihong
Mr. Xu Yongjian
Ms. Li Chun
Next, Mr. Li Zhihong started from the industrial chain of aviation, and shared the disputes and features thereof throughout the industrial chain from research and development of aircrafts to design, manufacture, operation, maintenance, leasing and insurance of aircrafts, and particularly shared the design of clauses and dispute resolution practice in several typical arbitrations such as design change, quality assurance of aircrafts and aircraft leasing. Mr. Xu Yongjian shared several major aviation litigations and arbitrations he has dealt with, and concluded that arbitration was far better than litigation in efficiency and professionalism, and it was also important to have proactive communication with courts and to take preservation measures for safeguard of interests. Based on his own experience, Mr. Xu spoke high of the BAC’s leading role in raising dispute resolution efficiency and professionalism. Ms. Li Chun took a perspective of airport, and shared the features of airport related aviation disputes and future trend thereof in regard of the parties and natures of disputes, and provided suggestions on the selection of dispute resolution means within the airport aviation sector.
Session II centered on “Hot Topics of Aircraft Leasing”. Moderated by Mr. Gao Feng, Mr. Nie Ying, Senior Counsel of the LCCATA, delivered the keynote speech, followed with comments by Ms. Chen Shiqi, Deputy Manager of Legal & Compliance Dept. International Affairs Division of China Eastern Airlines, Mr. Wang Mingming, Deputy GM of Risk Management Dept. of Hainan Airlines Holding Corporation Limited, Mr. Zhao Huabin, Legal Director of CCB Financial Leasing Co., Ltd., Ms. Li Yaning, Associate Research Fellow of China Academy of Civil Aviation Science and Technology, and Ms. Wang Shu, Partner of Han Kun Law Offices, respectively.
Mr. Nie Ying
Mr. Nie Ying firstly introduced the development of the aircraft leasing market, and then interpreted the legal framework of aviation financial leasing, with a thorough analysis of how aircraft leasing disputes could be better resolved by arbitration. He specifically stressed that dispute resolution within the aircraft leasing sector required new style legal thinking that breaks through traditional ideas in respect of finance, operation, compliance and risk management, audit supervision, assets appraisal and disposal, and also close attention to the rights of opportunities, sequences, reputations and insurance gains and the value in breach of contract of aircrafts.
Ms. Chen Shiqi
Mr. Wang Mingming
Ms. Chen Shiqi shared her thought about the future development of aircraft leasing based on issues such as the reform of international accounting standards, the post-bankruptcy execution of lien and retrieval of aircrafts, the disposition of old aircraft assets and the pricing of residual value thereof, and the frequently seen problems of legal practitioners in their dealing with aircraft leasing business. From the perspective of a lessee, Mr. Wang Mingming shared the difficulties and hardship in the contract negotiation, the execution of contract and the dispute resolution, and believed that the design of financial leasing terms should give first priority to the protection of leasers’ interests, and meanwhile considerations should also be given to the lessees’ interests by way of reasonable design of the terms.
Mr. Zhao Huabin
Mr. Li Yaning
Ms. Wang Shu
Focusing on the consideration factors of dispute resolution mechanism selection, Mr. Zhao Huabin pointed out that the determinacy and enforceability of law application and dispute resolution are given priority by banks and financial institutions when considering the dispute resolution means. Mr. Li Yaning provided analyses of the division of authorities between the Civil Aviation Administration and Industrial and Commercial Bureau as well as legal practices in different countries, and then talked about the feasibility of registration of the rights originated from aircraft engines as well as legal problems derive therefrom. Ms. Wang Shu referred to her practice in dealing with disputes of corporate aircrafts, general aviation aircrafts and large planes, and shared the frequently seen legal issues in dispute resolution within the aircraft leasing sector and solutions thereof.
At last, Mr. Nie Ying delivered an impressive closing speech, from reviewing the speakers’ speeches, to the change and development of the aviation industrial pattern, and to the building of aviation disputes resolution mechanism.v
The symposium
As the very first practical study report series organized by a Chinese arbitration institution, authored by experts of various areas of expertise and aimed at continuously looking into the development, change and tendency of commercial dispute resolution in China, the Commercial Dispute Resolution in China: An Annual Review and Preview series have attracted much attention ever since its initial launch in 2013, and have become valuable practical references for both domestic and overseas readers to have in-depth understanding of the development of commercial dispute resolution in China. After six years of efforts, this annual report series have included more than 50 sub-reports in various areas, and on the ground of such research findings the BAC so far has held over 10 launch events in London, Paris, Frankfurt, Cologne, Hague, Vienna, Zurich, Hong Kong and Beijing, attracting dispute resolution experts such as scholars, lawyers and in-house counsels from around the globe.
We sincerely welcome professionals from different areas to continue to pay attention to the annual report of 2019. You are also welcome to pay attention to the BAC’s official website and WeChat account for more information.