Aviation in Ireland
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Aviation in Ireland The information contained in this report is indicative only. Globe Business Media Group is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this report and in no event shall be liable for any damages resulting from reliance on or use of this information. © Copyright 2006 - 2018 Globe Business Media Group Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited Table of contents Recent developments and trends • Recent developments Regulatory framework • Domestic law • International law • Regulatory authorities Air carrier operations • Operating authorisation • Ownership and control • Financial requirements • Insurance coverage • Safety requirements • Environmental obligations • Air trafc control • Routes • Charter services • Taxes Consumer protection and liability • Airfares • Passenger protection What rules and liabilities are air carriers subject to in respect of: • Cargo • Marketing and advertising • Complaints handling Aircraft • Aircraft register • Mortgages and encumbrances • Detention • Safety and maintenance • Drones Accidents • Investigation • Liability • Regulatory notifcation Airports • Ownership • Operation • Airport charges • Access • Slot allocation • Ground handling Competition issues • Governing regime • Code sharing and joint ventures 1/13 Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited • State aid • Notable cases Dispute resolution • Disputes 2/13 Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited Contributors Ireland Matheson Rory McPhillips [email protected] Matheson Stuart Kennedy [email protected] Matheson Stephen Gardiner 3/13 Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited Recent developments and trends Recent developments Are there any notable recent developments or trends in the aviation sector in your jurisdiction? The Cape Town Convention Alternative A insolvency remedy came into force in Ireland on 10 May 2017. Alternative A is set out in Article XI of the Protocol to the Cape Town Convention, signed in Cape Town on 16 November 2001. By choosing to adopt Alternative A, Ireland gave the force of law to a regime functionally equivalent to the well- established Section 1110 US Bankruptcy Code system. Alternative A applies to leases, security agreements and conditional sale agreements for which registrations have been carried out on the International Registry of Mobile Assets. It provides a waiting period of 60 days, following which an aircraft object must be returned to the lender or lessor by the debtor, airline or insolvency administrator unless all defaults (other than a default constituted by insolvency proceedings) are cured and the debtor agrees to perform all future obligations under the relevant agreements. Ireland was one of the frst countries in Europe to introduce a mandatory register for aerial drones (above one kilo) pursuant to the Small Unmanned Aircraft (Drones) and Rockets Order (Statutory Instrument) 563/2015 (the Drones Order). Ireland was also the frst country to implement an online drone registration facility. Regulatory framework Domestic law What is the primary domestic legislation governing the aviation industry in your jurisdiction? Ireland has several different sources of legislation relevant to the aviation industry. These include primary legislation (ie, legislation passed by way of a parliamentary act by the Houses of Parliament in Ireland) and secondary legislation, which is passed by way of statutory instrument. Other relevant sources of legislation with applicability in Ireland include international conventions and legislation issued by EU institutions, which in some instances have a direct effect on Ireland. Domestic legislation governing aviation in Ireland is heavily infuenced by applicable European law. International law What international aviation agreements has your jurisdiction concluded? Ireland is party to a wide range of international aviation conventions, including the Cape Town Convention and Aircraft Protocol 2001, the Montreal Convention 1999, the Hague Convention 1970, the Tokyo Convention 1970, the Chicago Convention 1944 and the Warsaw Convention 1929 (as amended). Ireland has also signed – but not yet ratifed – the Geneva Convention 1959. Ireland is party to 29 bilateral air services agreements with non-EU countries. Their purpose is to regulate the provision of air services between the jurisdictions, which provide important access rights for air carriers. Regulatory authorities Which government bodies regulate the aviation industry and what is the extent of their powers? The Department of Transport, Tourism and Sport (DTTAS) is the Irish governmental department charged with the oversight of aviation policy. The implementation of certain DTTAS policies has been entrusted to the following bodies: • the Commission for Aviation Regulation (CAR); • the Irish Aviation Authority (IAA); and • the Air Accident Investigation Unit (AAIU). The CAR was established in 2001 under the Aviation Regulation Act 2001 (as amended). The principal functions of the CAR are to: • regulate certain airport and air trafc control charges; 4/13 Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited • license and issue certain permits for air carriers, travel agents, ground handlers and tour operators; • allocate airport slots at certain airports; and • oversee compliance with EU regulations regarding consumer protection in the aviation industry. The CAR has a number of statutory powers in these areas to ensure regulatory compliance, including the suspension and revocation of relevant authorisations. The IAA was established under the Irish Aviation Authority Act 1993 (as amended) and has oversight and responsibilities in the areas of: • air trafc management (in Irish controlled airspace); • safety standards for civilian aviation in Ireland; • the certifcation and registration of aircraft in Ireland; • the licensing of certain aircraft personnel and aircraft maintenance organisations; and • the issuance of air operator certifcates to air carriers. The IAA has broad legislative powers in these areas, which extends to the suspension and revocation of licences, and powers of enforcement. The AAIU investigates aviation incidents occurring within Ireland and relating to Irish registered aircraft. It also coordinates and cooperates with safety investigation authorities overseas. Air carrier operations Operating authorisation What procedural and documentary requirements must air carriers meet in order to operate in your jurisdiction? An air carrier involved in commercial air transport (ie, the transport of passengers or cargo for hire or reward) and having its principal place of business in Ireland must hold a valid air operator certifcate issued by the Irish Aviation Authority (IAA) and a valid air carrier operating licence issued by the Commission for Aviation Regulation (CAR) before it can engage in commercial air transport operations. EU and EEA air carriers with a valid air operator certifcate and air carrier operating licence issued by their relevant national competent authorities may operate in and out of Ireland. Non-EEA air carriers seeking to operate in and out of Ireland must apply for authorisation from the Department of Transport, Tourism and Sport (DTTAS), which it grants in conjunction with the IAA, subject to compliance with applicable safety standards. To qualify for an air carrier operating licence, an applicant must satisfy the licensing conditions set out in EU Regulation 1008/2008 on common rules for the operation of air services in the European community (the Air Services Regulation), which is directly applicable in Ireland. There are two categories of air carrier operating licence that may be granted by the CAR – Category A and Category B – which are dependent on the maximum take-off weight and passenger capacity of the aircraft to be operated by the relevant air carrier. Ownership and control Do any nationality or other requirements or restrictions apply to ownership or control of air carriers operating in your jurisdiction? Yes. The holder of an air carrier operating licence issued by the CAR must be both: • majority owned; and • effectively managed and controlled by EU member states or nationals of such member states at all times, except as may be provided for in EU agreements and in accordance with the provisions of the Air Services Regulation. Financial requirements What fnancial thresholds must air carriers meet to obtain operating authorisation? Pursuant to the Air Services Regulation, a large aircraft operator applying to the CAR for an air carrier operating licence must: • demonstrate that it can meet actual and potential (fnancial) obligations for a period of 24 months from the start 5/13 Lexology Navigator Powered by © Copyright 2006 - 2018 Globe Business Publishing Limited of its operations; • demonstrate that it can meet its fxed and operational costs (as foreseen realistically in its business plan) for a period of three months with no income; • present a detailed business plan covering the frst three years of its operation; and • provide certain fnancial ftness information as set out in the Air Services Regulation. The CAR may also request that an air carrier comply with certain net capital requirements pursuant to the Air Services Regulation. Air carriers