Baker McKenzie attorneys, Jennifer Trock, Andrew Riccio and Emily Brait, along with Francesca Falsini, recently co-authored, "A Survey of Aviation Disputes in the Americas", which was included in Global Arbitration Review's annual retrospective, The Arbitration Review of the Americas 2025.
The survey considers the use of industry-specific arbitration clauses in the ever-growing aviation industry. Although still a nascent alternative for dispute resolution in the aviation industry, industry-specific arbitration clauses are being written into an increasing number of aviation contracts as legal professionals see their benefits in resolving legal disputes.
With the Hague Court of Arbitration for Aviation now accepting cases, the authors expect to see a continued rise in the number of agreements in the aviation industry that incorporate arbitration clauses, whether new industry-specific clauses or traditional arbitration clauses designating international institutions. Arbitration offers significant benefits for commercial disputes in the aviation industry, which are often highly complex. The aviation industry is one of the most heavily regulated industries in the world, with aircrafts and aircraft operators potentially subject to the regulatory requirements of multiple jurisdictions, leaving parties to face a complex regulatory matrix. Moreover the aviation industry is highly interconnected, with issues in one area having the ability to impact the industry as a whole. With arbitration clauses giving both parties the ability to control the process through advance mutual agreement, arbitration can provide an effective and efficient means for "resolving commercial disputes quickly to limit disruption to the broader industry."
The authors also review several recent aviation-related commercial and investment treaty disputes from the Americas.
This article was first published on Global Arbitration Review in July 2024; for further in-depth analysis, please visit the GAR The Arbitration Review of the Americas.