AVIATION LAW: EFFECT OF COVID-19 ON THE AVIATION INDUSTRY AND OTHER RELATED LAWS

INTRODUCTION
Global Aviation Industry is worried about the assembling and activities of a wide range of
airplane and related administrations during transportation. As per the World Bank Organization,
in 2018, around 4.2 billion travelers were hauled around the whole way across the globe.
Components that were driving the avionics business before the COVID-19 pandemic incorporate
expanding extra cash all over the globe, the presentation of low-toll aircrafts, expanding
worldwide financial exercises, new travel patterns, and some more. In addition, substitution of
maturing business airplane has likewise contributed fundamentally to the market development.
The key components influencing the aeronautics business after the pandemic remember the
decay for visits and goes as countless on a global scale just as domestic flights are getting
dropped the whole way across the globe to check the transmission of the infection. The
administration the whole way across the globe are dropping the visa of unfamiliar individuals
and securing influenced territory which is additionally one of the significant purpose for the
easing back down of the avionics business. The worldwide Aviation industry report is
fragmented into traveler carriers, load aircrafts, airplane fabricating organizations, air terminals
overseeing organizations, and cooking and other help giving organizations. Out of which,
traveler carrier portion is required to get influenced most alongside cooking and other assistance
giving organizations. Wiping out of plane request may likewise be seen soon by the airlines
influencing the plane assembling organizations.

Impact of COVID-19 on the aeronautics business can be seen in every continent including North
America, Europe, Asia-Pacific and Rest of the World. For example, in the US, since the public
wellbeing crisis because of the COVID-19 episode, the majority of the nation is on finished
lockdown, which is thus confining the domestic travel in the nation. Nations, for example, Italy,
France, Spain, and India are under finished lockdown and a wide range of flights are halted until
further notification. Key organizations of the aviation business that are getting influenced all
around the world incorporate Qatar Airways, Emirates, China Eastern Airlines, Lufthansa,
Boeing, Airbus, American Airlines Group Inc., and Delta Air Lines. For example, Qatar Airways
suspended the entirety of its trips to and from Italy that was one of the most exceedingly awful
hit nations by the pandemic of COVID-19. Moreover, the organization has likewise chosen to
downsize its activity which incorporates cutting flights and eliminating less efficient airplane.
Qatar Airways grounded all its ten A380 airplane until 31 of May 2020, as a prudent step of
COVID-19 flare-up.
In addition, Emirates likewise ended a large portion of its traveler activity because of the
pandemic. Presently, aircrafts and air terminal overseeing organizations are looking for bailout
bundles from the administration. For example, air terminal overseeing organizations in Europe
are required to bring about lost $15.4 billion because of pandemic. It is assessed that air
terminals in Europe will get 700 million less travelers which are 28% less true to form prior. The
investigation on the airline business is fused by broad essential and auxiliary examination
directed by the exploration group. In auxiliary examination, various methodologies have been
received to determine the market esteem, market development rate and investigate patterns in the
business because of the COVID-19 pandemic. In the report, the examination of the nation is
given by investigating different provincial players, laws and strategies, shopper conduct, full
scale financial factors and effect of the pandemic. Numbers removed from auxiliary exploration
have been verified by leading appropriate essential examination. It incorporates finding key
individuals from the business and meeting them to approve the information. This empowers the
expert to infer the nearest potential figures. Furthermore, a normal recuperation timetable of the
business will likewise be given the best-and most dire outcome imaginable which will help the
organizations to make their future strides in the global flying industry.

EFFECT AND APPLICABLITY OF THE FORCE MAJEURE CLAUSE IN
THE AIRCRAFT ACQUISITION CONTRACTS.
In the Black’s law Dictionary “Force majeure” has been defined as an event that can neither by
controlled or anticipated. It is a contractual provision allocating the risk of loss if performance
becomes impossible or impracticable, especially as a result of an event that the parties could not
have anticipated or controlled. While force majeure has neither been defined, nor specifically
dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian contract
Act 1872 which envisages that if a contract is contingent on the happening of an event which
later on becomes impossible then such contract is deemed to be held void. Apart from the havoc
that the Corona Virus Pandemic continues to unleash on human beings and nations worldwide,
its outreach has also impacted various businesses and commerce. Aviation Industry is one of the
most severely hit because of the COVID-19 pandemic. This has given rise to the question that in
the light of the COVID-19 pandemic whether or not the circumstances may constitute a force
majeure event for the purpose of Aviation Contracts ?
The fact is that it would be unusual to see a specific Force majeure clause in a lease or a loan
agreement, but other Aviation contracts such as the Purchase agreements, hedging agreements
and supply contracts may include such clauses. Standard commercial operating lease agreements
generally governed by the English law typically do not include a Force Majeure clause and are
characterized by two basic principle features. The first feature relates to the delivery of aircraft to
the lessee on a ‘as is, where is’ basis, whereas the second feature involves the inclusion of a ‘hell
or high water’ clause, rendering the lease a net lease. Arguably, taken together, these two

features leave the lessee helpless in a situation where the lessee’s use of aircraft, through no fault
of its own, is suddenly severely curtailed. Since the declaration of the COVID-19 as a global
pandemic, international travel has drastically fallen, this has thrown the Aviation industry into a
stand still. An increasing number of aviation supply chains are struggling to meet their
contractual obligations. Hence the Force Majeure clauses are being looked at as the last resort to
relieve the clients of their most burdensome contracts. Hence the need of the hour is to analyse
these aircraft acquisition contracts and the part that Force Majeure clause(s) will play in paving
the way forward for the aviation industry post the COVID-19 pandemic.
In the light of the COVID-19 Pandemic, Aviation Industry has been profusely suffering and is
one of the worst hit businesses around the world. Due to the negligible demands of air travel
around the world, many people have lost their jobs who are associated with Aviation sectors. On
top of that, majority of the airlines are finding it difficult to keep their operations going, this also
includes the most profit earning airlines such as the Emirates, Lufthansa, ETIHAD Airways etc.
To cut their operational costs, many such airlines have already retired the larger fuel consuming
aircrafts such as the Boeing 747s and the Airbus A380s, on top of that many pilots have been
laid off around the world for the same purpose. Due to such fall in drastic demand in the aviation
industry, there has been a massive effect on the disposable income of various airlines, hence this
in turn has affected their ability to take the delivery of new aircrafts under the sale, purchase or
lease agreements. This has given rise to the query that, to what extent the Force Majeure clause
will apply to the Aircraft Acquisition contracts. It is a need of the hour to analyse the extent of
Force Majeure clause and it being as a last resolve to relieve some burden of contractual
obligations from various contracting parties in the aviation sector.

REQUIRED RESPONSE FROM INDIA
The most basic inquiry today versus COVID-19 concerns the span of the emergency considering
government reactions and the movement of the infection. For the avionics business, other than
lifting of the current lock-down, unwinding on the boycott of air travel both inside and outside
India ought to likewise be thought of. By and by, the span of CCOVID-19 emergency is
probably going to vary by locale and by nation. International Air Transport Association (IATA)
has distinguished India among the need nations that need to make a move for diminishing the
previously battling carrier organizations from the pressure caused because of the pandemic.
There are a few businesses including Travel and Tourism which are intensely reliant on theflying business and occupations across numerous divisions will be affected if carriers don’t
endure the COVID-19 emergency.
Post COVID, megatrends, for example, the emotional ascent in far off working, government or
association forced constraints/limitations on air travel, more noteworthy dependence on privately
arranged flexibly chains just as evading trivial voyages will affect the recuperation request in the
aeronautics business and may prompt significant upgrade in the administration and activity of the
aircraft business.
As COVID – 19 keeps on spreading over the globe, the difficulties set off by it are various and
phenomenal. So as to effectively explore through this difficult and questionable condition, an
altogether created and a complete flight plan will be critical. The emotional decrease in traveler
numbers speaks to a danger to the dissolution of the aircraft organizations. The carrier
organizations may consider rebuilding their business and obligation. Notwithstanding, it would
be basic that any such restructurings (business or obligation) should be concurred and executed
moderately rapidly, so as to stay away from breakdown. It might be advantageous to take note of
that in focused on circumstances like COVID-19, being on the quickest direction may matter
more than having an extraordinary arrangement that may immediately get obsolete. Hence, after
the pandemic is contained, the Indian Government may need to give an alleviation bundle to the
airline business to help monetary recuperation and forestall breakdown of the flying business.
The Indian travel industry and cordiality industry are seriously influenced by the flare-up of
COVID-19. Once COVID-19 emergency is contained, the GOI may inter alia think about
building up a proper informing/promoting effort (like ‘Mind boggling India’ the travel industry
crusade) in order to give vital driving force to the recuperation of the avionics business post
COVID-19.

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