Introduction
Aviation transactions routinely cross national borders.
Aircraft leases, maintenance agreements, software contracts, airport concessions, aircraft purchases and international supply arrangements may involve parties from several jurisdictions.
Why Arbitration Is Attractive
Arbitration can provide confidentiality, specialist decision-makers and greater procedural flexibility.
But those advantages depend upon careful drafting.
The Clause Must Be Precise
Contracts should address the seat, governing law, institutional or ad hoc arbitration, language, number of arbitrators and interim relief.
Poor drafting can create jurisdictional disputes before the substantive dispute is even considered.
Conclusion
In aviation, dispute resolution should be designed at the contract stage.
A well-drafted arbitration clause can prevent a commercial dispute from becoming a second dispute about where and how the first dispute should be resolved.
