Business

and
Aviation
Law
 Course Outline
•ICAO Freedoms of the Air •Air Navigation Order (ANO)
•Understanding the Airport as Airline Partner
•Understanding the Airport
•Airport Definition, Function, Customers and
Partners
•Airport Management and Operation
•The Need for Standardization
•National Aviation Policy
•Objectives of the Policy
•Open Skies Policy
•Airlines License
•Conditions for operations by Airlines
•Domestic Operations
•International Operations
•Government Taxes & Duties
•Opening up of Northern Gateways of Pakistan to
Foreign Airlines
•International Cargo Services
•International Charter Operations
•CAA’s Aeronautical Charges
•Construction of Airports
•Monitoring & Implementation of Aviation Policy
•Market Clean-up Board
 ICAO Freedoms of the Air
• First Freedom of the Air - the right or privilege, in respect of scheduled international
air services, granted by one State to another State or States to fly across its territory
without landing (also known as a First Freedom Right).
• Second Freedom of the Air - the right or privilege, in respect of scheduled
international air services, granted by one State to another State or States to land in
its territory for non-traffic purposes (also known as a Second Freedom Right).
• Third Freedom of The Air - the right or privilege, in respect of scheduled
international air services, granted by one State to another State to put down, in the
territory of the first State, traffic coming from the home State of the carrier (also
known as a Third Freedom Right).
• Fourth Freedom of The Air - the right or privilege, in respect of scheduled
international air services, granted by one State to another State to take on, in the
territory of the first State, traffic destined for the home State of the carrier (also
known as a Fourth Freedom Right).
• Fifth Freedom of The Air - the right or privilege, in respect of scheduled
international air services, granted by one State to another State to put down and to
take on, in the territory of the first State, traffic coming from or destined to a third
State (UAE-PAK- IND or UAE-IND-PAK) (also known as a Fifth Freedom Right).
• ICAO characterizes all "freedoms" beyond the Fifth as "so-called" because only the
first five "freedoms" have been officially recognized as such by international treaty.
 ICAO Freedoms of the Air
• Sixth Freedom of The Air - the right or privilege, in respect of scheduled
international air services, of transporting, via the home State of the carrier, traffic
moving between two other States (UAE-PAK-UAE-UK) (also known as a Sixth
Freedom Right). The so-called Sixth Freedom of the Air, unlike the first five
freedoms, is not incorporated as such into any widely recognized air service
agreements such as the "Five Freedoms Agreement".
• Seventh Freedom of The Air - the right or privilege, in respect of scheduled
international air services, granted by one State to another State, of transporting traffic
between the territory of the granting State and any third State with no requirement to
include on such operation any point in the territory of the recipient State, i.e the
service need not connect to or be an extension of any service to/from the home State
of the carrier.
• Eighth Freedom of The Air - the right or privilege, in respect of scheduled
international air services, of transporting cabotage traffic between two points in the
territory of the granting State on a service which originates or terminates in the home
country of the foreign carrier or (in connection with the so-called Seventh Freedom of
the Air) outside the territory of the granting State (also known as a Eighth Freedom
Right or "consecutive cabotage").
• Ninth Freedom of The Air - the right or privilege of transporting cabotage traffic of
the granting State on a service performed entirely within the territory of the granting
State (also known as a Ninth Freedom Right or "stand alone" cabotage).
• Source: Manual on the Regulation of International Air Transport (Doc 9626, Part 4)
 History of Aviation and Airports
• Aviation is a relatively new industry: the first sustained, controlled and powered flight
took place only about a century ago when, on December 17, 1903, Orville Wright
flew his wood and fabric aircraft for 12 seconds over a 37-meter distance, operating
from a sandy strip. This strip in North Carolina, U.S.A. was probably
indistinguishable from other surrounding areas but it can be considered as the first
airport. In spite of its extremely basic characteristics, it met the very simple needs of
the day.
• The first known official airports date back to 1909. As flight became more
common and as the number of aero-plane increased, so did the number of airports.
They were still open fields but they included minimum facilities allowing aero-plane
to take off and land, to be parked, fuelled, and repaired. These are the basic
aeronautical functions of an airport as well requirements of an airline.
• During World War I (1914 to 1918), it became apparent that aircraft could play an
important role in national defence. As a
result, this period saw the production of the
first combat aircrafts and the construction
by countries involved in this conflict of
many military airports.
• Following the war, some of these military
airports remained operational and were
converted to civil use; they formed the
early nucleus of a national airport system.
• Initially a local responsibility, after World War I, airport development became
a mix of military, commercial, and private responsibilities. One of the most
obvious and attractive benefits of flying, besides the simple thrill of no longer
being restricted to the earth's surface, was the possibility of carrying mail at
several times the speed of a train. As a result, in 1918, the first intercity air
mail service was established. At the same time, communities discovered the
importance of airports to connect them to the rest of the country. By 1925
some airmail transport was contracted out to private aircraft operators: this
was the birth of the airline industry.
• Between 1925 and 1940, air transportation
grew steadily in several countries. In 1940,
with the outbreak of World War II, countries
involved in this conflict constructed large
numbers of air bases, some of them being
planned so as to be useful to civil aviation
after the war.
• By the end of World War II, in 1945, several
countries owned surplus air bases; many
surplus transport aircraft, and qualified
aircrews were also available: all the
ingredients for a full-fledged air transport
industry were present. This is when air
transportation really started to grow
worldwide.
The Need for Standardization
Why Standardize?
•Finally, the Airports Council International (ACI), an association of airports, was
established in 1991. Its mandate is to foster cooperation among its member airports, and
with other partners in world aviation, including airlines, governments, and aircraft
manufacturers. ACI has over 1500 members in 169 countries.

•In spite of the apparent distinct mandates of these organizations, they have common
objectives: to make air travel safer, more efficient and economical. They work in close
cooperation on many issues.

• In your day-to-day duties, the organization having the most impact on your work is the
ICAO. Therefore, you must become familiar with its role as it affects your airport.

•ICAO develops and adopts statements that must be applied by all member states in
order to achieve consistency throughout the world. There are two types of such
statements: Standards and Recommended Practices (SARP).

•A Standard is a specification for physical characteristics or performance of a facility or

personnel, the uniform application of which is recognized as necessary for reasons of
safety or regularity of international air navigation. Its application by all member states is
mandatory.
The Need for Standardization
Why Standardize?
•A Recommended Practice is a specification for physical characteristics or performance
of a facility or personnel, the uniform application of which is recognized as desirable.

•Where can you find these SARPs? They are published in documents called Annexes.
There are eighteen (18) such annexes, each of them dealing with one particular aspect
of aviation.

•Out of these Annexes, three are of particular interest to you: Facilitation (Annex 9),
Aerodromes (Annex 14) and Security (Annex 17).

•It is important for you to understand how a Standard or Recommended Practice

adopted by ICAO affects your airport. ICAO does not have any authority over its
member states, nor over individual airports. Once ICAO has adopted a SARP, member
states must adopt it. This is normally done through National Aviation Laws and
regulations and also through procedures promulgated by the authority responsible for
civil aviation matters in each country. This is usually the Civil Aviation agency or
equivalent authority.

•In cases where a state decides not to adopt an ICAO SARP, it must so notify ICAO,
who will publish the difference. This will ensure that pilots flying to this country are aware
of it.
The Need for Standardization
Lesson Summary
• Aircrafts frequently operate beyond the geographical limits of their home state.
In order to avoid confusion and potential risks, it is imperative that pilots fly with
the assurance that wherever they go, they will work in a familiar environment.

•Early in the development of air transport, airlines, airports and states took
measures to ensure a high degree of consistency in aviation. This led to the
creation of the International Air Transport Association, the International Civil
Aviation Organization, and the Airports Council International.

•The ICAO develops and promulgates Standards and Recommended Practices

(SARPs) aimed at standardizing all aviation operations. Since ICAO does not
have authority over states, a mechanism ensures that each member state
adopts these SARPs by enacting them in their national aviation laws and
regulations.
 LAW
• Law is a system of rules that are created and enforced through social or
governmental institutions to regulate behavior. It has been defined both as
"the Science of Justice" and "the Art of Justice". Law is a system that
regulates and ensures that individuals or a community adhere to the will of
the state. State-enforced laws can be made by a collective legislature or by
a single legislator, resulting in statutes, by the executive
through decrees and regulations, or established by judges
through precedent, normally in common law jurisdictions. Private
individuals can create legally binding contracts, including arbitration
agreements that may elect to accept alternative arbitration to the normal
court process. The formation of laws themselves may be influenced by
a constitution, written or tacit, and the rights encoded therein. The law
shapes politics, economics, history and society in various ways and serves
as a mediator of relations between people.
• "Law is a binding custom or practice of a community; a rule or mode of
conduct or action that is prescribed or formally recognized as binding by a
supreme controlling authority or is made obligatory by a sanction (as an
edict, decree, order, ordinance, statute, resolution, rule, judicial decision, or
usage) made, recognized, or enforced by the controlling authority."
 LAW
 Legal systems Legal subjects
 Civil law International law
 Common law and equity Constitutional and
administrative law
 Religious law
Criminal law
 Sharia law
Contract law
 Legal institutions Tort law
 Judiciary Property law
 Legislature Equity and trusts
 Executive
 Military and police
 Bureaucracy
 Legal profession
 Civil society
 Aviation Law Legal Issues
• Aviation law covers almost all legal issues affecting aircraft and airport
operations, including aircraft navigation and maintenance, air traffic control
safety, and pilot licensing requirements. Aviation law mostly operates at the
federal level, with most aviation regulations and standards enforced by the
Federal Aviation Administration (FAA).

• The Transportation Security Administration (TSA), which ensures airline

passenger safety.

• The National Transportation Safety Board (NTSB), which investigates

aviation accidents, also regulates aviation safety. International flights are
also governed by international law and the laws of the individual countries
that the flight passes through.

• States have little authority to pass laws related to aviation. States may,
however, pass laws that do not hinder federal laws, as well as pass zoning
laws that dictate the hours of operation and the noise levels of local airports.
 Terms to Know
• Aviation - Of or relating to any vehicle or
transportation that flies in the air
• Federal Aviation Administration (FAA) - A federal
agency that governs aviation safety and issues
regulates the airline industry
• Transportation Safety Administration (TSA) - A
federal agency that conducts security screening of
passengers and baggage on commercial flights
• Air Traffic Control - A ground-based
communications system that oversees and directs
airplane traffic at airports
 Related Practice Areas
• Aviation Accident
• Transportation Law
• Administrative Law
• Environmental Law
• Antitrust and Trade Regulation
 What is Aviation Law?
1. This highly specialized field of law encompasses most facets of air
travel, as well as the operation and regulation of business issues
relating to air travel, which requires a comprehensive knowledge of
FAA regulations, specific laws regarding flight, and an in depth
understanding of aviation. Aviation law pertains to nearly all
individuals connected to the operation and maintenance of aircraft.
2. The practice of Aviation law can include litigation on behalf of
families who are suffering from loss or injury due to an aircraft
tragedy and the defense of an aviation professional accused of
violating Federal Aviation Regulations.
3. Most aspects of aviation law fall under the oversight of the Federal
Aviation Administration (FAA). Although, air traffic regulation polices,
laws and administrative agencies have been created by both federal
and state government, with certain restrictions preventing states
from regulating routes, services, or the rates of all air carriers
authorized to provide interstate air transportation by the Federal
Aviation Act. States may alter existing remedies and enact state
laws consistent with federal mandate, though. Additionally, Federal
law does not preempt state products liability law, and more often
than not, in most defective product cases, aviation manufacturers
may be held strictly liable.
 Chicago Convention on International Civil Aviation
• The Convention on International Civil Aviation, also known as the Chicago
Convention, established the International Civil Aviation Organization (ICAO),
a specialized agency of the UN charged with coordinating and regulating
international air travel. The Convention establishes rules of airspace, aircraft
registration and safety, and details the rights of the signatories in relation to
air travel. The Convention also exempts air fuels in transit from (double)
taxation.
• The document was signed on December 7, 1944, in Chicago by 52 signatory
states. It received the requisite 26th ratification on March 5, 1947 and went
into effect on April 4, 1947, the same date that ICAO came into being. In
October of the same year, ICAO became a specialized agency of the United
Nations Economic and Social Council (ECOSOC). The Convention has since
been revised eight times (in 1959, 1963, 1969, 1975, 1980, 1997, 2000 and
2006).
• As of November 2017, the Chicago Convention had 192 state parties, which
includes all member states of the United Nations except Dominica and
Liechtenstein. The Cook Islands is a party to the Convention although it is
not a member of the UN. The convention has been extended to cover
Liechtenstein by the ratification of Switzerland.
 Main articles
• Article 1: Every state has complete and exclusive sovereignty
over airspace above its territory.
• Article 3: Every other state must refrain from resorting to the
use of weapons against civil aircraft in flight.
• Article 5: The aircraft of states, other than scheduled
international air services, have the right to make flights across
state's territories and to make stops without obtaining prior
permission. However, the state may require the aircraft to
make a landing.
• Article 6: (Scheduled air services) No scheduled international
air service may be operated over or into the territory of a
contracting State, except with the special permission or other
authorization of that State.
• Article 10: (Landing at customs airports): The state can
require that landing to be at a designated customs airport and
similarly departure from the territory can be required to be
from a designated customs airport.
 Main articles
• Article 12: Each state shall keep its own rules of the air as
uniform as possible with those established under the
convention, the duty to ensure compliance with these rules
rests with the contracting state.
• Article 13: (Entry and Clearance Regulations) A state's laws
and regulations regarding the admission and departure of
passengers, crew or cargo from aircraft shall be complied with
on arrival, upon departure and whilst within the territory of
that state.
• Article 16: The authorities of each state shall have the right to
search the aircraft of other states on landing or departure,
without unreasonable delay.
• Article 24: Aircraft flying to, from or across, the territory of a
state shall be admitted temporarily free of duty. Fuel, oil,
spare parts, regular equipment and aircraft stores retained on
board are also exempted from customs duty, inspection fees
or similar charges.
 Main articles
• Article 29: Before an international flight, the pilot in
command must ensure that the aircraft is airworthy, duly
registered and that the relevant certificates are on board the
aircraft. The required documents are:
– Certificate of registration
– Certificate of airworthiness
– Passenger names, place of boarding and destination
– Crew licenses
– Journey Logbook
– Radio License
– Cargo manifest
• Article 30: The aircraft of a state flying in or over the territory
of another state shall only carry radios licensed and used in
accordance with the regulations of the state in which the
aircraft is registered. The radios may only be used by
members of the flight crew suitably licensed by the state in
which the aircraft is registered.
 Main articles
• Article 32: the pilot and crew of every aircraft engaged in
international aviation must have certificates of competency and
licenses issued or validated by the state in which the aircraft is
registered.
• Article 33: (Recognition of Certificates and Licenses) Certificates of
airworthiness, certificates of competency and licenses issued or
validated by the state in which the aircraft is registered, shall be
recognized as valid by other states. The requirements for the
issuing of those certificates or airworthiness, certificates of
competency or licenses must be equal to or above the minimum
standards established by the Convention.
• Article 40: No aircraft or personnel with endorsed licenses or
certificate will engage in international navigation except with the
permission of the state or states whose territory is entered. Any
license holder who does not satisfy international standard relating
to that license or certificate shall have attached to or endorsed on
that license information regarding the particulars in which he does
not satisfy those standards.
 Annexes
• The Convention is supported by nineteen annexes containing
standards and recommended practices (SARPs). The annexes
are amended regularly by ICAO and are as follows:
• Annex 1 – Personnel Licensing: Licensing of flight crews,
air traffic controllers & aircraft maintenance personnel.
Including Chapter 6 containing medical standards.
• Annex 2 – Rules of the Air
• Annex 3 – Meteorological Service for International Air
Navigation
• Annex 4 – Aeronautical Charts
• Annex 5 – Units of Measurement to be used in Air and
Ground Operations
• Annex 6 – Operation of Aircraft
– Part I – International Commercial Air Transport – Airplanes
– Part II – International General Aviation – Airplanes
– Part III – International Operations – Helicopters
 Annexes
• Annex 7 – Aircraft Nationality and Registration Marks
• Annex 8 – Airworthiness of Aircraft
• Annex 9 – Facilitation
• Annex 10 – Aeronautical Telecommunications
– Vol I – Radio Navigation Aids
– Vol II – Communication Procedures including those with PANS
status
– Vol III – Communication Systems
– Part I – Digital Data Communication Systems
– Part II – Voice Communication Systems
– Vol IV – Surveillance Radar and Collision Avoidance Systems
– Vol V – Aeronautical Radio Frequency Spectrum Utilization
• Annex 11 – Air Traffic Services – Air Traffic Control Service,
Flight Information Service and Alerting Service
• Annex 12 – Search and Rescue
• Annex 13 – Aircraft Accident and Incident Investigation
 Annexes
• Annex 14 – Aerodromes
– Vol I – Aerodrome Design and Operations
– Vol II – Heliports
• Annex 15 – Aeronautical Information Services
• Annex 16 – Environmental Protection
– Vol I – Aircraft Noise
– Vol II – Aircraft Engine Emissions
• Annex 17 – Security: Safeguarding International Civil Aviation
Against Acts of Unlawful Interference
• Annex 18 – The Safe Transport of Dangerous Goods by Air
• Annex 19 – Safety Management (Since 14 November 2013)
• Annex 5, Units of Measurement to be Used in Air and Ground
Operations, named in its Table 3-3 three "non-SI alternative
units permitted for temporary use with the SI": the foot (for
vertical distance = altitude), the knot (for speed), and the
nautical mile (for long distance).
 CAA-FAA-JAA-EASA
• CAA is the Civil Aviation Authority. This is a generic
term used in many countries, notably the UK and China.
A CAA is a national regulatory body responsible for
aviation. The CAA implements the ICAO SARPs in
national legislation and is responsible for regulatory
oversight.
• FAA is the Federal Aviation Administration. As the Civil
Aviation Authority of the USA, it is responsible for
establishing aviation regulations in the US. These are
known as FARs (Federal Aviation Regulations).
• In addition to its regulatory role, the FAA is also
responsible for Airspace and Air Traffic Management,
maintenance of Air Navigation Facilities infrastructure
and has an active role in Research and Development of
aviation related systems and technologies.
 CAA-FAA-JAA-EASA
• JAA were the Joint Aviation Authorities, a co-operation of
most European (EU and non-EU) civil aviation regulatory
authorities. It was not a regulatory body itself, the member
authorities were responsible for the regulation.
• Originally started as the Joint Airworthiness Authorities in
1970 its objectives were to produce common certification
standards for large aircraft and aircraft engines to facilitate a
European aviation manufacturing industry (Airbus). Over
time, the scope was extended to included aircraft operations,
maintenance, licensing and certification/design standards for
all classes of aircraft.
• With the creation of EASA (see below) in 2002, the EU
members transferred the airworthiness regulations away
from the JAA. Over time, EASA became responsible for
operations and licensing as well. In 2009 the JAA system was
disbanded. Only the training organization (JAA-TO) remains, it
mainly provides courses for CAA staff of European countries.
 CAA-FAA-JAA-EASA
• EASA is European Aviation Safety Agency. Created in
2002 by the European Commission, EASA took over the
functions of the Joint Aviation Authorities of the EU
countries.
• The responsibilities of EASA include drafting of aviation
safety legislation and providing technical advice to the
European Commission and to the EU Member States,
airworthiness and type certification of aircraft and
aircraft parts for aircraft operating in the EU, approval
of aircraft design organizations world-wide and of
production and maintenance organizations inside and
outside of the EU.
• Since its creation, the competences of EASA have
gradually expanded. This process is still going on.