Contracts where arbitration usually appears
Aviation arbitration most often arises from commercial agreements, including aircraft purchase and sale agreements, leases, maintenance and repair contracts, charter and management agreements, and parts supply deals. These contracts often involve parties in different countries, and arbitration is attractive because an award may be easier to enforce across borders than a court judgment. Many aviation contracts choose New York or English law, and the governing law and arbitration seat can affect the outcome as much as the facts. Claims by injured passengers are generally handled in court rather than by arbitration, and treaty rules covering international air travel restrict advance agreements to arbitrate those claims.
What tends to be in dispute
Common issues include whether an aircraft met delivery conditions at inspection, whether maintenance was performed to the required standard and documented properly, whether return conditions in a lease were met, and how operating costs and revenue were allocated under a management agreement. The aircraft's records, including logbooks, maintenance records, and airworthiness documentation, are usually central, and gaps in those records can affect value even if the aircraft itself is sound. Technical witnesses familiar with the aircraft type are often needed. Liens and possession of an aircraft or engine may need urgent attention, and courts can sometimes grant interim relief in support of an arbitration.
Choosing the next step
Start by reading the dispute resolution clause carefully: the institution named, the seat, the number of arbitrators, any required negotiation or notice period, and whether certain claims are carved out for court. Preserve the technical records and communications, and avoid unilateral steps such as removing an aircraft or withholding records that may breach the contract. Insurance policies covering the aircraft or the business may also respond to some claims. Once we have the documents, we review the contract and the facts, identify whether interim measures are needed, and talk about whether a negotiated resolution or a formal arbitration is the more practical route.
