AWG responds to economic sanctions impacting the aviation industry

Aviation Working Group (AWG) has responded to recent sanctions that have imposed restrictions on trade, including good and technology, on the aviation industry. Its response, released in May 2024, comprises of seven principles it recommends to be considered by government policy makers. The aviation industry is still contending with the impact of sanctions imposed against Russia, following its invasion of Ukraine in February 2022, which resulted in several aircraft owned by various parties stuck in the country. ""This statement of principles is designed to introduce into government policy discussions and considerations key elements, consistent with sanction-related objectives, which ameliorate adverse impacts on the aviation industry and take into account practicalities and industry practices,"" said AWG secretary Jeffrey Wool. The first principle argues in favour of ""substantively consistent"" sanctions and their interpretations across various sanction authorities. The next said sanctions should ""result in targeted negative impacts"" on the sanctioned parties, while avoiding ""unintended adverse consequences on non-sanctioned parties"". It said that sanctioning authorities should actively engage with industry experts to evaluate the impact of sanctions. It also recommended that sanctions should allow for an orderly ""wind-down period"" for existing contracts before coming into force, as well as the allowing financiers to enforce their rights under international aviation treaties. The subsequent principle called for non-sanctioned parties, such as financiers, manufacturers or service providers, to be allowed to take action in relation to the safety of flight operations and passengers. AWG's sixth principle states that ""sanctions should expressly confirm the ability of participants to maintain existing insurance cover and receive insurance payments, from whatever source"". Its seventh and final principle argues in favour non-sanctioned parties to be permitted to take action that are ""consistent with the objectives"" of AWG's prior principles.