At the Singapore Airshow, European-based The Hague Court of Arbitration for Aviation (The Hague CAA) and the Singapore International Mediation Centre (SIMC) signed a memorandum of understanding to provide and promote Asia's first specialised aviation mediation framework.
Mediation is a facilitated negotiation under the guidance of a professionally trained mediator, who helps parties arrive at an outcome that they can both agree on. Aviation businesses currently rely on Europe for mediation; the agreement will therefore allow for aviation mediation in Asia.
""In the past few years, the industry in Asia has faced unprecedented challenges because of the pandemic,"" said cochair of The Hague CAA's mediation standing committee Paul Ng.
He added: ""An efficient method for dispute resolution between industry players is key to help the industry back to growth and success. The Hague CAA was formed to offer specialised arbitration and mediation services fine-tuned to the distinctive dynamics and needs of the sector. Singapore is a leading international commercial alternative dispute resolution hub for the region and globally.""
""With one of Asia’s largest and most diverse aviation ecosystems, Singapore is a key node in the global aerospace value chain and has over 130 aerospace players located here,"" said EDB senior vice president and head, hub strategy Celia Sia. ""This specialised mediation framework for the aviation industry provides parties here with an alternative means to resolve industry-specific disputes.""
SIMC CEO Chaun Wee Meng added: ""In a fast-moving, mission-critical industry like aviation, the speedy resolution of disputes is absolutely essential. Mediation is a fast, flexible and cost-effective mode of alternative dispute resolution that can be used before and during litigation or arbitration to complement one’s dispute resolution strategy.""
The companies also agreed to promote the incorporation of suitable model dispute resolution clauses in Asia's aviation industry as well as collaborate on joint events and training opportunities.