Avi­a­tion court gives Shang­hai a global voice

China Daily (Canada) - - CHINA - By WEI TIAN in Shang­hai weitian@chi­nadaily.com.cn

The Shang­hai In­ter­na­tional Avi­a­tion Court of Ar­bi­tra­tion, the world’s first ar­bi­tra­tion court spe­cial­iz­ing in solv­ing global avi­a­tion dis­putes, was opened in Shang­hai on Thurs­day.

The court was es­tab­lished by the In­ter­na­tional Air Trans­port As­so­ci­a­tion, the China Air Trans­port As­so­ci­a­tion and the Shang­hai In­ter­na­tional Ar­bi­tra­tion Cen­ter.

The three par­ties will rec­om­mend the court to its mem­bers for dis­pute res­o­lu­tion. They will also work to­gether to in­cor­po­rate the pro­vi­sions of the Shang­hai court glob­ally.

“This is a long over­due devel­op­ment and one that will ben­e­fit the avi­a­tion in­dus­try enor­mously,” said Jef­fery Shane, chief le­gal ad­viser at the IATA. Shane is also a for­mer un­der­sec­re­tary of the US Depart­ment of Trans­porta­tion.

He said ar­bi­tra­tion is a quick, ef­fi­cient and af­ford­able way to re­solve dis­putes with­out de­stroy­ing a busi­ness re­la­tion­ship.

The IATA has a set of ar­bi­tra­tion rules to gov­ern the set­tle­ment of dis­putes, but China’s courts have not rec­og­nized them and won’t en­force awards made pur­suant to the IATA’s rules.

The new court in Shang­hai will fill the gap by adding weight and sub­stance to the IATA ar­bi­tra­tion process, he said.

“We en­vi­sion the es­tab­lish­ment of a list of ex­pe­ri­enced, trusted and neu­tral ar­bi­tra­tors ... to as­sist par­ties in re­solv­ing their dif­fer­ences quickly and af­ford­ably,” he said.

The new court ap­pointed 23 mem­bers to its ex­pert com­mit­tee, in­clud­ing the deputy head of Shang­hai’s high court, and the le­gal ad­vis­ers of ma­jor do­mes­tic and for­eign air­lines such as Lufthansa and China East­ern, as well as China’s do­mes­tic air­craft man­u­fac­turer COMAC and its for­eign coun­ter­parts Boe­ing and Air­bus.

Shang­hai mayor Yang Xiong said the court will help the city re­al­ize its goal of be­com­ing an in­ter­na­tional ship­ping cen­ter by 2020.

Zhou Qiang, head of the Supreme Peo­ple’s Court, said dur­ing an ear­lier visit to Shang­hai that the city should also be built as a re­gional and even global cen­ter for ar­bi­tra­tion.

Li Jun, chair­man of the CATA, said es­tab­lish­ing the court is only a start, and sim­i­lar mech­a­nisms should help ful­fill Shang­hai’s goals and play a pos­i­tive role in main­tain­ing a sta­ble in­ter­na­tional avi­a­tion mar­ket.

Shang­hai has al­ready be­come an air trans­port hub both in China and world­wide. The vol­ume of cargo trans­ported via Shang­hai’s air­ports is cur­rently the third-largest in the world, and the pas­sen­ger flow is the sev­enth-largest glob­ally.

The city is a devel­op­ment base for China’s do­mes­ti­cally pro­duced com­mer­cial air­liner, and var­i­ous poli­cies in the Shang­hai free trade zone are ex­pected to boost the air­craft leas­ing busi­ness.

Sheng Leim­ing, pres­i­dent of the Shang­hai Lawyers’ As­so­ci­a­tion, said soft power is the key for Shang­hai to be rec­og­nized as a true global cen­ter for the avi­a­tion in­dus­try.

“For ex­am­ple, Lon­don lags far be­hind Shang­hai in terms of through­put, but it is still the head­quar­ters for some of the world’s largest ship­ping com­pa­nies be­cause it has a set of rules that is glob­ally rec­og­nized,” he said.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.