First aviation-specific mediation mechanism in Asia in March 2024.

A Memorandum of Understanding (MOU) has been signed between the Hague Court of Arbitration for Aviation (CAA) and the Singapore International Mediation Centre (SIMC) for the creation of a specialized mediation framework for the aviation industry in Asia. This agreement marks an important step towards aviation-specific mediation in the area.

The MOU combines Singapore’s contribution to the global aerospace industry with its dedication to becoming the leading hub for alternative dispute resolution in Asia. It highlights the growing significance of mediation in a field where quickness and adaptability are critical.

Mediation can be an effective way to resolve conflicts quickly, either before or during formal court cases or arbitration hearings. In aviation disputes, choosing a mediator with technical expertise is particularly advantageous due to the specialized nature of the industry. This ensures that a settlement can be reached without having to explain aviation industry practices and procedures to someone who is not familiar with them.

In aviation disputes, cross-border aspects are often involved, which can make it difficult for one or both parties to navigate court or arbitration procedures that are unfamiliar to them. However, mediation can provide a more relaxed and informal alternative, while avoiding the negative attention that litigation may bring. Additionally, since mediation can be conducted without prejudice, if it is unsuccessful, the parties may still move forward with arbitration or litigation without the outcome of the mediation impacting those procedures.

Overall, the MOU is a positive step toward resolving conflicts in the Asian aviation industry amicably, and we are eagerly awaiting the cooperation of the CAA and SIMC.

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