International aviation arbitration to take flight after Shanghai pact

On 28 August 2014, the China Air Transport Association (CATA), the International Air Transport Association (IATA) and the Shanghai International Arbitration Centre (SHIAC) jointly executed the Strategic Co-operation Agreement on International Aviation Arbitration in Shanghai.

Pursuant to the agreement, the three parties will share aviation expertise and resources, and co-operate in the establishment of the Shanghai International Aviation Court of Arbitration, and also the Shanghai International Expert Committee on Aviation Arbitration. The court will be the world’s first arbitration institution to specialise in the resolution of aviation disputes and the committee will focus its efforts on assisting the court in formulating specialised and international arbitration rules, recommending professional aviation arbitrators, promoting international aviation arbitration and carrying out relevant academic research.

The establishment of the tripartite co-operation signifies that China, the world’s second-ranked aviation power in terms of total civil air transport turnover since 2005, has finally turned its sights towards international aviation arbitration.