Legal Landscapes: Austria- Aviation Finance & Leasing

Dr. Martin R. Geiger

Managing Partner , GHP


1.What is the current legal landscape for Aviation Law in your jurisdiction?

Austria’s aviation legal landscape is shaped by a combination of EU aviation law, national legislation, and a strong regulatory environment emphasising safety, ownership control, and market integrity. The Austrian Civil Aviation Act (LFG), EASA regulations, and EU competition and consumer‑protection frameworks form the core regulatory pillars.

A particularly important dimension in recent years has been foreign direct investment (FDI) control. The newly implemented Austrian Investment Control Act (Investitionskontrollgesetz – InvKG) requires mandatory screening and approval for acquisitions of Austrian aviation companies when non‑EU/EEA/Swiss investors obtain certain levels of control or influence. Aviation is explicitly categorised as a “critical sector” due to its importance for national security and infrastructure. As a result, transactions involving airlines, air‑operators, MRO providers, ground handlers, or aviation‑related IT service providers often require pre‑closing approval by the Federal Ministry of Labour and Economy. We already had some transactions in the practice of our law firm involving such cases. This regime has become a central element of transaction planning, as failure to obtain approval may result in administrative penalties, legal invalidity of the investment, and severe delays.

Overall, the legal framework remains mature, highly harmonised with EU standards, and investor‑friendly provided compliance and regulatory coordination are prioritised early in the deal cycle.

2. What three essential pieces of advice would you give to clients involved in Aviation Law matters?

First, engage early with regulatory authorities and anticipate approval requirements. Aviation transactions often involve multi‑layered approvals (EASA, Austro Control, competition law, and FDI control under the Austrian InvKG). Early assessment avoids deal‑fatigue, delays, or unexpected structural changes.

Second, ensure contractual and operational compliance is continuously monitored. Operators, lessors, and service providers must maintain robust compliance systems, particularly regarding safety management, continuing airworthiness rules, data protection, and consumer‑rights obligations.

Third, in cross‑border transactions, tailor risk‑allocation and structuring carefully. Governing law (e.g. Austrian Law), Arbitration Clauses or Agreements to ensure international enforcement (e.g. Vienna Rules) delivery/redelivery mechanics, security packages, International Convention considerations, and interaction with Austrian insolvency rules all require careful planning to protect client interests and asset value.

3. What are the greatest threats and opportunities in Aviation Law in the next 12 months?

The greatest threats in our view are:

Persisting volatility in operating costs, particularly fuel, financing costs, and supply‑chain disruptions.

Increasing regulatory scrutiny on sustainability, emissions management, and Environmental Social Governance (ESG) disclosures, leading to more complex compliance burdens.

Geopolitical instability and protectionist tendencies, including more rigorous FDI screening, which may complicate cross‑border investments into Austrian operators and aviation infrastructure.

The greatest opportunities in our view are:

Continued growth in business aviation, cargo, and specialised operators, where Austria remains an attractive and well‑regulated jurisdiction.

Investment opportunities in fleet modernisation and green technologies supported by EU funding instruments.

Digitalisation of operational processes, offering efficiencies for operators and attracting technology‑driven investment into aviation support services.

4. How do you ensure high client satisfaction levels are maintained by your practice?

Our practice at GHP Attorneys at Law in Austria maintains consistently high client satisfaction through a blend of technical excellence, responsive communication, and industry‑specific insight. We prioritise:

Proactive advisory work, ensuring clients understand both regulatory requirements and commercial implications before decisions are taken.

Transparent communication and short response times, allowing clients working in the fast‑moving environments to rely on clear and actionable guidance.

Our Austrian GHP team has deep industry integration, at the equity partner level since more than 20 years, maintaining strong relationships with all players on the Austrian Aviation market, including authorities, operators, technical experts, and financial institutions to deliver pragmatic, solution‑oriented advice.

Continuous learning and quality assurance, ensuring our GHP team remains aligned with evolving EU and Austrian aviation frameworks.

5. What technological advancements are reshaping Aviation Law and how can clients benefit from them?

Key technological developments reshaping aviation law in our view include:

Digital aircraft records and electronic technical logs, which raise new legal considerations regarding data integrity, cybersecurity, and evidentiary standards in transactions and disputes.

Predictive maintenance, AI‑driven fleet management, and automation, requiring updated contractual frameworks and clear allocation of liabilities between operators, OEMs, and software providers.

Increased reliance on remote operations, drones, and advanced air mobility (AAM), areas in which Austria is aligning with EU regulatory developments (particularly the EU U‑Space framework).

Clients benefit through enhanced operational efficiency, reduced downtime, improved regulatory transparency, and better risk management – provided that contractual and compliance structures are adapted to reflect these emerging technologies.