The airline industry is one of those industries where standard terms of doing business are commonly used. One of the most widely used standard contracts in the airline industry is IATA’s Standard Ground Handling Agreement ("SGHA") which sets out the rights and liabilities of airlines and airport service providers (ramp handlers, terminal services, maintenance technicians, fuellers etc) in a standard form. Similar contracts are used by caterers.
These contracts are in use at many Chinese airports since foreign airlines and airport service providers investing in China, and their insurers, expect relations to be governed by these terms. However, few investors have considered in detail what consequences lie in store for them should a dispute arise.
