Advice On Practical Problems For Aviation In Asia

This edition of Jones Day's Airlines and Aviation Alert focuses on a handful of the many practical issues faced by aviation businesses, particularly in Asia. As the airlines of China and other Asian countries expand their operations around the world, those carriers and the businesses with which they interact have moved from the conceptual to the practical.

Our first article outlines advantages to choosing "New York law" to be the governing law in contracts for the sale of aircraft to Chinese buyers. Most notably, the contract laws of New York and China both impose obligations of good faith on the parties. In both jurisdictions, this rule injects an element of fairness that protects the parties' interests and expectations, in a way that is not guaranteed under the laws of other jurisdictions, such as England. Therefore, use of New York law can help a seller meet the expectations of the Chinese buyer.