Arbitration

Specialised arbitration for the global aviation industry.

Fast, fair, flexible and final binding dispute resolution before an expert neutral tribunal — conducted in private, pursuant to arbitration rules and procedures tailored to the unique needs of a unique industry.

Request for arbitration Arbitration rules

Background

Specialised arbitration

Although it traces its history over centuries, the 20th century witnessed arbitration becoming a standard method for resolving disputes in many specialised industries — such as maritime, construction, commodities, and insurance — where the arbitrators’ technical expertise was particularly valued. Since the start of the 21st century, arbitration has been ever increasingly embraced by the international community, with many recognizing its importance as the primary means of resolving complex, transnational commercial disputes. Indeed, the most recent surveys of the major arbitral institutions show that arbitration cases are on the rise, with an estimated new case load in 2020 representing more than $100 billion in dispute before arbitral tribunals worldwide. In July 2022, The Hague Court of Arbitration for Aviation launched at the Farnborough International Airshow in service of the global aviation industry.

Why arbitrate

Advantages

The Hague Court of Arbitration for Aviation offers the global aviation industry deeply specialized arbitration as a fast, fair, flexible and final form of binding dispute resolution conducted before an expert neutral tribunal, in private, pursuant to arbitration rules and procedures specifically tailored to the unique needs of a unique industry. Such arbitration is, of course, voluntary and emanates from the contractual agreement of the parties, though it is regulated and enforced by national laws — in effect, the administration of justice by arbitrators, replacing proceedings before courts.

The potential ease of enforceability of an arbitral award across jurisdictions compared to, for example, an English or New York court judgement, is a key practical advantage offered by arbitration. To this end, the most important enforcement convention is the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (known as the New York Convention). Almost 170 countries are party to the New York Convention, each of which broadly agrees to recognise and enforce arbitral awards made in other contracting states subject only to limited grounds for objection. There is no such wide-ranging convention providing for the enforcement of court judgments.

For counsel

Model arbitration clause

As arbitration is a consensual dispute resolution mechanism, a necessary pre-cursor to any arbitration is a valid agreement to arbitrate. An arbitration clause may be included as a standard clause in aviation contracts if the parties wish to do so. The Hague Court of Arbitration for Aviation recommends that, where possible, parties incorporate the model arbitration clause below.

Arbitration

All disputes arising out of or in connection with this Agreement, including any questions regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in accordance with the Arbitration Rules of The Hague Court of Arbitration for Aviation for the time being in force, which Rules are deemed to be incorporated by reference into this clause. [The arbitral tribunal shall be composed of [one arbitrator / three arbitrators]. The place of arbitration shall be [city, country]. The language to be used in the arbitration shall be [language]. The law applicable to the arbitration agreement shall be [applicable law]. The substantive law governing the merits of the dispute shall be [governing law].]

Fees

Costs

The total costs of an arbitration comprise the following elements:

The administration costs of the Netherlands Arbitration Institute (NAI).
A deposit for the fees and disbursements of the arbitrator(s).
Other costs that must be incurred according to the arbitrator(s), such as the costs of other technical experts.
The out-of-pocket costs of the arbitrator(s), if any.
Arbitrator fee(s): a variable amount based on time, the financial interest in the dispute and the complexity of the case, fixed at an hourly rate set pursuant to the guidelines of the Board of Directors. This rate cannot be negotiated; the applicable hourly rates are provided following receipt of a Request for Arbitration.

Get started

Request for arbitration

An arbitration is commenced by one or both parties submitting a completed Request for Arbitration form to The Hague Court of Arbitration for Aviation, care of the NAI. The application form is completely free. The requirements a Request for Arbitration must meet are stated in the Arbitration Rules. If the request is not filed by all parties jointly, the administrator will send a copy of the request to the other party or parties and invite them to respond.

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Begin a confidential process

Resolve aviation disputes with a forum built for the industry.

Speak with the Secretariat about arbitration, mediation, or incorporating a model clause into your contracts.

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