MEDIATION

The Centre for Mediation at The Hague Court of Arbitration for Aviation facilitates the voluntary settlement of contractual disputes between aviation industry participants. It does so through a framework that is completely private, flexible, fast and cost-effective, and in a manner that also emphasizes reconciliation so as to make possible the continuation of commercial relationships.

The pool of qualified neutral mediators features very deep aviation industry expertise across different disciplines, most notably in technical subject matter. The parties select any available mediator or mediators they mutually agree. Among other optionality, the parties also decide together whether the mediation is to proceed such that it also includes elements of neutral case evaluation by the mediator(s), or whether legal counsel is to participate and/or be present during parts the mediation. In any instance, mediators do not impose any solution on the parties.

Mediation may be utilised at any time by parties who have either already committed to seek the mediation of their dispute by virtue of the inclusion of a mediation clause in the underlying contract(s), or where no such contractual provision but the parties have agreed to seek mediation on an ad-hoc basis in order to either avoid, or during the course of, arbitration or court litigation. In either scenario, the dispute may still be settled in proceedings before The Hague Court of Arbitration for Aviation, or other arbitration or in a court if the parties do not reach a formal settlement in whole or part.

MEDIATION RULES

The current Mediation Rules of The Centre for Mediation at The Hague Court of Arbitration for Aviation are available below.

Mediation Rules

MEDIATION CLAUSES

Just as an arbitration clause, a mediation clause may be included as a standard clause in aviation contracts if the parties wish to do so. Mediation may also be agreed when a dispute has already arisen and no mediation clause has been included in the contract. In both cases, it is advisable to make an arrangement in the event that the mediation does not lead to a resolution of the dispute. This arrangement may entail, for example, an arbitration clause being included in the contract after the mediation clause. In any instance, a stand-alone mediation agreement is concluded between the parties and the mediator during the initial meeting.

Mediation Clauses

ADMINISTRATION

As with arbitration, the Netherlands Arbitration Institute also acts as the administering body in mediation referred to The Centre for Mediation at The Hague Court of Arbitration of Aviation. The NAI follows the mediation from the moment of the request until the conclusion of the mediation. Independence and confidentiality are important factors. For example, the NAI, as an independent administering body, would never discuss the content of a case. Moreover, no information regarding NAI mediations is disclosed to third parties.

COSTS

Since all mediations are customised, it is not possible to provide a detailed cost estimate in advance The total costs of mediation comprise the following elements:

  • Mediator 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. This hourly rate is agreed by the Mediation Centre and the mediator upon confirmation of his or her appointment, pursuant to the guidelines set by the Board of Directors of The Hague Court of Arbitration. This hourly rate cannot be negotiated and neither can it be negotiated between mediators and the parties. The applicable hourly rates for mediators are provided following the receipt of a Request for Mediation.
  • The out-of-pocket costs of the mediator(s), if any.
  • Other costs that must be incurred according to the mediator(s), such as costs of other technical experts.
  • For the fees and disbursements of the mediator(s) a deposit is required.
  • The administration costs of The Centre for Mediation at The Hague Court of Arbitration of Aviation, including the costs of the NAI: a fixed sum calculated on the basis of a scale from EUR 1,000 (total amount in dispute of less than US$ 5 million) to a maximum of EUR 35,000 (total amount in dispute of more than US$ 175 million).
  • The applicable administration costs in mediations commenced after 1 September 2022 can be found here.
Mediation Cost Schedule

REQUEST FOR MEDIATION

A mediation is commenced by one or both parties submitting a completed Request for Mediation form to The Centre for Mediation at The Hague Court of Arbitration of Aviation. The application form is completely free. The mediation will be deemed to have been commenced on the date the request is received by the administrator.

The requirements a request for mediation must meet are stated in the Mediation Rules of The Centre for Mediation at The Hague Court of Arbitration of Aviation. If the request is not filed by all parties involved jointly, the administrator will send a copy of the request to the other party or parties and invite them to respond.

Request for Mediation
Submit Request