In a recent case a cargo insurer took recourse against its insured's freight forwarder for damages for loss of cargo during transportation by air. The defendant argued that its liability was limited to Article 22 of the Montreal Convention. The plaintiff stated that the defendant's liability was unlimited as the defendant had waived the limitation of liability by including the standard terms in the contract.
The sale of an aircraft which is located in Germany at the time of transfer of title generally falls under the scope of the Value Added Tax Act. The application of the act does not necessarily imply that the sale triggers value added tax (VAT), as the act provides for an exemption. This update sets out the preconditions for the application of the VAT exemption and reviews the input VAT refund procedure.
Despite being an active participant in the drafting of the Cape Town Convention and Protocol, Germany is yet to proceed to ratification. This is partly because a number of changes to the existing German legal system will be required in order to conform to the convention and protocol. This update sets out the most significant changes required before ratification by Germany can proceed.
The delivery of aircraft which are located in Germany at the time of transfer of title frequently raises questions as regards due procedure under German law. The transfer of title of aircraft in Germany must be approached with prudence, caution and, most importantly, a sense of practicality. German choice of law provisions on the rights to aircraft are mandatory and cannot be derogated from.
The revised protocol of Eurocontrol, Europe's organization for the safety of air navigation, is due to be considered for ratification in the next session of the German Parliament. It is intended to give Eurocontrol the legal means to fulfil its tasks, mainly in the area of route charge recovery. This may be a legitimate aim, but the measures proposed have raised concerns among aircraft owners and financiers.
A question that is frequently asked in the context of aircraft financing is whether and to what extent the engines installed on an aircraft can effectively be used as security for the financing banks. This update summarizes the legal discussion in Germany surrounding this issue.