Letters of credit are often issued in aircraft leasing transactions as an alternative to the provision of a cash security deposit and, less frequently, the obligation to pay maintenance reserves in cash. In an airline bankruptcy scenario, it is important to understand the differences that exist between different forms of letter of credit and some of the challenges that may arise for an enforcing lessor or financier.
Aviation is among the fastest growing sources of greenhouse gas emissions, which has given rise to environmental concerns over their global impact and effect on air quality, particularly at ground level. In an effort to tackle aviation's increasing contribution to climate change, international organisations – such as the United Nations and the International Civil Aviation Organisation – are taking steps to reduce global aviation emissions and develop measures with worldwide effect.
In January 2018 the single African air transport market (SAATM) was formally launched. Its principal objective stems from the Yamoussoukro Decision, which provided for the full liberalisation of intra-African air transport services in terms of market access. The SAATM is a welcome development; however, to reap the full potential of the initiative, the African Union must do all that is necessary to ensure that the resources, infrastructure and capacity required to grow the aviation sector are available.
The African Union endorsed the Yamoussoukro Decision in 2000 and it became fully binding in 2002. Its rationale was the need to foster socio-economic development in Africa – policymakers recognised that aviation and a competitive aviation market could be decisive for unlocking Africa's economic potential. However, the agreement has not been fully implemented by its signatories.