China's aviation industry faced difficulties in 2022-2023, navigating post-pandemic recovery while simultaneously experiencing a sharp increase in disputes covering a wide range of issues, from aircraft substitutions to drone incidents. Lawyers Gao Feng, Jin Zhe, and Li Zhihong, in their annual review Commercial Dispute Resolution in China (pp. 391–418), analyze over 1,500 court cases, new legislative acts, and precedent-setting cases, highlighting key aspects requiring attention.
While passenger traffic did not reach pre-pandemic 2019 levels, amounting to only 38.1% of previous figures (p. 392), the number of disputes rose significantly: 663 cases were recorded against airlines, 296 in general aviation, and 546 related to drones (p. 394). Notably, damage caused by unmanned aerial vehicles (UAVs) accounted for one-third of all claims.
Concurrently, significant developments occurred in aircraft manufacturing: the ARJ21 aircraft was delivered to Indonesia, and the C919 received certification and entered service with China Eastern Airlines (p. 393).
Key legislative changes included:
Notable cases highlighted include:
Key ongoing challenges include:
In conclusion, while China's aviation industry is recovering, legal risks are increasing. Drones, pilot shortages, and geopolitical factors are identified as the primary challenges for 2023–2024.
While passenger traffic did not reach pre-pandemic 2019 levels, amounting to only 38.1% of previous figures (p. 392), the number of disputes rose significantly: 663 cases were recorded against airlines, 296 in general aviation, and 546 related to drones (p. 394). Notably, damage caused by unmanned aerial vehicles (UAVs) accounted for one-third of all claims.
Concurrently, significant developments occurred in aircraft manufacturing: the ARJ21 aircraft was delivered to Indonesia, and the C919 received certification and entered service with China Eastern Airlines (p. 393).
Key legislative changes included:
- Ratification of the 2010 Beijing Convention, strengthening penalties for threats to flight safety (p. 394).
- Introduction of new drone regulations mandating pilot certification and establishing new logistics standards (CAAC, September 2022; p. 397).
- Relaxation of COVID-19 restrictions, including the removal of flight quotas and the "five ones" policy starting January 2023 (pp. 395–396).
Notable cases highlighted include:
- A passenger lawsuit due to a substitution of a Boeing 789 with an Airbus A321 (Case No. 95634/6109; pp. 397–399).
- A case involving drone damage to a neighboring farmer's crops (Case No. 1215; pp. 406–407).
- The bankruptcy restructuring of HNA Group – the largest in global aviation history (pp. 409–411).
Key ongoing challenges include:
- C919 certification (pp. 411–414).
- Pilot attrition ("pilot drain") (pp. 415–417).
- Legal "gray areas" related to drone operations (Case No. 2273; pp. 402–403).
In conclusion, while China's aviation industry is recovering, legal risks are increasing. Drones, pilot shortages, and geopolitical factors are identified as the primary challenges for 2023–2024.
