IATA Legal Symposium 22 Feb 2017

L IA N C E IO 1 SP DIT UE E S IS

I N T E R N AT I O N A L DA I LY 22 FEBRUARY 2017

LEGAL SYMPOSIUM 21-23 February 2017 | Washington DC

Welcome

to the IATA Legal Symposium in one of the world’s power centers—Washington, DC. A special thank you to all our sponsors for making the event possible and supporting the need for expert legal discussion and debate in our industry.

The pace of change The 20th Legal Symposium promises once again to be the premier aviation law gathering in the calendar.

Aviation lawyers will be able to catch up on the most pressing and topical issues of the day, learn about newly evolving areas of regulation, and network to share their experience and perceptions.

The keynote speech by the Honorable Christopher A. Hart, Chairman of the U.S. National Transportation Safety Board, will offer important observations regarding the intersection of law, accident investigations, and the promotion of safety. Panels of leading practitioners will explore an array of new challenges to the airline industry, including unmanned aircraft systems, cybersecurity, data protection, recent changes in

the international agreement on aircraft emissions at ICAO, and, of course, the latest developments in competition law.

“One panel will be devoted to a discussion of the Trump administration’s likely impact on aviation regulation and policy in the US,” says Jeff Shane (pictured), IATA’s General Counsel.

“Given the steadily increasing pace of change within the airline industry and within the legal, regulatory, and diplomatic framework that governs air transport, the role of aviation lawyers has never been more important,” he continues. “Because industry stakeholders today must navigate through an ever more complex assortment of highly prescriptive requirements, staying in close touch with current developments has become an essential

economic sanctions on Iran and Cuba,

imperative for our profession.”

K E E P U P T O DAT E W I T H A L L T H I N G S A I R L I N E S R E L AT E D AT A I R L I N E S . I ATA . O R G

IATA’s General Counsel, Jeff Shane

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2 I ATA L E G A L S Y M P O S I U M

CORSIA coming “We also need to recognize the work that remains

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n October 2016, a Carbon Offset and Reduction Scheme for International Aviation (CORSIA) was agreed at the ICAO Assembly. A monumental achievement for the industry—and the first of its kind in any sector— CORSIA nevertheless has many fine details that need refining.

Today’s panel (14:15-15:30), moderated by IATA’s Director, Aviation Environment, Michael Gill, will examine those details in the context of the industry’s long-standing commitment to tackle its climate change impact, having adopted a four-pillar strat-

egy based around technology, infrastructure, and operations improvements as well as a global market based measure (MBM) to offset international aviation emissions after 2020.

A key ingredient of the discussion will be understanding what happened at ICAO, and why.

Not only was there a complicated political landscape to navigate but also an ICAO Assembly resolution, as opposed to an international treaty, was deemed the appropriate way forward. This has some noteworthy legal implications to be mulled over by the panel.

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to be done for CORSIA to come into effect by 2020,” says Gill. “Airlines are going to be required to monitor and report their emissions.

“There is then the question of how the reported figures are verified by national authorities and also how offsetting will actually work.”

External factors will exert a strong influence on CORSIA’s success. The stance of major aviation states like Russia, India, and China is naturally highly significant.

But it should also be remembered that CORSIA is not happening in isolation and will come into effect against the backdrop of a number of national and regional regulatory measures.

Here, the European Union’s attitude to the global scheme will be carefully scrutinized.

And, of course, the United States’ position under a new administration will doubtless generate some interesting comments.

“It should prove to be a wide-ranging but focused debate on the legal and political implications of aviation’s extraordinary commitment to mitigating its environmental impact,” concludes Gill.

Unpacking the ICAO CORSIA: A Global Breakthrough for Aviation’s Climate Impact?

Today, 14:15-15:30 The Panel: Michael Gill, Director, Aviation Environment, IATA – Moderator Annie Petsonk, International Counsel, Environmental Defense Fund Norberto Luongo, Representative of Argentina, ICAO Suzanne Murray, Partner, Haynes and Boone LLP Alejandro Piera Valdés, Partner, Guanes Heisecke & Piera Nancy Young, Vice President, Environmental Affairs, A4A

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The keys to the kingdom If passengers are to retain trust in the aviation system, it’s vital the industry is robust against cybersecurity threats

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viation is a complex But cybersecurity is as much business with organizational as it is technical. systems to match.

“Cybersecurity is not just an IT The countless entry t h i n g b u t i s e v e r y b o d y ’s points and interfaces make it responsibility,” says Gulshan vulnerable to cybersecurity threats.

Kisoona, Manager, IT Security and Moreover, many of those systems Compliance, Air Canada and a are dated and were never designed Certified Information Systems to counter modern cybercrime.

Security Professional. “When you Without the benefits of securiare assigned a username and a ty-by-design, aviation has some password by your employer, you critical decisions to make. have a key to the kingdom. The Whether to make the reporting slightest carelessness with the of cyber attacks mandatory is handling of that key opens the door perhaps the most critical of all. to the kingdom.”

Reporting and communication is Critical operational and busione of three pillars in IATA’s cyness functions need to be propbersecurity strategy, alongside risk erly assessed and a risk-benefit management and advocacy. But it tolerance identified. That is a Cybersecurity and Data Protection: is thought that many of the most multi-disciplinary activity. These Risks, Challenges and Looking Ahead sophisticated and damaging cyfunctions can be difficult to value in the Aviation Industry and Beyond berattacks have not been publicly precisely. Exactly how devastatdisclosed. ing would the loss of real-time Tomorrow, 14:35-15:50 If an attack isn’t reported then flight information be? And what The Panel: Martin Fanning, Partner, Dentons – Moderator other airlines and other partners in are the chances of that happening?

Gulshan Kisoona, Manager, IT Risk and Compliance, Air Canada the aviation value chain cannot use Resource allocation and threat Julian Homerstone, General Counsel, Virgin Atlantic Airways it to improve their defences. They response can be difficult things Jenna F. Karadbil, Partner, Law Office of Jenna F. Karadbil, Esq. could be hit by the same attack and to judge and are probably beyond their risk assessment of cyber threats an IT department’s remit.

Alan D. Meneghetti, Partner, Locke Lord LLP will include unnecessary guesswork.

The industry is moving in the It is also true that suffering a cyber right direction. IATA has pubattack in the public eye is a powerful incentive to By using detection as well as prevention, it lished a cybersecurity toolkit and runs workensure the necessary resources are put into pre- increases an organization’s capability to shops on the subject. It is also supporting the venting further cybercrime. efficiently identify hacking attempts and react airlines through the Civil Aviation CybersePrevention, though, is only part of the solu- to those. Tracing the source of an attack can curity Action Plan. Also Information Sharing tion. Firewalls are not enough on their own. yield valuable information and potentially and Analysis Centers are coming online in Rather, experts now lean toward detection as limit damage. the United States and Europe to promote an a surer method of regaining the advantage over open cyber culture. cyber criminals.

Organizational issue Ultimately, passengers cannot lose trust in The reasoning is simple: a hack is a one-time Technological solutions are essential and the aviation system. And each player in the event. One opening, exploited once. System de- improving all the time. Software-designed- value chain is dependent on the other to be fences, on the contrary, must work every second networking, for example, will provide secure. Airlines need airports and air traffic of every day. If you only consider prevention, flexibility and control over Internet traffic management. In an interconnected world, attacking is simple, defending is hard.

flows.

cybersecurity is the cost of doing business.

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4 I ATA L E G A L S Y M P O S I U M

Increased drone use presents new landscape

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n m a n ne d a i rc ra f t s y s t e m s ( UA S), commonly known as drones, continue to hit the headlines. Stories of near misses with aircraft as these drones encroach on airports have become a staple of news services around the world.

“UAS is among the hottest topics in aviation right now,” says Mark A. Dombroff, Partner, Dentons and Moderator of The Plenary Panel (11:45-13:00). “We are going to look at the subject from all angles. It is such a fast-moving area that there is sure to be plenty of new information and new ideas. How UAS should be integrated into aviation law is going to be keenly debated.”

As it stands, many countries have introduced regulations that make flying a UAS to aircraft or airports a criminal act. Some countries have even gone so far as prohibiting owning or purchasing a UAS for recreational purposes.

In Europe, the European Aviation Safety Agency has introduced a revision of its basic regulations to incorporate UAS. At the same time, the Joint Authorities for Rulemaking on

Unmanned Systems (JARUS) is developing concepts of operations for UAS, and SESAR Joint Undertaking (SJU) has already issued its drone outlook study.

But whether laws are flexible or stringent, they need to be enforceable and combined with awareness and education. They also need to be globally harmonized. IATA and industry partners submitted a working paper to the ICAO General Assembly last year, calling for such a development. Apart from the need for harmonization, any regulation stipulated by a State or a regulatory body should be performance-based, enforceable, and well-promoted.

“In the face of an industry that is moving at an unprecedented pace, we cannot afford to have division in developing standards and concepts of operations,” says Rob Eagles, IATA’s Director, ATM Infrastructure.

“Not only will that slow the regulatory framework process, but it will give the opportunity for unwarranted concepts to come into play. Companies such as Amazon and Google will not sit back while the industry deliberates

the

approach to drone proliferation.”

Amazon, for example, has patented the Airborne Fulfilment Center, an airship that has already been dubbed the “flying warehouse.” These would be flown close to a source of expected demand, such as a major sporting or entertainment event. Drones would then fly down to deliver souvenirs and other products to the event goers.

Commercial airlines are also looking at how they can use UAS.

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In 2016, United Parcel Services (UPS) formed a partnership with medical alliance, Gavi, and robotics supplier, Zipline, to explore the use of drones deliver vaccines to remote locations in Rwanda.

This is one example of how UAS will provide access to rural locations with poor infrastructure or challenging geography.

UAS could also change how aircraft maintenance is conducted. Airports are exploring their use to manage bird or wildlife

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Planes, Trains, Automobiles… and Drones?

Today, 11:45-13:00 The Panel: Mark A. Dombroff, Partner, Dentons – Moderator Barry S. Alexander, Partner, Schnader Harrison Segal & Lewis LLP Caroline Healey, Lawyer, Langlois lawyers, LLP Laura Pierallini, Founder, Named Partner, Studio Pierallini Kenneth P. Quinn, Partner, Pillsbury Winthrop Shaw Pittman LLP

control, security surveillance, and inspection of their infrastructure.

Blending such a fast-moving, business-oriented enterprise with the more cautious safety-minded approach of the industry is a major challenge. The key is to ensure that UAS can safely and efficiently co-exist with commercial aviation without posing safety risks or adding any operational or economic burden to airline operators. All this must be enacted while being mindful

that regulations and safeguards should not stop the quick evolution of the UAS industry.

There are many ideas about how to proceed and many specifics to cover, including certification, communication standards, radio frequency spectrum limits, separation standards, and navigational capabilities.

UAS need to have the capability to spot other aircraft and obstacles, and get out of the way.

They also need secured datalink

technology to enable communication with the ground station and with air traffic control. On top of that, the radio spectrum is so crowded that there is simply not enough bandwidth left for UAS operation.

A UAS Traffic Management (UTM) system is being debated.

A concern is who will fund and finance investment in UTM. According to ICAO regulations, the beneficiary of a service pays its associated user charges but it is

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still unclear on how this will work with UAS operators. Other important issues include legal liability, insurance, and privacy.

“UAS is disruptive technology,” Dombroff concludes. “But this could be seen as an opportunity for reviewing how regulations are developed and promulgated. This is a complex, but exciting, prospect and I look forward to an invigorating debate that is sure to provide fresh ideas and plenty of food for thought.”

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IATA Legal Symposium Welcome Reception

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