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Standard Ground Handling Agreement 2018

In Uncategorized on October 9, 2021 at 3:35 am

The insolvency of carriers can also have a wider impact. For example, the UK CAA suspended Monarch Airlines` AOC when it went bankrupt in October 2017 and forced it to cease operations with immediate effect. They no longer needed groundhandling services. This new clause will protect customs clearance companies if an airline tries to circumvent an unfavorable contract and simply set its “in-source” requirements. It will be interesting to see how claims are handled and whether this results in the airline`s internal processes to track and monitor cargo claims. Improvements can be made if airlines use more detailed documentation requirements for cargo shipments and the handling of irregularities (in points 5.3.1 and 5.7 of Annex A respectively). In the 2013 SGHA, there was some confusion as to the time limit that applies to a carrier`s right to compensation. The confusion was caused by the phrase: “Any claim shall be filed within the time limits set out in Article 31.2 of the 1999 Montreal Convention”. Article 31.2 sets out the time limits of the agreement for the exercise of the claims of the person entitled to the shipment in respect of damaged and delayed cargoes, which are 14 and 21 days respectively. It does not respond to a carrier`s claims against a debacacitor. The new clause 3.3 of the SGHA 2018 prohibits self-handling if an airline has already outsourced it as part of the SGHA. In Europe, for example, the 1996 EU Groundhandling Directive (96/67/EC) opened up the groundhandling market to competition and maintained the carrier`s general freedom to clear customs at an airport itself.

Amended clause 7.3 and new clause 7.4 give the customs clearance the right to suspend services if the airline fails to pay in the event of insolvency or requests immediate advance payment or cash payment. Given the historical liquidity issues faced by some airlines, it is perhaps surprising that these clauses have not been previously included in the ASA. This does not mean that handling companies will be anything other than unsecured creditors for unpaid invoices.. . . .