This Week in Aviation Law – 1 August 2025

European Union – The Council’s adopted position on the reform of Regulation (EC) No 261/2004, dated 25 June 2025, continued to draw legal and industry commentary this week. The proposed changes include raising the minimum delay thresholds for compensation to four hours for short-haul flights and six hours for long-haul flights. Compensation levels would be set at €300 and €500 respectively. The reform also introduces stricter conditions on what constitutes “extraordinary circumstances” and requires airlines to respond to passenger claims within 14 days. The final vote by the European Parliament is expected in September 2025.

Spain – Spain’s Organic Law 1/2025, which entered into force on 3 April 2025, requires passengers to attempt mediation or conciliation before bringing legal action under Regulation (EC) No 261/2004. This procedural requirement applies to most airline compensation claims and is intended to reduce pressure on the courts. Recent commentary by Clyde & Co^[1]Carlos Cid, Raquel Granado “Impact of Organic Law 1/2025 on Air Passenger Claims” and Abogacía Española has highlighted the early effects of the law, including a marked drop in direct court filings and an increase in claimants entering mediation.

Malaysia – Malaysia will dissolve the Aviation Commission (MAVCOM) and merge its functions into the Civil Aviation Authority of Malaysia (CAAM) effective August 1, 2025, turning CAAM into the country’s sole aviation regulator. MAVCOM consumer platforms like FlySmart will continue to operate post‑merger.

India – On 3 April 2025, the Indian Parliament passed the Protection of Interests in Aircraft Objects Act. The legislation brings India into alignment with the Cape Town Convention and provides stronger legal rights for aircraft lessors. It is designed to facilitate aircraft repossession in the event of lessee default and aims to improve the business climate for aviation financing. Recent commentary (e.g. from Reinforcement, Not Reform: The Aircraft Objects Act, June 2025, and AZB Partners’ explainer) has noted that aircraft repossession cases involving Go First and other distressed Indian carriers are now invoking the new law, and international lessors are beginning to consider re‑entering the Indian market in response to improved legal certainty.

United States – On 29 July 2025, a new aviation safety bill was introduced in the United States Senate in response to a fatal mid-air collision. The bill proposes mandatory ADS-B tracking for U.S. Army helicopters, enhanced crash data reporting, and a review of current airspace management systems. The proposal is being considered by the Senate Commerce Committee.

United States – On 7 June 2025, an executive order was issued lifting the longstanding 1973 ban on overland supersonic commercial flight. The Federal Aviation Administration has been directed to revise noise regulations and develop a framework for certifying high-speed commercial aircraft in U.S. airspace.

ICAO – On 30 July 2025, the ICAO Council issued a statement condemning interference with GNSS (Global Navigation Satellite Systems) signals in the Incheon Flight Information Region. The disruptions, attributed to North Korea, have raised serious aviation safety concerns. ICAO has indicated it will consider formal action during its General Assembly in September 2025 if the interference continues.