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Aviation Law 2025

13th Edition

Corporate
Governance
2025

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Contributing Editors:
Alan D. Meneghetti  Ipeco, Inc.
Philip Perrotta  K&L Gates LLP

glg Global Legal Group

Industry Chapters

1

4

Views from the Open Plan Office: A Private Practice Lawyer’s Move into Industry
Alan D. Meneghetti, Ipeco, Inc.

WALA: 15 Years of Consolidation in Airport Law
Diego R. Gonzalez, Michael Siebold & Roangelo Lodewijks, Worldwide Airport Lawyers Association (WALA)

Expert Analysis Chapters

7

12

17

New Technology Aircraft and the Environment – The Financing Challenge
Philip Perrotta, K&L Gates LLP

Regulations on Drone Flights in Japan
Hiromi Hayashi, Koji Toshima & Tetsuji Odan, Mori Hamada

Aviation Safety and Aircraft Certification in the United States
Marc S. Moller, Erin R. Applebaum, Evan Katin-Borland & Justin Green, Kreindler & Kreindler LLP

Q&A Chapters

21

30

37

50

59

68

78

90

100

107

121

133

Argentina
Francisco J. Venetucci & Celina Andriani,
Venetucci Maritime

Austria
Irena Gogl-Hassanin & Dr. Martin R. Geiger,
GHP | Attorneys-at-Law

Belgium
Birgitta Van Itterbeek & Annick Sleeckx, Ariga

Brazil
Roberta Fagundes Leal Andreoli,
Leal Andreoli Advogados

Chile
Guillermo Acuña, Josefina Marshall, Matías Gatica &
Gustavo Herrera, Carey

Dominican Republic
María Esther Fernández Alvarez de Pou, María
Fernanda Pou Fernández & María Gabriela Pou
Fernández, Fernández & Pou Abogados / Attorneys

France
Grégory Laville de la Plaigne & Manon Samaille,
Clyde & Co

Germany
Rainer Amann & Claudia Hess,
Urwantschky Dangel Borst PartmbB

Greece
Claire Pavlou, Amalia Pantazi, Alexia Giagini &
Electra Livani, KYRIAKIDES GEORGOPOULOS Law Firm

India
Anand Shah, Sarah Jayne Rufus, Rishiraj Baruah &
Saptarshi Bhuyan, AZB & Partners

Israel
Omer Shalev, Gross, Orad, Schlimoff & Co. (GOS)

Italy
Barbara Michini & Alessandro Vacca, Gianni & Origoni

147

158

170

179

188

197

210

Japan
Hiromi Hayashi & Tetsuji Odan, Mori Hamada

Malaysia
Saranjit Singh, Nik Nur Iman & Gita Maghandren,
Saranjit Singh Advocates & Solicitors

Malta
Nicholas Valenzia, Joshua Chircop, Aleandro Mifsud &
Martina Azzopardi, Mamo TCV Advocates

Nigeria
Lawrence Fubara Anga, SAN, Rafiq Anammah,
Linda Ezenyimulu & Sinmiloluwa Lala, ǼǼLEX

Portugal
Geoffrey Graham,
EDGE – INTERNATIONAL LAWYERS

Saudi Arabia
Hamad K. Aldossary & Ghaida MohammedAkram
Makhdoum, Dossary Law Firm

South Africa
Chris Christodoulou & Afroditi Papasotiriou,
Christodoulou & Mavrikis Inc

220

Spain
Sergi Giménez, AUGUSTA ABOGADOS

230

241

249

267

Switzerland
Dr. Peter Kühn & Dr. Thomas Weibel, VISCHER AG

Ukraine
Dr. Anna Tsirat, Jurvneshservice

United Kingdom
Alan D. Meneghetti, Ipeco, Inc.
Philip Perrotta, K&L Gates LLP

USA
Diane Westwood Wilson & Paul N. Bowles III,
Fox Rothschild LLP

Table of Contents59

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Phase 1: A meeting between the applicant and the DGAC,
where  the  applicant  presents  the  project  to  the  DGAC,
and  the  DGAC  provides  information  regarding  the
certification  process  and  the  “Air  Operator  Certificate
Application”  form,  as  well  as  an  explanation  on  how  to
complete the application and compliance checklist.
Phase  2:  The  applicant  submits  the  required  back-
ground  information,  which  includes  the  operations
manual, specifications related to specific operations and
approvals,  the  minimum  equipment  list,  routes,  and
demonstration tests.
Phase  3:  The  DGAC  evaluates  the  documentation
submitted  and  informs  the  applicant  of  the  approval,
with the corresponding observations.
Phase  4:  The  DGAC  reviews  and  evaluates  the  informa-
tion contained in the documents submitted by the oper-
ator, in order to determine compliance with the require-
ments  regarding  the  aircraft,  the  main  and  auxiliary
operating  base,  the  instruction  or  training  processes,
and  the  performance  of  demonstration  flights,  among
other things.
Phase 5: Once the previous stages have been completed,
the DGAC issues the Air Operator Certificate (“AOC”) and
the corresponding operational specifications.

1.3  What are the principal pieces of legislation
in your jurisdiction which govern air safety, and
who administers air safety? Does this legislation
adequately cover all the issues which tend to arise
in your jurisdiction, or do you feel that certain
amendments or additional laws would be desirable?

Title  IV  of  the  Aeronautical  Code  establishes  the  freedom  of
air  traffic  and  the  conditions  for  entry  and  exit  of  aircraft,
the conditions for take-off, flight and landing of aircraft, and
the  conditions  for  the  transport  of  dangerous  objects  and
observation  and  recording  instruments,  as  well  as  the  docu-
ments  to  be  carried  by  the  aircraft  during  traffic.    Likewise,
Aeronautical Regulations (“DAR”) No. 92 and No. 121 establish
the  rules  for  operations  and  safety,  both  for  commercial  and
non-commercial flights.  The DGAC is the public entity respon-
sible for the protection of air safety in civil aviation, and for the
management and administration of public aerodromes and air
navigation assistance services.
Currently, the regulations issued by the DGAC regarding avia-
tion safety include the 19 annexes to the Chicago Convention,
which establish basic standards and recommended practices
for international civil aviation.

1  General

1.1  Please list and briefly describe the principal
legislation and regulatory bodies which apply to and/
or regulate aviation in your jurisdiction.

Chilean Aeronautical Law considers national and international
norms  and  statutes,  both  in  the  public  and  private  spheres.
Among the international conventions ratified by Chile are:
 ■

The  International  Civil  Aviation  Convention  (“Chicago
Convention”), ratified by Chile in 1947.
The  Convention  on  Offences  and  Certain  Other  Acts
Committed  on  Board  Aircraft  (“Tokyo  Convention”),
ratified in 1974.
The Convention for the Suppression of Unlawful Seizure
of Aircraft (“Hague Convention”), ratified in 1972.
The  Convention  for  the  Suppression  of  Unlawful
Acts  against  the  Safety  of  Civil  Aviation  (“Montreal
Convention”), ratified in 1974.
The  Convention  for  the  Unification  of  Certain  Rules
Relating  to  International  Carriage  by  Air  and  Protocol
Amending the Convention (“Warsaw Convention”), rati-
fied in 1979.
The  Convention  for  the  Unification  of  Certain  Rules  for
International Carriage by Air, ratified in 2009.
The  Convention  on  the  International  Recognition  of
Rights in Aircraft, ratified in 1961.

The following are the national regulations:

The Aeronautical Code, published in February 1990.
Law  No.  16,752,  which  establishes  the  organisation  of
General  Directorate  of  Civil  Aeronautics  (“DGAC”),
published in February 1968.
DFL No. 241, which reorganises various services related
to civil aviation, published in April 1960.
DL  No.  2,564,  which  establishes  rules  on  commercial
aviation, published in June 1979.

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1.2  What are the steps which air carriers need to
take in order to obtain an operating licence?

According to DAN No. 119, to obtain the Air Operator Certificate,
the applicant must submit a letter of intent to the DGAC, indi-
cating the company name, unique tax roll (rol único tributario –
“RUT”), business address, main base, legal representative, type
of proposed air operation (passenger transport, cargo or aerial
work), and type of aircraft(s).  Once the letter is submitted, the
certification process consists of the following:

Aviation Law 2025Chapter 10ChileChileCareyMatías GaticaGuillermo AcuñaJosefina MarshallGustavo Herrera60

1.4  Is air safety regulated separately for commercial,
cargo and private carriers?

Yes.    Chilean  Aeronautical  Regulation  (“DAN”)  No.  92  estab-
lishes the operating rules for non-commercial aviation of small
aircraft, large aircraft, turbine-powered aircraft and corporate
aviation  operations,  while  DAN  No.  121  establishes  the  oper-
ating requirements for domestic, international, scheduled and
non-scheduled commercial operations of air carriers holding
an  AOC  performing  domestic  and  international,  scheduled
and  non-scheduled,  passenger,  cargo  or  mail  Air  Transport
Services  with  aircraft  over  5,700  kg  and/or  more  than  19
passenger seats.

1.5  Are air charters regulated separately for
commercial, cargo and private carriers?

No.    Charter  flights  are  not  regulated  by  special  regulations,
and the common rules indicated in question 1.4 are applicable.

1.6  As regards international air carriers operating in
your jurisdiction, are there any particular limitations
to be aware of, in particular when compared with
‘domestic’ or local operators? By way of example only,
restrictions and taxes which apply to international
but not domestic carriers.  Does the status quo tend
to create an aviation market which is sufficiently
competitive and open?

DAN  No.  129  establishes  the  technical  operational  require-
ments  regarding  international  operations  of  air  carriers  to
and  from  the  territory  of  Chile.    In  order  to  carry  out  inter-
national  commercial  air  transport  operations  of  passengers,
cargo and mail, foreign air operators must apply for recogni-
tion from the foreign AOC, following a procedure consisting of
the following stages: an initial meeting with the DGAC certi-
fication team; a formal application; an valuation of the docu-
mentation; and approval and granting of the AOC Recognition
Certificate.  However, the documentation requirement in the
foreign AOC recognition process does not differ substantially
from the requirement for obtaining an AOC, although certain
legal and commercial background information is specifically
required with respect to foreign operators.  In this sense, there
are  no  particular  restrictions  or  limitations  to  accessing  the
national civil aviation market.

1.7  Are airports state or privately owned? Are there
any plans to alter this position?

In  Chile,  the  Ministry  of  Public  Works  is  the  owner  of  the  16
airports that make up the Primary Airport Network.  However,
the  management  and  operation  of  11  of  these  airports  is
concessioned to private companies, while the remaining five
airports  are  managed  by  the  DGAC.    Currently,  there  are  no
plans to substantially modify the ownership of the country’s
airport infrastructure, although the construction and expan-
sion  of  the  existing  infrastructure  may  be  concessioned  to
private companies.

1.8  Do the airports impose requirements on carriers
flying to and from the airports in your jurisdiction?

The  requirements  for  airlines  flying  to  and  from  national
airports are established in DAR No. 6, which regulates aircraft

operations, and DAN No. 91 on rules of the air.  However, the
DGAC  has  issued  procedures  for  the  operational  safety  and
operation of aircraft in civil airfields for public use adminis-
tered by the DGAC.  In the case of airports under concession,
the  concessionaire  is  responsible  for  establishing  the  oper-
ating  conditions  for  aeronautical  services  and  the  operating
plans and procedures for safety, risk prevention, accidents and
other contingencies.

1.9  What legislative and/or regulatory regime
applies to air accidents? For example, are there any
particular rules, regulations, systems and procedures
in place which need to be adhered to? Do you believe
that there are any changes which would be of benefit
to the existing regime?

The  Aeronautical  Code  establishes  that  the  aeronautical
authority, that is, the DGAC and the Civil Aeronautical Board
(“JAC”),  are  in  charge  of  investigating  aircraft  accidents  and
incidents  occurring  in  national  territory.    In  this  sense,  the
purpose of the investigation is to determine the cause of the
accident or incident and to adopt measures to avoid its repeti-
tion.  In addition, the DGAC has issued regulations, aeronau-
tical standards and procedures that regulate the investigation
of aviation accidents or incidents, among which are DAR No. 13,
DAN No. 13 and DAP No. 13.  In this regard, the national regula-
tions are updated with respect to the latest amendments made
to  Annex  13  of  the  Chicago  Convention,  which  regulates  the
investigation of air accidents and incidents.

1.10  Have there been any recent cases of note or
other notable developments in your jurisdiction
involving air operators and/or airports?

There  have  been  no  recent  notable  cases.    However,  in  early
December 2024, the Ministry of Public Works announced an
investment  of  more  than  US$3  billion  to  improve  the  infra-
structure  of  19  facilities  that  make  up  the  primary  airport
network.    This  investment,  to  be  made  over  the  next  five
years, includes infrastructure conservation works, expansion
and  improvement  of  terminals,  runways  and  aircraft  equip-
ment,  and  even  the  construction  of  a  temporary  terminal  in
Mataveri, Rapa Nui.

1.11  Are there any specifically environment-related
obligations or risks for aircraft owners, airlines,
financiers, or airports in your jurisdiction, and to
what extent is your jurisdiction a participant in (a)
the EU Emissions Trading System (EU ETS) or a
national equivalent, and (b) ICAO’s Carbon Offsetting
and Reduction Scheme for International Aviation
(CORSIA)?

The  construction  of  airports  that  may  affect  protected  areas
must  undergo  a  prior  environmental  impact  assessment  to
obtain applicable approvals and permits.  Chile is not part of
the  EU  Emissions  Trading  System.    However,  Chile  partici-
pates in global climate initiatives, such as the Paris Agreement,
and  has  its  own  climate  policies  and  frameworks,  including
the development of voluntary and regulated carbon markets.
Additionally, Chile has ratified the Kyoto Protocol and collab-
orates  with  international  programmes  to  reduce  green-
house  gas  emissions.    Chilean  law  establishes  an  annual  tax

ChileAviation Law 202561

levied on air emissions of carbon dioxide, particulate matter
(“PM”), nitrogen oxides, and sulphur dioxide, applied to facil-
ities  whose  emission  sources  release  100  or  more  tons  of  PM
annually  or  25,000  or  more  tons  of  CO2  annually.    Within
this framework, there is an Emissions Compensation System
through  which  taxpayers  may  offset  their  taxable  emissions
by implementing projects aimed at reducing emissions of the
same pollutant.

2  Aircraft Trading, Finance and Leasing

2.1  Does registration of ownership in the aircraft
register constitute proof of ownership?

The registration of ownership in the aircraft register constitute
a  presumption  of  ownership.    The  National  Aircraft  Registry
maintains the Aircraft Registration and Ownership Registry,
and the Aircraft Liens and Prohibitions Registry.

To register the ownership of an aircraft, the applicant must
provide a copy of the public deed or a notarised private instru-
ment  that  proves  the  acquisition.    Without  this  registra-
tion, ownership transfers do not have legal effect before third
parties.  Once registration is complete, the Registrar can issue
a certificate that includes essential details such as ownership,
mortgages, liens, and judicial measures affecting the aircraft.
Additionally, the certificate identifies both the owner and the
operator  of  the  aircraft,  with  a  legal  presumption  that  the
owner is also its operator.

However, while the certificate is referred to as one of “owner-
ship”, under Chilean civil law, it primarily establishes posses-
sion  rather  than  true  legal  ownership  (dominio).    In  accord-
ance with general principles, possession is presumed to imply
ownership unless someone else demonstrates a superior legal
claim.    Consequently,  the  registration  of  an  aircraft  consti-
tutes a simple legal presumption of ownership.

This regulatory framework aligns with the requirements of
the Geneva Convention of 1948, which mandates that national
registries provide prima facie evidence (initial evidence suffi-
cient to establish the recorded rights unless proven otherwise)
of the content of their records.

2.2  Is there a register of aircraft mortgages and
charges? Broadly speaking, what are the rules around
the operation of this register?

The Aircraft Lien and Prohibitions Registry includes the regis-
tration  of  mortgages,  other  liens,  prohibitions  on  aircraft,
and  privileged  credits  related  to  them,  as  well  as  seizures,
detentions,  and  precautionary  measures  affecting  aircraft.
Additionally,  this  registry  allows  for  the  registration  of  acts
and  contracts  through  which  operational  control  is  trans-
ferred or assigned, such as lease agreements, aircraft charters,
and aircraft exchange agreements.

As a general rule, entries cannot be made in the Registry of
Liens  and  Prohibitions  unless  the  aircraft  in  question  is  also
registered in Chile.  Although only aircraft owned by Chilean
individuals or legal entities can be registered, there are excep-
tions for: (a) foreign legal entities with permanent operations
in  Chile;  and  (b)  foreign  aircraft  registered  in  Chile  under
a  lease  agreement,  provided  the  operator  is  a  Chilean  avia-
tion company.  This provision allows a foreign legal entity to
transfer operational control of an aircraft to another party.

2.3  Are there any particular regulatory requirements
which a lessor or a financier needs to be aware of as
regards aircraft operation?

Any  agreement  by  which  an  aircraft  owner  transfers  opera-
tional  control  to  another  party  must  be  formalised  either  by
a public deed or by a private instrument duly notarised before
a  notary  public.    Although  registration  of  the  lease  or  other
agreement transferring operational control with the National
Aircraft  Registry  is  not  legally  required  for  its  validity  or
enforceability, it is strongly recommended.  Failure to register
such agreements makes the aircraft owner jointly and sever-
ally liable along with the operator for any damage caused by
the aircraft.

2.4  As a matter of local law, is there any concept
of title annexation, whereby ownership or security
interests in a single engine are at risk of automatic
transfer or other prejudice when installed ‘on-wing’
on an aircraft owned by another party? If so, what are
the conditions to such title annexation and can owners
and financiers of engines take pre-emptive steps to
mitigate the risks?

There is no specific provision under Chilean law.  As a result,
this  matter  must  be  analysed  under  general  property  prin-
ciples  established  in  civil  law.    The  Civil  Code  recognises
the  concept  of  “accession”  as  a  way  of  acquiring  ownership.
Therefore, it provides guidelines for the ownership and incor-
poration  of  one  object  (e.g.,  an  engine)  into  another  (e.g.,  an
aircraft).    According  to  these  principles,  if  two  physically
attached  objects  can  be  separated  without  causing  damage,
they may be treated as independent and movable.  Therefore,
ownership  of  the  engine  may  remain  distinct  if  it  is  clearly
separable and identifiable without harm.

Additionally,  since  Chile  has  not  ratified  the  Cape  Town
Convention, engine ownership rights in Chile are not governed
by the International Registry.

To  mitigate  the  risks  of  automatic  transfer  or  prejudicial
treatment, the best pre-emptive action is to explicitly address
this matter in lease, financing, or other relevant agreements.
Such  agreements  should  clearly  specify  the  treatment  of
engines upon installation, in cases of default, or in relation to
liens and encumbrances.  Separate pledges can also be created
on the engines, under the general rules for pledges on movable
assets.

2.5  What (if any) are the tax implications in your
jurisdiction for aircraft trading as regards a) value-
added tax (VAT) and/or goods and services tax (GST),
and b) documentary taxes such as stamp duty; and (to
the extent applicable) do exemptions exist as regards
non-domestic purchasers and sellers of aircraft and/or
particular aircraft types or operations?

Value Added Tax (VAT)
In Chile, VAT is levied at a rate of 19% on the habitual sale of
goods  and  real  property  (excluding  land)  located  in  Chile,
as  well  as  services  rendered  or  utilised  in  the  country.    For
services, VAT applies when the activity generating the service
is developed in Chile, regardless of where it is utilised.  VAT also
applies  to  special  taxable  events,  such  as  imports  and  other
specific services.  Aircraft leasing is classified as a “service” for
VAT purposes.

CareyAviation Law 202562

The VAT payable is determined by a credit/debit system, by
virtue of which the VAT that has been levied on the purchase of
goods, services and special taxable events (i.e., import) forms
an  asset  account,  called  VAT  Tax  Credit,  that  may  be  offset
against the VAT charged on sales made and services rendered
(Fiscal  Debit).    The  excess  of  Fiscal  Debit  should  be  declared
and  paid  monthly.    If  the  VAT  Tax  Credit  exceeds  the  tax
payable, the excess can be carried forward indefinitely.

Under Article 8 of DL 2,564, specific tax benefits are provided

for the importation and leasing of aircraft:

1)  The General Treasurer of the Republic is allowed to
accept promissory notes or bills of exchange for the
total amount of VAT generated by the importation or
leasing of aircraft.  These instruments do not accrue
interest or adjustments and must mature by the end
of the sixth VAT period.

2)  Upon maturity, the importer can offset any remaining
VAT  Tax  Credit  –  including  those  derived  from  the
same importation – against the notes.  Any residual
credit may either be applied to other tax obligations
or refunded.

In practice, this mechanism enables VAT exemption or deferral.
Lastly,  passenger  or  cargo  transportation  carried  out  or
utilised in Chile is subject to VAT.  However, VAT law provides
exemptions for (i) income derived from passenger transporta-
tion contracts, and (ii) international air cargo transportation.

Stamp Tax
Documents supporting loans and money credit operations are
subject to stamp tax on their principal amount at a rate equal
to  the  lesser  of  (a)  0.8%,  and  (b)  0.066%  multiplied  by  the
number of months or fraction of a month from the issuance of
the document until its maturity.

Regarding foreign money credit operations executed abroad,
the  Stamp  Tax  accrues  either  upon  the  arrival  of  the  docu-
ment to Chile, when it is notarised in Chile, or when the money
credit operation is accounted for in Chile.

Stamp Tax should be applied only to the extent that taxable
events are triggered in an aircraft trading operation (i.e., docu-
mented money credit operations, loans, notes, among others).

2.6  Is your jurisdiction a signatory to the main
international Conventions (Montreal, Geneva and
Cape Town)?

Chile is a signatory to the following conventions:
Chicago Convention 1944: ratified in 1947.
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Geneva Convention 1948: ratified in 1955.
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Tokyo Convention 1963: ratified in 1974.
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Hague Convention 1970: ratified in 1972.
 ■ Montreal Convention 1999: ratified in 2009.
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Cape Town Convention 2001: Chile has not yet ratified
the Cape Town Convention.

2.7  How are the Conventions applied in your
jurisdiction?

The  question  of  whether  international  treaties  have  self-en-
forcement effects is a debated topic.  The most widely accepted
view is that only human rights treaties are considered to have
self-executing effects, meaning they can be directly applied by
courts without requiring additional legislation.  Other types
of  treaty  typically  require  implementing  legislation  to  be
enforceable within the domestic legal system.

In this context, the provisions of treaties related to aviation
matters would not be directly enforceable in court.  Therefore,
their integration into the national legal framework – such as
the Aviation Code or other relevant legislation – is required to
ensure their effective applicability.

2.8  Does your jurisdiction make use of any taxation
benefits which enhance aircraft trading and leasing
(either in-bound or out-bound leasing), for example
access to an extensive network of Double Tax Treaties
or similar, or favourable tax treatment on the disposal
of aircraft?

In Chile, withholding tax (“WHT”) applies to Chilean-source
income  earned  by  non-resident  individuals  or  entities  when
the income is paid or made available.  Chilean-source income
is  defined  as  income  derived  from  goods  located  in  Chile  or
services  rendered  within  the  country.    Aircraft  trading  and
leasing  in  Chile  benefit  from  specific  tax  rules,  as  detailed
below:
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Leasing:
 ■ Generally, aircraft lease payments to foreign lessors
are subject to WHT at a rate of 35%, which must be
withheld, declared, and paid by the lessee.

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 ■ However,  article  6  of  DL  2.564  exempts  national
commercial  airlines  from  WHT  on  lease  payments
made to foreign lessors.

Disposal:
 ■ Capital gains from the sale of assets located in Chile
by non-resident entities are generally subject to WHT
at a 35% rate.  For aircraft, the Chilean IRS has ruled
that registration determines the location of the asset.
Thus, gains from the disposal of aircraft registered in
Chile may be subject to WHT at a 35% general rate.
 ■ Chile  has  a  broad  network  of  double  tax  treaties,
which typically stipulate that capital gains from the
sale of aircraft, or movable property related to such
operations,  are  taxable  only  in  the  seller’s  state  of
residence.

Other aviation-related services:
 ■ Payments made to non-residents for technical assis-
tance,  services  performed  abroad,  interest,  aircraft
lease  payments,  or  other  aviation-related  activities
by  national  commercial  airlines  are  exempted  from
WHT,  provided  they  relate  to  the  airline’s  ordinary
business operations.
 ■ Additionally,  payments

insurance
premiums, freight, and other aviation-related activ-
ities to non-established companies are exempt from
WHT in Chile.

for  aircraft

 ■ Double Tax Treaties (both general and aviation-spe-
cific)  restrict  the  source  country’s  taxing  rights
over  profits  derived  from  the  operation  of  aircraft
in  international  traffic,  allowing  taxation  solely  in
the beneficiary’s state of residence.  Chile has signed
aviation-specific  treaties  with  countries  such  as
Venezuela,  Germany,  and  Singapore,  which  do  not
have a general Tax Treaty with Chile.

These rules, combined with Chile’s network of tax treaties,
provide  favourable  tax  treatment  for  leasing,  disposal,  and
other aviation-related transactions, making Chile an attractive
jurisdiction for international aircraft operations and financing.

ChileAviation Law 20252.9  To what extent is there a risk from the
perspective of an owner or financier that a lessee of
aircraft or other aviation assets in your jurisdiction may
acquire an economic interest in the aircraft merely by
payment of rent and thereby potentially frustrate any
rights to possession or legal ownership or security?

We do not see such a risk under Chilean Law.

3

Litigation and Dispute Resolution

3.1  What rights of detention are available in relation
to aircraft and unpaid debts?

In Chile, the right of detention of aircraft for unpaid debts is
not  explicitly  regulated,  and  is  considered  inadmissible  if
there is no legal provision establishing it, or if the parties have
not agreed to it contractually.  In any case, to be enforceable,
this right requires a court judgment recognising it, by way of
precautionary measures or other proceedings.  Once the cred-
itor’s  (or  lessor’s)  right  is  judicially  recognised,  it  allows  the
holder to obtain repossession (in the case of a lease), or even-
tually foreclosure the asset (in the case of debt financing) to
satisfy the corresponding debt.

3.2  Is there a regime of self-help available to a lessor
or a financier of an aircraft if it needs to reacquire
possession of the aircraft or enforce any of its rights
under the lease/finance agreement?

In Chile, self-help or “autotutela” is generally prohibited, and is
considered contrary to public order unless explicitly authorised
by law.

In  the  absence  of  such  a  provision,  lessors  or  financiers
must resort to the courts to enforce their rights.  This typically
involves requesting precautionary measures, such as the judi-
cial seizure (“embargo”) of the aircraft, through the civil courts.

3.3  Which courts are appropriate for aviation
disputes?  Does this depend on the value of the
dispute?  For example, is there a distinction in your
jurisdiction regarding the courts in which civil and
criminal cases are brought?

The  amount  in  dispute  does  not  affect  court  jurisdiction,  as
jurisdiction is determined by the nature of the conflict.

Disputes  between  private  parties  related  to  air  transport
contracts  or  commercial  agreements  are  typically  heard  by
civil courts.  In contrast, criminal disputes involving offences
outlined in the Aeronautical Code are generally under the juris-
diction of Aviation Courts, unless the accused are civilians.  In
such cases, jurisdiction falls to the ordinary criminal courts.

Disputes  arising  from  administrative  sanctions,  permits,
or the interpretation of aeronautical regulations are heard by
the relevant jurisdictional authority, which will depend on the
specific decision being challenged (e.g., the “DGAC”).

3.4  What service requirements apply for the service
of court proceedings, and do these differ for domestic
airlines/parties and non-domestic airlines/parties?

63

carried out via a letter rogatory (“exhorto”) sent through judi-
cial or consular authorities.

Domestic  airlines  and  other  parties  are  subject  to  Chilean
procedural  rules  like  any  other  domestic  entity.    Their  legal
representatives will be notified and must respond to summons
or notifications served under these rules.

Non-domestic  airlines  or  parties  operating  in  Chile  are
subject  to  Chilean  jurisdiction  for  disputes  arising  within
its  territory.    Their  representatives  in  Chile  will  be  served
with legal notifications and are responsible for responding to
actions brought against them.

3.5  What types of remedy are available from the
courts or arbitral tribunals in your jurisdiction, both on
i) an interim basis, and ii) a final basis?

Both  courts  and  arbitral  tribunals  can  grant  remedies  on  an
interim or final basis.  Interim remedies include precautionary
measures  such  as  asset  seizures,  prohibitions  on  property
transfers, and other actions aimed at securing the outcome of
proceedings.  However, if an arbitral tribunal orders a remedy
requiring  enforcement,  civil  courts  must  be  approached  for
enforcement.

Regarding final decisions, both civil and arbitral tribunals
possess broad authority to resolve disputes.  The court’s deci-
sion, however, is limited to addressing the relief requested by
the  parties.    Final  remedies  may  include  declaratory  relief,
specific  performance,  monetary  compensation  for  material
and moral damages, and the rescission or nullity of contracts,
among other things.

3.6  Are there any rights of appeal to the courts from
the decision of a court or arbitral tribunal and, if so, in
what circumstances do these rights arise?

Decisions  from  courts  or  arbitral  tribunals  may  be  appealed
or  challenged  under  specific  circumstances.    Court  deci-
sions can generally be appealed to a higher court if they meet
the  requirements  established  in  the  Code  of  Civil  Procedure.
Additionally, extraordinary remedies are available, such as:
 ■

Recurso de casación, which addresses violations of proce-
dural or substantive law, aiming to annul a decision that
is legally flawed.
Recurso de queja, which is used to address gross errors or
abuse of authority in the issuance of judicial decisions.
For arbitral tribunal decisions, the scope of appeals is typi-
cally  governed  by  the  terms  of  the  arbitration  agreement.
However, certain remedies are non-waivable, including:
 ■

Recurso de casación, applicable in cases of lack of jurisdic-
tion or ultra petita.
Recurso  de  queja,  to  address  gross  error  or  abuse  in  the
arbitral decision.

 ■

 ■

These  mechanisms  aim  to  ensure  procedural  fairness  and

the proper application of the law.

3.7  What rights exist generally in law in relation to
unforeseen events which might enable a party to an
agreement to suspend or even terminate contractual
obligations (in particular payment) to its contract
counterparties due to force majeure or frustration or
any similar doctrine or concept?

Notifications (service of process) are generally required to be
made  personally  unless  the  recipient  cannot  be  located.    For
individuals  or  entities  domiciled  abroad,  service  is  typically

The concepts of force majeure (caso fortuito o fuerza mayor) and
impossibility  of  performance  (imposibilidad  de  cumplimiento)

CareyAviation Law 202564

offer mechanisms to suspend or terminate contractual obliga-
tions when unforeseen events render their performance impos-
sible or excessively burdensome.  In the event of a dispute over
their applicability, the matter will be resolved by the courts.

Force  majeure  is  defined  in  the  Civil  Code  as  an  unforesee-
able  and  irresistible  event  beyond  the  control  of  the  parties.
Such events may lead to a temporary suspension or permanent
termination  of  obligations  if  performance  becomes  imprac-
ticable.  Additionally, the law acknowledges termination due
to impossibility of performance, which provides for discharge
when compliance is rendered unfeasible.

Contracts often include specific force majeure clauses.  These
contractual  provisions  typically  prevail  over  legal  general
principles.

3.8  Is there any trend developing towards regulatory
support in civil justice for out-of-court solutions and
the importance of engaging in Alternative Dispute
Resolution (or similar)? If so, what (if any) are the
implications for the answers in questions 3.1–3.7
inclusive?

Alternative  dispute  resolution  methods  are  increasingly
encouraged in Chile, particularly through the use of arbitra-
tion.    The  Arbitration  and  Mediation  Center  of  the  Santiago
Chamber  of  Commerce  actively  promotes  mediation  as  a
preferred  method  of  resolving  disputes.    As  a  result,  it  has
become  common  to  find  contracts  with  stepped  arbitration
clauses, stipulating that parties must first attempt mediation
before initiating arbitration proceedings.

4  Commercial and Regulatory

4.1  How does your jurisdiction approach and
regulate joint ventures or other forms of partnership
and/or alliances between airlines? In your opinion, are
there any improvements to the existing regime which
would be advisable?

The  JAC  has  established  free  access  to  markets,  free  pricing,
minimum  intervention  by  the  authority,  and  liberalisation
of  ownership  and  control  as  principles  of  Chilean  aviation
policy.  These factors have contributed to Chile being the least
restricted  country  in  the  OECD  in  the  air  transport  market.
However,  horizontal  cooperation  agreements  between
airlines  are  subject  to  the  common  regulation  established  in
Competition Law aimed to prevent and sanction competition
related infringements.

city to city combination in a geographical scope.  This defini-
tion  is  based  on  the  demand  side  perspective,  as  consumers
value  the  different  possible  ways  to  travel  between  an  O&D
pair  without  generally  considering  another  flight  between  a
different O&D pair as a substitute.

Regarding  cargo  transportation,  the  FNE  has  defined  the
relevant product market as that of scheduled air cargo trans-
portation  services.    On  the  geographic  dimension  of  this
market, the TDLC and the FNE have adopted a broader scope,
considering as a relevant market the air cargo transportation
at country-country and country-continent level, in a unidirec-
tional way, including flights with and without stopover.

4.3  Does your jurisdiction have a notification
system whereby parties to an agreement can obtain
regulatory clearance/anti-trust immunity from
regulatory agencies?

Chilean  Competition  Law  establishes  a  mandatory  ex  ante
merger control regime, by means of which concentration opera-
tions with effects in Chile, that meet or exceed the certain turn-
over thresholds, must be mandatorily notified to the FNE prior
to its implementation (standstill obligation/suspensory effect).
There  are  also  voluntary  filings  for  concentrations  below
mandatory thresholds, as well as granting the FNE the possi-
bility  of  opening  ex  officio  investigations  on  below-threshold
transactions for up to one year post-closing.  Once the concen-
tration is cleared by the FNE, the parties may proceed with its
implementation.

Finally, acquisitions of minority shareholding in a compet-

itor trigger a post-closing filing obligation.

4.4  How does your jurisdiction approach mergers,
acquisition mergers and full-function joint ventures?
In your opinion, are there any improvements to the
existing regime which would be advisable?

Chilean Competition Law establishes the following means for
concentrations: (a) mergers, regardless of the type of corporate
organisation; (b) acquisitions of decisive (material) influence
in  another  entity’s  administration;  (c)  full-functional  joint
ventures; and (d) acquisition of assets’ control.

Regarding mergers, the FNE’s broad interpretation includes:
(i) incorporation mergers; (ii) absorption mergers; and (iii) any
combination of economic activities of previously independent
economic agents, resulting in the creation of an economic unit.
Regarding  full-functional  JVs,  the  FNE  emphasises  two

requirements:
 ■

The creation of a new economic entity – whether or not
controlled by its constituents.
Full  functionality,  from  an  economic  and  regulatory
perspective.

4.2  How do the competition authorities in your
jurisdiction determine the ‘relevant market’ for the
purposes of mergers and acquisitions?

 ■

The  Chilean  Competition  Court  (“TDLC”)  and  Chilean
Competition  Agency  (“FNE”)  have  broadly  segmented  the  air
transport market between passengers and cargo from a product
market  definition,  but  have  not  deeply  analysed  the  charter
segment.  Moreover, the FNE has established that this market can
be characterised as a network industry composed of the various
transportation routes from origin to destination (“O&D”).

Within  the  regular  passenger  transportation  market,  the
FNE has defined the market as that of scheduled passenger air
transport services at the O&D pair level, with emphasis on the

4.5  Please provide details of the procedure,
including time frames for clearance and any costs of
notifications.

Once the parties have filed a notification, the FNE has 10 busi-
ness  days  to  declare  it  complete.    If  not,  the  parties  have  10
business days to submit a complementation.

Phase I review stage: once the notification is complete, the
FNE issues a notice of completeness and Phase I starts.  This
phase has a statutory term of up to 30 business days and can be
suspended for up to 10 working days each time the parties offer
commitments to the FNE.

ChileAviation Law 202565

Following Phase I, the FNE may either decide to: (a) uncon-
ditionally  clear  the  transaction;  (b)  approve  the  transaction
subject to remedies; or (c) extend the investigation to a second
in-depth review stage (Phase II).

Should the FNE preliminary conclude that the transaction
might  have  the  ability  to  restrict  competition,  the  investi-
gation will be extended to Phase II (in-depth review).  Phase
II  has  a  statutory  term  of  up  to  90  working  days  and  can  be
suspended for up to 15 working days each time the parties offer
commitments.

Following Phase II, the FNE may either decide to: (a) uncon-
ditionally  clear  the  concentration;  (b)  approve  the  concen-
tration subject to remedies; or (c) prohibit the concentration.
The parties have the right to challenge prohibitions decisions
before the TDLC.

Finally, there are no filing fees in Chile.

4.6   Are there any sector-specific rules which govern
the aviation sector in relation to financial support
for air operators and airports, including (without
limitation) state aid?

Currently, there is a national subsidy for paid public passenger
transportation  services,  which  includes  air  transportation
services.  However, this subsidy only benefits services carried
out  in  the  Regions  of  Arica  and  Parinacota,  Tarapacá,  Aysén,
Magallanes  and  Antarctica,  and  the  Provinces  of  Palena  and
Chiloé,  or  in  other  areas  considered  isolated.    On  the  other
hand,  concession  companies  in  charge  of  the  operation  and
administration  of  airports  receive  state  funds  through  the
national concession system, according to the terms and condi-
tions established in the respective bidding basis.

4.7  Are state subsidies available in respect of
particular routes?  What criteria apply to obtaining
these subsidies?

Yes,  there  are  routes  that  connect  isolated  localities  in  the
Regions of Valparaíso, Biobío, Los Lagos, Aysén and Magallanes.
The bidding requirements for public air passenger transporta-
tion services are established in each bidding process and are
defined in the bidding conditions of each process.

4.8  What are the main regulatory instruments
governing the acquisition, retention and use of
passenger data, and what rights do passengers have
in respect of their data which is held by airlines and
airports?

The collection and processing of personal data is governed by
Data Protection Law (“DPL”).  According to DPL, data subjects
have the rights of access or information, modification, cancel-
lation or suppression and blocking.

Please  note  that  a  substantial  amendment  to  the  DPL  will
enter into force on 1 December 2026, which will regulate to a
greater extent the rights of data subjects, and incorporate the
right to portability.

with  due  diligence  and  to  be  liable  for  any  damage  caused.
Currently,  the  DPL  establishes  sanctions  with  respect  to  the
exercise of the rights of data subjects, but it does not establish
a specific sanction referring to the loss of personal data.  Fines
in the DPL amount to approximately USD 3,400.

However,  the  amended  DPL  will  establish  the  Data
Protection Agency and detail the security obligations of data
controllers  and  processors,  including  the  duty  to  implement
measures against data loss.  It will also establish fines of up to
approximately USD 1,400,000, which may be tripled in cases
of recidivism.  Additionally, for repeated very serious infringe-
ments within a 24-month period, the Data Protection Agency
may order the partial or total suspension of the data processing
operations and activities carried out by the data controller for
up to 30 days.

4.10 What are the mechanisms available for the
protection of intellectual property (e.g. trademarks)
and other assets and data of a proprietary nature?

IP rights are recognised by the Chilean Constitution, Chilean
law, and international treaties signed by Chile.  The main laws
governing IP are Industrial Property Law and Copyright Law.
Chilean  IP  laws  follow  the  standards  established  in  inter-
national  treaties  signed  by  Chile  on  this  matter,  such  as  the
Paris Convention, the Berne Convention, and the Trade Related
Aspects of Intellectual Property Rights (“TRIPS”), among others.
The  National  Institute  of  Industrial  Property  (“INAPI”)
is  in  charge  of  the  registry  of  industrial  property  rights.    On
the other hand, copyright and related rights can be registered
(although such registrations are not required to obtain protec-
tion) before the Intellectual Rights Department.

Infringement  of  IP  rights  is  subject  to  criminal  penalties,
as well as compensation and damages.  Such claims must be
brought before the civil or criminal courts (depending on the
type of relief claimed) as there are no specialised courts for IP
infringement.

4.11  Is there any legislation governing the denial of
boarding rights, delayed flights and/or cancelled
flights? Is this legislation adhered to and well
monitored?

Consumer  Protection  Law  and  the  Aeronautical  Code  estab-
lish clear rights for passengers and corresponding obligations
for airlines in case of denied boarding, delays or cancellation
of flights.

Passengers are entitled to various rights depending on the
circumstances,  including  the  option  to  board  the  next  avail-
able  flight  with  the  same  airline,  secure  alternative  trans-
portation, receive assistance benefits (such as meals, accom-
modation,  or  communication  services),  request  refunds,  and
claim compensations, among other things.

These  laws  are  complied  with  by  airlines  and  regularly
enforced by the National Consumer Service (“SERNAC”) and
Chilean courts.

4.9  In the event of a data loss by a carrier, what
obligations are there on the airline which has lost the
data and are there any applicable sanctions?

The  DPL  obliges  data  controllers  to  maintain  the  confidenti-
ality  of  the  personal  data  they  process,  to  take  care  of  them

4.12 What powers do the relevant authorities have in
relation to the late arrival and departure of flights?

The  SERNAC  is  responsible  for  monitoring  compliance  with
consumer  protection  regulations  in  such  cases,  and  enforce
consumer rights before the competent courts.

CareyAviation Law 202566

4.13 Are the airport authorities governed by particular
legislation? If so, what obligations, broadly speaking,
are imposed on the airport authorities?

According  to  the  National  Civil  Aviation  Safety  Program
(“PNSAC”) of the DGAC, the airport authority is the authority
responsible for the administration of the aerodrome.  Among
its responsibilities are to establish and maintain an aerodrome
security programme and an aerodrome contingency plan, and
coordinate  with  government  agencies,  aircraft  operators,  air
terminal operators and service companies to comply with the
security programme.

4.14 To what extent does general consumer protection
legislation apply to the relationship between the
airport operator and the passenger?

If  the  relationship  can  be  qualified  as  a  “consumer  rela-
tionship”  then  consumer  protection  legislation  will  apply.
Although  there  is  often  no  “direct”  contractual  relationship
between airport operators and passengers, it may be possible
to construe a “consumer relationship” based on the payment of
boarding fees for access and use of the airport facilities or other
services provided by airport operators.

4.15 What global distribution suppliers (GDSs)
operate in your jurisdiction?

We are not aware of any.

4.16 Are there any ownership requirements pertaining
to GDSs operating in your jurisdiction?

No, there are no such requirements.

4.17  Is vertical integration permitted between
air operators and airports (and, if so, under what
conditions)?

Generally, vertical integration between airports and air opera-
tors is not permitted by competition authorities.  However, the

TDLC has established that it would exceptionally be permitted
if  a  company  participated  in  an  airport  bidding  and  at  the
same time was related to:
a)

small  aircraft  commercial  transportation  companies  in
the terms defined by the DGAC (i.e., commercial airlines
authorised to carry out air activities in aircrafts with a
maximum take-off weight of 5,700 kg and a capacity of
up to 19 passengers, in “normally non-scheduled flights
and/or at the request of the company”); or
companies  engaged  in  forest  firefighting,  agricultural
work or other minor airline services.

b)

In both cases, these related entities cannot use a “relevant

portion” of the concessioned airport or its facilities.

4.18 Are there any nationality requirements for
entities applying for an Air Operator’s Certificate in
your jurisdiction or operators of aircraft generally into
and out of your jurisdiction?

No, there are no such requirements.

5

In Future

5.1
In your opinion, which pending legislative or
regulatory changes (if any), or potential developments
affecting the aviation industry more generally in
your jurisdiction, are likely to feature or be worthy of
attention in the next two years or so?

Enhanced consumer protection regulations, in addition to the
more active role of SERNAC, may entail increasing challenges
to carriers and other industry players, including in situations
when the relation with consumers is handled through third-
party agencies.  This, complemented with the new landscape
on data protection laws to become effective in 2026.  In addi-
tion, potential initiatives to ratify the Cape Town Convention
are  to  be  seen,  although  the  outcome  of  this  discussion
remains uncertain.

ChileAviation Law 202567

Aviation Law 2025CareyMatías Gatica’s practice focuses on compliance, anti-corruption, corporate crime risk management, compliance programmes, internal investigations, and criminal corporate liability, as well as corporate and commercial matters, mergers and acquisitions and general practice.CareyIsidora Goyenechea 2800, 43rd floorLas Condes, SantiagoChileTel: +56 2 2928 2208Email: mgatica@carey.clLinkedIn: www.linkedin.com/in/matias-gatica-van-de-velde-3b72151a3Josefina Marshall’s practice focuses primarily on mergers and acquisitions, corporate and commercial law, domestic and international corporate financing, international trade, foreign investment, and general practice.CareyIsidora Goyenechea 2800, 43rd floorLas Condes, SantiagoChileTel: +56 2 2928 2215Email: jmarshall@carey.clLinkedIn: www.linkedin.com/in/josefina-marshall-19425542Guillermo Acuña is a partner at Carey and co-head of the firm’s Corporate/Mergers & Acquisitions and Compliance Groups.  His practice focuses on corporate and commercial law, mergers and acquisitions, national and international corporate financing, foreign investment, and insurance.  He also has vast experience in aviation law matters including purchase contracts, various forms of leasing (dry lease and wet lease), aircraft and engines financing contracts, and specific issues of air operations.  Additionally, he advises local and foreign companies on compliance matters, including anti-corruption policies and programmes, preventive models, internal investi-gations and criminal corporate liability.CareyIsidora Goyenechea 2800, 43rd floorLas Condes, SantiagoChileTel: +56 2 2928 2215Email: gacuna@carey.clLinkedIn: www.linkedin.com/in/guillermo-acu%C3%B1a-61b48552Gustavo Herrera’s practice focuses on compliance, anti-corruption, corporate crime risk management, compliance programmes, internal investigations, and criminal corporate liability.CareyIsidora Goyenechea 2800, 43rd floorLas Condes, SantiagoChileTel: +56 2 2928 2208Email: gherrerar@carey.clLinkedIn: www.linkedin.com/in/gustavo-herrera-rivas-496573145Carey is the largest law firm in Chile, with over 280 legal professionals.  The firm offers a comprehensive range of legal services, with special-ised teams in corporate, litigation, and regulatory areas.  Carey serves a diverse clientele, including major multinational corporations, multilat-eral organisations, and prominent Chilean companies and institutions.www.carey.clw

International
Comparative
Legal Guides

The International Comparative Legal Guides

(ICLG) series brings key cross-border insights to legal

practitioners worldwide, covering 58 practice areas.

Aviation Law 2025 features two industry chapters,
three expert analysis chapters and 24 Q&A jurisdiction
chapters covering key issues, including:

 General Aviation Law

 Aircraft Trading, Finance and Leasing

 Litigation and Dispute Resolution

 Commercial and Regulatory

 The Future of Aviation Law

The International Comparative Legal Guides are published by: glg Global Legal Group

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