Airline Due Diligence for Investments in Unproven Technology

Environmental, social and governance (ESG) initiatives have vastly influenced current business and expenditure action, and aviation is no exception. In just the past 12 months, we have noticed unparalleled expense by main airlines and others in new sustainable aviation engineering, which includes electric vertical just take-off and landing plane (eVTOL), electrical commercial plane, hydrogen propulsion engines, hybrid electric powered aircraft, new choices of sustainable aviation gasoline, and lots of other people. These investments—whether by means of buy of tools, debt or equity investments, or other commercial arrangements—present interesting and transformative possibilities for companies, airways and buyers. But they also current exceptional, and in numerous cases, substantial pitfalls for airways. As these, conducting acceptable legal thanks diligence—and partaking an seasoned legal workforce to do so—is significant.

Diligencing the Engineering Itself

As in other contexts, lawyers are commonly not billed with complex or professional diligence of developmental technological innovation. On the other hand, skilled attorneys can quarterback the major coordination required amid quite a few departments and subject make a difference gurus inside of the airline, this sort of as fleet, network arranging, corporate/small business advancement, procurement, regulatory, governmental relations, labor relations, antitrust, and advertising and marketing/investor relations.