Illegal Charters and Aviation Law
Page 239
CHAPTER 5
Market Distortion
Market Distortion
There appears to be a growing awareness within the business aviation market of the need to address the injustice that can occur from the illegal chartering and that is directed primarily at a legitimate operator who have invested significant time and resources in obtaining an AOC. Illegal operators jeopardise the existence of law-abiding operators by using aircraft in violation of regulations. Illegal charter distorts the market, as it evades the high regulatory compliance costs of legal air operations, including proper training and insurance. It also exposes legitimate charter operators to reputational risks, being tarred by the same brush when it comes to negative coverage of accidents or enforcement action incurred by illegal operators. The residual sense of unease from such unfair business practices is there in the air.