The Regulation on Commercial Air Transport Enterprises (“SHY-6A” and/or “Regulation”), which regulates the activities of commercial air transport enterprises, has been amended by the Regulation published in the Official Gazette No. 32613 dated 26.07.2024.
Before discussing the changes in the relevant articles, we would like to briefly mention the issues regulated by the Regulation.
1. Purpose and Scope of the Regulation on Commercial Air Transport Enterprises (SHY-6A)
The Regulation on Commercial Air Transport Enterprises is a fundamental legal framework that regulates the activities of enterprises engaged in commercial air transport. The Regulation sets forth the rules and standards that airline companies and other related organizations engaged in passenger and/or cargo transportation must adhere to. The main elements regulated by the Regulation are as follows:
Licensing and Authorization: It determines the procedures and principles for granting, suspending, or canceling licenses for commercial air transport enterprises.
Structure and Requirements of Enterprises: It defines the minimum capital, fleet size, and aircraft capacity criteria that commercial air transport enterprises must possess. Additionally, it regulates the organizational structures of these enterprises, including the qualifications of board members and responsible managers.
Safety and Security Standards: It covers the safety standards, maintenance requirements, and safety management systems that enterprises must adhere to in flight operations.
Legal and Financial Requirements: It includes regulations regarding the legal status, shareholding structures, and financial responsibilities of commercial air transport enterprises.
Sanctions and Inspections: The Regulation also specifies the sanctions to be applied to enterprises that do not comply with the rules. This includes sanctions such as suspension, cancellation of the operating license, or monetary fines. Furthermore, it regulates the principles of inspections to be conducted by the Directorate General of Civil Aviation.
Regulations in Crisis and Extraordinary Situations: It includes special regulations to be applied in extraordinary situations such as epidemics, wars, or natural disasters. The rules and exemptions that enterprises must adhere to in such situations are determined.
2. Groups Covered by the Regulation
The Regulation concerns commercial air transport enterprises. The main groups covered by the Regulation are as follows:
Commercial Air Transport Enterprises: The Regulation covers commercial air transport enterprises engaged in both domestic and international scheduled and non-scheduled flights for passenger and cargo transportation. This includes passenger aircraft and aircraft solely engaged in cargo transportation (cargo aircraft). Thus, airline companies are the primary subjects of these regulations.
Air Taxi Enterprises: The Regulation also covers air taxi enterprises engaged in commercial air transport with air vehicles with a capacity of up to nineteen seats.
Stakeholders and Managers for Airline Enterprises: The Regulation also covers individuals and legal entities holding shares in the above-mentioned enterprises, their managers, technical personnel, and other relevant employees. Regulations regarding shareholding and management structures include provisions such as ensuring control by stakeholders who are Turkish citizens.
Ground Service Provider Companies: The Regulation does not directly cover ground service provider companies. However, since the operation of commercial air transport enterprises is closely related to ground services, these enterprises need to cooperate with ground service providers in compliance processes. For example, ground service providers may be indirectly affected and may need to provide services in accordance with this Regulation concerning flight safety, operational requirements, and service standardization.
3. Changes Made to the Regulation
The changes envisaged by the Regulation are detailed in the comparative table presented in the annex to our Information Note, summarized as follows:
i. Usufruct Right on Stakeholders (Article 9) It has been stated that no usufruct right can be established on the shares of stakeholders who are citizens of the Republic of Turkey, which may violate the majority of voting rights and control of the enterprise. The relevant change is a measure aimed at preventing the loss of control by domestic stakeholders.
ii. Aircraft Capacity and Cargo Aircraft (Articles 15 and 16): The Regulation allows operators to add lower seat capacity or cargo aircraft to their fleet if they meet the required number of aircraft in their fleet. The relevant change provides flexibility to operators and allows them to optimize their commercial operations.
iii. Paid-up Capital Requirements (Articles 18 and 45): The minimum paid-up capital requirement for air taxi enterprises has been increased. The requirement amount, which was one hundred thousand USD in the previous regulation, has been changed to one hundred and fifty thousand USD. Additionally, the minimum paid-up capital requirements for licensed enterprises have been removed.
iv. Administrative Sanctions and Legal References (Article 47): Administrative sanctions and legal references have been adapted to Presidential Decree No. 4.
v. Exemptions in Extraordinary Situations (Provisional Article 4): It has been stated that certain requirements may be exempted in extraordinary situations such as epidemics, wars, or natural disasters. Flexibility has been provided for certain conditions, such as the requirement for the majority of pilots to be Turkish citizens.
In Conclusion;
The changes made to the Regulation on Commercial Air Transport Enterprises include significant regulations for air transport enterprises operating in Turkey. These changes cover innovations related to the protection of domestic stakeholders’ control, capital requirements, and aircraft fleet. Additionally, the updates made in legal references and administrative regulations are important for enterprises to comply with the legal framework. The flexibilities provided during crisis periods offer significant support for business continuity in extraordinary situations.
A detailed examination of the Regulation and compliance with these regulations are necessary to minimize the legal risks of enterprises and make their operations sustainable. These regulations contain important points that all stakeholders in the sector should carefully follow.
Best regards,
DKND Law Office
