Aviation Law: Turkey Extends the Licenses and Postpones the Financial Audit Requirements due to COVID-19

The Regulation on Commercial Air Transportation Companies ("SHY-6A") entered into force after being published in the Official Gazette numbered 28823 on 16 November 2013. Pursuant to SHY-6A, the regulated matters are the licensing of commercial air transport companies established or to be established to transport passengers and cargo for a fee with scheduled and non-scheduled flights on domestic and international flights; procedures and principles regarding the suspension or cancellation of the license granted; and required qualifications, duties, and responsibilities for companies, owners of the companies, and operating personnel.

Due to the COVID-19 outbreak, several amendments have been made in various legislation. In the field of air transportation which is one of the sectors most affected by the COVID-19 outbreak, the Regulation on the Amendment of the Regulation SHY-6A on Commercial Air Transportation Companies (“Regulation on the Amendment of SHY-6A”)  prepared by the Directorate General of Civil Aviation (“TCAA”), has been published in the Official Gazette dated 6 January 2021 and numbered 31356. 

As per the additional article 1 added to SHY-6A by the Regulation on the Amendment of SHY-6A, in cases declared as a global epidemic by the World Health Organization, if flights are paused for a while or suspended completely; the periods determined within the scope of this Regulation regarding the airline and air taxi companies licensed according to SHY-6A and affecting the validity conditions of the license may be extended by the Investigation Commission.  It is further states referring to article 45 of SHY-6A (Article 45 of SHY-6A regulates the financial audit of the companies. Pursuant to its third paragraph, the minimum capital determined by this Regulation for companies must exist in net assets, based on the year-end approved financial statements submitted by the companies to the TCAA.) that if flights are paused for a while or suspended completely in such situation stated due to COVID-19, airlines and air taxi companies licensed subject to SHY-6A shall be exempted from the annual financial auditing as long as the hardship continues for the years (including the year-end) and interim financial statements of 2019 and 2020.

Nihan Ünal