Market insights April 2025

Aviation - market insights April 2025

Sustainable Aviation Fuel (SAF) mandate

The UK Government’s Sustainable Aviation Fuel (SAF) Mandate came into force on 1 January 2025. The mandate sets out a staggered approach to the adoption of SAF. This starts with 2% of total percentage jet fuel demand this year, rising to 10% by 2030 and 22% by 2040.  

We have also identified SAF as a key update in the Energy and Travel sections.

AI in aviation 

In November 2024, the CAA published several documents setting out its position and approach to addressing the challenges and opportunities presented by AI led automation in aviation.  

They have provided a principles-based framework, the aim of which is to guide the safe regulation and the use of AI in aerospace. The four key areas of focus in regulating AI are: safety; security; consumer protection; and environmental sustainability.  

2025 is described as the ‘pre-flight’ phase with ‘taxi’ and ‘take-off’ to take place from 2026-2028. 

Aircraft retained in Russia 

On 2 October 2024, the trial of a US$4.5 billion dispute regarding more than 200 aircraft and engines retained by Russian lessees after the termination of their leasing following the Russian invasion of Ukraine began. The claim was brought by aircraft leasing companies who had leased aircraft to Russian airlines. The High Court has heard six claims which have been joined and the outcome is likely to be used as a test case for future disputes. The trial has now concluded and judgment is awaited.  

Amendment of Montreal Convention limits 

On 18 October 2024, ICAO published revised limits of liability for carriers under Montreal Convention 1999. The revised limits of liability under Articles 21 and 22 of the Convention were effective as of 28 December 2024 and were brought into force in the UK by the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2025 on 7 February 2025. The new limits are as follows: 

 

Montreal 

Convention 

1999 

Original limit (SDRs) 

Revised limit (SDRs) as of 28 December 2019 

Revised limit (SDRs) as of 28 December 2024 

Article 21 

(death or bodily injury) 

 100,000 

128,821 

151,880 

Article 22, (1) 

(delay) 

4,150 

5,346 

6,303 

Article 22, (2) 

(loss, damage or delay of baggage) 

1,000 

1,288 

1,519 

Article 22, (3)  

(loss, damage or delay of cargo) 

17 per kg 

22 per kg 

26 per kg 

 

Case developments  

Proceedings commenced in Leicester City Chairman fatal accident claim  

Proceedings have been commenced against helicopter manufacturer Leonardo SpA in relation to the crash that killed the former Leicester City Football Club Chairman, Khun Vichai Srivaddhanaprabha, and four others in October 2018. The claim is seeking damages in the sum of £2.15billion – the largest amount ever sought in a fatal accident claim. 

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