EU & EUROPEAN DEVELOPMENTS
US Supreme Court IEEPA Ruling and Section 122 Tariffs: EU Aviation Framework Agreement Ratification Paused
On 20 February 2026, the US Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorise presidential tariff imposition, prompting President Trump to terminate IEEPA tariffs and replace them with 10% Section 122 (Trade Act of 1974) tariffs effective 24 February 2026. Civil aircraft, engines, and parts eligible under the 1979 Agreement on Trade in Civil Aircraft are expressly exempt, preserving the zero-tariff environment for EU-origin aerospace products. However, the EU has paused ratification of the EU-US civil aviation framework agreement because Section 122 tariff exemptions do not fully mirror the prior framework; the Section 232 investigation into commercial aircraft and jet engines (initiated May 2025) remains ongoing. EU operators and MROs should reassign entry codes per the new EO schedule and monitor the Section 232 outcome, which could alter the current duty-free status.
EASA NPA 2025-12: Consultation Deadline 31 March 2026 — Continuing Airworthiness and Repetitive Defect Management
EASA Notice of Proposed Amendment 2025-12, published 19 December 2025, proposes amendments to Commission Regulation (EU) No 1321/2014 on continuing airworthiness for Part-M, Part-145, Part-66, Part-147, Part-ML, and Part-CAO. A key element is draft GM1 M.A.403 introducing the first detailed EASA guidance on managing repetitive aircraft defects, requiring CAMOs to implement systematic monitoring and escalation procedures independent of the reliability programme. The comment deadline is 31 March 2026 — eighteen days away. Maintenance organisations, CAMOs, and air operators with EU air operator certificates should ensure timely responses if they wish to influence the final AMC/GM text.
https://www.easa.europa.eu/en/document-library/notices-of-proposed-amendment/npa-2025-12
Transport & Environment Calls for Full EU ETS Scope Extension to Departing Flights Ahead of July 2026 Commission Impact Assessment
Transport & Environment published a position paper in March 2026 urging the European Commission to use the forthcoming EU ETS revision to extend the carbon market to all flights departing the EEA — adding approximately 80 Mt CO2 annually — and to reform SAF allowances to favour e-SAF. The policy lever is a Commission Impact Assessment due July 2026 assessing whether CORSIA meets Paris alignment criteria; if not, new EU legislation to extend ETS scope could be triggered. Additional asks include introduction of “contrail allowances,” a double-sided auction market intermediary for e-SAF, and consideration of route-differentiated carbon pricing. EU-based airlines and SAF producers should engage with the upcoming consultation process.
https://www.transportenvironment.org/uploads/files/Aviation-ETS-March-2026-position-paper-6.pdf
OEM Contractual Enforcement of Aircraft Deliveries: Airlines Face Accelerated Risk Reallocation
Clyde & Co published an aviation advisory on 9 March 2026 noting a decisive shift by Airbus and Boeing toward strict enforcement of contractual delivery obligations. OEMs are now asserting rights to deliver on scheduled dates irrespective of airline readiness and to charge punitive penalties for non-acceptance, reversing the buyer-favourable dynamic that prevailed during the supply chain disruption years. Airlines facing buyer-furnished equipment (BFE) supply chain shortfalls now bear the contractual and financial risk of delayed acceptance. Practitioners advise immediate audit of BFE agreements, supplier liability caps, and indemnity structures in OEM purchase agreements, particularly where delivery windows are imminent.
https://www.clydeco.com/en/insights/2026/03/aircraft-delivery-delays
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