Airservices v Cnadian Airlines and Ors

Airservices Australia (Airservices) brought proceedings against Canadian Airlines International Ltd and others (the airlines) in the Federal Court of Australia. The dispute concerned the interpretation and application of the *Air Navigation Act 1920* (Cth) and the *Air Navigation Regulations* (Cth) in relation to charges levied by Airservices for air navigation services provided to the airlines. Airservices sought to recover outstanding charges, while the airlines disputed their liability to pay these charges.

The central legal issues before the Federal Court were whether the charges imposed by Airservices were validly made pursuant to the relevant legislation, and whether the airlines were liable to pay those charges. Specifically, the court was required to consider the scope of the power to make regulations under the *Air Navigation Act*, the validity of the *Air Navigation Regulations* themselves, and the proper construction of the provisions within those regulations that authorised the imposition of charges for air navigation services. The airlines also raised arguments concerning the reasonableness and proportionality of the charges.

The Federal Court, in its reasoning, examined the legislative framework governing air navigation services in Australia. It considered the historical context and the purpose of the *Air Navigation Act* and its associated regulations. The court analysed the express and implied powers conferred by the Act upon the Executive to make regulations, and the extent to which those powers had been validly exercised in creating the charging regime. The court ultimately found that the regulations, as they stood, provided a valid basis for Airservices to levy charges for the services it provided, and that the airlines were liable to pay these charges as determined under the regulations.

The Federal Court ordered that the airlines were liable to pay the outstanding charges to Airservices Australia, with the precise amount to be determined in accordance with the court's findings.