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Airline Licensing

Do I need an Operating License for a cargo airline?

Yes, any commercial air transport (passenger or cargo) requires an Air Carriage Certificate (Operating License) in addition to the AOC.

Can a foreign investor own 100% of a Georgian airline?

Generally, effective control must remain with Georgian nationals for traffic rights, but 49% foreign ownership is common. 100% foreign ownership is possible but may limit access to certain international routes.

What insurance is mandatory?

You must have insurance covering passengers, baggage, cargo, and third-party liability with minimum limits defined by Georgian law (aligned with EU Reg 785/2004).

How long is the license valid?

The license is usually valid indefinitely, provided the airline passes annual financial and technical audits by the GCAA.

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Airline Licensing: Economic Regulation and Permits

An airline's operation rests on two main pillars: technical safety (confirmed by the AOC) and economic sustainability, which is regulated by the Operating License. The Air Carriage Certificate is a state permit confirming that the company is financially sound, has sufficient capital for operations, and protects passenger rights. In Georgia, airline licensing is a critical step for market entry, as the state aims to prevent airline bankruptcies and harm to passengers. This process involves a detailed review of the company's ownership structure, financial plans, and insurance.

This service is vital for investors establishing a new airline, as well as existing carriers wishing to expand their scope of activities (e.g., moving from cargo to passenger transport). Legal accompaniment is necessary to correctly prepare financial documentation and meet the regulator's strict economic requirements.

What Does Airline Licensing Service Cover?

Law firms and aviation consultants offer clients comprehensive services in the process of obtaining an operating license:

  • Proof of Financial Fitness: Legal analysis of the business plan and preparation of evidence that the company can cover costs without revenue during the initial operating phase (3 months).
  • Ownership Structure Check: Organizing the company's founding documentation to confirm that effective control is exercised by Georgian citizens or residents (for national carrier status).
  • Insurance Contracts: Checking compliance of mandatory insurance policies (passengers, cargo, third party) with legislation.
  • Designation: Legal support to obtain rights for scheduled flights on international routes.
  • Lease Agreements: Legal audit of aircraft lease agreements (Wet/Dry Lease) for licensing purposes.
  • License Maintenance: Submitting annual financial audit results to the Agency to extend the license validity.

Common Situations and Needs

Legal needs related to licensing often arise in the following cases:

  • Startup Funding: A new airline needs to prove the source of initial capital and financial stability to obtain a license.
  • Change of Ownership: Airline shares are sold, requiring license renewal and vetting of new owners by the Agency.
  • Bankruptcy Risk: The company faces financial difficulties, and the Agency is considering suspending the license. A legal formalization of a reorganization plan is needed.
  • New Routes: An airline wants to fly to a country with which Georgia has limited quotas and needs to win a tender to obtain designation.
  • Charter Program: A tour company wants to operate charter flights and needs one-time or seasonal permits.

Georgian Legal Framework

The economic aspects of airline licensing are regulated by the Air Code of Georgia and the order of the Director of the Civil Aviation Agency — the "Rule on Issuance of Air Carriage Certificate." This rule defines financial criteria, ownership requirements, and reputational standards. For international flights, Bilateral Air Services Agreements with other countries are important. Insurance issues are regulated by the "Rule on Mandatory Insurance in Civil Aviation" (in accordance with the Montreal Convention).

The Process: How a Specialist Works

The lawyer works alongside the financial manager. The process begins with corporate structuring to ensure the company meets nationality requirements. Then, a financial package is prepared (balance sheet, forecast, audit report). The lawyer checks all documents before submission to the Agency. After receiving the license, the lawyer assists the company in obtaining designation involving the Ministry of Foreign Affairs and the Ministry of Economy. In case of financial problems, the lawyer negotiates with the Agency for a temporary license so that the company does not cease operations.

Why Use Legal.ge?

Airline licensing is not just a formality — it is the financial and legal foundation of your business. Legal.ge gives you access to lawyers who understand aviation finance and state regulations. Our specialists will help you prove your company's reliability and obtain operating rights without delays.

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