EXECUTIVE ROUNDTABLE SERIES KEY LEGAL CONSIDERATIONS GOVERNING THE NEXT GENERATION AIR TRANSPORT SYSTEM Governance, Regulatory and Liability Challenges In the Transformation of our Air Transport System Speaker: Andrew B. Steinberg, Partner, Government Regulation – Jones Day June 3, 2010

Overview Agreement on the business and societal need to transform an antiquated infrastructure Consensus on the desired capabilities and technologies of a modernized satellite-based system Legal and regulatory challenges in the way of achieving our objectives

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What’s stood in the way of progress? Lack of Vision? Lack of Technology? Lack of Money?

Governance challenges Financing the infrastructure and airborne equipage Institutional competence Private sector competition over ATM services

Regulatory challenges The environment “Performance-based” navigation rules: “Best equipped best served” vs “first come, first served” Equipage mandates and incentives

Liability risks Risk allocation among States, ANSP’s, 3d parties and mitigation techniques Protecting IP conveyed to state agencies Special challenge of “criminalizing” accidents

Thank you absteinberg@jonesday. com (T) +1. 202. 879. 3808 (F) +1. 202