Navigating the Aviation Industry’s Legal Landscape
In aviation, regulatory change isn’t a slow-moving wave – it often strikes without warning.
Whether triggered by geopolitical conflict, evolving safety standards, or shifting international directives, new rules can emerge overnight, demanding immediate interpretation and decisive action.
For legal teams, volatility is part of daily life. At Magnetic Group, where operations span borders and multiple business models, navigating this environment requires far more than legal literacy – it demands strategic judgment under pressure.
“I’ve just entered my 12th year at Magnetic Group – and hopefully many more to come, as it’s never been routine or dull here,” says Sabina Juciene, Head of Legal at Magnetic Group, who is responsible for overseeing the most complex legal matters, developing and implementing legal strategies aligned with the company’s overall business objectives, and leading the legal team.
Regulatory Shocks and Real-Time Adaptation
Few events illustrate this volatility better than the sweeping sanctions imposed after Russia’s invasion of Ukraine in 2022. Practically overnight, entire markets shifted, supply chains were disrupted, and businesses had to restructure their operations under new rules.
“The scale and speed of change were unlike anything we had seen before,” Sabina recalls. “We weren’t just updating procedures – we had to restructure parts of the business, implement safeguards across jurisdictions, and train teams in real time, often without clear precedent.”
In such moments, compliance is not only about knowing the law, but about interpreting intent, anticipating enforcement, and guiding the business accordingly. Legal teams move from interpreters of regulations to architects of their application in high-pressure, ambiguous scenarios.
Decentralized Structures, Unified Standards
Complicating matters further, aviation is rarely centralized. Companies often function as ecosystems of semi-autonomous units – from MRO to parts trading to leasing – each with its own leadership, priorities, and appetite for risk.
This agility is a strength, but for legal teams, it raises a central question: how do you maintain consistency in governance and compliance without stifling speed?
“At Magnetic Group, each unit views its own operations as the top priority,” Sabina explains. “We adapt legal advice to context, knowing where flexibility is acceptable and when to draw a hard line. Policies provide the framework – but business expects solutions, not just a ‘no.’”
In this environment, legal functions aren’t passive watchdogs. They’re commercial enablers, balancing compliance with practical realities and ensuring the foundation remains credible and cohesive, even in highly decentralized structures.
One Industry, Many Legal Systems
Aviation may be global, but the law is anything but universal. Each jurisdiction brings its own legal systems, business customs, and cultural expectations. For legal teams, the challenge is reconciling this patchwork into agreements that are both enforceable and workable.
“The complexity doesn’t come from one region, but from managing all of them,” says Sabina. “Even when contracts are clear, the way obligations are interpreted and enforced can vary dramatically.”
She recalls one instance: “A customer from an African country breached a contract. Instead of addressing it formally, their first response was to invite us to pray together. Well-intentioned, but it showed how differently accountability can be approached.”
Success in such environments depends on more than statutory compliance – it requires cultural fluency, adaptive processes, and the ability to anticipate how agreements will be lived out, not just written.
Banking Skepticism and Legal Advocacy
Even when internal structures are strong, external hurdles remain. Aviation is capital-intensive, yet in regions like the Baltics, banks often hesitate to engage with the industry. Compared to trend-driven enthusiasm for fintech or software, aviation’s complex transactions can appear opaque – or even suspicious.
“Frequent staff turnover in banks means decision-makers don’t always understand aviation,” Sabina notes. “Sale-leasebacks or escrow payments, routine for us, can be flagged as money laundering risks simply because they’re unfamiliar.”
Here, legal teams step into an advocacy role – educating financial institutions, explaining industry norms, and building trust so essential transactions can move forward without unnecessary barriers.
Compliance as a Living Framework
Finally, in today’s geopolitical climate, sanctions and export controls aren’t a checklist – they’re a constantly evolving framework that must be embedded into daily decision-making.
“Sanctions compliance is non-negotiable,” says Sabina. “But we’ve chosen to go further, identifying red flags like inconsistent customer data or unusual routing of goods, and making sure controls are practical, not just theoretical.”
This shift highlights how aviation law has evolved. Legal isn’t just about preventing breaches – it actively shapes business strategy, market entry, and partnerships.
The legal function in aviation has transformed. It is no longer a reactive service, but a core driver of resilience, growth, and credibility.
Or as Sabina puts it:
“In aviation law today, there’s no room for autopilot.”