• Lugano Convention 2007 – Convention on jurisdiction and recognition and enforcement of judgments in civil and commercial matters;
• ​Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (Aircraft Protocol) (signed November 16, 2001, Cape Town)
• ​Cape Town Convention on International Interests in Mobile Equipment (signed November 16, 2001, Cape Town);
• ​Montreal Convention 1999 (Convention for the Unification of Certain Rules for International Carriage by Air);
• ​The New York Convention 1958 – Convention on the Recognition and Enforcement of Foreign Arbitral Awards – acceded 1961.
• The Hague Protocol 1955 (Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air) – amending the Warsaw Convention 1929;
• The Chicago Convention 1944 on International Civil Aviation;
• ​The Rome Convention 1933 (Convention for the Unification of Certain Rules Relating to the Precautionary Arrest of Aircraft);
• The Warsaw Convention of 1929 for the Unification of Certain Rules Relating to International Carriage by Air.

a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention

Norway has made the following qualifying (opt-in) declarations:

​Under the Convention:

• ​Article 39: Non-consensual rights or interests under Norwegian law have priority over international interests (specific categories declared)
• Article 40: Certain non-consensual rights are registrable as international interests:
  – Court orders permitting attachment of aircraft
  – ​Liens/rights of state entities relating to taxes or unpaid charges
• Article 54(2): Self-help remedies – creditor may exercise remedies without court intervention unless expressly required by Convention provisions
• ​Article 55: Application of Articles 13 and 43 (interim relief) subject to Lugano Convention provisions where debtor is domiciled in EEA territory

​Under the Aircraft Protocol:

• ​Article VIII: Choice of law provisions apply
• ​Article XI: Alternative A (Insolvency) applies in its entirety to all types of insolvency proceedings with a 60 calendar-day waiting period
• Article XII: Insolvency assistance provisions apply
• ​Article XIII: IDERA (Irrevocable De-Registration and Export Request Authorization) provisions apply

​Article X (Expedited Remedies): Norway did not make a declaration under Article XXX(2) to apply Article X, relying instead on Article 54(2) self-help remedies.

b. Does the Cape Town Convention take priority over conflicting national law?

Yes, in Norway the Cape Town Convention takes precedence over any conflicting national law.​

a. Lease

​​Yes, Norwegian courts will recognize foreign governing law for leases.

​Norway has made a declaration under Article VIII of the Aircraft Protocol accepting choice of law provisions.

​Under Section 3-43 of the Aviation Act, possession rights under leases of 6 months or longer are recognized if they were properly established under the law of a convention state where the aircraft was registered.

​Form requirements apply for recording purposes.​

b. Security document (for example, mortgage)

​​Foreign law-governed security agreements are recognized and can be registered in the Norwegian Civil Aviation Registry if:

• They were validly established under the law of a convention state where the aircraft was registered when the security agreement was made
• They were recorded in a public register in that state

​That said, if the mortgage is created while the aircraft is registered in Norway, it must meet Norwegian law requirements.

​Cape Town Convention international interests have priority over locally recorded security documents.

​​Many lenders still register local mortgages either as an alternative to or alongside international interests. But strictly speaking, a local mortgage isn’t necessary if you’ve registered a Cape Town Convention international interest.​

​​Yes, Norwegian courts will recognize and enforce foreign judgments, but there are conditions:

​For EEA/EU Countries, recognition happens automatically following Lugano Convention procedures, with only limited grounds for refusal

​For Other Countries, recognition depends on:

• Whether there’s an international treaty (bilateral or multilateral)
• Reciprocity principles
• Whether it conflicts with Norwegian public policy (ordre public)
• Proper service and due process

​What is Required:

• You typically need a local court order to enforce (not just recognize) a foreign judgment
• The foreign judgment must be final and enforceable where it was issued
• Enforcement will be denied if it goes against Norwegian public policy or if the defendant didn’t get a fair chance to defend.​

The Norwegian Civil Aircraft Register (NCAR) is an owner-register, not an operator-register.

​Requirements for Registration:

​1.Nationality:

​The aircraft must have a Norwegian owner, meaning:

• The Norwegian State
• Norwegian citizens living in Norway
• Norwegian companies or associations registered in Norway with Norwegian management and ownership
• For non-Norwegian entities: You must declare that the ultimate beneficial owner (with over 50% control) is an EEA/EU citizen OR get an exemption from the nationality requirements

2. Technical:

​• Certificate of Airworthiness (meeting EASA standards)

3. ​Previous Registration:

• If the aircraft was registered abroad, it must be removed from that foreign register first
• You’ll need a certificate from the previous registry confirming deletion

​How to Register:

​Submit a written application from the owner with:

• ​Aircraft details (registration/serial number, type)
• Owner’s name, address, and Norwegian ID or organization number
• Proof of ownership showing unconditional title

​Documents Needed:

• Norwegian entities: Companies in the Brønnøysund Register Centre need minimal paperwork
• Foreign entities:
  – Notary Public confirmation of identity and who can sign
  – Apostille or legalization (if outside Nordic countries)
  – Proof of deletion from previous registry (if applicable)

​What You Get:

• ​A Certificate of Registration showing aircraft details, registered owner, and LN- registration mark
• Aircraft get a five-letter marking with the LN- prefix (like LN-ABC)

​Registration fees apply.

​​Yes, the Norwegian Civil Aircraft Register (NCAR) keeps records of both ownership and encumbrances, more precisely:

• Aircraft mortgages under Norwegian law
• Leases (optional registration as encumbrances)
• Liens and detention rights
• Foreign encumbrances (with the owner’s consent)
• Cape Town Convention international interests (though these are mainly registered with the International Registry in Ireland)

​Registration requirements and process:

​a) For Norwegian law mortgages you will need:

• The original mortgage deed on the standard form
• Witness or lawyer confirmation of signatures, plus corporate documents where needed
• For foreign companies: notarized confirmation of signing authority, with apostille or legalization (if outside the Nordic countries)

​The mortgage must include:

• Aircraft identification
• Details of the parties
• Description of the secured obligations
• Can cover spare parts stored in Norway or in Convention states

​b) For IDERA (Cape Town):

• Original standard form IDERA
• Power of attorney from the registered owner, notarized and apostilled
• Can be registered in NCAR (on top of International Registry filing)

​How registration is evidenced:

• ​Entry in the NCAR records
• Can be verified through registry searches
• NCAA can provide a certificate or official confirmation

​Registration fees apply

​Note that rights which cannot be legally established under Norwegian law will not be accepted for registration, even if they are valid under foreign law—unless Norway has ratified the relevant convention.

a. Ownership interest (for example, proof of title to third parties of ownership)

• ​​Proof of title and legal ownership to third parties.
• Creates notice of ownership to third parties,
• Protects against competing claims to ownership (priority by registration time)

b. Lease (for example, perfects the status of the Lessor under the Lease)

• Perfects the lessor’s interest and provides notice, but isn’t required for a foreign law lease to be valid
• A lease recorded in NCAR acts as an encumbrance on the aircraft for the lessee’s benefit against the registered owner
• For Cape Town leases, NCAR registration is optional but might give Lessee extra protection under local law​

c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these

• Creates a perfected security interest with priority based on registration order—first in time, first in right (subject to non-consensual rights with statutory priority)
• Gives constructive notice to third parties
• Registration with the International Registry creates an international interest with priority

​Interests that can rank prior to Security Document:

1. ​Non-Consensual Rights with Statutory Priority:
   – Detention/arrest rights for airport charges )
   -Salvage claims (Section 12-5 Aviation Act)
   -Crew wages and employment claims
   -State claims for taxes
2. ​Non-Consensual Rights:
   – Court orders for attachment in satisfaction of judgment
   – ​State tax liens (if registered)
3. Government Rights:
   – Norway reserved right to arrest/detain aircraft for payment of amounts owed to state entities, intergovernmental organizations, or public service providers for services provided​

​Norway recognizes the following types of leases:

1. Operating Lease (e.g. standard commercial wet/dry lease)
2. Finance Lease (treated differently for tax and VAT purposes than operating lease)
3. Lease with Option to Purchase
4. Sublease
5. Lease-Back Arrangements
6. Cape Town Convention Leases​

Minimum Requirement:

• ​Written lease agreement
• Identification of aircraft
• Parties’ details
• Lease term

​For Leases Over 6 Months:

• ​Aircraft must be registered in NCAR
• Nationality requirements must be satisfied (owner must be Norwegian/EEA or obtain dispensation)
• Registration fees apply

For Optional NCAR Registration as Encumbrance:

• ​written deed executed by the parties
• ​Confirmation of signature by witnesses or attorney at law, and corporate documents as needed
• ​If foreign entities: notarization and apostille/legalization required (outside Nordic)
• ​If aircraft mortgaged: further encumbrances may typically require mortgagee’s consent

​Registration creates priority against subsequent encumbrances

​Registration fees apply

​Recognition of Foreign Law Leases: no additional formalities required for perfection if:

• ​Lease validly established under law of convention state where aircraft was registered when the lease created
• ​Registration/publication in public register of that state

​Under Cape Town Convention:

​For leases creating international interests:

1. ​Registration with International Registry:
   – ​Creates international interest with worldwide priority
   – Perfects lessor’s rights in all Cape Town contracting states
   – Priority based on time of registration with IR
2. ​IDERA Filing:
   – ​File IDERA with NCAR naming lessor/security trustee as authorized party
   -Enables swift deregistration upon default without court intervention
   -​Requires: original IDERA on standard form + notarized/apostilled POA from owner

​No Local Norwegian Filings Required if relying solely on Cape Town Convention and foreign law lease.​

​​No, ownership rights relating to engines cannot be registered separately from the ownership of the airframe in the Norwegian Civil Aircraft Register (NCAR).

​The NCAR is an aircraft register only; it does not facilitate the opening of separate folios or title registration for individual engines.

​Under Norwegian law, engines are generally treated as accessories to the aircraft or as part of a collective spare parts inventory.

​Engines installed on an aircraft follow the registration and ownership of the aircraft itself.

​A mortgage registered against the airframe (the LN-registration) automatically covers the installed engines, provided they are not subject to a pre-existing international interest.

​A mortgage on a registered aircraft can be extended to cover spare parts stored at specific locations in Norway, provided they belong to the aircraft owner.

​The nature and approximate number of the parts must be stated in the mortgage deed.The same rules apply to warehouses located in a foreign state (subject to recognition in that state).

​It is also possible to register an Operating Assets Pledge over spare parts, including engines, but this is rarely used for aircraft engines in professional aviation finance. The moment a spare engine is installed onto an aircraft, it legally becomes an accessory to that aircraft and the holder of a right in the aircraft will have precedence over the holder of an Asset Pledge.

​For separate coverage of engines, parties must use the International Registry (Cape Town Convention), as the local registry does not support it.

​​The following forms of security are recognized in Norwegian law:

​1. Aircraft Mortgage is the most common form of security

• ​Registered in Norwegian Civil Aircraft Register (NCAR)
• Covers aircraft and may include:
  – Spare parts stored in Norway
  – Parts stored in Convention states
  – ​Installed equipment
• ​Original mortgage deed required for registration
• ​Norwegian law requirements: written, identified aircraft, parties, secured obligations

​2. International Interest (Cape Town Convention)

• ​Registered with International Registry
• Creates international interest with priority in all Cape Town states
• Takes precedence over local law mortgages

​3. Pledge Over Aircraft – less common for aircraft

• Possession-based security (impractical for aircraft)
• Limited applicability

​4. Title Retention

​Seller retains title over a sl aircraft until the purchase price has been paid in full.

​5. Detention or Arrest

• ​Airport operators’ liens
• Salvage claims
• Court-ordered seizure/arrest as security
• ​Non-consensual rights with statutory priority

​Preferred Form: Cape Town international interest due to:

• ​Priority over local law mortgages
• ​Simplified enforcement via IDERA
• Self-help remedies without court intervention
• Worldwide recognition all contracting states

​​The following terms/characteristics are mandatory:

1. ​Written form
2. Parties’ Identification:
   – Mortgagor (owner) name and details
   – Mortgagee (secured party) name and details
3. ​Aircraft Description:
   – ​Registration mark (or manufacturer/serial number if not yet registered)
   – Aircraft type
   – Manufacturer
4. ​Secured Obligations:
   – Description of debt secured
5. Mortgage amount or cap: a specific or maximum amount must be stated.​

​​Formality requirements:

1.​Mortgage Deed:
– Standard form mortgage deed
– Signed by mortgagor and mortgagee
– Original document
– Witness confirmation or Norwegian lawyer confirmation of signatories’ identity

• ​If signed under a power of attorney, the same requirements apply to the PoA
  – If signed abroad: must be notarized and
  -Apostilled or legalized (if signed outside the Nordic countries)
• ​If signed under a power of attorney, the same requirements apply to the PoA

2. ​Corporate Authorization (for corporate mortgagors):
– Board resolution or equivalent authorization
– Certificate of registration and corporate documents (articles, bylaws)

3. ​Mortgage’s consent may be required if other mortgages are recorded on the aircraft

​Procedural Steps:

1. ​Prepare Documentation:
   – Obtain corporate authorizations
   – Obtain mortgagee’s consent (if previous mortgages are registered on the aircraft)
   – Execute mortgage deed
   – Notarize and apostille (as needed)
2. Submit to NCAA/NCAR:
   – Send originals to Norwegian Civil Aircraft Register
   – Include application for registration (if aircraft not already registered)
3. Processing:
   – NCAA reviews for compliance
   – ​Registration notation made in NCAR
   – ​Invoice for fees sent after completion
4. ​Confirmation:
   ​- Mortgage registered and searchable
   – ​Priority established by registration timestamp
   – Original deed required for discharge​

​​Norway applies EU Regulation (EC) No. 785/2004 on insurance requirements for air carriers and aircraft operators.

​Key Features of Norwegian Aviation Insurance Regime:

​Applicability:

• ​All aircraft operated within, into, out of, or over Norwegian territory
• ​Commercial and non-commercial operations
• Applies to foreign aircraft operating in Norway
• ​Norwegian-registered aircraft operating worldwide

​Captive Insurance:

• ​Generally allowed but subject to minimum coverage, solvency and, as appropriate, authorization requirements
• Captives are normally not domiciled in Norway

​Insurance Requirements Enforced:

• ​Civil Aviation Authority of Norway (NCAA) verifies compliance
• Certificate of insurance or evidence of coverage must be provided
• Non-compliance can result in:
  – Withdrawal of operating license
  – Aircraft detention
  – Prohibition on take-off
  – Administrative sanctions​

​​While the Norwegian Insurance Contracts Act (Forsikringsavtaleloven or FAL) is mandatory for consumer insurance, Section 1-3 allows parties to “contract out” of most provisions for large commercial risks and reinsurance. The law lets sophisticated parties (airline, insurer, reinsurer) write their own rules.

​The Insurance Contracts Act generally gives injured third parties a direct right to sue insurers (Section 7-6), but this doesn’t automatically extend to reinsurers. So cut-through clauses aren’t just best practice—they’re a necessity to create a cause of action against the reinsurer.​

​​Norway has mandatory minimum requirements through EU Regulation (EC) No. 785/2004.

​The minimum insurance cover for third-party liability depends on the aircraft’s Maximum Take-Off Mass (MTOM):

​MTOM Category	​Minimum Coverage (SDR)
​< 500 kg	​750,000 SDR
​500 – 1,000 kg	​1.5 million SDR
​1,000 – 2,700 kg	​3 million SDR
​2,700 – 6,000 kg	​7 million SDR
​6,000 – 12,000 kg	​18 million SDR
​12,000 – 25,000 kg	​80 million SDR
​25,000 – 50,000 kg	​150 million SDR
​50,000 – 200,000 kg	​300 million SDR
​200,000 – 500,000 kg	​500 million SDR
​> 500,000 kg	​700 million SDR

Application:

• ​Minimum insurance must be maintained at all times during operations
• Applies to both Norwegian and foreign aircraft operating in Norwegian airspace
• ​NCAA enforces compliance
• Evidence of insurance must be available for inspection
• Non-compliance can result in operational restrictions or prohibition

​Additional Requirements:

• ​Passenger liability: Governed by Montreal Convention 1999 (128,821 SDR per passenger, revised to approximately 175,000 SDR under 2024 ICAO revisions)
• ​Baggage liability: 1,288 SDR per passenger
• Cargo liability: 22 SDR per kilogram
• ​Hull insurance: Not legally mandated but commercially required by lessors/lenders

​EU Regulation Compliance: Norway implements EU Regulation 785/2004 as an EEA member, ensuring harmonized insurance standards across European aviation.​

​​A mortgagee or lessor can generally take possession of an aircraft following an event of default without judicial intervention but this right can only be exercised peacefully.

​This means that the “self-help” rights only apply if the aircraft is voluntarily surrendered or can be secured without any confrontation and without trespassing.

​The creditor cannot breach the peace. This includes:

• ​Engaging in any physical confrontation with the operator, its employees, or agents.
• ​Breaking locks, cutting fences, forcibly entering a hangar or trespassing.
• ​Ignoring a clear verbal instruction to leave the premises.

​If the operator or possessor resists in any way (even by simply refusing access or objecting verbally), the creditor must stop any self-help attempt and seek assistance from Enforcement Authorities.

​Under Cape Town Convention:

1. ​Norway made a declaration under Article 54(2) accepting self-help remedies
2. Creditor may exercise remedies under Article 8 without court involvement
3. Article 13 expedited interim relief also available (subject to Lugano Convention where applicable)
4. These rights apply to international interests registered with International Registry

​Under Norwegian Law:

• ​Norwegian law does not prohibit self-help repossession by secured creditors
• ​Contract-based repossession rights are generally enforceable
• Lessors have possessory rights under lease agreements

​Requirements:

​Event of Default:

• ​Valid event of default must have occurred under mortgage/lease
• ​Notice requirements under contract must be satisfied
• Grace periods (if any) must have expired

​Practical Considerations:

• ​Physical access: Lessor/mortgagee must have practical ability to access aircraft
• ​Operator cooperation: forced repossession against the will of an operator or possessor raises legal concerns and normally requires a court order

​IDERA (if filed):

• ​Makes deregistration process straightforward (see Question 19)
• No need to prove default to NCAA for deregistration purposes
• Authorized party named in IDERA can request deregistration

​Procedural Steps:

1. ​Serve Default Notice per contract terms
2. ​Coordinate Physical Repossession:
   – ​Contact aircraft operator
   -Arrange ferry crew if necessary
   -Coordinate with airport authorities
3. Secure Aircraft physically
4. ​Initiate Deregistration (if removing from Norwegian registry)
5. ​Export Aircraft (if applicable)

​Limitations as per section 19 below, may apply.

​If lessee/debtor is under insolvency proceedings:

• ​a 60 calendar-day waiting period may apply
• Waiting period can be shortened/terminated if administrator consents
• After 60 days: creditor may repossess without further court approval
• ​This is significantly faster than typical insolvency procedures​

​​The process differs depending on the basis for deregistration.

​1. IDERA

​Documentation Required:

• ​Request for Deregistration: Completed NCAA form, signed by the Authorized Party.
• ​Declaration of Default: A formal statement signed by the Authorized Party stating that an event of default has occurred and they are exercising their rights.
  -Note: No proof of the underlying default (e.g., missed payments) is required; the declaration itself is sufficient.
• ​Evidence of Signatory Authority: Corporate authorization showing the person signing the Declaration has the power to bind the Authorized Party.
• ​IDERA Reference: The NCAA will reference the IDERA already on file. (The original must have been submitted when the IDERA was recorded).

​Procedure:

1. ​Submit: The Authorized Party submits the Request and Declaration to the NCAA.
2. ​NCAA Processing: typically 1–3 business days.
3. ​Result: The NCAA issues the Certificate of Deregistration.

​2. Lessor without IDERA

​Documentation Required:

• ​Original Power of Attorney (DPOA): A specific deregistration PoA granted by the Owner to the Lessor.
  – Formality: If the owner is non-Nordic, this must be Notarized and Apostilled.
• ​Original Mortgagee Consent: The NCAA cannot deregister an aircraft if there are registered mortgages.
  -​Requirement: Every registered mortgagee must submit an original request to delete their mortgage (Slettingsbegjæring) or provide a formal consent to deregistration.
• ​Request for Deregistration: Completed NCAA form signed by the Lessor (using the PoA).
• ​Corporate Documents: Evidence of authority for the person signing for the Lessor.

​Procedure:

1. ​Clear Liens: The Lessor must coordinate with the Lenders to have them submit their Original Mortgage Deeds to the NCAA to delete the encumbrances.
2. ​Submit: Submit the PoA and Deregistration Request.
3. Review: The NCAA assesses the PoA. If the Owner disputes the default and revokes the PoA before deregistration is complete, the NCAA will pause and require a court order.

​3. Mortgagee without IDERA

​Documentation Required:

• ​Evidence of Right to Deregister:
  – ​Option 1: Power of Attorney granted by the Owner.
  – Option 2 : A final decision/decree from the Norwegian Enforcement Authority awarding the Mortgagee possession/ownership.
• ​Original Mortgage Deed:-
  ​In Norway, the Mortgagee (Lender) holds the original endorsed Mortgage Bond (Pantedokument). The NCAA does not keep the original.
  – ​To deregister the aircraft, the Mortgagee must physically return this Original Deed to the NCAA to discharge the mortgage.
• Request for Deregistration: Completed NCAA form.

​Procedure:

1. ​Enforce: Obtain PoA or alternatively legal title via enforcement authority.
2. Locate Deed: Retrieve the original Mortgage Deed (if lost, a lengthy court “mortification” process is required to void the lost deed).
3. ​Submit: Send the Original Mortgage Deed (for cancellation) and Deregistration Request to the NCAA.

​Formalities:

​The NCAA generally requires wet-ink originals for the Application for Deregistration, the Declaration of Default, and the Mortgage Deletion Request.

​Nordic Parties: No legalization required for documents from Norway, Sweden, Denmark, Finland, or Iceland.

​Non-Nordic Parties: Any document verifying authority (Power of Attorney, Corporate Resolution, Certificate of Incumbency) issued outside the Nordic region must be Notarized and then Apostilled (under the Hague Convention).

​The NCAA accepts documents in Norwegian, Danish, Swedish, or English.

​Any document in another language requires a translation by a State Authorized Translator.​

1. ​​The government can prevent repossession or deregistration in certain circumstances, e.g. for:

​Priority Claims:

• Airport charges
• Salvage claims
• State tax liens
• ​Court attachment orders

​NCAA may prevent deregistration/export if:

• ​Aircraft not airworthy for ferry flight
• Safety inspection not complete
• ​Regulatory requirements not satisfied
• ​Insurance coverage insufficient

​During Insolvency Proceedings:

• ​If debtor/lessee enters insolvency, creditor must wait 60 calendar days before exercising remedies
• ​Insolvency administrator may seek court order extending waiting period
• ​Court may extend only if:
  – Administrator takes proper care of aircraft
  – Administrator cures all defaults within reasonable time
• After 60 days: Government cannot prevent repossession unless grounds under items 1 or 2 above

​Under extraordinary circumstances:

• ​National emergency
• ​Public health crisis
• War or threat to national security
• Government may temporarily requisition aircraft (with compensation)

​2. A Lessee can prevent repossession by:

​a. Challenging that a default occurred:

• ​Court action: File lawsuit disputing default
• ​Injunction: Seek temporary restraining order preventing repossession
• ​Burden: Lessee must show prima facie case that no default or improper notice
• ​Norwegian courts: Generally respect contract terms and favor creditors if proper default procedures followed

b. ​Insolvency Filing

• ​Automatic effect: Triggers a 60-day waiting period
• ​Moratorium: Prevents immediate repossession
• Administrator: May seek to cure defaults and preserve lease
• ​Limitation: After 60 days, cannot further prevent if defaults not cured

​Cape Town Convention Protection: Norway’s Article 54(2) declaration and Article XI Alternative A significantly limit ability to prevent enforcement:

• ​After 60-day insolvency waiting period: Very limited grounds for prevention
• No discretionary government blocking of IDERA-based deregistration
• Courts must facilitate creditor remedies absent exceptional circumstances
• “Debtor-friendly” insolvency measures inconsistent with Cape Town not applicable​

​While Norway’s adherence to the Cape Town Convention (and its specific declarations) generally allows for non-judicial remedies (self-help), judicial intervention becomes necessary when cooperation fails or legal certainty is required.

​Court involvement may be required or advisable in the following scenarios:

• ​Contested Default: The lessee disputes the default, claims improper notice, or argues contract interpretation.
• ​Physical Obstruction: The lessee, airport authorities, or third parties block access to the aircraft.
• Missing Original Documents: The original mortgage deed is lost, requiring a court order to discharge the mortgage.
• ​Priority Disputes: There are competing claims from other creditors or non-consensual liens.
• ​Insolvency Extension: An administrator seeks to extend the moratorium period beyond the standard 60-day waiting period (Article XI).

​A court process may entail Interim Relief (urgent measures) or Full Proceedings.

​Interim Relief may be used for immediate grounding/repossession under Cape Town Convention Article 13.

​Forum: District Court (Tingrett) where the aircraft is located or the debtor is domiciled.

​Procedural Steps:

1. Application: File for preliminary injunction/attachment supported by a prima facie case.
2. Security: The court may require the creditor to post security.
3. Hearing: Often ex parte (without the debtor present) or on very short notice for urgent matters.
4. ​Order: The court issues a temporary order pending a full trial.

​Full Judicial Proceeding may be used to resolve the underlying merits of the dispute (e.g., damages, validity of lease):

​Forum: District Court (First Instance).

Procedural Steps:

1. ​Filing: Complaint filed and service on the defendant.
2. Response: Defendant files an answer, counterclaims, or objections.
3. Preliminary Conference: Court sets the timeline and resolves procedural issues.
4. ​Discovery: Exchange of documents, witness lists, and expert reports.
5. ​Trial (Main Hearing): Oral arguments and witness testimony (typically 1–3 days).
6. Judgment: Written decision issued by the court.

​Length of Time to Complete

​The timeline varies significantly depending on whether you are seeking immediate possession or a final judgment:

​Stage	​Estimated Timeline
​Interim Relief (Injunction)	​5-30 working days
​District Court (Full Trial)	​6+ months
​Appeal (Court of Appeal)	​+ 12–18 Months
​Appeal (Supreme Court)	​+ 12–24 Months (if accepted)

​Documentation Required

​To succeed in court, the following documentation may be required:

• ​Corporate Authority: Articles of Association, Board Resolutions, and Power of Attorney (might need to be notarized and apostilled).
• Title/Security Documents: The original of the Lease Agreement and Mortgage Deed.
• ​Proof of Default: Copies of all default notices sent to the lessee.
• Asset Docs: Certificate of Registration and technical records.
• Financials: Evidence of missed payments and calculation of damages.
• ​Translations: All foreign-language documents must be translated into Norwegian by a sworn translator.
  – Note: English documents are sometimes accepted without translation for urgent Interim Relief, but this is discretionary.​

 

The transfer of title involves two steps: the contractual transfer (between buyer and seller) and the perfection of title (protection against third parties).

​Between the Parties legal title formally transfers based on the contract of sale (Sale and Purchase Agreement). Under Norwegian civil law, the title passes once a valid agreement is reached and the conditions for delivery are met, unless the contract specifies otherwise. Normally the agreement specifically indicated that title is transferred upon certain conditions being met / upon exchange of certain documents, i.e. bill of sale and delivery receipt.

​To secure the title against third parties (e.g., creditors, bankruptcy estates) and to establish the legal right to operate the aircraft, the transfer must be registered in the Norwegian Civil Aircraft Register (NCAR) (Norges luftfartøyregister).

– ​Note: Until registration is complete, the seller may technically still appear as the owner to the outside world. Therefore, closing and registration usually happen simultaneously.

​To effect the transfer on the registry, the following conditions must be met:

• ​The transfer of title must be unconditional.
• To be registered in Norway, the aircraft must generally be owned by an EEA (European Economic Area) national or entity.
  – EEA Rule: The owner must be a citizen of an EEA state or a company effectively controlled by EEA nationals (e.g., >50% ownership/votes).
  – Dispensation: If the owner is non-EEA, you must apply for a special dispensation from the Civil Aviation Authority (CAA) to register the aircraft.
• If the aircraft is currently registered in another country, it must be fully deregistered from that foreign registry before it can be entered into the NCAR.

​The standard procedure for transferring title typically follows this flow:

1. ​Execute Bill of Sale: The seller and buyer sign a formal Bill of Sale.
2. ​Submit Application: Submit the “Notification of Change of Ownership” and the Bill of Sale to the Civil Aviation Authority (CAA) in Bodø.
3. ​Issuance: The CAA issues a new Certificate of Registration in the buyer’s name.

​Registration fees apply.

​If the aircraft is physically imported into Norway, it must clear Norwegian Customs.

​Formality Requirements & Documentation

​Original wet-ink documents are normally required.

​Bill of Sale (Flyskjøte)

• ​Format: You should normally use the standard CAA form or a document containing equivalent information.
• Content: It must clearly state the aircraft’s registration marks (e.g., LN-ABC), manufacturer, serial number, and an unconditional statement that title is transferred to the buyer.
• Witnessing/Notarization:
  – ​If signed in Norway: The signature must be witnessed by two individuals (residents of Norway, over 18) or a Norwegian lawyer/public official.
  – ​If signed abroad: The signature must be notarized by a Notary Public. The Notary’s signature must then be Apostilled (if the country is part of the Hague Convention) or legalized (if not).

​Corporate Documentation
​If the buyer or seller is a corporate entity, you must prove the signatory has the authority to sign (in notarized document, this is normally attested by the notary)

​Deregistration Certificate: (If transferring from a foreign registry).

​Declaration of Ownership: A form declaring the owner’s nationality status (EEA compliance), in original, witnessed by two individuals (residents of Norway, over 18) or a Norwegian lawyer/public official.

​Power of Attorney: might be required if a document is not executed by an authorised signatory. The witness, notarization and legalization formalities are the same applying to the main document.​

​​In Norway, the sale of an aircraft following enforcement is strictly regulated to protect both the debtor and other creditors. It is generally not possible for a creditor to simply seize and sell an aircraft privately without state involvement unless specific “self-help” conditions under the Cape Town Convention are met and the debtor cooperates.

​Under the Enforcement Act (Tvangsfullbyrdelsesloven), you typically cannot sell the aircraft yourself. You must involve the public enforcement authorities:

​You must first have a valid “basis for enforcement” (tvangsgrunnlag). This is usually:

1. A final court judgment; or
2. ​A registered mortgage (where the mortgage deed explicitly includes a clause consenting to forced sale without a prior court judgment).

​The Procedure:

1. ​You file a petition for forced sale with the local enforcement authority (usually the District Court or Namsmann where the aircraft is located/registered).
2. ​The authority formally seizes the aircraft.
3. The court decides how the aircraft is sold. It will be one of two methods:

​Public Auction (Tvangsauksjon): The traditional method, often yielding lower prices.

​Sale by Assistant/Broker (Medhjelper): The court appoints a professional broker to market and sell the aircraft commercially. This is often preferred for high-value aviation assets to maximize recovery.

​Norway is a party to the Cape Town Convention (CTC) and has declared that “self-help” remedies are permitted (Article 54(2)).

​This theoretically allows a creditor (e.g., a lessor or mortgagee) to take possession and sell the aircraft without a court order if there is an Event of Default.

​While a court order isn’t strictly required by the CTC text, Norwegian domestic law still applies regarding public order.

​If the lessee/debtor physically resists or disputes the repossession, you cannot use force. You must immediately stop and seek assistance from the enforcement authorities (Bailiff) to avoid criminal liability for “self-justice” (vigilante acts).​

​​In most standard commercial transactions between unrelated parties, there is no withholding tax on lease rentals.

​Lease payments between related parties (one party owning or controlling 50% of the other or more, or both being under common control) can, under certain conditions, be subject to withholding tax.

​A foreign lessor is generally not subject to Norwegian income tax on lease rentals provided they do not have a Permanent Establishment (PE) in Norway.

​Mere passive leasing of an aircraft to a Norwegian operator does not normally, by itself, create a Permanent Establishment.

​Most of Norway’s tax treaties follow the OECD Model Article 8, which allocates the right to tax profits from the operation of aircraft in international traffic exclusively to the country where the lessor is resident (or has its effective management).

​While not a direct tax on income, VAT is a critical consideration for lease rentals.

​Domestic lessees may be subject to the standard 25% VAT, though this is often recoverable for business entities.

​Lease rentals charged to a “qualifying airline” are zero-rated (0% VAT). In order to qualify, the lessee must be an airline operating largely in international traffic. ​

​​There is no specific “sales tax” in Norway; however, the sale of an aircraft is generally subject to Value Added Tax (VAT) unless a specific exemption applies.

​Here are the details regarding the amount, calculation, and mitigation steps.

​General Rule: 25% VAT

​The standard Norwegian VAT rate (Merverdiavgift or MVA) is 25%.

​By default, the sale of an aircraft delivered in Norway is a taxable supply.

​ Similarly, if an aircraft is imported into Norway (e.g., by a Norwegian buyer from a foreign seller), import VAT is levied on the customs value upon entry.

​Exemptions

​Most commercial aircraft transactions in Norway are structured to qualify for zero-rating (0% VAT) under one of the following two main exemptions:

​A. The Commercial Aviation Exemption (Section 6-10)

​The sale (or lease) of an aircraft is exempt from VAT if the aircraft is for use in “commercial aviation activity” (yrkesmessig luftfartsvirksomhet).

• ​Condition: The buyer (or lessee) must hold a valid Operating Licence or Air Operator Certificate (AOC).
• Scope: This exemption applies broadly to commercial operators (both domestic and international). It generally does not apply to private business jets, flying clubs, or corporate aircraft.

​B. The Export Exemption (Section 6-21)

​If the aircraft is sold to a foreign entity and physically exported from Norway, the sale is zero-rated.

• ​Condition: The aircraft must leave Norwegian territory immediately or within a short timeframe following the sale.
• ​Evidence: You must retain official customs documentation proving the export to substantiate the 0% rate.

​Calculation

​If VAT applies (e.g., for a private aircraft sale within Norway), it is calculated at 25% of the total sales price stated in the Bill of Sale or in the invoice.

​Mitigating Steps & Procedures

​To mitigate or eliminate the VAT liability, the following steps are usually taken:

• ​request a copy of the buyer’s AOC (Air Operator Certificate) or Operating Licence. Retain this with the transaction documents to justify the zero-rating under Section 6-10.

​Structure as an Export Sale:

• ​The aircraft is flown out of Norway immediately after title transfer.
• ​File an export declaration with Norwegian Customs (Tolletaten). The stamped declaration serves as your proof of VAT exemption.

​Recovering Import VAT (For Business Users):

• ​If a Norwegian company buys a corporate jet (non-commercial) and must pay the 25% import VAT, they may be able to claim it back as deductible input VAT in their VAT return.
• ​The aircraft must be used in a VAT-liable business activity.
• ​If the aircraft is used for private trips by owners/shareholders, the right to deduct VAT is restricted or lost.

​Transfer of a Going Concern:

​If the aircraft is sold as part of a business transfer, it may be exempt from VAT. This is however a complex assessment.

​​The following Import Restrictions apply:

• ​Sanctions (Russia/Belarus): Following EU alignment, Norway strictly prohibits the import, transfer, or landing of aircraft operated by Russian/Belarusian carriers or owned/chartered by Russian nationals/entities.
• ​There are generally no specific import quotas.

​Export Restrictions:

• ​Export Control (Dual-Use & Military):
  – ​The Norwegian Agency for Export Control and Sanctions (DEKSA) (formerly handled directly by the Ministry of Foreign Affairs) regulates exports.
  – Dual-Use: While standard civil aircraft are often exempt, parts, technology, or aircraft with specific modifications (e.g., surveillance equipment, advanced encryption) may be classified as “Dual-Use” items (List II).
  – ​License Requirement: If the aircraft or its equipment falls under the “Dual-Use” list, or if it is destined for a country subject to an arms embargo or “catch-all” clause, you must obtain an Export License before the aircraft leaves Norway.
• Sanctions: Export to sanctioned jurisdictions (e.g., Russia, Iran, North Korea) is prohibited without a specific derogation.

​Customs Duties (Toll)

• ​Rate: 0%.
• ​Scope: Norway generally applies a zero-tariff rate to civil aircraft (HS Code 8802), regardless of origin. There is no customs duty payable on the import of a standard commercial jet or helicopter.

​Value Added Tax (VAT)

• ​Import VAT:
  – ​Standard Rate: 25%.
  – Commercial Exemption: If the importer is a “qualifying airline” (commercial aviation activity), the import is exempt (0% VAT).
  – Private/Corporate: If a Norwegian entity imports a business jet for private use, 25% VAT is payable on the customs value (aircraft value + freight + insurance).
• ​Export VAT:
  – Rate: 0% (Zero-Rated).
  – Condition: The sale is exempt from VAT provided you can document that the aircraft was physically transported out of Norway.

​To effect the import or export, you must interface with Norwegian Customs (Tolletaten) and potentially DEKSA.

​Export Control Assessment:

​Before exporting, check if the aircraft or buyer is subject to restrictions:

1. ​Check the DEKSA control lists (List I and List II).
2. If a license is required, submit an application via the E-lisens portal.
3. Documentation: You will need an End-User Statement (EUS) from the buyer certifying the aircraft’s intended use and that it will not be re-exported to sanctioned entities.

​Customs Declaration (TVINN System)

​Import:

1. ​Declaration: The importer (or their freight forwarder) submits a declaration to the Norwegian Customs system (TVINN).
2. ​Commercial Airline Code: If claiming the VAT exemption, you use a specific customs procedure code indicating “Commercial Aviation Use.”
3. ​Payment: If VAT is applicable (private jets), it is either paid immediately or, if the company is VAT-registered, deferred and reported in the next VAT return (snudd avregning).

​Export:

1. ​Declaration: Submit an export declaration in TVINN before the aircraft departs.
2. ​clearance: Customs issues an “Exit Note” or clearance number. This document is your primary proof to the tax authorities that the asset left the country, justifying the 0% VAT on the invoice.
3. Airport Procedure: The pilot or handling agent must ensure the customs declaration references the specific flight plan. For “fly-away” exports, the physical departure is the trigger for the export status.

​​There are no general foreign exchange controls or restrictions on the transfer of funds into or out of the country.

​Payments can be made freely in any major currency (USD, EUR, NOK, etc.).

​However, reporting obligations for statistical and tax purposes apply.

​Any cross-border transfer exceeding NOK 100,000 (approx. USD 9,000 / EUR 8,500) must be reported to the Currency Register (Valutaregisteret).

​In practice, the Norwegian bank handling the transaction performs this reporting.

​The payer must provide the bank with a Payment Reporting Code and a brief description of the transaction type when instructing the payment.

​If the code is missing for a large transaction, the bank’s system may flag the payment, leading to the transaction being stopped.

​Further, Anti-Money Laundering (AML) and Sanctions checks apply.

• ​Sanctions Check: Norwegian banks adhere to EU and UN sanctions lists. Transfers to entities linked to Russia or Belarus (or other sanctioned regimes) will be blocked.
• KYC: For large transactions (like an aircraft closing), the bank may request the underlying contract (Bill of Sale or Lease Agreement) and other documents / information to satisfy their internal AML/KYC requirements before transferring the funds.​

​​Foreign creditors and lessors generally enjoy a high success rate in enforcing security rights and repossessing aircraft.

​In hostile scenarios (where the lessee resists), the process can be slower than the “self-help” label implies, due to strict domestic rules against the use of physical force.

​There are very few reported cases of “failed” repossessions. Norway is a rule-of-law jurisdiction with a transparent legal system that respects property rights.

​In recent major restructurings, lessors were generally successful in recovering aircraft in a timely manner.

​The most common causes of enforcement failure/delay are:

• ​Loss of the original mortgage deed – required to discharge a local Norwegian mortgage – requiring the completion of a court process to declare the document invalid.
• Difficulty in recovering technical records (logs, maintenance history), particularly if a third-party maintenance organization has unpaid claims and can legally hold back the aircraft record as security.​

​​Key areas of planned/recent reforms include the formalization of new corporate restructuring laws (insolvency), tighter scrutiny on foreign ownership (national security), and digital security compliance requirements.

​1. Reconstruction Act

​The new proposed Reconstruction Act is expected to codify the ability for a debtor (airline) to secure new financing during restructuring that has “super priority” over existing unsecured debt.

​The proposal introduces a voting mechanism that divides creditors into classes (e.g., secured vs. unsecured), preventing a hold-out by one class from blocking a viable rescue plan (similar to a UK Scheme of Arrangement or US Chapter 11).

​The reform also facilitates easier conversion of debt into equity.

​2. Foreign Investment Screening (The Security Act)

​The Norwegian government has significantly tightened control over foreign investments in sectors critical to national security, which includes transport and aviation infrastructure.

​Notification requirement for foreign acquisitions of shares in sensitive Norwegian companies has been lowered from a 1/3 ownership stake down to 10%.

​Foreign lessors or investors looking to acquire equity stakes in Norwegian airlines, airports, or aviation technology companies will face stricter screening processes and potential delays.

​3. Digital Security Act (NIS1 Implementation)

​Norway has implemented the Digital Security Act (Digitalsikkerhetsloven), incorporating the EU’s NIS1 Directive into Norwegian law.

​This applies to providers of “essential services,” including the transport/aviation sector (airlines, airport operators, air traffic control).

​Aviation operators must implement robust digital security measures and incident reporting systems.

​For a lessor, this is relevant as it imposes higher operational compliance standards on the lessee, potentially affecting their credit profile or operational continuity.

​4. Green Aviation: The “International Test Arena”

​While not a legal “right” reform, the government has formalized a cooperation with EASA (signed November 2025) to establish Norway as an International Test Arena for zero- and low-emission aviation.

​This creates a framework for testing electric and hydrogen aircraft and may influence future asset values and the “bankability” of new aircraft types.​

​​Significant legal development with implications for aviation creditors and lessors concern the ranking of environmental liabilities in insolvency.

​The “Green Priority” Precedent (Case E-12/23)

​Case: Norwegian Air Shuttle ASA (NAS) v. The Norwegian State (EFTA Court Judgment, August 9, 2024)

​The EFTA Court (whose rulings are binding on Norway) issued a judgment clarifying the status of EU ETS (Emissions Trading System) liabilities in restructuring.

• ​The Dispute: During its restructuring, Norwegian Air Shuttle attempted to treat its unpaid obligation to surrender CO2 quotas as a standard unsecured claim, arguing that this debt should be “written down” to a 5% dividend, just like other unsecured creditors.
• The Ruling: The EFTA Court ruled against the airline. It held that the obligation to surrender emissions allowances is an “absolute” environmental obligation under EEA law. It cannot be settled by a dividend in a restructuring. The airline must surrender the full amount of quotas, effectively giving this environmental liability a “super-priority” status above other creditors.

​Norwegian Domestic Ruling

​After receiving the EFTA Court’s opinion, the case returned to the Oslo District Court, that ruled in favor of Norwegian Air Shuttle and did not follow the EFTA Court’s opinion.

​The court found that during a formal reconstruction, the airline was legally prohibited from paying the ETS quotas in full (as this would have given the state “preferential treatment” over other unsecured creditors).

​The court ruled that the airline was entitled to treat the ETS obligation as a standard unsecured claim (i.e., settle it with a dividend) and that the NOK 400 million fine imposed by the state was unlawful.

​The ruling has been appealed and the appeal is still underway.​

​​As of late 2025, most regulations from the COVID-19 era have expired or been repealed. However, for aircraft lessors and creditors, the pandemic has created a permanently altered legal and financial landscape.

​The following remaining considerations are critical for assessing credit risk and enforcement strategy.

​1. Permanent Legal Legacy: The Reconstruction Act

​The Reconstruction Act, originally a temporary 2020 emergency measure to prevent a wave of bankruptcies, is being institutionalized into permanent Norwegian law (see point 29 above).

​2. The “Green” Tax Burden (The New Financial Pressure)

​While COVID-specific restrictions are gone, the government has shifted focus to recovering costs and funding the “Green Transition,” which imposes new financial burdens on your lessees.

• ​Air Passenger Tax (Flypassasjeravgift): This tax was temporarily suspended during COVID but is now fully reinstated.
• CO2 Tax Escalation: Norway has committed to a linear increase in CO2 taxes on aviation fuel up to 2030.
• Avinor Fees (The “COVID Hangover”): The state airport operator, Avinor, depleted its equity reserves keeping airports open during the pandemic. To recapitalize, the Ministry of Transport has proposed increasing airport charges significantly.

​These rising non-negotiable operating costs reduce the net operating margin of airlines, potentially tightening their ability to service higher lease rates.

​During COVID, the government successfully used “Public Service Obligation” (PSO) routes to keep Widerøe and other regional carriers flying. The government continues to heavily subsidize regional PSO routes.​