Cape Town Convention (aircraft financing and leasing) – Developments in China and Indonesia

Introduction

The ratification of the Cape Town Convention (the Convention) continues apace. Widely acknowledged as promoting legal certainty and so improving the availability and terms of aircraft finance and leasing in contracting states, the degree of benefit it actually brings largely depends on the way it is actually legislated for and implemented in the relevant jurisdiction. One key issue is the Irrevocable Deregistration and Export Request Authorisation (IDERA) and Certified Designee Certificates (CDCs) under which a creditor of an airline (or its designee) can procure the deregistration of the aircraft following a default. In this article we consider current practice and regulation in East Asia's two most populous jurisdictions.