Aircraft Finance Briefing - A Practical Guide To The Cape Town Convention

1. Advantages to aircraft financiers/lessors

For a financier or lessor (each a creditor), the virtues of the 2001 Cape Town Convention and its Aircraft Equipment Protocol (together Cape Town) are that it aims to:

• bring speed, certainty and cost savings to repossession, deregistration and export of aircraft, helicopters and aircraft engines (aircraft objects) on an insolvency or other default where the aircraft object is in a country whose laws would otherwise not be creditor-friendly; and
• protect creditors' interests in aircraft objects by:
  • providing for the registration of "international interests" in those aircraft objects at a single, web-based, "International Registry" that is open 24/7;