Industry informationInformation in relation to Aircraft Manufacturers and The International Registry of Mobile Assets.
1. What is the International Registry?
The International Registry of Mobile Assets provides a means to establish the priority of interests in airframes, aircraft engines and helicopters. The International Registry permits individuals and organisations to register financial interests in assets using the following information:
- Manufacturer’s name
- Model Designator
- Manufacturer’s serial number
Its role is to electronically record international interests in aircraft objects, for the purpose of establishing the priority of those interests.
The Registry operates under the legal framework of the Cape Town Convention and the Aircraft Protocol adopted on the 16th of November 2001 at Cape Town, which provides for the registration and protection of International Interests that are recognised by all ratifying states, with priority being determined on a First-to-File basis.
Registration of interests in existing assets serves as a notification mechanism to the User community and is considered to be best practice for owners and agents to protect their financial interest in an asset. For a full description of the legal protections provided by the Convention, please refer to the text of the Cape Town Convention and the Aircraft Protocol and Prof. Sir Roy Goode’s Official Commentary, available from UNIDROIT.
2. What are the benefits of the Cape Town Convention?
The Cape Town Convention, together with the Aircraft Protocol, creates an international legal framework for creating, registering, enforcing, and determining the priority of security and other interests in aircraft equipment. The Convention also sets out a number of default remedies for creditors, including in the context of the insolvency of a debtor.
In doing so, the Convention seeks to reduce the credit risk for lenders in respect of providing credit for aircraft objects. By reducing the risks for lenders, the Convention seeks to reduce the cost of credit, and promote the availability of credit within the industry.
Essential to this legal framework, the International Registry of Mobile Assets was established for recording and determining priority of interests in aircraft objects.
In addition to the above, the Cape Town Convention also provides economic benefits. This includes a discount on the premium rate offered by Export Credit Agencies under the OECD Aircraft Sector Understanding 2011. The discount is available where an operator is based in a Contracting State which has made certain qualifying declarations. The Aviation Working Group website (www.awg.aero) contains further information and studies on the economic benefits of ratification of the Cape Town Convention, and Aircraft Protocol.
Transactions financed through the Capital Markets are likely to attract a lower interest rate where the OECD ‘qualifying declarations’ have been made and fully implemented.
3. When does the Cape Town Convention apply?
The Cape Town Convention applies to your transaction if –
- The Aircraft is registered in a Contracting State (Except for engines), or
- The Debtor is situated in a Contracting State
The Debtor is situated in a Contracting State when it:
- is incorporated or formed in a Contracting State
- has it’s registered office or statutory seat in a Contracting State
- has it’s centre of administration in a Contracting State
Please note that the above explanation is a very simple treatment of a very complex area and you should do further research. There are other requirements such as that the agreement must be in writing etc.
If you wish to perform searches you do not need an account and can search as a Guest. If you wish to register or consent to a registration you will need to apply and become an approved user of the Registry.
4. What countries have ratified?
As of 20th April 2018, the following countries and regional economic organisations have ratified or acceded to the Convention.
Afghanistan, Albania, Angola, Argentina (effective 1st August 2018), Australia, Bahrain, Bangladesh, Belarus, Bhutan, Brazil, Burkina Faso, Cameroon, Canada, Cape Verde, China, Colombia, Congo, Costa Rica, Cuba, Côte d’Ivoire, Democratic Republic of the Congo, Denmark, Egypt, Ethiopia, European Community, Fiji, Gabon, India, Indonesia, Ireland, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Luxembourg, Madagascar, Malawi, Malaysia, Malta, Mexico, Mongolia, Mozambique, Myanmar, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, the Republic of Moldova, Romania (effective 1st July 2018), the Republic of San Marino, Russian Federation, Rwanda, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, South Africa, Spain, Sweden, Syrian Arab Republic, The Kingdom of Swaziland, The Kingdom of the Netherlands, Tajikistan, Togo, Turkey, Ukraine, United Republic of Tanzania, United States of America, United Arab Emirates, United Kingdom, Uzbekistan, the Socialist Republic of Viet Nam, Zimbabwe.
Of these seventy-seven, five have not ratified the Aircraft Protocol. These are Costa Rica, Seychelles, Syrian Arab Republic, the Republic of Moldova and Zimbabwe.
The Kingdom of the Netherlands comprises of several territorial units, the structure of which has changed recently. Further research may be required by you. Pursuant to Article 52, paragraph 1, of the Convention and Article XXIX of the Protocol, the Kingdom of the Netherlands declares that the Convention and the Protocol are to apply to the following territorial units, the Netherlands Antilles and Aruba. Please consult UNIDROIT website (www.unidroit.org) and your legal advisors or both if your query relates to any of the following territories: the Kingdom of the Netherlands, the Netherlands Antilles, Aruba, Caribbean part of the Netherlands (the islands of Bonaire, Sint Eustatius and Saba), European part of the Netherlands, Curacao and Sint Maarten.
Pursuant to Article 52 of the Convention and Article XXIX of the Protocol, the United Kingdom of Great Britain and Northern Ireland declares that the United Kingdom’s Ratification shall be extended to the Island of Guernsey, the Cayman Islands and Gibraltar. In a subsequent declaration the United Kingdom’s Ratification was also extended to Bermuda and the Isle of Man. The United Kingdom’s Instruments of Ratification and subsequent declarations are available on the International Registry website and contain further information regarding the applicability of the Convention and Protocol to these territories.
Pursuant to Article 52 of the Convention and Article XXIX of the Protocol, the Kingdom of Denmark declares that until further decision, the Convention will not apply to the Faroe Islands and Greenland.
The Depositary, the International Institute for the Unification of Private Law (UNIDROIT), has advised the International Registry that it has accepted the deposit of the Instrument of Accession of Costa Rica only to the extent that the instrument relates to the Cape Town Convention, and that it has not accepted the deposit of the Instrument of Accession of Costa Rica to the extent that the instrument relates to the Aircraft Protocol.
Article 54(2) of the Cape Town Convention requires that a Contracting State, at the time of its accession to a Protocol, must make the declaration specified in that Article. Costa Rica did not make a declaration under Article 54(2) at the time of the deposit of its Instrument of Accession. UNIDROIT was therefore not able to accept the deposit of the Instrument of Accession to the extent that the instrument relates to the Aircraft Protocol.
At the time of its accession to the Cape Town Convention, Costa Rica made one declaration under Article 53 of the Convention. That declaration is contained in the 2nd preambular paragraph of Costa Ricas instrument of accession. UNIDROIT has advised the International Registry that, in relation to the statement made in the 3rd preambular paragraph of the Instrument of Accession, the Government of Costa Rica has advised UNIDROIT that that statement was not intended to be a declaration under any of the articles mentioned in Article 56(1) of the Convention, and that statement was accordingly not accepted by UNIDROIT as a declaration pursuant to the Convention.
The UNIDROIT website is an excellent source of information on the status of ratifications, declarations and designations and may be consulted for free.
5. What aircraft objects are covered?
The Protocol lays down the following definitions to determine if an object is eligible for registrations:
Airframe means airframes (other than those used in military, customs or police services) that, when appropriate aircraft engines are installed thereon, are type certified by the competent aviation authority to transport:
- at least eight (8) persons including crew, or
- goods in excess of 2750 kilograms, together with all installed, incorporated or attached accessories, parts and equipment (other than aircraft engines), and all data, manuals and records relating thereto,
Helicopters means heavier-than-air machines (other than those used in military, customs or police services) supported in flight chiefly by the reactions of the air on one or more power-driven rotors on substantially vertical axes and which are type certified by the competent aviation authority to transport:
- at least five (5) persons including crew, or
- goods in excess of 450 kilograms, together with all installed, incorporated or attached accessories, parts and equipment (including rotors), and all data, manuals and records relating thereto,
Aircraft Engines means aircraft engines (other than those used in military, customs or police services) powered by jet propulsion or turbine or piston technology and:
- in the case of jet propulsion aircraft engines, have at least 1750 lb of thrust or its equivalent, and
- in the case of turbine-powered or piston-powered aircraft engines, have at least 550 rated take-off shaft horsepower or its equivalent, together with all modules and other installed, incorporated or attached accessories, parts and equipment and all data, manuals and records relating thereto.
6. Which manufacturers have provided data to the international registry?
Participating manufacturers have provided Aviareto with information in respect of their products. This is provided by the manufacturers on a non-obligatory basis, subject to the manufacturers’ disclaimer.
Currently the following manufacturers have provided us with information:
AIRBUS, AIRBUS HELICOPTERS, ANTONOV, ATR, BAE SYSTEMS, BEECH AIRCRAFT CORPORATION, BEECHCRAFT CORPORATION, BEECHCRAFT-HAWKER CORPORATION, Bell Helicopter, BOEING, BOMBARDIER, BRITISH AEROSPACE, C SERIES AIRCRAFT, CANADAIR, CESSNA, CFE, CFM, DASSAULT AVIATION, DE HAVILLAND, EMBRAER, EUROCOPTER, FOKKER, GE, GE HONDA AERO ENGINES, GULFSTREAM, HAWKER BEECHCRAFT CORPORATION, HAWKER SIDDELEY, HONEYWELL, HUGHES HELICOPTERS, INTERNATIONAL AERO ENGINES, INTERNATIONAL AERO ENGINES, LLC, ISRAEL AIRCRAFT INDUSTRIES, LEARJET, MCDONNELL DOUGLAS, MCDONNELL DOUGLAS HELICOPTER, MD HELICOPTERS, MITSUBISHI, PACIFIC AEROSPACE LIMITED, PIAGGIO AERO INDUSTRIES, PILATUS AIRCRAFT LTD, POWERJET, PRATT & WHITNEY, PRATT & WHITNEY CANADA, QUEST AIRCRAFT, RAYTHEON AIRCRAFT COMPANY, RAYTHEON CORPORATE JETS INC, ROLLS ROYCE, SIKORSKY, SUKHOI, TEXTRON AVIATION INC., VIKING AIR LTD, WILLIAMS INTERNATIONAL CO LLC.