Aviareto, a joint venture between SITA and the Irish government, opened the International Registry of Mobile Assets at the beginning of March.
The new global aircraft registry will enable aircraft financing institutions to register their financial interests in fixed-wing and rotary-wing airframes and aircraft engines, providing them with security in the ratifying countries of the Cape Town Convention, an international treaty on financing and leasing of aircraft.
The convention establishes an international legal framework for the enforcement of financial rights. According to an independent study by New York University, Leonard N Stern School of Business, the registry could save airlines and government $10 billion over the period for which aircraft delivery forecasts are available. The key economic benefits were stated to include access to more favourable financing rates, and secured financing, and improvements of sovereign and airline corporate debt ratings.
Hans-Peter Kohlhammer, SITA SC director general, says: “The registry is of huge value to airlines because it will increase airlines’ profitability by reducing debt repayments. It also testifies to what governments can achieve for industry through close co-operation.” These sentiments were echoed by Ireland’s Minister of Transport, Martin Cullen, who added that the fact that an Irish company was chosen to operate the registry “will further enhance Ireland’s strong reputation in international aviation”.
Strong support also comes from James Lambrecht, chairman and (acting) president of the US Exim Bank. “The Cape Town treaty and the international registry result in greater predictability for aircraft financiers by significantly reducing the legal risks associated with cross-border, asset-backer aircraft financings. Airlines located in countries that have ratified and fully implemented the treaty can anticipate increased availability of commercial aircraft financing, and more attractive aircraft financing terms,” he says.
The treaty has been signed by 29 countries and has to date been ratified by eight, the number necessary to bring the treaty into effect. The eight countries are Ethiopia, Ireland, Malaysia, Nigeria, Oman, Pakistan, Panama and the USA.
Source: Airline Business
