has confirmed the first registration of interest pertaining to an United Arab Emirates (UAE) aircraft on the International Registry of Mobile
Assets, following the UAE’s signing of the Cape Town Convention effective 1 August 2008.
The UAE’s accession to the Cape Town Convention
means that one of the world’s most buoyant aviation markets can benefit from access to lower cost debt for aircraft financing. The UAE has some
of the fastest air traffic growth rates in the world with six international airports, the busiest being Dubai which aims to serve 30 million
passengers a year by 2010, four national airlines and a growing number of low-cost carriers.
Airlines registered in the UAE are now eligible for improved financing as a result of financiers, leasing companies, and manufacturers reducing
their risk by having access to the International Registry of Mobile Assets, the global database established under the Cape Town Convention
which records security interests and their legal priority. The International Registry is based in Dublin, an aviation finance centre of excellence,
and is managed by Aviareto Limited, a joint venture between the Irish Government and SITA, under the supervision of the International Civil
Aviation Organization (ICAO).
The UAE, through its General Civil Aviation Authority opted for the use of a central organisation as a Direct Entry Point (DEP) to the International
Registry. This means that all registrations of interests pertaining to UAE registered aircraft are entered in the International Registry, not by the
parties to the deal themselves, but by the DEP. The parties are however still required to approve the registration digitally and therefore will
require an account on the International Registry. Details of how registrations can be entered into the International Registry through the DEP are
available on the International Registry Website, FAQ section.
A Dubai-based international airline has recently raised US$265 million for the financing of two new Boeing 777–300ER aircraft. The transaction
involves long-term leases for a period of 12 years.
Rob Cowan, Managing Director of Aviareto, said, “We are very pleased this significant and growing aviation country has ratified the Convention.
In order to serve the needs of the international aviation community better, including the UAE, we will be making a significant upgrade to the
International Registry. Beginning in October, key documents, including the Regulations and Procedure of the International Registry, will be
made available progressively in the six official ICAO languages, which include Arabic. Our goal is to make the Registry as accessible and easy to
use as possible.”
To date, 23 countries have ratified the treaty: Afghanistan, Albania, Angola, Cape Verde, Colombia, Ethiopia, India, Indonesia, Ireland, Kenya,
Luxembourg, Malaysia, Mexico, Mongolia, Nigeria, Oman, Pakistan, Panama, Saudi Arabia, Senegal, South Africa, UAE and USA.
registrations have been made online while 43 manufacturers supply over a quarter of a million serial numbers for airframes, engines and
helicopters to the Registry.
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