Government plans to roll out Cape Town Convention Act to reduce risk in civil aviation transactions

The government is planning to roll out the Cape Town Convention Act which will help reduce risks related to asset-based financing and leasing transactions in the civil aviation sector. The main objective of the convention is to ensure efficient financing of high-value equipment such as airframes, helicopters and engines, in order to make operations cost effective and affordable for carriers. The convention will provide for default remedies for a creditor such as deregistration and export of aircraft as part of speedy interim relief in addition to a universally applicable legal regime in case of disputes. A draft bill for the same has already been put out for public consultations.