|
Registry of mobile assets to save air costs
ETW Staff
Aviareto, a joint-venture between SITA SC and the Irish government,
announced that the registry will go live on March 1, 2006. It provides a central
repository - an electronic database - that will record sales and financial interests
in mobile assets (airframes, aircraft engines and helicopters), establishing
priority of interest in such holdings. As a result, the risk of lending can
be better assessed allowing financial institutions involved in aircraft object
transactions to reduce interest rates.
|
Economic benefits in key areas
- Access to more favourable international
financing rates
- Access to secured financing
- Improvement of sovereign ratings
- Improvement of airline ratings
- Benefit to airline shareholders through
increased stock prices
|
"The International Registry of Mobile Assets, which has
passed final acceptance testing by International Civil Aviation Organisation
(ICAO), will enable stakeholders to secure their interests in assets, and will
be a central vehicle in helping parties understand their legal rights in aircraft
equipment," said Kevin Power, MD of Aviareto. "For the first time
interests in aircraft equipment involving transactions in Cape Town Treaty Contracting
States will be accessible electronically in one place. This information is vital
to the world's airlines, financiers, leasing companies, manufacturers and governments."
A recent study on the economic benefits of the Cape Town Convention and the
International Registry states that savings from access to more favourable international
financing rates could save the industry billions of dollars in financing costs.
|
