The “Cape Town Convention” and its “Protocol on Matters Specific to Aircraft Equipment” take effect in the Isle of Man on 1 January 2018.
The Isle of Man Aircraft Registry has published new guidance material, procedures and forms so that owners and financiers of aircraft registered in the Isle of Man can gain the benefits from this development; details are provided in Industry Notice 025.
The aim of the Cape Town Convention is to reduce the cost of raising finance for large, high value mobile assets which routinely cross borders. The Convention provides standard resolutions in the event of default by a debtor and the Aircraft Protocol modifies the Convention to meet particular requirements of aircraft financing and leasing, including the ability to request the removal of an aircraft from the national civil aircraft register and to export it.
From 1 January 2018, registered owners of aircraft registered in the Isle of Man will be able to request that an “Irrevocable De-Registration and Export Request Authorisation” (IDERA) is recorded by the Aircraft Registry.
The Isle of Man Register of Aircraft Mortgages will remain open. Parties are free to decide how best to protect their interests.