Matheson


News and Insights

Print this page

Search News & Insights


Cape Town Convention Update: Ireland signs Order to adopt “Alternative A”

AUTHOR(S): Chris Quinn, Stuart Kennedy, Gerry Thornton, Kevin Smith, Rory McPhillips
PRACTICE AREA GROUP: Asset Finance
DATE: 12.05.2017

The Irish Minister for Transport, Tourism and Sport, Shane Ross TD ("the Minister"), announced on 10 May 2017 that the Government has signed an Order pursuant to the State Airports (Shannon Group) Act 2014 implementing the provisions of “Alternative A” of the Aircraft Protocol to the Cape Town Convention on International Interests in Mobile Equipment into Irish law.

The primary benefit of adopting "Alternative A" is that it provides a lender, lessor, owner or an insolvency administrator with a clear deadline by which an aircraft object must be returned to a lender / lessor or retained by a debtor or insolvency administrator.

The implementation of "Alternative A" by the Irish Government:

  • confirms Ireland’s position as a centre of excellence in aviation;
  • makes Ireland an even more attractive location for investors to lend into; and
  • further facilitates the offering of bonds and asset backed securities backed by aircraft assets. Such bonds and debt securities should obtain higher ratings from credit rating agencies which, in turn, should bring interest cost savings for airlines and lessors.

The Minister added that “Ireland is already the global leader for aircraft leasing, with the top lessors in the world located here and making a significant contribution in terms of high-value job creation.  This new legislation will send a clear signal to the world that we continue to strengthen our competitiveness in this highly mobile sector”. He emphasised that “Ireland is considered to be the birthplace of aircraft leasing and our strong reputation is underpinned by a supportive regulatory and corporation tax regime as well as an excellent tax treaty network.”

We will issue a further update with the particulars of the Order as soon as it has been made publically available.

BACK TO LISTING

Matheson Snapshot


About cookies on our website

Following a revised EU directive on website cookies, each company based, or doing business, in the EU is required to notify users about the cookies used on their website.

Our site uses cookies to improve your experience of certain areas of the site and to allow the use of specific functionality like social media page sharing. You may delete and block all cookies from this site, but as a result parts of the site may not work as intended.

To find out more about what cookies are, which cookies we use on this website and how to delete and block cookies, please see our Which cookies we use page.

Click on the button below to accept the use of cookies on this website (this will prevent the dialogue box from appearing on future visits)