Monday, October 29, 2018

Airlines to benefit from Cape Town Act

At a time when Indian airlines have placed orders for more than 1,000 aircraft with the aircraft manufacturers, the central government is planning to introduce in Parliament the Cape Town Convention protocol Act, which will help reduce the country's risk-profile among the lessors and provide airlines with access to lower aircraft lease rentals.

The civil aviation ministry has put out the draft Cape Town Convention Bill for public consultations, which also has a clause that would accord primacy to the provisions of the convention/ protocol in case of conflict with any other law.

The convention/ protocol provides for basic default remedies for a creditor such as de-registration and export of aircraft as part of speedy interim relief as well as a universally applicable legal regime in case of disputes. Implementing various measures under the protocol would help reduce the level of risk for the intending creditors or lessors. This would, in turn, lead to "reduction in the cost of aircraft financing/ leasing and eventually to a reduction in the cost of operation", the ministry said in a document posted on its website.
29/10/18 Shahkar Abidi/DNA

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