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The Cape Town Convention
The 2001 Convention on International Interests in Mobile Equipment and the associated Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (together known as the ‘Cape Town Convention’) facilitate the financing of aircraft by:
- providing creditors with an internationally recognised set of rights in the event of a debtor’s default or insolvency; and
- allowing creditors to register their interests in an international register to guarantee the priority of their claim against other parties.
The Cape Town Convention instruments can be found on the UNIDROIT website.
2010 Cape Town Consultation Paper
The Australian Government is currently considering whether to accede to the Cape Town Convention. A key consideration concerns how the international system would interact with the Personal Property Securities reforms introduced in 2009 by the Hon Robert McClelland MP, Attorney-General.
Following formal stakeholder consultations about the merits of accession to the Cape Town Convention in 2008, the Department of Infrastructure and Transport (the Department) released the 2010 Cape Town Convention Consultation Paper (Consultation Paper) on 22 November 2010, inviting stakeholders to comment on a number of Convention issues that have yet to be explored with industry.
The consultation period has now closed.
The 2010 Consultation Paper can be accessed from here: [
PDF: 57 KB]
2008 Stakeholder Consultations
In 2008, the Department sought stakeholder comments on the possible benefits and/or risks that could arise in the event Australia acceded to the Cape Town Convention.
Information from this consultation process has fed into ongoing Government consideration of the Convention and how it might be adapted into Australian law, if Australia were to accede.
A copy of the 2008 Cape Town Convention Consultation Paper is available here: [PDF: 261 KB]
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