UNIDROIT
request
In 1994, the International Institute for the Unification of Private Law (UNIDROIT) requested the formation, by Airbus and Boeing, of an
ad hoc international industry group to provide detailed, coordinated input to assist
UNIDROIT in the development of an international treaty on the financing and leasing of mobile equipment (as subsequently renamed, Cape Town Convention).
Response to UNIDROIT
In response to that request, Airbus and Boeing agreed to form AWG. They jointly invited others into this grouping. The initial and subsequent invitees were a number of major manufacturers, financial institutions, and leasing companies.
Scope of activity
Prior to 2000, AWG essentially limited its activities to
contributing to and advancing the Cape Town Convention. In that
effort, which it undertook in close cooperation with the International
Air Transport Association (IATA), AWG was guided by the
basic principles that the text must "reflect asset-based
financing and leasing principles" and "facilitate
extensions of aviation credit".
The Cape Town Convention was adopted on 16 November 2001. The final text reflected the principles and is anticipated to have the effects noted above.
Work on implementation of the Cape Town Convention remains the group's highest priority, most importantly, but not exclusively, obtaining national
ratifications. Work on all aspects of implementation is ongoing.
In 2000, the group began considering whether it should pursue other matters of mutual interest on financing and leasing-related topics, employing the methods that were proving successful in
developing and advancing the Cape Town Convention.
AWG then agreed to work on the development of policies, regulations and rules designed to facilitate advanced international aviation financing and leasing. That
objective was specific, but the subject matter was general. The approach was and remains functional: potential topics are those that impose inefficiencies or limit options in the financing or leasing contexts.
The broadened general purpose of AWG was animated, in late 2000/early 2001, by the creation of working subgroups addressing proposed changes to international capital adequacy rules (BIS II),
export credit rules, and documentary
practices.
Impact of Events of September 11
In the immediate aftermath of the events of September 11, AWG found itself spontaneously engaged in a range of activities relating to war risk insurance and
liability.
Formalisation of the AWG
In late 2002, AWG formalised as a not-for-profit entity, organised under the laws of Bermuda (a company limited by guarantees).
That jurisdiction was selected for its well developed corporate and non-profit entity laws and their suitability for international groupings.
That formalisation was linked to the adoption of a best practices compliance
program. That compliance program is reviewed and updated on a
regular basis.
Current Work Program
AWG policy is determined by its members. Subgroups of the members undertake preliminary and implementation work relating to such policy decisions.
This is the current work program, for which the following subgroups
are active:
Cape Town Convention
Insurance and Liability
Documentary Practices
Export Credit Rules
Accounting Rules
Air Navigation and Airport Charges
Aircraft Technical Requirements
AWG is also a forum for considering new issues as they emerge and
develop, as well as continuing to monitor issues of importance to
the international aviation financing and leasing community.
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