AWG is committed to the global ratification of the Cape Town Convention. It consults with governments around the world on these matters, including on the declarations to be made and the relationship between the Cape Town Convention and national law.
By effective implementation, AWG means that qualifying declarations under the OECD Aircraft Sector Understanding have been made and that the Cape Town Convention has the force of law in Contracting States, and, to the extent of any conflict, prevails over other law in such States. AWG is undertaking a project on the global implementation of the Cape Town Convention. The result of that work, the Summary of National Implementation, has been updated as of February 2015. This summary will continue to be updated from time–to-time based on a review of further information received from counsel in ratifying countries. Any such information should be sent to CTCfirstname.lastname@example.org. Readers of this document are referred to the disclaimer on the cover page, which must be reviewed prior to proceeding to the rest of the document.
AWG has prepared a comprehensive document (Implementation Resource Materials), which is regularly revised, relating to the ratification and implementation of the Cape Town Convention. This document provides a general overview and chapter-by-chapter summary, sets out the system of declarations and makes specific recommendations in relation to those declarations, and provides a model ratification text and model implementing legislation.
AWG has prepared a model of IDERA regulation annotated for suggested use by contracting states to the Cape Town Convention and its Aircraft Protocol that have made a declaration applying art XIII of the latter. This document includes an annotated version of the model form with explanatory comments. AWG may amend this model form in due course to address issues which may arise in practice. A standalone document that complements the model by providing the forms in word can be completed by those contracting states using annotations included in the Model Implementing IDERA Regulation.
AWG has also prepared a summary powerpoint on the Model Implementing IDERA regulation that reviews its structure, purpose and rule as well as how it can be adapted to local requirements and the scope for local formatlities.
A Contracting State complies with the Cape Town Convention when it (1) takes all action to ensure that the Cape Town Convention has the force of national law with priority over any conflicting law (an element of effective implementation), and (2) fully and accurately applies the operative terms of the Cape Town Convention to actions and disputes within its scope, whether administratively or judicially. In other words, a Contracting State complies with the Cape Town Convention when the treaty legally applies, and is fully and accurately applied, to matters within its scope.
While there is evidence favouring a presumption of compliance with international commercial law, and, for example, the OECD’s Aircraft Sector Understanding makes that presumption (assuming effective implementation), AWG has done, and is doing, the following four things to maximize compliance. These projects are being further strengthened and institutionalized.
First, AWG has set up a network of national contact groups around the world to closely monitor and obtain all compliance-related data and experience. That data and experience is analysed by our legal advisory panel. Secondly, through the Cape Town Convention Academic Project, AWG supports reporting on Cape Town Convention enforcement activity, with resulting information being contained in a dedication database. Thirdly, AWG provides periodic reports to various interested parties on compliance-related matters. The foregoing activities increase transparency and the cost of non-compliance, thereby providing strong compliance incentives. Fourthly, AWG actively engages and interacts with Contracting States, seeking compliance, including by providing state of the art information and education on Cape Town Convention topics. One example is a summary of Cape Town Convention requirements regarding
de-registration and export.
In 1988, a first Economic Impact Assessment was prepared under the joint auspices of New York University and INSEAD (Paris). That document was commissioned by AWG, IATA, and ICAO, and helped guide the development of the treaty.
The Cape Town Convention Academic Project will establish a platform and forum for further assessing the economic impact of the Cape Town Convention, developing materials that may include guidelines for applied assessment.
In 2009, AWG commissioned an updated independent study addressing the economic benefits of the Cape Town Convention. The new study was narrower in scope. It focused exclusively on airline benefits and strictly assumed application of the insolvency rule found in Protocol, Art. XI, Alternative A.
In December 2010, AWG commissioned an independent study assessing the economic benefits of the ratification of the Cape Town Convention in the United Kingdom AWG has submitted this study to the UK government.
These studies have confirmed the substantial and widely shared economic benefits of ratification and effective implementation of the Cape Town Convention. Such benefits are predicated on a Contracting State making a specific set of economically-oriented declarations, that is, the ASU qualifying declarations, and ensuring that the Cape Town Convention prevails over inconsistent national law.
Most importantly, certain declarations are specifically designed to reduce transaction risk, and, thus, produce economic benefits. These declarations have been identified in the OECD Aircraft Sector Understanding as qualifying declarations.
AWG encourages all countries to make such qualifying declarations. AWG has prepared a matrix of recommended declarations. AWG and its legal advisory panel also prepare charts summarising and comparing all declarations made, including on the critically important topic of insolvency, Protocol, article XI.
AWG also encourages all countries to ensure that any declaration under Convention Article 39 restricts preferred non-consensual liens / rights to those that are customary. In no event (as prevented by the treaty) may such a declaration purport to expand such liens / rights beyond those under current law. See Goode, Official Commentary at paras 2.10-2.12, 4.69 - 4.272 and 4.76.
Important Note 1: For more complete and official information on relating to the ratification, see materials published by UNIDROIT When the relevant Contracting State has made a set of qualifying declarations under the 2011 ASU, such will be noted. AWG maintains a list of Contracting States that have made qualifying declarations.
Important Note 2: When the relevant Contracting State has made a set of qualifying declarations under the 2011 ASU, such will be noted. AWG maintains a list of Contracting States that have made qualifying declarations (under preparation). AWG is not expressing a view on whether such States have effectively implemented the Cape Town Convention, which is a further condition to eligibility for the Cape Town discount under the 2011 ASU.
United Kingdom: The Convention and its Aircraft Protocol will enter into force for United Kingdom on 1 November 2015. The United Kingdom extended their ratification to cover the following "territorial units": Cayman Islands, Gibraltar andd Guernsey.
Australia: The Convention and its Aircraft Protocol will enter into force for Australia on 1 September 2015. Australia has made the qualifying declrations under the 2011 ASU.
That ratification action has resulted in the commencement of ratification processes in a number of EU Member States.
To date, Ireland, Luxembourg, Malta, and the Netherlands (but only in respect of certain offshore territories) have ratified the Cape Town Convention.
Competence between the EU and Member States is divided as regards the Cape Town Convention. Therefore, special care is required when EU Member States make declarations.
UNIDROIT has issued a seminar report on that matter. Annex III of the report summarises the key conclusions regarding declarations within the competence of Member States and the EU respectively. These conclusions are consistent with a special clause, article 4, in the ASU qualifying declarations.
AWG representatives have written a paper, ''Cape Town Treaty in the European Context: the Case for Alternative A, Article XI of the Aircraft Protocol'. In line with the above-mentioned competence rules, EU Member States would need to give effect to this article through national law.
AWG has intensified activities in support of ratification by EU Member States, focusing on declarations and the required changes to national law. One example is the set of comments submitted by AWG to the government of the United Kingdom in connection with its consultations (Call for Evidence) regarding ratification. The results of that consultation were overwhelmingly positive.
The Cape Town Convention established an International Registry (International Registry) in which interests in aircraft equipment must be registered in order to establish their priority. The International Registry is an integral part of the Cape Town Convention. Over half of the world's financing and leasing transactions for new aircraft equipment are registered in the International Registry.
AWG chairs the International Registry Advisory Board (IRAB) set up by Aviareto, the operator of the International Registry. AWG also serves as an observer to the Commission of Experts of the Supervisory Authority of the International Registry (CESAIR), that provides advice to ICAO, the Supervisory Authority.
Supplementing the terms of the Cape Town Convention, use of the International Registry is subject to Regulations and Procedures issued by the Supervisory Authority. The current edition of the Regulations and Procedures can be found here.
Select PowerPoints relating to the International Registry and the most recent annual report issued by Aviareto can be viewed here; schematics depicting the International Registry, overview presentation on the International Registry, summary presentation on the International Registry as of its 10th anniversary. General educational videos prepared by Aviareto relating to the Internal Registration are linked hereto.
In May 2015, the ‘closing room’ feature of the International Registry was launched. This was a milestone event. Completing the second generation of the International Registry, the closing room speeds up the registration process while retaining the dynamics of, and legal protections in, transactional closings. An educational video explaining the closing room is linked hereto.
On 1 February 2011, the current version of the ASU (the 2011 ASU) entered into force. The 2011 ASU, like its predecessor 2007 version, permits a reduced fee or interest rate (as applicable) where the Cape Town Convention applies to a transaction.
More specifically, the 2001 ASU permits a Cape Town discount provided that a set of qualifying declarations has been made and the Cape Town Convention is effectively implemented in national law. The OECD maintains a list of countries that have been determined through OECD procedures to meet the foregoing standard. AWG believes select other countries should be added to this list and are consulting with relevant parties in that regard. UNIDROIT has assembled statistical data, which shows that a very high percentage of countries have made each of the key qualifying declarations.
Under the 2011 ASU, the maximum Cape Town discount is 10% off the otherwise applicable up front fee or per annum spread.
The Cape Town discount endorses the long-standing view of AWG that application of the Cape Town Convention reduces transaction risk, and, thus, should be reflected in the terms of credit.
AWG provides it views to the OECD on eligibility for the Cape Town discount under the 2011 ASU.
Originally published in 2011, and updated in 2012, the September 2015 version of the Practitioner's Guide to the Cape Town Convention is current, comprehensive and intended to be a practical tool for practitioners dealing with issues pertaining to the CTC. This new version specifically aims to provide thoughtful guidance from the Legal Advisory Panel of the AWG and others on implementation and institutionalizing the Cape Town Convention.
Comments on the Practitioner's Guide – or on legal developments in any country relating, directly or indirectly, to the Cape Town Convention – should be sent to the AWG secretary general: email@example.com
The purpose of the project is to facilitate the academic study and assessment of the Cape Town Convention with a view towards enhancing the understanding and effective implementation of the treaty and advancing its aims.
There are a number of activities through which the project will advance these objectives.
The first issue of the Cape Town Convention Journal was published in September 2012.
On 26 February, the official Cape Town Academic Project website was launched and can now be consulted at www.ctcap.org. For an overview of the project's myriad features, including digitalised and searchable database of comprehensive documentation relating to the Cape Town Convention, please read the announcement issued by the project's joint sponsoring institutions, the University of Oxford Faculty of Law and the University of Washington School of Law.
The website also makes available information about the Project's annual conferences on the Convention ranging from registration to the posting of electronic versions of most of the papers presented at each conference. (The Project also publishes these papers in hard copy as The Cape Town Convention Journal). The Academic Project will hold its fourth annual conference on 8-9 September 2015 at Oxford University.
Below is a list of upcoming and recent events addressing the Cape Town Convention with which AWG is connected:
AWG is planning a European regional seminar on the Cape Town Convention and its Aircraft Protocol. It is designed to advance and assess ratifications and implementation of the Cape Town Convention in Europe. It will be held under the joint auspices of UNIDROIT and the Aviation Working Group. The seminar will take place in Warsaw on 16 September 2014.
A seminar on the Cape Town Convention and its Aircraft protocol 'Practicalities and Opportunities relating to Canadian Ratification' was held on 29 / 30 April 2013 under the auspices of the Aviation Working Group and in association with ATAC and the NACC. Blake, Cassels & Graydon LLP coordinated the seminar. A website has been set up for this event that includes an archive of presentations made at the event. It can be consulted at http://www.capetowntreatyforum.com/toronto/2013/.
Cape Town Convention (CTC) Seminar, Ankara, 3 October 2012. Understanding and Assessing the Application of the CTC in Turkey. The seminar was hosted by the Turkish DGCA with the technical support of the Aviation Working Group
Cape Town Convention (CTC) Seminar, Tokyo, Japan, 11 September 2012. Understanding and Assessing the Application of the CTC in Japan. The seminar was organised by the Society of Japanese Aerospace Companies with the technical support of AWG.
A Middle East regional seminar on ratification and implementation in respect of the Cape Town Convention and its Aircraft Protocol was held on 14 November 2014 in Dubai. See event press release. The event was endorsed by the UAE General Civil Aviation Authority (GCAA) and sponsored by the Aviation Working Group. The event website, http://www.capetowntreatyforum.com/capetowndubai/index.cfm, is currently available where conference materials can be consulted.
Advanced Participatory Regional Seminar on Cape Town Convention & its Aircraft Protocol - Assessing and Advancing Ratification, Bangkok, 27 April 2012. A website featuring detailed material from the seminar has been set up: http://www.capetowntreatyforum.com/bangkok/2012/
Latin American Seminar on the Cape Town Convention & its Aircraft Protocol - Assessing and Advancing Ratification, São Paulo, 17 April 2012. A website featuring detailed material from the seminar has been set up: http://www.capetowntreatyforum.com/saopaulo/2012/