Profile: Michael J Holland

The Cape Town Convention And Its Effects on Aircraft Financing and Leasing

The Cape Town Convention came into effect on 1 March, 2006 for the nine countries which ratified the convention and the Aviation Protocol. The Cape Town Convention represents the successful culmination of some 10 years’ work by bankers, lawyers, lessors and financing companies to create a treaty which provides security for aircraft and engine lessors as well as reduced financing costs for lessees. The nine countries party to the convention are Ethiopia, Ireland, Malaysia, Nigeria, Oman, Pakistan, Panama, Senegal and the United States. The European Community is actively pursuing ratification and it is likely that the nations of the community will become contracting states in late 2006 or early 2007. It is anticipated that three countries with formidable aviation interests, China, India and Russia, will also ratify the Cape Town Convention in the near future. 

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