THE WORLD AIRCRAFT REPOSSESSION INDEX 2017 CONFIRMS THAT ARUBA IS (AGAIN) THE LEADING ‘REGISTRY OF CHOICE’

repossession indexThe first edition of the World Aircraft Repossession Index, including 57 important jurisdictions worldwide, was published for the first time on October, 30th, 2015. The second edition was published in March 2017.

The initiative to realise this unique work was undertaken by the law firm Pillsbury Winthrop Shaw Pittman LLP and it is available free-of-charge. See the websites below. The publication is a most workable tool for risk rating agencies, export credit institutions, lessors, financiers, practicing lawyers, academics, students and the international aviation finance and lease practice at large.

Gomez & Bikker had the pleasure to be invited to participate as the counsel for the jurisdiction Aruba in regard to providing the local expert analysis. The final outcome of the local research is based on seven special criteria, which numerically establish the legal and practical success of repossessing aircraft in each contributing country. Besides, the index provides for an overview and a worldmap which highlight the overall score of each participating jurisdiction.

Gomez & Bikker is delighted to emphasize that worldwide Aruba has the highest score of all the 57 contributing states. In addition, it is particularly noteworthy that the competing ‘aircraft nationality registries of choice’ have obtained much lower aggregate scores. While worldwide Aruba is the only country having an overall 100 % score, the latter off-shore aviation finance jurisdictions have scored between 58 and 91 %. In summary, the publication clearly re-confirms that Aruba is the leading registry of choice!

https://www.pillsburylaw.com/images/content/1/1/v2/111003/World-Aircraft-Repossession-Index-Second-Edition-March-2017.pdf

 

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Aruba introduces specific aviation designated inspectors (“DI”) regulation

Effective July 3rd, 2013 the Government of Aruba has introduced a ministerial ordinance codifying the use of designated inspectors (“DI”s) by the director of the Department of Civil Aviation of Aruba (“DCA”). This framework allows DI’s to be engaged by the Registry in procedures regarding airworthiness, crew licensing, operators’ manuals and compliance of flight simulators with the local regulations. This framework allows the DCA and the Registry to increase the service levels and the global flight safety oversight, without burdening the public’s budget with higher fixed costs.

10 things (plus 1) lenders/lessors should know about aircraft finance in Aruba

Q1: What necessitates a lender or a lessor to opt for Aruba as an aircraft registry of choice?

A1: Because Aruba has ratified the Cape Town Convention and the Aircraft Equipment Aircraft Protocol. As of September 1st, 2010, Aruba is one of the very few off-shore aircraft registries having adopted these instruments. Moreover, Aruba has made the necessary Declarations under the Cape Town Convention to safeguard the interests of the lessors and lenders. Besides, Aruba provides for a legal insolvency regime, which provides these parties with more extensive rights than the Cape Town Convention.

Q2: What security rights are available to protect the interests of the lenders?

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The Aruba Guy: aviation registration and finance specialist

Lincoln D. Gomez is the managing-partner of Gomez & Bikker law offices. His practice is concentrated in the areas of aircraft title, registration, financing and leasing and related matters concerning the Aruba Aviation Act, the Registry of Aruba, registration in Curacao, Sint Maarten and the BES-islands and the Cape Town Convention. The ratification of the Dutch Kingdom of the Cape Town Convention was based on his initiative. He represents Continue reading “The Aruba Guy: aviation registration and finance specialist”

Blue Sky Case: English Law Aircraft Mortgages vs Aruba Law Aircraft Mortgages

On 25 March 2010, the English High Court ruled on the matter of the validity of international aircraft financing transactions. The facts of the Blue Sky case clarify that England functioned an “off-shore aviation finance jurisdiction” as the aircraft involved were financed and leased by means of English Special Purpose Vehicles, while they were permanently operated in other jurisdictions. Moreover, the parties had “chosen” for English laws. Due to the application of inadequate English laws, more precisely the lex situs conflict of laws rule, a valid English mortgage which was created in an English nationality registered aircraft could not be enforced in English Courts. The reason for this decision was that the airplane was temporarily situated in Amsterdam at the time that the security interest was established. As a result of this case the financier’s claim of U.S. $ 43.1 million was not honored. The English Continue reading “Blue Sky Case: English Law Aircraft Mortgages vs Aruba Law Aircraft Mortgages”

The Protocol to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment

The Protocol to the Convention on International Interests in Mobile Equipment on matters specific to Aircraft Equipment (Protocol or AEP) was adopted on November 16th, 2001 and come into force on March 1st, 2006.[1] It was adopted during a diplomatic conference under the joint auspices of the International Institute for the Unification of Private Law (UNIDROIT) and the International Civil Aviation Organization (ICAO), Continue reading “The Protocol to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment”

The Cape Town Convention and the Mobile Protocol

The Convention on International Interests in Mobile Equipment (Convention or CIME) was realized in November 2001 in Cape Town and has come into force on April 1st, 2004. The Convention was created to facilitate the financing and acquisition of mobile equipment of high value and to establish a legal framework for international interests in such equipment for that purpose to create an international registration system for Continue reading “The Cape Town Convention and the Mobile Protocol”

Kingdom of the Netherlands the Cape Town Convention and Aircraft Protocol

The status lists for the Cape Town Convention and Aircraft Protocol have been updated to take account of the deposit of instruments by the Kingdom of the Netherlands on 17 May 2010.  The updated lists are available via the following links: http://www.unidroit.org/english/implement/i-2001-convention.pdf

Gomez & Bikker’s Lincoln D. Gomez and B. Patrick Honnebier played mayor role in the process.

Aruba 2010: year of the Cape Town Convention Cape Town Convention on International Interests in Mobile Equipment

Following recommendations made by Gomez & Bikker’s Aviation Finance Practice Group www.gobiklaw.com  the Government of Aruba has accepted to ratify and implement the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol thereto. These two instruments jointly are commonly referred to as the Cape Town Convention.

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