1ICAO News Release, “Aviareto Selected to Establish International Registry System for
Interests in Aircraft,” June 4, 2004
The Cape Town Convention – Explanation and Current Status
The Convention on International Interests in Mobile Equipment (the Convention) [the text can be
found at www.unidroit.org/english/conventions/mobile-equipment/mobile-equipment.pdf ] and
the Protocol to the Convention on Matters Specific on Aircraft Equipment (the Protocol) is to
embrace not only classic security interests in aircraft and other mobile equipment such as aircraft
engines, but also the lessor’s interest under a leasing agreement. The efficacy of the international
interest is conditional upon registration in an international registry established under the
Convention. As noted by the International Civil Aviation Organization (ICAO),
the new international registry system will reduce the risks of lending for aircraft
financiers, banks and other financing institutions, involved in aircraft purchasing
and leasing, thus reducing the cost of credit. Financing and leasing costs represent
on average about eight percent of total operating expenses of international
scheduled airlines. 1
Four nations -- Panama, Ethiopia, Nigeria, and Pakistan -- have ratified or acceded to the
Convention. Nigeria’s ratification of the Convention on December 16, 2003 triggered the
Convention’s entry into force on April 1, 2004. Ratification by an additional four nations will
bring the Protocol into force.
The International Institute for the Unification of International Law (UNIDROIT) in Rome was
designated as the Depository of the Convention. An Explanatory Memorandum to assist nations
interested in ratifying the Convention and Protocol can be found at
www.unidroit.org/english/conventions/mobile-equipment/depositoryfunctions/main.htm.
On June 2, 2004, Aviareto, of Ireland, was selected to establish the International Registry for the
Cape Town Convention and the Protocol by the ICAO and to act as registrar once the Protocol
enters into force.