International Aircraft Registry – Capetown Convention
The Capetown Convention is a perplexing development for business aircraft owners and lenders, in that it may establish a global registry of interests against aircraft title, providing lenders the confidence necessary to expand the geographical boundaries acceptable to loan underwriters. However, the Registry was initially intended to solve complex international lien disputes arising from the purchase and sale of airliners. Smaller aircraft were added by the U.S. Clinton Administration primarily to fund this international organization with a higher volume of transactions – mainly effecting the United States. The IAR is based in Ireland home to where most of the world’s airliner financing occurs.