Jetrader - Autumn 2016 - 34

Fortunately, the Cape Town Convention
has fixed the two major concerns raised
by aircraft financiers and lessors by
granting a separate legal status to the
aircraft engines. Thus the discussion of
"whether engines are component parts
of the aircraft or not" has come to an
end, and consequently it has also become
possible to establish pledges on the
aircraft engines.
It is encouraging to see that Cape
Town Convention's remarkable effects are
appearing in subsequent case laws in civil
law-governing countries. In several proceedings, the Dutch courts have decided
that no accession of aircraft engines take
place10 and engines are not considered parts
of the airframe to which they are attached
and that they can be the objects of separate
security interests.11
The above Dutch rulings are obviously
influenced by and coincide with the Cape
Town Convention's rules, which indeed demonstrate that the Convention and Protocol
are answering the purpose of their creation. And luckily, Article XXIII of the
Protocol addressed to Geneva Convention
states that the Cape Town Convention

supersedes the Geneva Convention and its
articles as long as they relate aircrafts and
aircraft objects.12
Despite the fact that the Cape Town
Convention is a remarkable improvement
in aircraft financing and it supersedes its
processor's provisions in the definition of
engines, it is crucial to remember that it
still has to be ratified by a significant number of countries. Considering it is ratified
by 71 states as of today13, and it cannot
apply where a relevant state is not a signatory14, it is important to advocate for its
ratification by the rest of the world for the
good of the aviation industry.

Sources:
1. BF Havel and GS Sanchez, The Principles and
Practice of International Aviation Law (1st edn,
Cambridge 2014) 351
2. Convention on the International Recognition
of Rights in Aircraft signed at Geneva on 19th
of June 1948, and came into force on 17th of
September 1953
3. Convention on International Interests in Mobile
Equipment, and Protocol to the Convention on
International Interests in Mobile Equipment
signed at Cape Town on 16th of January 2001
and came into force on 1st of March 2006.
4. Article XVI, Geneva Convention. Accessible
t hr o u gh:
h t t p://w w w.ju s .u io.n o/e n g l i s h/s e r v i c e s/ l ib r a r y/ t r e a t i e s/07/ 7- 01/

10.
11.
12.

13.
14.

recognition-rights-aircraft.xml date accessed:
27 July 2016
Chapter I, Article I/2(c), and Chapter II, Article XIV/3,
the Protocol. Accessible through: http://www.
unidroit.org/instruments/security-interests/
aircraft-protocol date accessed: 27 July 2016; and
Chapter I, Article 2, the Convention. Accessible
through: http://www.unidroit.org/instruments/
security-interests/cape-town-convention date
accessed: 27 July 2016
Book 5, Title 5.2, Article 5:14, Dutch Civil Code.
Accessible through: http://www.dutchcivillaw.
com/civilcodebook055.htm date accessed:
27 July 2016
Book 5, Title 5.1, Article 5:3, Dutch Civil Code:
http://www.dutchcivillaw.com/civilcodebook055.
htm date accessed: 27th July 2016
For background and current info. Accessible
through: http://www.awg.aero date accessed:
01 August 2016
MJ Sundahl, The Cape Town Convention: Its
Application to Space Assets and Relation to the
Law of Outer Space (1st edn, Martinus Nijhoff
2013) 24
AAR Aircraft & Engine Group v Aerowings [15 August
2002] Court of Appeal, Den Bosch
Volvo Aero Leasing/AVIA Air, Court of First Instance
of Aruba, [25 June 2003]
Chapter V, Article XXIII, the Protocol. Accessible
through: http://www.unidroit.org/instruments/
security-interests/aircraft-protocol date accessed:
27 July 2016
Accessible through: http://www.unidroit.org/
status-2001capetown last accessed: 27 July 2016
Chapter I, Article 3, the Convention. Accessible
through: http://www.unidroit.org/instruments/
security-interests/cape-town-convention date
accessed: 27 July 2016

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