Jetrader - Autumn 2016 - 33

and Protocol to the Convention on International Interests in Mobile Equipment ("the Protocol"), which together form the "Cape Town Convention."3 The solutions that the two conventions provide to the matter are completely different from each other. The Geneva Convention regards the engines as component parts of the aircraft,4 whereas the Cape Town Convention adopts the separate identity of the engines.5 Component part could be explained as "a thing that is attached to another principal thing in such a way that it cannot be separated from it without causing meaningful damage to one of the things, [becoming] a component of the principal thing,"6 and that "if a movable thing becomes a component of another movable thing, which has to be regarded as the principal thing, then the ownership of the movable thing passes over to the owner of the principal thing."7 Aircraft engines are very movable objects, and not a single one of them is uniquely manufactured to be used in a specific aircraft. Therefore, it has become a common practice for airline companies to engage in engine pool agreements with other airline companies to establish back-up engines in case of repair or overhaul. While it would be quite reasonable to expect a new car to have an engine, a frame and wheels as a whole, as the car would be useless otherwise, it is a different case for aircrafts. Aircraft engines are extremely valuable, and in aviation financing practice they are to be leased, sold and financed independently. At the time of the Geneva Convention, aircraft engines were not technologically developed like they are today, and it was not a common practice to lease or finance them separately. Therefore, there was no need to consider whether an aircraft engine was a separate asset or not. Still, law and more accurately international law should not be casuistic and should respond to the changing circumstances of the world. Aviation technology has developed, and in turn market structure has evolved too. And because the Geneva Convention has not been able to catch up the needs of the market structure, it became crucial to create a new international instrument reflecting the needs and features of the market, which brought the industry to the Cape Town Convention. Financing and Leasing Aircraft Engines under the Cape Town Convention The Cape Town Convention was created in 2001 to solve the issues that the Geneva Convention had not been able to address and aimed to reflect the demands of the aviation market. For this purpose, representatives from aircraft manufacturers, creditor banks, airline companies and states came together to constitute the "Aviation Working Group"8, which has involved and advised in the drafting process of the new provisions.9 The key aspects of the Cape Town Convention can be summarized as follows: * The creation of an international interest in mobile equipment. * A centralized international registry accessible 24 hours a day over the Internet. * Relatively few and straightforward rules of priority. * A basket of remedies for enforcement of the international interest. * Provisions to protect the priority of an international interest in the event of the insolvency of the debtor. Jetrader * Autumn 2016 33

Table of Contents for the Digital Edition of Jetrader - Autumn 2016

A Message from the President
Calendar/News
Q&A: Mike Williams, Jetaire Group
Wish Upon a Star
Sunshine, Rain and Mixed Feelings
ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Survival of the Fittest
Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
5 Places to Visit While Attending the ISTAT Latin America Forum
From the ISTAT Photo Archives
From the Jetrader Editorial Archives
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index
Advertiser.com
Jetrader - Autumn 2016 - cover1
Jetrader - Autumn 2016 - cover2
Jetrader - Autumn 2016 - 3
Jetrader - Autumn 2016 - 4
Jetrader - Autumn 2016 - 5
Jetrader - Autumn 2016 - 6
Jetrader - Autumn 2016 - A Message from the President
Jetrader - Autumn 2016 - 8
Jetrader - Autumn 2016 - 9
Jetrader - Autumn 2016 - Calendar/News
Jetrader - Autumn 2016 - 11
Jetrader - Autumn 2016 - Q&A: Mike Williams, Jetaire Group
Jetrader - Autumn 2016 - 13
Jetrader - Autumn 2016 - 14
Jetrader - Autumn 2016 - 15
Jetrader - Autumn 2016 - Wish Upon a Star
Jetrader - Autumn 2016 - 17
Jetrader - Autumn 2016 - Sunshine, Rain and Mixed Feelings
Jetrader - Autumn 2016 - 19
Jetrader - Autumn 2016 - 20
Jetrader - Autumn 2016 - 21
Jetrader - Autumn 2016 - 22
Jetrader - Autumn 2016 - 23
Jetrader - Autumn 2016 - ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Jetrader - Autumn 2016 - 25
Jetrader - Autumn 2016 - 26
Jetrader - Autumn 2016 - 27
Jetrader - Autumn 2016 - 28
Jetrader - Autumn 2016 - 29
Jetrader - Autumn 2016 - 30
Jetrader - Autumn 2016 - 31
Jetrader - Autumn 2016 - Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Jetrader - Autumn 2016 - 33
Jetrader - Autumn 2016 - 34
Jetrader - Autumn 2016 - 35
Jetrader - Autumn 2016 - 36
Jetrader - Autumn 2016 - 37
Jetrader - Autumn 2016 - Survival of the Fittest
Jetrader - Autumn 2016 - 39
Jetrader - Autumn 2016 - 40
Jetrader - Autumn 2016 - 41
Jetrader - Autumn 2016 - 42
Jetrader - Autumn 2016 - 43
Jetrader - Autumn 2016 - Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
Jetrader - Autumn 2016 - 45
Jetrader - Autumn 2016 - 5 Places to Visit While Attending the ISTAT Latin America Forum
Jetrader - Autumn 2016 - 47
Jetrader - Autumn 2016 - 48
Jetrader - Autumn 2016 - 49
Jetrader - Autumn 2016 - From the ISTAT Photo Archives
Jetrader - Autumn 2016 - 51
Jetrader - Autumn 2016 - 52
Jetrader - Autumn 2016 - 53
Jetrader - Autumn 2016 - From the Jetrader Editorial Archives
Jetrader - Autumn 2016 - 55
Jetrader - Autumn 2016 - 56
Jetrader - Autumn 2016 - 57
Jetrader - Autumn 2016 - Aviation History
Jetrader - Autumn 2016 - 59
Jetrader - Autumn 2016 - 60
Jetrader - Autumn 2016 - 61
Jetrader - Autumn 2016 - 62
Jetrader - Autumn 2016 - Aircraft Appraisals
Jetrader - Autumn 2016 - 64
Jetrader - Autumn 2016 - 65
Jetrader - Autumn 2016 - ISTAT Foundation
Jetrader - Autumn 2016 - 67
Jetrader - Autumn 2016 - 68
Jetrader - Autumn 2016 - Advertiser Index
Jetrader - Autumn 2016 - Advertiser.com
Jetrader - Autumn 2016 - cover3
Jetrader - Autumn 2016 - cover4
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