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. The decision was a logical one following the New Fiscal Framework that was introduced in Aruba in 2006 and the modern aircraft registration and financing legislation that Aruba has in place. The decision was taken shortly after Aruba successfully passed the ICAO audit, maintaining its Category-1 status appointed by the FAA in 2009. This step was taken by the Government to further diversify the economy. Unlike many other jurisdictions that are merely now starting to draft legislation, Aruba has all the aviation-, flight safety-, finance-, civil- and corporate legislation in place to attract foreign aircraft owners, lessors and operators to register their aircraft and/or engines in Aruba.
Put simply the intent behind the Convention is to facilitate the acquisition and financing of aircraft. It seeks to do this in a number of ways and the Convention is credited with a number of key objectives:
Aruba currently provides OECD- and EU-compliant fiscal legislation that can be very attractive for foreign investors. Aruba’s Directorate of Civil Aviation is: (i) ICAO certified; (ii) equipped with the right regulatory tools; and (iii) experienced in inspecting, registering and maintaining the right safety protocols to safeguard the safety of the high valued mobile assets. The Cape Town Convention will further enhance Aruba as more attractive jurisdiction for the registration of Aircraft in the region. This would make Aruba an ideal hub for registration of aircraft, helicopters and engines to be used in Latin-America, Central-America and the Caribbean.
This would also allow for a stronger presence in those markets located in the Eastern hemisphere that are already taking advantage of the modern legal infrastructure that Aruba provides such as: Russia and Kazakhstan. Aruba currently has about 10% of the aircraft registration in Ireland, where the International Registry is based. This percentage is expected to raise significantly once the ratification of the Convention is published by the UNIDROIT which is the formal Depositary of the Cape Town Convention.
This document is construed for general information only. The information
presented should not be construed to be formal legal advice.