Over $500 billion worth of aircraft deals are now estimated to be logged on the Irish-based global register of assets that acts as a legal ownership guarrantee for the aviation leasing and finance industries.
The International Registry of Mobile Assets, a joint venture between aviation communications specialist, Sita and the Republic’s Government, this week reached a milestone when the number of registrations on its books passed the half-a-million mark.
All aircraft-related leasing or finance agreements from 120 countries are recorded on the register, which was established under the terms of an international treaty, the Cape Town Convention, in 2001, and has been headquartered in Blanchardstown, Dublin since 2006.
Since then, it has received over 500,000 registrations involving over 110,000 aircraft, engines and helicopters. Aviareto, the company charged with managing the register, estimates the total value of assets involved at $500 billion.
According to Rob Cowan, Aviareto's managing director, it plays much the same role in the aviation finance industry as the Registry of Deeds does for the property business, it provides a legal basis for ownership claims over aircraft.
“We don’t register the aircraft themselves, we register the leases and loans against aircraft,” Mr Cowan says. He explains that claims based on those transactions that are registered take priority over those that are not, and are recognised by the courts in the 57 countries that have signed up to the Cape Town Convention, including the Republic.
The system was established under the treaty to allow aircraft lessors and financiers to be able to enforce the security they hold against the assets should the y need to.
The International Civil Aviation Organization (ICAO) a UN agency responsible for overseeing all aspects of global air travel supervises the registry. Its secretary general, Raymond Benjamin, said "reaching half a million registrations clearly demonstrates that the international registry is meeting the needs for which it was created".
The Republic was selected as the home for the registry following a competitive bidding process, partly aided by the fact that it has a strong presence in the aviation leasing industry.
The registry is entirely internet based. Its software is also developed in the Republic, in Sita's based in Letterkenny, Co Donegal, where 10 staff work solely on providing systems for the Blanchardstown operation.
