Dealing with registrations and jurisdiction in aircraft financing

Abstract

In aircraft financing, dealing with jurisdiction and applicable law is of paramount importance. Given the global nature of the aviation industry, the parties involved in aircraft-financing transactions must carefully consider the jurisdiction in which disputes may arise as well as the relevant laws that govern such disputes. In aircraft financing, there are a great number of jurisdictions that may be selected by the parties. The existing international treaties in aircraft financing, such as the 1948 Geneva Convention and the 2001 Cape Town Convention with its Aircraft Equipment Protocol, unified international law considerably. Nevertheless, these treaties have not resulted in the elimination of the conflict of laws, and the choice of law in the agreements has limited effect. Despite the registration obligations of aircraft being unified enough due to the rigorous requirements of the 1944 Chicago Convention and its Annexes, further unification is necessary to manage the conflicts of laws. Such uniformity is still awaited, although the Cape Town Convention and its Aircraft Equipment Protocol provide a standardized legal regime for aircraft financing, transactions, and registrations. These international instruments and the registration requirement therein (International Registry) help establish uniformity and clarity in the rights and priorities of the parties involved. This article introduces the complexity of these areas of the aviation industry and focuses on the jurisdictional challenges regarding registration and contractual relations.