Cape Town Treaty To Apply to Share Owners
Operators who own a share of an aircraft are to be included in the International Registry of Mobile Assets (IRMA), giving them the same Cape Town Treaty protection sole owners have had since March 2006. IRMA management company Aviareto plans to announce this month that it will permit registration of multiple owners in a single aircraft. Since the whole aircraft must be accounted for, initial registration of fractionally owned aircraft could show program operators holding 100 percent; this would be diluted until all shares are sold, after which time fractional providers would hold “zero-percent” interest. The treaty covers aircraft approved for eight seats (including crew), helicopters with five seats (including crew), and engines rated at 1,750 pounds of thrust (or 550 hp) or more. Sixteen countries have ratified the treaty, which is intended to reduce creditors’ risk since it clarifies asset ownership and priorities of financial interest.