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AIA Applauds Signing Of Cape Town Convention WASHINGTON, D.C. May 13-- The Aerospace Industries Association welcomes the May 9 signing of the Cape Town Convention in Rome by the United States. This agreement establishes an international legal framework for modern asset-based financing and leasing of high-value equipment, including aircraft and aircraft engines. AIA, which represents U.S. manufacturers of commercial, military and business aircraft and related components and equipment, will work with the Senate to support prompt ratification of the Cape Town Convention. John W. Douglass, AIA President and CEO, and a member of the Commission on the Future of the United States Aerospace Industry, welcomed the U.S. move. "The signing and prompt ratification of this Convention by the United States is an important investment in the future of the aviation industry. For years now, the lack of such an agreement has increased the risk element and restricted the availability of aviation credit to key markets of U.S. commercial aviation equipment. The Convention will ensure the timely enforcement of financing contracts, and hence improve the availability and terms of credit for such purchases. The growth of these foreign markets is fundamental to the future growth of our industry." The U.S. participated in the negotiations leading to the Convention and a special protocol on aircraft equipment, which were concluded in November of 2001. Interagency coordination has been completed, and it is anticipated that the Senate will be asked to ratify the convention before the end of summer. To emphasize the utility of the treaty, the U.S. Export Import Bank announced on January 31that it would reduce by one-third the exposure fees charged to countries that are signatories to the convention when financing commercial aircraft. AIA is working with the Commerce Department and other agencies to offer a seminar on the benefits of the Cape Town Convention to selected foreign governments at the Paris Air Show in June. P.A. Rel 2003-30 05.13.03 -AIA- Contact: Matt Grimison, AIA Alexis Allen, AIA |
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