Further to our previous alerts (found here and here), pursuant to the International Interests in Mobile Equipment (Cape Town Convention) Act 2013 (Cape Town Act), the Australian Federal Government has enacted the International Interests in Mobile Equipment (Cape Town Convention) Rules 2014 (the Rules) which confers powers upon the Civil Aviation Safety Authority (CASA) in relation to an Irrevocable Deregistration and Export Request Authorisation (IDERA).
IDERAs are a voluntary measure providing greater security to creditors by preventing a debtor from flying the asset to a jurisdiction where the Cape Town Convention does not apply.
To facilitate this remedy, the registration holder will be able to submit an IDERA to CASA indicating that the only party with the right to deregister and export a specified aircraft object is a specified ‘authorised party’. The Rules also provide for an authorised party to issue a certified designee confirmation letter (CDCL), which allows the authorised party to transfer its rights to the certified designee. The CDCL cannot be withdrawn without the consent of the certified designee.
The Rules provide for CASA to charge a processing fee to cover the administrative costs associated with the recording, removal and exercise of an IDERA.
The IDERA Rules will become effective when the Cape Town Act commences. This is expected to take place around June 2015. We are continuing to discuss the implementation of the Cape Town Convention and its interaction with Australian laws with the relevant government departments and will keep you posted.