(Kuala Lumpur) The International Air Transport Association welcomed Malaysia’s leadership in becoming the 8th state to ratify the Cape Town Convention and its Aircraft Protocol. This ratification will bring the Treaty into effect from 1 March 2006.
“I applaud Malaysia’s leadership in ratifying this important convention, which creates an international legal framework that will help attract finance to the aviation industry. This will play a key role in helping airlines acquire modern aircraft using the most advanced financing and leasing tools. It really is a win-win situation. This could save the airlines billions in financing costs. And the modern aircraft that will be acquired will be more fuel efficient—helping the environment while reducing operating costs. For an industry that has lost US$42 billion in the last five years, today’s signing is an important step forward,” said Giovanni Bisignani, IATA’s Director General and CEO.
IATA worked closely with the Aviation Working Group to help Malaysia in the process of acceding to the Treaty’s instruments.
“An efficient air transport industry has widespread economic benefits. Globally air transport is a US$400 billion industry supporting US$3 trillion in economic output. It is important for governments to recognise, as has the Government of Malaysia, that this global industry needs international consistency for finance and leasing. I urge all states to quickly follow Malaysia’s lead. IATA will continue to cooperate closely with the AWG to help facilitate early and widespread global adoption,” said Bisignani.
Notes for Editors:
- The Aviation Working Group is co-chaired by Boeing and Airbus and comprises major aviation manufacturers, leasing companies and financial institutions.
- The Cape Town Convention was concluded in November 2001 in discussions involving 68 states and 14 international organisations following 14 years of work. It is an umbrella treaty covering all aspects of mobile instruments with separate protocols.