Australia to sign up to Cape Town Convention to support lower cost aircraft finance arrangements

Australia's Minister for Infrastructure and Transport Anthony Albanese announced (12-Oct-2012) the Federal Government will sign up to the Cape Town Convention which will provide Australian airlines with access to lower cost finance for aircraft purchases. Mr Albanese said, "Once the convention is in place, Australian airlines of all sizes will be able to access cheaper finance when purchasing aircraft, jet engines or helicopters. It is estimated that airlines could save in the order of $2.5 million on the purchase of a new Airbus A380 and airlines operating smaller aircraft could save around $330,000 on the purchase of a new ATR72 aircraft. Discount financing will also be available for purchases of second hand aircraft which will help smaller regional airlines upgrade and maintain their fleet." Mr Albanese also noted that changes in 2011 to the Aircraft Sector Understanding mean financing discounts now apply to a wider range of aircraft, including turbo-propeller aircraft which had been previously excluded. As a first step, the Government will table the Cape Town Treaty in Parliament later this month. The Department of Infrastructure and Transport will then work with the Attorney General's Department and the Department of Foreign Affairs and Trade to bring the treaty into domestic law in 2014. [more - original PR]