The Impact Of Cape Town Convention On The Lease Of Civil Aircraft Equipment In China

Nowadays, with the development of the economic globalization, there is a growing trend of the world trade and business dealings. As the primary and the preferred means of the international traffic transportation, the aircraft transport industry has been further development. Therefore, the demand for the aircraft equipments has been increased dramatically. As the price of the aircraft equipment is very expensive, and the investment in it always needs the relatively long time to get the returns, so most of the airline companies tend to choose the lease instead of buying. That is the background of the aircraft leasing. Being a kind of the financing form, aircraft leasing can greatly reduce the capital of the airlines and the constraints of the cost, besides, it can help the airlines to buy aviation equipment they need with a lower price, thus to expand their companies’ size and production capacity, in order to promote the prosperous of the aviation industry. Currently, the aircraft leasing has been widely used by most of the countries in the world, this situation requires a corresponding international treaty to be protected by.With the efforts of the multi-national joint countries, the International Association of ICAO and UNIDROIT adopted the "Convention on International Interests in Mobile Equipment" and the "Convention on International Interests in Mobile Equipment on issues specific to Aircraft Equipment Protocol", both collectively referred to as the Cape Town Convention. The Cape Town Convention aimed at establishing a cross-border adjustment between aviation equipment guarantees, property retention and leasing interests of the legal system, while protecting the interests of the lessee, and also giving the necessary guarantee for the lessors. In June 1st of 2009, the Cape Town Convention entered into force in our country, so my article will analysis the important clauses and the basic principles of the Cape Town Convention, and try to explore its protective relief system in the field of aircraft lease financing. In addition, I will try to give the advice to Chinese current aircraft lease industry through the research of the other countries’ aircraft finance lease model, in order to further discuss what China should do after joining the Cape Town Convention.This article consists of four parts. The first part is mainly introduce the background and the content of the Cape Town Convention, try to analysis the clauses which regulate the aircraft leasing system, and introduce the rights which the state can enjoy after accede to the convention. The second part focuses on the concept and the relatively tradition of the aircraft leasing industry. Besides, it will make a comparison of the aircraft leasing industry in different countries of the world. The third part makes introduction of the current condition of Chinese aircraft lease system and try to figure out the advantages as well as the disadvantages, and what it will affect to Chinese status quo of the aircraft leasing system after China join the Cape Town Convention. The forth part is based on the basic of the first three parts, it will put forward the advice on the Chinese aircraft leasing system, in response to the Cape Town Convention, try to promote the early integration of the domestic industry and international standards as soon as possible, and to summarize the relevant measures to improve and construct the corresponding legal safeguards system.