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Bill to ratify Cape Town Convention introduced

written by WOFA | May 29, 2013
Airlines should benefit from lower aircraft financing costs. (Rob Finlayson)

Infrastructure and Transport Minister Anthony Alabanese has introduced a Bill to parliament which will ratify Australia’s signature of the Cape Town Convention, which promises more affordable aircraft financing

“By acceding to this convention, Australian airlines of all sizes will be able to access cheaper finance when purchasing aircraft, jet engines or helicopters,” Minister Albanese said in introducing the ‘International Interests in Mobile Equipment’ Bill. “It is estimated that Australian 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 ATR 72 aircraft — like those flown by Virgin Australia.”

The Minister said the changes under the bill will will reduce creditor risk and give Australian operators access to a wider variety of finance sources.

“Discount financing will also be available for purchases of second hand aircraft which will help smaller regional airlines upgrade and maintain their fleet,” he said.

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