Ministers for the Department of Infrastructure, Regional Development and Cities The Hon Michael McCormack MP Deputy Prime MinisterMinister for Infrastructure, Transport and Regional Development Senator the Hon Bridget McKenzie Minister for Regional ServicesMinister for SportMinister for Local Government and Decentralisation The Hon Alan Tudge MP Minister for Cities, Urban Infrastructure and Population The Hon Sussan Ley MP Assistant Minister for Regional Development and Territories The Hon Andrew Broad MP Assistant Minister to the Deputy Prime Minister The Hon Scott Buchholz MP Assistant Minister for Roads and Transport The Hon Barnaby Joyce MPFormer Deputy Prime MinisterFormer Minister for Infrastructure and Transport The Hon Dr John McVeigh MPFormer Minister for Regional Development, Territories and Local Government The Hon Keith Pitt MPFormer Assistant Minister to the Deputy Prime Minister The Hon Damian Drum MPFormer Assistant Minister to the Deputy Prime Minister Senator the Hon Fiona Nash Former Minister for Regional DevelopmentFormer Minister for Local Government and Territories The Hon Darren Chester MP Former Minister for Infrastructure and TransportFormer A/g Minister for Regional DevelopmentFormer A/g Minister for Local Government and Territories The Hon Warren Truss MP Former Deputy Prime Minister Former Minister for Infrastructure and Regional Development The Hon Paul Fletcher MP Former Minister for Urban Infrastructure and Cities The Hon Jamie Briggs MP Former Assistant Minister for Infrastructure and Regional Development

Australian Government makes good on Cape Town Convention

Media Release

WT173/2015

12 June 2015

Australia's aviation industry has received a major boost with the Australian Government completing the formal accession to the Cape Town Convention.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said acceptance of the Convention will help Australian airlines gain access to lower cost finance for aircraft purchases.

“The Cape Town Convention is an internationally recognised legal framework for registering and enforcing security interests in aircraft,” Mr Truss said.

“It is intended to reduce risk for creditors, meaning lower borrowing costs for the purchase of aircraft assets.

“Importantly, the Cape Town Convention also applies to aircraft carrying as little as eight passengers or 2,750kg of goods—meaning that our regional airlines and general aviation sector can also benefit from lower aircraft purchase costs.

“It is estimated that Australian airlines could save up to $5.6 million on the purchase of a new Airbus A380 and up to $330,000 on the purchase of a new ATR72 aircraft.

“These changes will better equip Australia's aviation industry for future challenges by enabling them to accelerate fleet upgrades and enhance their international competitiveness.”

The Instrument of Accession and a series of declarations have been deposited with the International Institute for the Unification of Private Law, completing the formal accession process to the Cape Town Convention.

The Cape Town Convention will enter into force in Australia on 1 September 2015.