Irish-based International Registry of Mobile Assets contract renewed for five more years
Established in open competition with the rest of the world, the Irish-based International Registry of Mobile Assets has proved a resounding success. With one million registrations recorded since 2006 the company which runs it, Aviareto, a joint venture involving the Irish State, has just had its contract renewed for a further five years, on the back of a second year of 8 p.c. growth.

There were 121,661 registrations of financial interests with The International Registry of Mobile Assets last year, the Registry has revealed to Aviation Finance. This was the second year in a row that the number of registrations increased by 8 per cent and is consistent with the overall average compound rate of growth achieved since Cummings Air and Wachovia Bank (seephoto) registered their interests in a small Cessna aircraft on 2nd March 2006.

This week the Registry, established in Ireland by Aviareto in a joint venture with Enterprise Ireland, celebrated its one millionth registration, this time involving a Rolls Royce engine being leased to a Malaysian airline by a Singaporean lessor and financed by a German bank. Registrations to date over half a trillion dollars’ worth of assets. Aviareto was also celebrating the recent renewal of its contract by IACO for a further five years.

The basis for the International Registry of Mobile Assets is the Cape Town Treaty, adopted in 2001 by ICAO and UNIDROIT, to facilitate the financing, leasing and sale of aircraft, engines and helicopters, including the use of an electronic registration of financial interests in a single global registry. Ireland was one of the first countries to sign and ratify the Cape Town Treaty. To date, more than 74 countries have ratified the treaty, with more expected to do so over the next few years.
Bob Peregrin (aviation leasing lawyer) and Joan Roberts (aircraft leasing and escrow expert) accepting mementos marking the first registration, made in 2006 (of a Cessna owned by Cummings Air and Wachovia Bank). L-R: Bob Peregrin; Minister of State Michael D'Arcy, Dept. of Finance, Ireland; Rob Cowan, MD of Aviareto; Joan Roberts; Dan Ebbinghaus, Chairman of Aviareto

The contract to operate the International Registry was initially won by the company, which is 80 per cent owned by Donegal located tech company SITA and 20 per cent by Enterprise Ireland, in competition with companies in Singapore, Canada and Spain. ‘We won because we had the best proposal and a fantastic background in aviation and aviation technology because of our base here in Ireland and the proud 70-year history of SITA,’ according to managing director Rob Cowan.

With just 12 legal cases arising out of the total one million registrations, the International Registry is seen as a resounding success. The decision to extend the contract for a second time following a rigorous two week audit is testimony to the confidence that ICAO has in the operation here, Cowan notes.

Aviareto, which is SITA is owned by more than 400 members of the air transport industry, including the world’s leading airlines, holds the contract with the United Nations’ International Civil Aviation Organization (ICAO) to operate the International Registry of Mobile Assets, which is used to record the financial interest in airframes, aircraft engines and helicopters. Financial interests in aircraft from across the world are registered in Ireland with Aviareto and to date s have been securely registered.

According to Michael D’Arcy TD, Minister of State, Department of Finance, ‘Aviareto is a great example of how Ireland’s global leadership in aircraft leasing, digital technologies and cybersecurity protection have combined to create genuine value. Working with SITA, the IT provider for the air transport industry, to establish Aviareto and build its strong international reputation over more than a decade is a true knowledge economy win for Ireland. The combination of leasing, legal and technical expertise has meant Ireland can provide international services that support the growing airline industry.’

Since the adoption of the Cape Town Treaty, the Registry has helped streamline the acquisition and transfer of aircraft globally, reducing the risk of financing has been, cutting the cost and therefore making more finance available at more favorable rates. Because the registry is run from Ireland all legal cases involving the Registrar are held in the High Court of Ireland.

Speaking at a reception to mark the one millionth registration, Rob Cowan said the key to Aviareto’s success was its deep engagement with the aviation finance industry, with Ireland proving to be the ideal location. ‘Equally important has been the adoption of the highest standards in cybersecurity and risk management …' With rapid growth of the air transport industry, and the trusted position of Aviareto in the market, we expect the number of registrations to accelerate over the next decade’ he added.

The secure software platform used by Aviareto was developed by SITA at its development center in Letterkenny, Co. Donegal, where SITA employs 140 specialists delivering world-class and mission-critical technology to airlines, airports and government borders agencies as far afield as Asia, Australia, Africa, the Middle East and across the Americas.

Publication date: January 24th 2019