Draft legislation was published in August designating the Convention (and its Protocol on Matters Specific to Aircraft Equipment) an EU Treaty, which will in due course allow legislation to be passed to implement the treaty into national law.
Ratification of the Treaty and Protocol, providing a harmonised international framework for the creation and registration of 'international interests' (such as mortgages and leases) in aircraft, is expected to reduce significantly the cost of raising aircraft finance, and was widely favoured in a consultation in 2010.
The Government's focus has now shifted to the practicalities of implementation. The Department for Business, Innovation and Skills ran a consultation, 'Ratification of the Convention on International Interests in Mobile Equipment and Protocol thereto on matters specific to Aircraft Equipment' from 16 June to 11 August 2014, seeking views on how the treaty should be implemented in the UK. Morton Fraser has been asked by the Government to review Scottish aspects of the draft legislation.
The Government has yet to issue any response on the consultation, but remains committed to ratifying the Convention and bringing it into UK national law in the near future. It is expected that this will be done by a single statutory instrument in late 2014, although further amendments to existing UK legislation are also likely to be needed. Further detail on the precise mechanics of implementing the Convention and its Protocol is expected in the Government's response to the consultation.