AWG releases GATS documents; signs new agreement with FEXCO

Lauren Eldershaw
By Lauren Eldershaw April 4, 2019 15:38

AWG releases GATS documents;  signs new agreement with FEXCO

The Aviation Working Group (AWG) has released draft instruments to be used in the Global Aircraft Trading System (GATS), an online platform designed to make the buying and selling of aircraft and engines on lease simpler and faster, to reduce the burden on airlines, lessors and financiers, and to produce widespread benefits for the industry. Comments on these exposure drafts are requested by the end of June 2019. In July 2019, the transition period will commence with the publication of finalized transition period standard form GATS instruments. The GATS platform for electronic trading will launch by the end of the first quarter of 2020. See GATS page for further information and documents. http://www.awg.aero/projects/gats/

On March 29, 2019, the AWG and Fexco announced their agreement on the development and operation by Fexco of a global, electronic aircraft trading system e-ledger (the ‘GATS Platform’) for the aircraft leasing and financing industry that will simplify the business of selling aircraft which are subject to lease agreements.

The GATS Platform will implement the global aircraft trading system (the ‘GATS’), developed by the Aviation Working Group. The GATS will electronically effect select transactions using standard documents which will be recorded on the GATS Platform. The GATS is specifically designed to ensure that all rights of airlines set out in their lease agreements are fully protected and that no obligations of airlines are increased in connection with aircraft trading.

This collaboration is part of the ongoing work of the Aviation Working Group and Fexco to innovate and leverage new technology to reduce the burden on and time and cost for airlines, lessors and financiers in executing and managing transactions and to produce widespread benefits for the industry.

The GATS Platform will operate using state of the art technology, and is being designed to migrate to a private blockchain if and when AWG concludes that such is advisable. The GATS Platform will be available for further development and enhancement to meet the future needs of the aircraft leasing and financing sector.

Information on the GATS Platform will be shared with, and advice will be taken from, Aviareto, the registrar of the Cape Town Convention international registry, with a view to advancing best practices on electronic systems and practices for the aviation leasing and financing sector.

The Aviation Working Group and Fexco expect that the GATS Platform will be operational by the end of the first quarter of 2020.

Lauren Eldershaw
By Lauren Eldershaw April 4, 2019 15:38