Kingdom should adopt Cape Town Convention, say insiders

25 Feb 2019 2115 | Business & Trade Fairs

As the Cambodian aviation sector grows rapidly alongside significant growth in the tourism sector, the Kingdom should consider adopting the Cape Town Treaty for the benefit of aircraft purchasing and leasing, industry insiders said.

The Cape Town Convention on International Interests in Mobile Equipment – or Cape Town Treaty – is a mechanism allowing aviation companies to lease or buy aeroplanes and helicopters at a lower cost, as well as acquire some of the latest aviation technologies on the market.

The US Embassy in Phnom Penh, in partnership with AmCham Cambodia and Cambodia’s State Secretariat of Civil Aviation, last Friday hosted a seminar on Aviation and the Cape Town Treaty.

Speaking to reporters at the event, Michael Newbill, Charge d’affaires at the US Embassy in Phnom Penh, said Cambodia’s tourism sector is growing very fast, bring a huge growth opportunity for the country’s aviation sector.

While citizens, as well as tourists, require modern aviation infrastructure and services to support growing international travel and trade, Newbill said the adoption of the Cape Town Treaty could allow the Kingdom’s aviation companies to lease or buy aeroplanes and helicopters at lower costs, as well as acquire some of the latest aviation technologies on the market.

“If you look at tourism growth in Cambodia, it is very high and the aviation sector is a very large and very positive area for growth and we would like to contribute to that growth."

“It offers tremendous economic and trade opportunity for US aircraft, for US aviation technology and US aviation services which we are very eager to promote,” he said.

The Cape Town Treaty seminar’s objective was to help the Kingdom’s aviation companies better understand the benefits of the Cape Town Treaty and learn more about how the convention can support the country’s growing number of airlines and helicopter companies, including how to reduce costs on aircraft purchases and leases as well as provide new sources of financing.

In attendance were 13 representatives from across the US’ aviation landscape – including Boeing, General Electric, Aircastle and Magellan Aviation Group.