Within the context of the refinancing of an aircraft fleet leased to an Egyptian Operator, which Dentons advised on, led by Frédérique Léger, a Legal Consultant who specialises in banking and asset finance, and which closed last September, the Egyptian Civil Aviation Authority (ECAA) has, for the first time, accepted the deposit and the notarization of Certified Designee Confirmation Letters (CDCL).

While Egypt ratified the Cape Town Convention and its Aircraft protocol in 2014, it remained a dead letter since then due to lack of local implementation decrees.  Despite the delay in the implementation, the ECAA willingness and intention to pave the way for its future implementation has been reiterated recently when the ECAA officials have accepted the deposit and notarization of CDCL in favor the financiers of the Lessee.

After having accepted the registration and notarization of International Deregistration and Export Request Authorization (IDERA), the acceptance by the ECAA of the deposit and notarization of a CDCL, although subject to the full activation of the Convention, is another step towards the future implementation of the Convention and evidence of the awareness and willingness of the ECAA officials to work towards a full implementation regime.

Cape Town full activation in Egypt will not only benefit financiers and lessors, but also Egyptian aircraft operators, lessees, who would benefit from better pricing resulting from the improved creditor's rights under the Convention.