In a move expected to significantly ease aircraft leasing procedures, the Parliament of Georgia has ratified the Cape Town Convention, an international treaty that protects the rights of aircraft lessors and operators. According to the Civil Aviation Agency, Georgia is currently completing the final internal procedures to fully implement the convention.
The new legal framework will apply to all airlines registered in Georgia that have signed or will sign international leasing agreements with foreign lessors. Industry experts and airline executives view this development as a major step toward improving Georgia’s appeal to international leasing companies.
Shalva Kiknadze, President of Geo Sky, one of Georgia’s active cargo carriers, welcomed the decision, emphasizing the benefits for both local operators and international partners.
“Until now, the process was quite difficult,” Kiknadze said. “Foreign leasing companies demanded numerous guarantees from Georgia to ensure that aircraft could be repossessed if an airline failed to meet its obligations. Even though the Civil Aviation Agency issued guarantees, lessors still requested additional international guarantees, often leading to delays and added financial burdens.”
Kiknadze noted that the Cape Town Convention will significantly reduce the perceived risk associated with leasing aircraft to Georgian airlines. Previously, lessors would require extended guarantee periods, sometimes four to five months of financial guarantees, as opposed to the standard two months, due to the lack of streamlined legal protections.
“This convention secures the rights of all parties, the airline, the operator, and most importantly, the lessor,” Kiknadze added. “If a Georgian airline defaults, the aircraft owner will now be able to swiftly reclaim and deregister their aircraft through internationally recognized legal channels.”
