Enterprise Ireland has welcomed the announcement by the International Civil Aviation Organization (ICAO) that Irish company Aviareto, based in Shannon, has been selected to operate the international registry of financial interests in aircraft. This reinforces Ireland`s significant leadership position in aircraft financing. The Irish bid fought off stiff competition from bids from Canada, Singapore and Spain.

This registry will allow financial institutions to register their financial interest in aircraft and through this establish their priority of interest in such holdings. As a result, the risk of lending can be better assessed allowing the institutions to reduce the interest rates they charge. This is expected to reduce aircraft leasing costs by approximately 2 per cent globally, saving the airline business around US$5 billion each year.

Gerry Murphy, Executive Director, Enterprise Ireland said, The International Registry is a strategic high profile venture for the global aviation industry. Its location in Ireland will add to our already high standing in this community.

Based in Shannon, it will benefit from a concentration of other international Irish aviation activities and further serve to underpin associated industries such as the aircraft leasing industry where Ireland is a leading player.

Aviareto will provide stakeholders with a secure website to record their financial interests in aircraft and to establish the priority of that interest vis-a-vis other lenders. As a result all parties will have the proof of ownership required when seeking to gain control of the collateral (i.e. the aircraft) in the case of a default or dispute. Additionally, prospective lenders will be able to check existing loans against a particular aircraft and determine the order of priority in cases where several loans are issued for one asset. The International Registry is part of a secure international legal framework to facilitate asset-based financing of mobile assets, beginning with aircraft, aircraft engines and helicopters, which resulted from The Cape Town Convention, November 2001.

Colm Reilly, PA Consulting, leader of the Aviareto bid, said We are delighted to win this high profile contract from ICAO. It demonstrates that the Irish technology base and the Irish aviation sector can play a role at a global level.

Our wide-ranging support from the aviation community, including the Department of Transport and Enterprise Ireland, was greatly assisted by the involvement of SITA, and their Irish operations. This allowed for the collaboration with vital industry players and offered the technological insight to ensure success.

Global aviation IT provider SITA has played a leading role with governments, finance, manufacturing and airline interests worldwide to promote the concept and enable the implementation of this project. SITA Ireland, a shareholder in Aviareto, will provide the technology and expertise necessary to develop and then host the secure website which will be launched by the end of 2004.