AWG has released exposure drafts of GATS instruments
The Aviation Working Group (AWG) has released exposure drafts of the Global Aircraft Trading System (GATS) instruments for the aviation industry’s review by the end of June 2019.
AWG has provided guidance materials for GATS along with the GATS instruments at the following link.
The main purposes of GATS are to facilitate the trading and financing of aircraft equipment by reducing the burdens on lessees, lessors and financiers, and to promote aircraft equipment trading and financing in an efficient, secure and predictable manner.
GATS intends to increase the transparency of aircraft trading, protecting rights of involved parties by introducing a secure, live and searchable electronic ledger displaying details of ownership and security interests in GATS.
GATS will be a fully electronic system, with e-signatures, e-delivery of documents and use of a secure e-ledger to record transactions. It will be a voluntary system open to all industry players.
The published exposure instruments include draft terms for trusts established in Ireland, Singapore and the United States with the laws of the applicable jurisdictions governing the instruments used to create, transfer and create security interest in such GATS trusts.
In July 2019, the transition period will commence with the publication of finalised transition period standard form GATS instruments.
Deloitte is available to answer tax and other related queries from parties intending to use the GATS platform.