CAIRO: Egypt’s agreement on the Cape Town Convention will open new horizons for the aviation industry since it provides good opportunities for financing companies seeking to rent or purchase planes, Minister of Civil Aviation Hossam Kamal announced Sunday.
This agreement will promote the aviation companies’ growth, Mubasher News Gate reported. The Cape Town Convention has two main aspects. The first aspect is addressing the commercial transaction between the Conventions members including the stationary object and contracts of aircraft equipment. The second aspect is concerned with the planes itself “including international standards of manufacturing,” he said.
The core significance of the convention lies in providing the required funds to purchase aircrafts, reducing legal risks between member countries, and facilitating the sales contracts of aircraft equipment, Kamal said.
Interim president Adly Mansour issued a presidential decree Saturday to approve joining Egypt to the Cape Town Convention signed on November 16, 2001.
The convention is also known as The Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment. Kamal said the convention played a vital role in the past ten years in attracting investments for aviation and plane industries.
United Arab Emirates-based company Arabtec Construction recently announced its interest in establishing an airport in October 6 City, noting that it received the necessary support from the Egyptian government.
Member of the Investors Association in October 6 City Ahmed Samir said the establishment of an airport in the city will boost the level of provided services in the industrial zone there.
Samir added the establishment of this project will also improve civil aviation services for factories and companies in the region.