The Cape Town Convention on International Interests in Mobile Equipment (the “Cape Town Convention”) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the “Cape Town Protocol”)
Written by Nicole Cunha with Basch & Rameh
www.linkedin.com/in/nicolerenecunha
The Cape Town Convention has become effective in Brazil since 2012 with local federal implementation decree since May 2013. Brazil has adopted “Alternative A” under Cape Town Protocol (as defined below) and instituted a 30-day stay period which should be applied in cases of Brazilian airline bankruptcies. Under Brazilian law, international treaties such as the Cape Town Convention, after due accession and ratification, have the force of ordinary laws under the Brazilian legal system and thus there are legal grounds on which to argue that such treaties should prevail, in accordance with their terms and the declarations deposited by Brazil in respect thereof. Nonetheless, the Brazilian judiciary, in the bankruptcy restructuring case involving Oceanair Linhas Aéreas S.A., failed to respect the time periods of Alternative A of the CTC as well as certain of the rights accorded to creditors under Article 13 of the CTC. However, recently in 2025, in an aircraft repossession lawsuit handled by our firm an Appeals Court Judge, citing the Cape Town Convention, assured lessors the right to immediately exercise the contractual and legal measures suitable for preserving their rights, including repossession rights.
Irrevocable Deregistration and Export Authorizations (IDERAs) have been used in several cases over the years to effectively deregister aircraft from the Brazilian Aeronautical Registry (RAB). The RAB has quickly processed aircraft deregistrations by the use of IDERAs within no more than two (2) days.
In conclusion, since it came into force, there has been a task force effort by the local aviation authority and local practitioners to ensure the effective implementation of the Cape Town Convention.