GATS

The trading and financing of aircraft equipment subject to leases is an increasingly important part of the aviation industry. In recent years, as the number of trades has significantly increased, inefficiencies have developed. That has resulted in wasted time and resources for airlines, lessors and financiers alike. AWG is addressing these inefficiencies through its development of the Global Aircraft Trading System (GATS), a system designed to modernize aircraft equipment trading and financing.

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 which, above all, protects the rights of all parties involved, including and especially the lessee’s rights under the lease. GATS will increase the transparency of and confidence in aircraft trading, and further protect rights, by introducing a secure, live and searchable electronic ledger displaying details of ownership and security interests in GATS.

The rights of lessees will be protected in particular by prohibiting transfers unless agreed conditions in favor of the lessee have been satisfied or waived. GATS will further reinforce ‘no increased obligations’ lease provisions in favor of lessees.

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. For more information on GATS, please also refer to the Frequently Asked Questions (FAQs) document.

GATS timing

The GATS platform for electronic trading will launch by the end of the first quarter of 2020. AWG has released exposure drafts of the GATS instruments for industry review by the end of June 2019. In July 2019, the transition period will commence with the publication of finalized transition period standard form GATS instruments. Parties intending to use the GATS platform from and after launch may wish to use the transition period standard form GATS instruments to allow for efficient migration into GATS on or after the GATS platform launch. However, it is not a prerequisite to the use of GATS that the transition period instruments are used prior to the GATS platform launch.

On 29 March 2019, AWG and Fexco announced their agreement to collaborate on the GATS platform, developed by AWG. Information on the GATS platform will also be shared with, and advice will be taken from, Aviareto, the registrar of the Cape Town Convention international registry, with a view to advancing best practices on electronic systems and practices for the aviation leasing and financing sector. See press release for further details.

GATS guidance, e-terms and instruments

GATS is a global system with the GATS platform to be accessible worldwide. Initially, each GATS trust will be formed in one of Ireland, Singapore or the United States (with the laws of such applicable jurisdiction governing the instruments used to create, transfer and create security interests in such GATS trusts). AWG may expand the list of available jurisdictions over time.

Guidance materials for GATS along with the GATS instruments for each jurisdiction are provided below. Parties wishing to provide comments to the exposure drafts can email Jeffrey Wool (AWG Secretary General) at Jeffrey.Wool@awg.aero

GATS Guidance, e-Terms, and Instruments:

DOWNLOAD ALL GATS GUIDANCE, E-TERMS, AND INSTRUMENTS [exposure drafts]

NOTE: The Transition Period Instructions [exposure draft] are being provided as reference materials ahead of the transition period. The finalized transition period standard form GATS instruments will be published at the start of the transition period. The transition period instruments are substantially similar to the standard form of the equivalent GATS instrument, save that the transition period instruments may be executed manually.

United States GATS Instruments

United States GATS Trust Instruments (US-UT)

DOWNLOAD ALL GATS TRUST US-UT INSTRUMENTS [exposure drafts]

United States GATS Trust Instruments (US-DE)

DOWNLOAD ALL GATS TRUST US-DE INSTRUMENTS [exposure drafts]

NOTE: AWG is publishing draft GATS trust instruments for Utah and Delaware common law trusts. GATS trust instruments for Delaware statutory trusts and Utah business trusts will be published at a later date.

United States GATS Security Instruments (US-NY)

DOWNLOAD ALL GATS SECURITY US-NY INSTRUMENTS [exposure drafts]

DOWNLOAD ALL GATS US INSTRUMENTS (US-UT, UT-DE and US-NY) [exposure drafts]

Ireland GATS Instruments

DOWNLOAD ALL GATS IRELAND INSTRUMENTS [exposure drafts]

Singapore GATS Instruments

DOWNLOAD ALL GATS SINGAPORE INSTRUMENTS [exposure drafts]

GATS transitional forms

United States GATS Transitional Forms:

Ireland GATS Transitional Forms:

Singapore GATS Transitional Forms:

Transitioning from a Wells Fargo trust to a GATS trust

Following the announcement by Wells Fargo Trust Company, N.A. that it intends to resign from many of its aircraft owning trusts, AWG is making available the Global Aircraft Trading System (GATS) transitional form draft documents for Utah common law trusts.

The GATS transitional forms will enable affected leasing companies seeking to take advantage of GATS to use the appointment of a new trustee as an opportunity to make their owner trusts ‘GATS ready’, as the GATS transitional forms are substantively the same as the standard electronic form GATS instruments, and explicitly contemplate migration of the applicable trust into GATS for efficient transition on to the GATS electronic platform, once launched.

These draft documents may be used at any time, including prior to the formal start of the transition period (expected to be on 15 July 2019). The GATS transitional forms for other jurisdictions and types of trusts will be published by AWG at the start of the transition period.

AWG has prepared instructions and information on transitioning from a Wells Fargo trust to a GATS trust, which also includes information on applying for a Unique Identification Number (UIN) for each affected trust.

The provision of these documents is not meant to limit the feedback requested on the exposure drafts.

GATS Transitional Forms Drafts:

DOWNLOAD ALL ABOVE GATS TRANSITIONAL FORMS DRAFTS

GATS

GATS timing

GATS guidance, e-terms and instruments

GATS Guidance, e-Terms, and Instruments:

United States GATS Instruments

Ireland GATS Instruments

Singapore GATS Instruments

GATS transitional forms

United States GATS Transitional Forms:

Ireland GATS Transitional Forms:

Singapore GATS Transitional Forms:

Transitioning from a Wells Fargo trust to a GATS trust

GATS Transitional Forms Drafts:

Additional Documents:

Other historic documentary projects on facilitating aircraft transfers and standardization of aircraft financing documents

Standardized novation/assignment and assumption agreements

Aircraft purchase agreement, warranty assignments and engine title recognition agreement

Short-term emergency engine lease

Our projects