New Zealand is going to join an international convention which will save the aviation industry more than $300 million over the next six years, Transport Minister Steven Joyce says.By joining the Cape Town Convention, New Zealand would become part of an in
New Zealand is going to join an international convention which will save the aviation industry more than $300 million over the next six years, Transport Minister Steven Joyce says.
By joining the Cape Town Convention, New Zealand would become part of an international system that protected commercial security interests in aircraft equipment, Mr Joyce said today.
"The convention will offer greater certainty to all parties, allowing lenders and lessors to offer discounted rates to aircraft operators in states that are party to the convention," he said.
"This will reduce aircraft financing costs for most of the country's commercial air transport operators in future aircraft acquisitions, helping improve the bottom line for both the aviation and finance sectors."
Mr Joyce said Air New Zealand was buying 23 new aircraft over the next six years and the rest of the industry could buy about 160 aircraft and 400 helicopters during a similar period.
Potential savings in finance costs were estimated to be $325 million on loan interest rates and $18m through reductions in the cost of export credit guarantees.
Mr Joyce said he would introduce legislation to Parliament by the middle of the year.
